TRANSACTIONS OF SECTION F. 735 



been substituted for it. The annual variation of the quantity of notes in circulation 

 has, of recent years, been much more uniform than it formerly was. The amount 

 of the variation is two and a half to three millions in a total of about twenty-five 

 millions. The year 1869 alone shows a less difference than two millions between 

 the minimum and maximum. There were very large variations at the time of the 

 1866 panic, and in the years 1878-9. In the latter case the variation consisted of 

 a greatly increased circulation in 1878, which did not begin to return to the 

 normal level till 1879 was far advanced. Taking three millions as the ordinary 

 variation in a year, the circulation in these years varied in excess of the normal by 

 2-6 and 3'8 "millions respectively. It seems rather unlikely that such large 

 increases of the normal variation should be due to the ordinary use of the bank- 

 note for making cash payments. Probably a considerable proportion of the 

 registered increase was merely an addition to the till-money held by bankers, and 

 was never really in active circulation. How much of the ordinary active circula- 

 tion, so-called, is of the same nature there are no means of telling. 



The other deposits have largely increased. Taking the half-century in five 

 periods of ten years, the average amount of other deposits in each period has been 

 about eleven, thirteen, eighteen, twenty-four, and twenty-seven and a half millions. 

 The considerable increase in the month of April, which was so marked during the 

 decennium 1844-54 that the maximum of the year was reached in the middle of 

 that month, has now almost vanished. The annual variation is less in proportion 

 to the total than formerly, having then been about 20 per cent, on either side the 

 average, while during the last decade it averaged hardly more than 15 per cent. 

 AVhat proportion of the increased deposits are bankers' balances is not known, it 

 being nearly twenty years since the Bank ceased to supply this useful piece of 

 information. The fluctuations of other deposits have, during the last ten years, 

 been less steady than formerly. 



The public deposits vary in a manner markedly different from that of fifty years 

 ago. Then there was a regular quarterly ebb and flow not differing much from 

 quarter to quarter. The changes iu the collection of the taxes have led to the 

 increase of the March maximum and the progressive decrease of the others. This 

 makes the maximum of total deposits fall at the end of March, in spite of the 

 decrease of the importance of the spring variation of other deposits. 



Taking next the coi7i and bidlion, we notice that this item shows more frequent 

 variation than formerly. Its amount has increased by little more than one-half as 

 compared with half a century ago, and the average of the last ten years is nearly 

 10 per cent, less than that of the preceding ten years. No information is generally 

 afforded as to the proportions between the coin and bullion held, or as to the 

 amount of silver coin in the banking department. 



The reserve is the item of the account which attracts greatest attention. The 

 annual variation for the last ten years has averaged about 25 per cent, on either 

 side of the mean, while in the ten years after 1844 it was nearly 30 per cent. The 

 average reserve during these two decades has been about fifteen and nine millions 

 respectively. As the total deposits have doubled, while that part of them which 

 reflects most closely the business of the country, the ' other deposits,' has increased 

 by 150 per cent., the increase of reserve seems inadequate. For the three years 

 1891-2-3 the reserve has averaged sixteen millions, while the other deposits have 

 averaged nearly thirty-two millions. 



3. On the ' Economic Heresies ' of the London County Council. 

 By Sidney Webb, LL.B., L.C.C. 



The Council has been intelligently criticised, from an economic point of view, 

 mainly on three grounds : {a) its adoption of a ' standard ' and ' moral minimum ' 

 of wages, and consequent refusal to take advantage of the fiercest competition in 

 reducing the price of labour ; (6) its attempt to ensure that all contractors exe- 

 cuting work for the Council should adopt the same policy ; and (c) its supersession 



