Exchange Banks have such large deposits in India and so little cash there that they would probably require to import funds from London as fast as possible. Apart from this exceptional venture, the 38 Banks registered in 1910–11 had between them a nominal capital of £1,306,000 and a paid–up capital of £19,500. The Secretary for India is a large lender on its account. ‘ The directors of the Bank are, therefore, in fact, if not in name, trustees for the public, to keep a banking reserve on their behalf; and it would naturally be expected either that they distinctly recognized this duty and engaged to perform it, or that their own self-interest was so strong in the matter that no engagement was needed.
During the past sixty years India is supposed to have absorbed, in addition to her previous accumulations, more than £300,000,000 of gold (apart from enormous quantities of silver). The matter would come shortly to this: a great number of brokers and dealers are under obligations to pay immense sums, and in common times they obtain these sums by the transfer of certain securities.