Let me now turn to three salient characteristics, all closely connected with one another, and chiefly

as a reserve against all this mass of liabilities. They would not be more likely to suffer than other persons; the only difference would be that when they did suffer, having no adequate reserve of their own, they would be obliged to ask the aid of others. But to explain these proposals, and to gain a full understanding of many arguments that have been used, we must look more in detail at the component parts of Lombard street, and at the curious set of causes which have made it assume its present singular structure. Important considerations of policy do not lie so plainly on the surface. The sovereign, moreover, is fast becoming the international gold coin _par excellence_ far beyond the bounds of the British Empire. Indeed so long as the currency arrangements are at all like those now in force, this maximum range may fairly be said to be determined by forces outside Government control, namely, by the forces governing the cost of remittance of gold. Consequently the Government’s offer to sell sterling drafts in Calcutta, or to release gold from the Currency Reserve would not meet the case.

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