‘Experience, as shown by plain figures, confirms these conclusions. Pitt feared that he might not be able to obtain sufficient species for foreign payments, in consequence of the low state of the Bank reserve, and he therefore required the Bank not to pay in cash. In theory a certain portion go out annually, remain out for a year, and are subject to re-election by the proprietors.
In India the creed of 1861 is still repeated; but by unforeseen chance the words have changed their meanings, and have permitted the old system to acquire through inadvertence a certain degree of usefulness. Thus it is not easy to find a remedy for high Bank Rate by any method of diminishing the maximum range of fluctuation in exchange. All the common notions about the new competition of foreign countries with England and its dangers–notions in which there is in other aspects much truth require to be reconsidered in relation to this aspect. The rate ordinarily charged for fine bills of two or three months’ currency may be either higher or lower than the published minimum Bank Rate.