The principal mode in which money is raised by traders is by ‘bills of exchange;’ the

In addition, therefore, to the grounds for making loans in India from the Paper Currency Reserve which I have given in earlier chapters, I believe that it is in this direction that the best hope lies of a remedy for the high level which the Indian Bank Rate commonly reaches in the course of each busy season. The court of directors would choose better; a small body of men of business would not easily be persuaded to choose an extremely unfit man. They are rich City merchants, and their stake in the Bank is trifling in comparison with the rest of their wealth. But I do not think it certain that this sum would be adequate to the necessities of two successive bad years. Germany, accordingly, when she instituted her gold standard, prohibited the issue of notes of a less denomination than 100 marks, in order that gold might actually circulate from hand to hand to a maximum possible amount. And it is only from the Bank of England that they can get it, for all the rest of London want their money for themselves.

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