The race is not renewed. If we turn from the mechanism of remittance to the question of Government remittance as a whole, this can be explained most clearly by reference to a hypothetical India Office balance–sheet.
This discussion will have served to make clear a distinction highly important to the problem of the Indian Bank Rate. 20. .
Great advantages may be obtained if the surplus funds in the Paper Currency Reserve be used, not as a permanent or quasi–permanent loan to Indian traders, but to provide _elasticity_ in the seasonal supply of currency and to make possible the increase in the stock of purchasing power in the form of money which is _temporarily_ required in the busy season, without having to raise it in London. All ‘city’ people make their money by investments, for which there are often good argumentative reasons; but they would hardly ever be able, if required before a Parliamentary committee, to state those reasons. We have been concerned so far with transitional systems of currency. Our present system of deposit banking, in which no bills or promissory notes are issued, was not then known on a great scale, and was not called banking. In most banks there would be a wholesome dread restraining the desire of the shareholders to reduce the reserve; they would fear to impair the credit of the bank. The Central Banks of most European countries depend (in varying degrees) upon all three. In all years there are great changes; some houses rise a good deal and some fall. 4d. Or, possibly, offices may have changed occupants and the ministry in power at the panic would be the opponents of the ministry which at a former time appointed the Governor.  Gold is an international, but not a local currency. The one might merge in the other as convenience suggested and as events required. since experience shows that a million, or a million and a half, may be taken from us at any time.
 Before the Fowler Committee of 1898, there was some desultory discussion of proposals for a Central Bank of India, which were supported by a few of the witnesses; but, apart from Mr.