‘There are thirty millions of Exchequer Bills outstanding.
The bill-broker brought bills to the banker, just as others brought them; nothing at all could be said as to it except that the Bank must not discount bad bills, must not discount too many bills, and must keep a good reserve.
Hankey says that the two ought to be managed on the same principle; but if so, he should have said whether he would assimilate the practice of the Bank of England to that of the other banks, or that of the other banks to the practice of the Bank of England. 4d. Thus it is not easy to find a remedy for high Bank Rate by any method of diminishing the maximum range of fluctuation in exchange. Policy as to how much of the gold should be kept in London and how much in India has fluctuated from time to time.
‘The value of the opportunity too is proportioned to what has to be paid for it. It depends on Notifications withdrawable by the Executive at will. And it is in this way that vast works are achieved with English aid which but for that aid would never have been planned.