TRANSACflOXS O? THE SECTIONS. 199 



drawing is well understood, and we fmd that provision is made for successful 

 students in it ; but in this difficult, and to workmen more important branch of 

 scientific technical drawing' there is no help whatever. The author states that 

 from the opening of the school an average of fifty yoimg men have attended 

 the classes four nights a week from seven to nine o'clock. The charge is from 3s. 

 to 5s. per quarter. The majority of tlie masters pay for their apprentices. The 

 schools can accommodate a much larger number than attend, yet the results 

 are good. Young men are being properly educated for managers, foremen, or first- 

 class workmen. It will be found that a good training in the school will fit a man 

 for good employment. A youth so instructed will be a better citizen as well 

 as a better workman. Some say if you educate men they will not work. This is 

 so if they are educated 7wt to work. If it is impressed on a lad in his training that 

 he is to have an education to save him from working he will not work ; but if, on 

 the other baud, he is brought up with the idea that he must have an education 

 when a boy that it may enable him to work when a man, to work with intelli- 

 gence and skill, then it will be found tliat he is more industrious than he who 

 received little or no education. Those who fear that educated workmen will not 

 work are very frequently the same men who cry out against the shortening of the 

 hours of labour, and hold out the increasing competition with Germany and German 

 workmen as a reason why we should continue the long hours and increase our 

 industiy in every possible manner so that we may preserve our country's trade 

 and commerce. Do they forget that these strong competitors are all educated, 

 and far above what we in this country are likely to be for years to come ? Is it 

 not our want of education we have to fear ? 



The author concluded his paper with observations on the influence of trades' 

 unions on the building trades. 



■'o 



On the Relation of the Banl-inr/ Reserve of the Banl- of Enf/land to the Current 

 Rate of l7iterest*. By E. H. Inglis Palgkate, F.S.S. 



This paper gives a complete analysis of the returns respecting the Bank of 

 England in the Appendix of the Eeport from the Select Committee of the House 

 of Commons on the Bank Act of 1857, and the one published this year, containing 

 a similar statement, continued to the close of 1872. By following out this analysis, 

 it becomes clear that the average rate of discoimt charged by the Bank of England 

 depends in general terms on the proportion borne by the reserve of the Bank to the 

 liabilities. Between 1844 and 1872 the average deposits of the Bank have risen 

 from £13,000,000 to £28,000,000, the banking reserve from £8,000,000 to 

 £12,000,000, the balance of London bankers from £900,000 to £7,000,000, the 

 average of bills discounted from £4,000,000 to £6,000,000, temporarj' advances 

 from £1,000,000 to £3,000,000, and the note circulation from £20,000,000 to 

 £25,000,000. 



It will be observed that the proportion borne by the reserve to the liabilities had 

 diminished since 1844 from 58 per cent, at the earlier to 42 per cent, at the later 

 date. Meanwhile the proportion borne by the balances of the London bankers to the 

 banking reserve of the Bank of England, which was 10 per cent, in 1844, had in- 

 creased to 62 per cent, in 1872 ; and the minimum rate of interest, which averaged 

 for the years 1844-56 £3 15s. 3(/., increased on the average for 1857-72 to £4 3s 

 The details of the proportion of the reserve to the liabilities at each change in the 

 rate of discount for the years 1844-72 were given in Tables ; and these show that it 

 is the proportion of the reserve of the Bank, the immediate supply of money, which 

 governs the current rate of interest. This furnishes a remarkable and exact instance 

 of the working of the law of demand and supply. The amount of money generally 

 in the country has greatly increased. The amount of banking deposits has alsc 

 largely increased. The amount of banking reserve has not increased in a like pro- 

 portion ; and it is the amount of the supply immediately available which governs the 

 price of the commodity required. 



* Published in cxtenso in the 'Journal of the Statiitical iS'ocicty,' Pec. 1873; and als 

 separately by E. Stanford, London. 



