eo 
TRANSACTIONS OF SECTION F. $3 
Average rate in £. 
1891-2 1896-7 
Bd. & dd. 
Metropolitan . - : é D OS™) Gg 
County boroughs, municipal iL ) 2:98 Tie eS 
Non-County boroughs, municipal 8-6 10°7 
County boroughs, Urban Sanitary 2 66 11 
Non-County boroughs, Urban Sanitary 2 62, 2 94 
Other urban sanitary districts : 2 45 2 102 
Rural district councils U7) 30 
Total rural . 8 11-4 
Urban Extra-Metropolitan Rates 
1891-2 1896-7 
£ £ 
Boroughs, municipal authorities . . 1,426,994 1,990,074 
Boroughs, school boards . 5 2 - 1,021,993 1,651,941 
Urban sanitary authorities . A . 7,658,916 10,079,084 
Commissioners of baths, &c. . : J 587 412 
2. Bank Reserves. By Georce H. Pownatt. 
System of payment by cheque and clearing an incalculable benefit to our 
commerce, but needs to be based on ample cash reserves. Total deposits, banks 
United Kingdom, 810,000,000 to 820,000,000/; offices open, 5,800; cash on hand 
and money at call and short notice, 227,000,000/. Vital distinction between 
‘cash’ and ‘money at call,’ and division necessary. Tables 3 and 4 enable us to 
make division. Fund from which ‘cash on hand and money at Bank of England’ 
cannot exceed 77,000,000Z; ‘money at call and short notice,’ 100,000,0007. But 
after deductions and adjustments, figures probably are: Total cash resources, 
English banks, 52,000,0007; money at call and short notice, or market credits, 
125,000,0002. Therefore 52,000,0007 cash total provision for meeting urgent 
liabilities. But the 52,000,0007 not all free money. Money needed for clearing 
balances, London, and provincial is necessary till money. Amount needed to 
meet London clearing balances, 10,000,0007; amount needed for provincial 
clearings unknown. British trade conducted by cheque, clearing, transfer, set off, 
but ability to pay in gold remains. 
Bankers’ balances needed for clearing cannot be withdrawn, Bank of England 
has acted on this knowledge in times of crisis by lending all her cash reserves in 
support of trade while still holding large bankers’ balances, needed for clearing. 
London bankers, agents for country bankers who look to them in time of crisis 
for cash to fill tills. Times of internal panic—bankers uneasy because their own 
cash provision insufficient. Bank of England keeps the only large store 
unemployed cash in British Isles. Times of crisis or panic, impossible to with- 
draw money from short loan market or Stock Exchange; pressure falls immedi- 
ately on Bank of England. 
Internal panic means protecting credit at 5,800 points, and foreign with- 
drawals of gold also to be satisfied. 
Preparation for danger by withdrawals from short loan market would produce 
disaster. Our methods refined to too great an extent, Suspension of Bank Act 
might satisfy internal panic, but not foreign drain. 
Short loan and Stock Exchange markets part of our system of finance— 
markets permanent, could not be disorganised without creating panic. Position 
assigned to ‘call and short money’ in balance-sheets of banks not a prudent one. 
Two pivots, money market, ‘short money,’ and Stock Exchange. If cash basis, 
national finance reasonably broad, fear of serious panic minimised—want of 
1 Published in the Zeonomie Journal, September 1899, p. 394, 
1899. 3H 
