The figures are, therefore, hardly relevant to questions peculiarly Indian; and I will content myself with quoting, from the table given in the official statistics, the total deposits of Exchange Banks made _in India_, and the cash balances held _in India_ against them.
In countries where the Money Market is neither so highly developed nor, in relation to foreign countries, so self–supporting, the Central Bank, if it is to be secure, must take the matter in hand itself and, by itself entering the international money market as a lender at short notice, place itself in funds, at foreign centres, which can be rapidly withdrawn when they are required. The Indian authorities do not seem to have understood this. It is clear, then, that we must not fly from a glance at column (1) of the table on p.
) The Presidency Banks; (ii. cannot afford to reduce his balance at the Bank of England 100,000 L. A considerable number of persons lend to them, not only without much looking at the security but even without taking any security.