746 REPORT— 1897. 



from the lowest rate quoted weekly for such cities, and may consequently he held 

 to represent the price paid for discount of the best paper which was made in those 

 localities. 



Differences in the rate of discount charged upon the hest paper brought to 

 market so greatly to the disadvantage of districts remote from the chief money 

 markets of the land, do not emerge in countries where a number of large banks 

 extend their activity into every considerable district by means of numerous branches 

 and agencies, e.g., as in Scotland and Canada ; nor where a great central bank, in 

 observance either of the law or of its own interest, provides identical facilities to 

 discount customers in every market of consignment, e.g., as in France, Germany, 

 Austria, the Netherlands, Belgium and Japan. 



It is submitted, therefore, that differences in discount rates as between the 

 various cities and geographical divisions of the United States are chiefly to be 

 explained by the peculiarities of the banking system of that country. It consists of 

 nine thousand odd 'National,' 'States' and private banks, each conf.ned in the 

 main to one locality, and the neighbourhood immediately thereto adjacent, as 

 well in its borrowing as in its lending business. But 3,600 banks, in round 

 numbers, enjoy privileges of issue, and these are extremely restricted in character. 

 Just as there exists no adequate machinery for gathering up loanable capital from 

 the older and accumulating groups of the population and applying it further west 

 and south, to the exploitation of natural resources and of other undertakings, the 

 development of which is in progress, or awaits the beginning, so is there no 

 efficient system of domestic arbitrage, nor even an approximate equalisation of 

 discount rates. 



TUESDAY, AUGUST 24. 

 The following Papers were read : — 



1. The Economic Geography of Rhodesia. By F. C. Selous. 

 (Joint meeting with Section E. See p. 721.) 



2. Economic Asjiects of the Worh'inenJs Compensation Bill. 

 By J. R. Macdonald. 



8. The Relation of the Employment of Women and Children to that of Men, 



By Carroll D. Wright. 



4. Recent Reaction from Economic Freedom in the United States. 



By R. R. BowKER. 



5. The Theory of Economic Choices. By Troiessor F. H. Giddings. 



WEDNESDA Y, A UG UST 25. 



The following Papers were read : — 



1. Some Economic Notes on Gold Mining in Canada. 

 By Professor J. Mayor. 



2. Theory of Raihcay Rates. By W. M. Ackworth. 



