large sums in cash, and of that cash a great store must be kept somewhere. Formerly there were two such stores in Europe; one was the Bank of France, and the other the Bank of England. But since the suspension of specie payments by the Bank of France, its use as a reservoir of specie is at an end. No one can draw a cheque on it and be sure of getting gold or silver for that cheque. Accordingly the whole liability for such international payments in cash is thrown on the Bank of England.[1] No doubt foreigners cannot take from us our own money; they must send here "value" in some shape or other for all they take away. But they need not send "cash"; they may send good bills and discount them in Lombard Street and take away any part of the produce, or all the produce, in bullion. It is only putting the same point in other words to say that all exchange operations are centering more and more in London. Formerly
- ↑ The Bank of France resumed specie payments on January 1, 1878, since when its notes have not suffered any depreciation, and there is now a third available stock of gold in Europe—that held by the Imperial Bank of Germany. Neither the stock at Paris nor that at Berlin, however, is so accessible as that held by the Bank of England, because the Bank of France can exercise an option to pay in silver, while the Bank of Germany at times makes a difficulty about paying in gold, not absolutely refusing, but putting obstacles in the way. A stock of about £158,000,000 in gold is now (May, 1914) held by the Bank of Russia, but that is so safeguarded as to be unavailable for international payments, as is also the stock of about £52,000,000 held by the Austro-Hungarian Bank.
