(e) excluding reduction of debt by annuities and sinking funds included in home charges

│ │ Year. The holders of the Bank reserve ought to lend at once and most freely in an incipient panic, because they fear destruction in the panic. Later on the Comptroller–General was authorised to send sovereigns to the larger district treasuries.

Nothing is safe to their minds; indeed, in most countries, owing to a bad Government and a backward industry, no investment, or hardly any, really is safe.

In pursuance of this authority notes of Rs. In a good state of credit, goods lie on hand a much less time than when credit is bad; sales are quicker; intermediate dealers borrow easily to augment their trade, and so more and more goods are more quickly and more easily transmitted from the producer to the consumer. These Banks have discovered that there is, or may be, a useful ambiguity in the public mind between nominal capital and paid–up capital, and that nothing is cheaper than to increase the former. At a panic, when all other deposits are likely to be taken away, the bankers’ deposits, augment; in fact they did so in 1866, though we do not know the particulars; and it is natural that they should so increase.

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