l66 PAPER MONEY AND GOLD EXCHANOE. 



of notes or cheques ; Init it does not follow that any radical 

 alteration in the Bank Act is required at present. Those who 

 demand it seem to forg-et that a much larger amount can be 

 issued even under the present regulations. What is required 

 at present is not so much a change in legislation as the educa- 

 tion of the public in the use of paper. The history of paper 

 mone\- in this country shows how easy it is for over-issue and 

 depreciation to occur unless there are stringent restrictions. 

 Bankers, if thev are opposed to the Act at all. nsualh- confine 

 their criticism to the regulations which re(|uire a double reserve, 

 the compulsory reserve of Government securities against the 

 total issue, and the reserve of gold which ordinary banking 

 prudence requires. Government securities, in the past, have 

 not given such a high rate of interest as the usual banking 

 investments. It may therefore be admitted that if the necessity, 

 for this double reserve were removed, the banks could afford to 

 pa}- a slightly higher tax on their note issues. But it is desirable 

 that economy in the use of gold should be obtained by the 

 wider use of small cheques rather than 1)y a very great increase 

 of notes. The cheque, as it may be drawn for odd amounts, 

 is more efficient than the bank-note as an economiser of coin. 

 Further, banking experience shows that cheque money requires 

 a smaller gold reserve than note money does. France has re- 

 cently discovered this. A few months ago the public there were 

 requested to use cheques as far as possible in place of notes. On 

 this ground I cannot agree with those who wish to see a great 

 change in our banking legislation. Certainly the soundness of 

 our currency ])osition will be of great advantage to South Africa 

 when other nations are experiencing a crisis at the end of the 

 war. 



Ammoniacal Superphosphate.— Gerlach. in the 

 Zeitschrift fiir angcivandte Chcmic (1916), 13-14, states th-at 

 ammonia gas. on passing over super])hosphate. is readily absorbed 

 bv the fertiliser with production of heat, one molecule of mono- 

 calcium phosphate absorbing four molecules of ammonia. This 

 ammonia is not liberated from the superphos])hate on keeping, 

 even after several months, and j^roduces a fertiliser in no way 

 inferior to a mixture of super])hos]>liate and sulphate of am- 

 monia. 



