For every transfer from the sterling branch of any of the reserves must be balanced by a corresponding transfer into the rupee branch.
But at any rate there should be no doubt whose duty it is. What we want to introduce into the Bank court is a wise apprehensiveness, and this every trained banker is taught by the habits of his trade, and the atmosphere of his life.
We have chiefly to consider, therefore, the imports of sovereigns since 1910.
As the actual reserve is never to be less, and is always, if possible, to exceed by a reasonable amount the ‘minimum’ apprehension reserve, it must when the Bank is quiet and taking no precautions very considerably exceed that minimum. The principal precaution is a rise in the rate of discount, and such a rise certainly does attract money from the Continent and from all the world much faster than could have been anticipated.
Every one in India having loanable funds to spare would act likewise. ) Cash, etc. He is the Prime Minister of the Bank Cabinet; and when so important a functionary changes, naturally much else changes too.