But these are only a small part of the securities on which money in ordinary times

A good deal of experience with regard to note issues has now been accumulated elsewhere which ought some day to prove useful to India if her English rulers can sufficiently free themselves from their English traditions and preconceptions.

│ Deposits.

The first duty of the Bank of England was to protect the ultimate cash of the country, and to raise the rate of interest so as to protect it. 10 4,024,000 L 17 3,217,000 L 24 3,485,000 L 31 2,258,000 L Nov.

The new trader has obviously an immense advantage in the struggle of trade. And if it begins to deposit this immense income as it accrues at any bank, at once it becomes interested in the welfare of that bank. In the long run, their value, like that of all others, is determined by the cost at which they can be brought to market. At last a scheme was hit upon which would relieve their necessities. For this purpose only a little money is wanted. Herschell Committee on Indian Currency.

‘ This article was much disliked by many of the Bank directors, and especially by some whose opinion is of great authority. Indeed, I do not know that they ought to resist it. Thus the Government would begin each busy season with their funds intact; and they would not lend until the success of the season was assured, and it was plain that the general position warranted it. It may be replied, that though our instant liabilities are great, our present means are large; that though we have much we may be asked to pay at any moment, we have very much always ready to pay it with. These Reserves are most useful if they are held in London, where they must necessarily be wanted whenever there is need to make use of them. When we come to consider how this can best be done, it is to be noticed that the position of a country which is preponderantly a creditor in the international short–loan market is quite different from that of a country which is preponderantly a debtor. Pearse, the Governor of the Bank, said: ‘In considering this subject, with reference to the manner in which bank-notes are issued, resulting from the applications made for discounts to supply the necessary want of bank-notes, by which their issue in amount is so controlled that it can never amount to an excess, I cannot see how the amount of bank-notes issued can operate upon the price of bullion, or the state of the exchanges; and therefore I am individually of opinion that the price of bullion, or the state of the exchanges, can never be a reason for lessening the amount of bank-notes to be issued, always understanding the control which I have already described.

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