But i do not believe that such a doctrine as that bankers are justified in relying

A more miserable catalogue than that of the failures of the Bank of England to keep a good banking reserve in all the seasons of trouble between 1825 and 1857 is scarcely to be found in history.

This rule was, indeed, always erroneous. and VII. to │ Jan. I believe that in some parts of India, especially in those where gold has made relatively little progress, hoards are sometimes held already to a fair extent in notes. A more distinct view of abstract principle must be taken before we can fix on the amount of the reserve which the Bank of England ought to keep. The use of these balances was first granted them in 1862 as compensation for their being deprived of the right of note issue. When, therefore, we are considering to what extent the Government could lend at the height of the busy season, we must chiefly pay attention to the sums in the _Reserve_ Treasuries on January 1. _, the Home Charges adjusted with reference to the probable capital transactions of the year and the state of the cash balances); but he will sell more than this if the demand for remittance is so great that, on his refusal to sell, the price of remittance will rise to the gold export point In the words of the annual budget, “the _estimate_ of Council drawings is for the amount necessary to provide for the Secretary of State’s requirements, but additional bills will be sold if needed to meet the demands of trade.

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