Select Statutes, Documents and Reports Relating to British Banking, 1832-1928 by Theodore Gregory

Author:Theodore Gregory [Gregory, Theodore]
Language: eng
Format: epub
ISBN: 9781136920493
Barnesnoble:
Publisher: Taylor & Francis
Published: 2013-11-05T00:00:00+00:00

2819. If a deposit account be transferred from one London banker to another London banker, and both bankers invest the same proportion of their deposits in securities, and keep the same proportion as a reserve, will the transfer of deposits from one banker to another banker occasion any difference in prices or in the exchanges?—I apprehend that upon the supposition of all the proportions being preserved unchanged, the transfer of the fund from one hand to the other will only alter the condition of the two houses from and to which the transfer is made, and the general condition will be preserved the same.

2820. If such a transfer of a deposit be made from a London banker to the Bank of England, and the Bank of England invests the same proportion of its deposits in securities, and maintains the same proportion as a reserve, as the London banker does, will prices or the exchanges be affected by such a transfer?—It is quite clear that it would be absurd to suppose that they could be; if the amount of money invested and of money reserved be kept in the same proportion, it cannot produce any sort of effect, except upon the parties immediately affected, whether that be done through the medium of A, B, or C.

2821. Then the aggregate amount of deposits, of circulation, of securities and of reserves would remain precisely the same, after the transfer took place from one banker to another, as before?—That I apprehend to be the statement in the question.

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