Supposing that, owing to defects in its government, one even of the greater london joint stock

Before that all Oriental trade went to ports in the South of Europe, and was thence diffused through Europe. [95] 8. On the broad historical facts relating to Indian currency, I do not intend to spend time. The strain, too, on our banking reserve which is caused by the demands of the bill-brokers, is also more dangerous than it would be under a natural system, because that reserve is in itself less. This function is the supply of the paper circulation to the country, and it will be observed that I am not about to overstep my limits and discuss this as a question of currency.

, namely, that a temporary premium of ¾ per cent on gold in those European countries where gold is not always freely obtainable, is as effective as a very great increase in the Bank Rate in preventing the remittance of funds abroad and even in attracting an inward flow of funds. │ Credits. And there is this excuse for the Bank. By the end of October 1907 it had become plain that the Indian harvest would be a bad one, and the financial crisis in the United States was fast developing. Harrison’s conclusions; but I think they can be brought up to date by a year–to–year method resembling Mr. 16. The reserve of the London bankers being on deposit in the Bank of England, the Bank always lends a principal part of it. I do not believe, however, that a conclusion can fairly be drawn from these figures as to any startling change in the position of the sovereign in India has experienced two very good seasons and has been able, therefore, to accumulate savings unusually large extent for investment in gold ornaments and hoards.

(b) Apart from dividends earned and reinvested in England. There was also a small increase of rupees in that part of the Indian Cash Balances which is held in rupees and not in currency notes. The Gold–Exchange Standard is the only possible means of bringing China on to a gold basis, and the alternative policy (the policy of our own Foreign Office) is to be content at first with a standard, as well as a currency, of silver.

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