[107] On the one hand, these balances are even weaker than they look, because they include the Exchange Banks’ balances at the Presidency Banks. On the other hand, the Exchange Banks often have sovereigns or Council Bills in transit which they may fairly consider, perhaps, as equivalent to cash. [108] A certain proportion of their bills, no doubt, are drawn on the London branches of Banks with a foreign domicile. These bills are not always so readily discountable as London acceptances, the Bank of England taking them unwillingly and charging ¼ per cent extra discount. But for the present purpose they can, I think, be regarded none the less as liquid London assets. [109] I believe that the Eastern Bank offers rather better terms than the other Banks for fixed deposits. [110] The confusing point here is this: that (ix.) is the amount advanced to Indian merchants, and (x.) the amount advanced to English merchants; yet (ix.) must be reckoned an English asset and (x.) an Indian asset. For (ix.) when it falls due is paid in England, although, of course, the Bank has advanced money, through the purchase of it, in India. [111] It would be most useful to have a triple classification—India, London, and elsewhere. But I do not see how the Indian authorities could reasonably enforce this. [112] The great majority (363) of these small money–lending establishments were registered in Madras. Most of them are mutual societies, and it would not be difficult to exclude them from the official statistics. [113] There is also, on a smaller scale, the Bangalore Bank (1868). [114] There are a few others on a very small scale, such as the Kashmir Bank (1882), and the Poona Mercantile Bank (1893). [115] In 1901 the People’s Bank of India was founded, but it did not reach the 5 lakhs’ limit until 1908. [116] The Bank of India has a paid–up capital of 50 lakhs and a reserve and rest of 5½ lakhs; the corresponding figures for the Indian Specie Bank are 75 lakhs and 19 lakhs. The Bank of Rangoon is on a smaller scale and has been less successful. [117] This represents compound interest at the rate of about 8 per cent per annum. [118] Here again it is tantalising that no later figures should be available. [119] In the official statistics no definition is given of what precisely is meant by “cash.” [120] The Co–operative Credit Societies are not important in this connexion, capital, reserves, loans, and deposits altogether being less than £1,000,000. [121] At the time of writing, this Bill has not yet passed through its final stages. [122] In the published balance sheet, which I have before me, of one of the largest of these little Banks, the cash is lumped together with the “investments,” _i.e._, with the Bank’s speculations. [123] These quotations are derived from Mr. Brunyate’s _Account_, _loc. cit._