It is not easy, therefore, for the Secretary of State to know at exactly what price gold will become a serious competitor of bills as a means of remittance; and not infrequently Council Bills are, unintentionally, at a price which makes it cheaper to send gold. The most recent statistics of the use of 10–rupee notes in the Punjab and in Bombay, as compared with Bengal, strongly suggest that the recent development of gold circulation in these provinces has been at the expense of these notes. I should regard this as the practical minimum at which, roughly of course, the Bank should aim, and which it should try never to be below.
3. But it is an amount well worth considering, and these figures put the note issue in a more favourable light as a source of currency in the busy season than is usually realised. This was the rate then ruling in the native bazaar both in Bombay and Calcutta, and that, too, while the Exchange Banks were greedy to receive fixed deposits for short periods at 9, 10, and even 11 per cent per annum, and while the Presidency Banks were straining to meet the demands for loans at 12 and 13 per cent per annum. , or nearly 1/3 rd of their capital, principally out of undivided profits. It is outside the ordinary run of Government officials’ duties to judge whether or not a given time is a good one at which to buy silver. ‘ Now, no cause is more capable of producing a panic, perhaps none is so capable, as the failure of a first-rate joint stock bank in London.
. As was natural, the effects–good and evil–of its constitution are to be seen in every part of the Bank’s history. Bombay ” Bombay and the Central Provinces. .
if he has it. │ N.
3–15/16d. 160–163, which would be made in sterling drafts, and which would be governed by wholly different considerations. Probably not one-thousandth part of the creditors on security of Overend, Gurney and Co. Accordingly he asks the larger dealer for advances. If any one proposed to give such power to the Chancellor of the Exchequer, there would be great fear and outcry.