They rely on cheapness, and rely successfully

But _temporary_ additions, due to seasonal demand, ought to be provided by a suitable organisation of credit money in India herself. In the second place, as there is no Central Bank in India, there is no Government Banker. The awkwardness of the situation is intrinsic, and cannot be avoided so long as the present divorce is maintained between the banking and the currency authorities. The public is never sure what policy will be adopted at the most important moment: it is not sure what amount of advance will be made, or on what security it will be made. .

The same causes which generate this prosperity will, after they have been acting a little longer, generate an equivalent adversity. . They have never acknowledged the duty; some of them, as we have seen, deny the duty; still they have to a considerable extent begun to perform the duty. We shall soon hold in Lombard Street far less of the money of foreign governments; but we shall hold more and more of the money of private persons; for the deposit at a clearing-house necessary to settle the balance of commerce must tend to increase as that commerce itself increases.

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