at his bankers, and wants to pay it to some one in Germany, he will not be able to pay it unless his banker can pay him, and the banker will not be able to pay if the Bank of England should be in difficulties and cannot produce his ‘reserve. This discussion will have served to make clear a distinction highly important to the problem of the Indian Bank Rate. On the other hand, if in consequence of a bad harvest the corn trade becomes on a sudden profitable, immediately ‘corn bills’ are created in great numbers, and if good are discounted in Lombard Street. This is a proper subject for inquiry by a Royal Commission. The speculative business of estimating the future of silver is best left to experts in the matter, even though the price ultimately paid has to include some commission to them for their services or their foresight.
As is usually the case, this kind of business has grown up only gradually. The Bank Rate was at the somewhat high level usual at that time of year; exchange was high (the minimum rate for the allotment of Council Bills being 1s.