TRANSACTIONS OF SECTION F. 853 



that to the mean value of one attribute corresponds, as being most probably (fre- 

 quently) associated therewith, the mean value of the other attribute ; and to every 

 deviation from the mean of one attribute corresponds a deviation of the other attri- 

 bute, equal to the former deviation multiplied by a certain factor v^hich is constant 

 for all values of the attributes.^ 



The theory, verified in the case of the animal organism, presumably extends to 

 social phenomena. For in the latter as well as in the former case there pre- 

 sumably exists the condition from which the properties of correlation flow, viz., the 

 agency of a number of independent causes. The theory of correlation is required 

 to justify the method of ascertaining typical family budgets. The theory may be 

 extended to cases where the attributes are not numerically measurable, such as 

 ' dulness.' ^ 



5. On the Lessons of the Australian Banking Collapse. By C. Gairdner. 



Conditions of deposit-banking in the colonies essentially difl^erent from those 

 at home. Proportion borne by indebtedness to capital greater in the colonies than 

 at home. Depositors at home not in touch with the management in the colonies. 

 No means of sustaining confidence when once disturbed. Stipulation for notice 

 prior to withdrawal of deposits of little avail in a time of discredit. Need for 

 convertible reserves, and lor a market where they can be converted. High rales 

 of interest on deposits incompatible with maintenance of large reserves. Suggestion 

 that deposits should be invited for longer periods, or in form of debenture stock 

 criticised. Statistics relating to suspended banks. Liquidation being impracticable. 

 Eeconstruction inevitable. Necessity for rigid economy in management of re- 

 constructed companies. Reduction of their number. Suppression of branches. 

 Difficulties of the banks greatly aggravated by excessive borrowing through other 

 channels. General inflation and subsequent collapse. Need for suppressing all 

 extravagance and waste. Work and thrift sole means of surmounting financial 

 difficulties. With favourable seasons recuperation may be rapid. 



6. On Bishop Hugh Latimer as an Economist. 

 By the Rev. W. Cunninghaji, D.D. 



The ' Examination of Common Complaints,' which was issued by ' W. S.' in 1581, 

 is the most remarkable English Economic tract of the sixteenth century, as is shown 

 by the frequency with which it has been reprinted. Fresh interest has been given 

 to it, however, since the discovery by the late Miss Lamond of two MSS. of this 

 dialogue. She has proved that the text given by ' W. S.' is corrupt, and that the 

 dialogue was written as early as 1549. She has also furnished good grounds for 

 believing that Hugh Latimer is the original of the Doctor who takes such a lead- 

 ing part in the discussion. Her edition, which has just been issued by the Cam- 

 bridge University Press under its proper title as a Discourse of the Common Weal 

 of this Realm of England, not only fixes the date, but gives us a text which has 

 not been tampered with, and which aft'ords a sound basis for critical investigations 

 as to the authorship and place of writing, as well as to the originals of the persons 

 represented in the dialogue. The argument by which Latimer is identified is too 

 detailed to summarise ; but the case is a strong one, and if this view comes to be 

 accepted, it wiU give a fresh interest to the economic principles which the Doctor 

 advocates. These principles are remarkable in many ways. The general position 

 which is taken is completely modern. The system of finance which is assumed is 

 of a modern type, since taxation forms the ordinary source of revenue. But a more 

 remarkable departure from the mediteval standpoint appears in the treatment of 

 Self-interest. The Doctor does not merely denounce ' private lucre ' as immoral, 

 he recognises that it is a powerful agent which the statesman may control, so that 

 it shall not be injurious at all, but shall tend to the advantage of the individual 



' See F. Galton, Proc. Hot/. Soc, 1888. 



' See Dr. Francis Warner, Journal of the Statistical Society, March 1893, 



