In this connexion the history of the Bank of Burma, the first Bank of the new order to be founded, is instructive. But possibly it may be suggested that I ought to explain why the American system, or some modification, would not or might not be suitable to us. But no one is likely to propose the above as a practical policy. They had in their till an exceedingly good reserve according to the estimate of that time–a sufficient reserve, in all probability, to have coped with the crises of 1847 and 1857. We may presume that, if India ceases to demand fresh gold and begins to disgorge some part of her huge stock, she will do so gradually. Times without number the public have been alarmed mainly because they saw that the Banking reserve was already low, and that it was daily getting lower.
3–29/32d. But as the Bank of England alone keeps the final banking reserve, the bill-brokers of necessity have to resort to that final reserve; so that at every panic, and by the essential constitution of the money market, the Bank of England has to help, has to maintain in existence, the dealers, who never in return help the Bank at any time, but who are in ordinary times its closest competitors and its keenest rivals. Before that all Oriental trade went to ports in the South of Europe, and was thence diffused through Europe. But as to the uses to which the public put the sovereigns our information is exceedingly vague and unprecise. to the contrary.
The reason is obvious.
CHAPTER X. In the short space of four years a crowd of companies, every one of which confidently held out to subscribers the hope of immense gains, sprang into existence–the Insurance Company, the Paper Company, the Lutestring Company, the Pearl Fishery Company, the Glass Bottle Company, the Alum Company, the Blythe Coal Company, the Swordblade Company.
And all the rest of the knowledge requisite for a banker can easily be obtained by anyone who has the sort of mind which takes to it.
If, however, India is thus to turn the tables on the West, she must not delay too long.