Thus the financial officers of government spend five years or so in mastering a difficult subject

. Bankers and others would keep as much of their surplus currency as they possibly could in the form of gold, and it would be rupees (in great part) and not gold that would be paid into the Government Treasuries. I believe that in some parts of India, especially in those where gold has made relatively little progress, hoards are sometimes held already to a fair extent in notes. And a tardy disclosure even of an admirable constitution would not much help the surviving banks: as it was extracted by necessity, it would be received with suspicion. of coin be deposited in a bank, and it need only keep 1,000,000 L. . In France all banking rests on the Bank of France, even more than in England all rests on the Bank of England. We now come to the much more important question of the adequacy of the sterling reserves. Some evidence bearing on these points was laid before the Fowler Committee of 1898, but such facts are now fifteen years old. The effect of recent practice, however, has been on the whole to divert more funds than formerly from banking purposes. 1899. So striking a result is not to be shown in any other joint stock trade. Let us sum up the argument so far, and enforce at the same time the contention, brought up at the end of Chapter I. All the usual tests indicate that–the state of the Revenue, the Bankers’ Clearing-house figures, the returns of exports and imports are all plain, and all speak the same language. The growing importance of foreign bills in the portfolios of the Reichsbank has been shown above. .

They still derived an immense income from it. We shall soon hold in Lombard Street far less of the money of foreign governments; but we shall hold more and more of the money of private persons; for the deposit at a clearing-house necessary to settle the balance of commerce must tend to increase as that commerce itself increases. The following illustration shows on how large a scale these seasonal movements to and fro would probably be. We will not help you again.

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