Those who think that this tendency to use gold coins should be further encouraged have advocated

Having once started on a career of furious coinage, they continued to do so with little regard to considerations of ordinary prudence—though their sins did not overtake them immediately. It has done perhaps less ‘bad business,’ certainly less very bad business, than any bank of the same size and the same age. ‘The late meeting of the proprietors of the Bank of England has a very unusual importance.

6, 1903) to the project’s indefinite postponement. And at the rate of interest so raised, the holders–one or more-of the final Bank reserve must lend freely. M.

There should be a clear understanding between the Bank and the public that, since the Bank hold out ultimate banking reserve, they will recognise and act on the obligations which this implies; that they will replenish it in times of foreign demand as fully, and Lend it in times of internal panic as freely and readily, as plain principles of banking require. The common practice is to lend a certain portion of the market value of such securities, and if that value increases, the amount of the usual loan to be obtained on them increases too. But the way to cause alarm is to refuse some one who has good security to offer. But the effect of this is to throw additional business on the Bank of England. So long as the savings remain in possession of their owners, these hazardous gamblings in speculative undertakings are almost the whole effect of an excess of accumulation over tested investment.

It may be said to correspond, therefore, to the London rate for some comparatively short period—say for fortnightly loans. The Bank of St. ‘On extraordinary occasions,’ says Ricardo, ‘a general panic may seize the country, when every one becomes desirous of possessing himself of the precious metals as the most convenient mode of realising or concealing his property, against such panic banks have no security _on any system_. At present the possible fluctuation of exchange between what may fairly be termed the “gold points” on either side of 1s.

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