And this is all the cash reserve, we must carefully remember, which, under the law, the

Until 1910 the absorption of sovereigns was not sufficient to restore them to a position of any importance as currency.

No one can draw a cheque on it and be sure of getting gold or silver for that cheque. The term banking was then applied only to the issue of notes and the taking up of money on bills on demand.

And it is by that opinion that we wish the Bank of England to be guided. In a panic, and at a general collapse of credit, no such banker will probably be found.

The question of what determines the relative advantages of these methods has been discussed in Chapter V. In the second place, as there is no Central Bank in India, there is no Government Banker. Popular attention has been attracted by the figures for that year, which are indeed truly remarkable. (b) Apart from dividends earned and reinvested in England. The bullion reserve is no longer held solely with the object of securing the ability to meet the obligation to cash notes in legal tender (rupees or gold) on demand.

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