254 REPORT — 1887. 



the disadvantage that this national type cannot accurately express the 

 requirements of the individuals represented. The norm which is based 

 on the average consumption of a homogeneous class much more faith- 

 fully represents the individuals of that class. 



The Committee have also to state that they have had numerous meet- 

 ings, and have prepared various notes and papers. Among these they 

 veould specially refer to a Memorandum by Mr. Edgeworth dealing with 

 the whole subject ; which they recommend should be printed in the Pro- 

 ceedings of the Association. 



In the course of the proceedings the Committee invited Mr. Giffen 

 to co-operate with them. 



Mr. Giffen has placed the Committee in connection with the Inter- 

 national Statistical Institute. At the meeting of the Institute, held at 

 Rome in April 1887, there was appointed an International Committee on 

 Standards of Value, and Mr. Giffen was nominated as the representative 

 of England. Mr. Giffen desires that he should be assisted in this work by 

 this Committee of the British Association for the Advancement of Science. 



To this end, and in view of the difficulty and complexity of the sub- 

 jects involved, the Committee would recommend that they should be re- 

 appointed (with the addition of Mr. Giffen) to report at the next meeting 

 of the Association. 



MEMORANDUM BY THE SECRETARY. 



Introductoky Synopsis. 



The object of this paper is to define the meaning, and measure the 

 magnitude, of variations in the value of money. It is supposed that the 

 prices of commodities (including services), and also the quantities pur- 

 chased, at two epochs are given. It is required to combine these data 

 into a formula representing the appreciation or depreciation of money. 



It will appear that beneath the apparent unity of a single question 

 there is discoverable, upon a close view, a plurality of distinct problems. 

 Many different branches have been traced, and the number might be 

 largely increased if every bifurcation were followed out to its logical 

 end. But ic is not to be supposed that the innumerable ramifications 

 which a formal logic might be able to distinguish would all repay cultiva- 

 tion. The most rigorous analysis may be content with a dozen distinct 

 cases ; and for the purpose of an introductory summary these may be 

 reduced under a still smaller number of headings. 



To one taking a general view of the subject there stand out four main 

 types, four modes of measurement distinct in idea and definition, though 

 occasionally coincident in practice. The first sort of measure is based 

 upon the change in the prices of finished products, the object being to 

 find, or rather show how to find at any future time, a ratio or Unit such 

 that the creditor in the future receiving as many Units as he at present 

 receives pounds may derive as much advantage in the way of consump- 

 tion then as now. The second sort of measure is based upon all the 

 articles which trade deals with, the object being to find a Unit such that 

 the debtor in the future, paying as many Units as at present pounds, 

 may not be more hampered in his business then than now. A third 

 inquiry is, What is the measure of that ajapreciation which it is the ob- 

 ject of bimetallism and similar pi'ojects to correct? The foui-th sort of 

 measure is required not so much for any particular practical object as for 



