The air was obscured by other matters

The case is worse if the alarm is not confined to the great towns, but is diffused through the country. _Sterling Reserves_ are held partly in the Currency Reserve, partly in the Gold Standard Reserve, and partly in the London Cash Balances. We are apt to be solemnly told that the Banking Department of the Bank of England is only a bank like other banks–that it has no peculiar duty in times of panic–that it then is to look to itself alone, as other banks look. ) + (xiv. Any two names will satisfy the letter of the Presidency Banks Act; but any two names are not necessarily very good security.

And the laws of this are, as we have shown, already known.


per rupee or about 1½ per cent. Their capital is not more than 3,000,000 L. (e) Excluding reduction of debt by annuities and sinking funds included in Home Charges.

‘I consider it to be the undoubted duty of the Bank of England to hold its banking deposits (reserving generally about one-third in cash) in the most available securities; and in the event of a sudden pressure in the money market, by whatever circumstance it may be caused, to bear its full share of a drain on its resources. That such an arrangement is strange must be plain; but its strangeness can only be comprehended when we know what the custody of a national banking reserve means, and how delicate and difficult it is.

Our statesmen, it is true, are much more blamed, but they have generally served a long apprenticeship to sharp criticism. The monarchical form of Lombard Street is due also to the note issue. ‘Experience, as shown by plain figures, confirms these conclusions. If, however, India is thus to turn the tables on the West, she must not delay too long.

Perhaps we may fairly sum this evidence up by saying that it goes to show the existence in India at the present time of an enormous demand for gold bullion, a very considerable demand for sovereigns for purposes of hoarding, and a relatively smaller demand for them, chiefly confined to the United Provinces, the Punjab, Madras, and Bombay, for purposes of currency.

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