Note 93 — Chapter VII

In 1877 the Banks pressed strongly for a relaxation of this provision. But the Secretary of State held that “the concession of a power of creating a foreign agency in England, such as would be the result of entering into loan transactions of the nature of those contemplated, would admit of the Banks locking up a large portion of their capital at so great a distance as to render it practically unavailable in the case of any emergency arising in India.” This argument is not one which would be likely to be used at the present time. The fear would rather be lest they should lock up funds in India.