In so far as the loan was used for these purposes it did not help the

Three generations earlier, a man who had accumulated wealth in a profession generally purchased real property, or lent his savings on mortgage. The ‘cotton drain,’ as it is called–the drain to the East to pay for Indian cotton during the American Civil War took many millions from this country for a series of years.

The table given above analyses the Home Accounts in a way which brings out the essential facts more clearly than the Government’s own published accounts. First, the German Government had a large balance of its own lying at a particular Joint Stock Bank. I shall be concerned throughout this chapter with the general characteristics of currency systems, not with the details of their working. But I fear that a reader of this chapter may, on like grounds, suppose that I am an enemy to Private Banking.

But it is hardly relevant to the question of the Government’s _sterling_ resources; and, unless the Government Savings Banks were to be in trouble at the same time, it is not likely that there would be any difficulty in helping the bankers, if it were thought right to do so.

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