964 REPORT — 1898. 



Two important features in the recent history of voluntary methods deserved 

 notice : the first being the position and prospects of the sliding scale, which had been 

 declining in favour, and the second, the growth in prominence and utility of media- 

 tion as contrasted with arbitration. 



2. Some Economic Aspects of tlie Imperial Idea. 

 By Ethel R. Faraday, M.A. {Victoria). 



The imperial idea includes not only the general notion of sovereignty native 

 to the word empire, but the conception of international union, a meaning which 

 the word acquired in the course of Roman and German history. The empire is 

 therefore the political counterpart of the economic system of to-day, which is the 

 result of a struggle between cosmopolitan and nationalist policy ; the popularity 

 of the imperial idea is a natural effect of modern economic conditions, just as the 

 mercantile system was the natural accompaniment of the new monarchy. For a 

 colonial empire, including communities in different stages of progress, the ideal 

 of imperial administration is the practical expression of the economic theories of 

 relativity and development, and of the historical method generally. With regard 

 to the British Empire in particular, the economic aspects of the imperial idea are 

 at present more important than its political a.spects ; partly because all the prac- 

 ticable means of consolidation — improvement of communication, organisation of 

 defence, and Customs union — are directly or indirectly economic in character, 

 partly because the empire as it exists is the work of economic conditions and not 

 of political ideals. The solution of all problems affecting the prosperity of 

 Great Britain and her colonies depends on the existence of an intelligent imperial 

 patriotism, which it must be the work of English economists to establish. The 

 poetical theory, • according to which the imperial idea rests on the sympathies 

 arising from community of race, history, and language, is insufficient in basis : 

 unless the empire is to exclude some of its most loyal adherents, it must be based 

 on sympathies transcending these. The political theory of empire advocate* 

 economic union as the preface to some unde6ned form of closer political union ; 

 but it is conceivable that all imperial necessities might be satisfied by economic 

 union on the existing political foundation of allegiance to a common sovereign. 

 In any case the fate of the imperial idea, for the present, depends chiefly upon the 

 economist ; not only because the contemporary problems of imperial organisa- 

 tion are mainly economic in their importance, but also because among the working 

 classes of Great Britain the influence of the politician is diminishing, while that 

 of the economist is increasing. 



3. Banking in Canada. By B. E. Walker. 



The history of currency and banking in Canada may be conveniently divided 

 into the six following periods, of which only the last is dealt with in this 

 abstract. 



A. 1608-1760. New France. Card money and other paper issues — 1685-1719, 

 1729-1760. 



B. 1760-1791. British Occupation. Country without paper money. Coins of 

 several countries a legal tender. 



C. 1791-1812. Representative government established in 1791, but attempts 

 to obtain charters for banks of issue unsuccessful. 



D. 1812-1817. Paper money issued by Army-bill Ofiice. 



E. 1817-1867. Joint-stock banks under provincial charters. 



F. 1867-1890. Dominion of Canada. Charters issued by the Federal instead 

 of by Provincial Governments. 



(For information regarding the first five periods, consult ' Banking in Canada,' 

 by the Authoi', Vol. 3, ' History of Banking in all the Leading Nations,' 1896. 

 Effingham Wilson and John Jones, London.) 



