Xvi PEOCEEDIXGS OF THE GEOLOGICAL SOCIETY, [vol. IxXYli^ 



(8) From this statement of the case it appears that the Societ}^ 

 will be able to cany on its activities, and to maintain an approxi- 

 mation to the proportion of expenditure on essential and ancillary 

 purposes which we have adopted as the ideal to be aimed at, if the 

 condition is accepted that the actual bulk of matter which the 

 Society is able to publish must be reduced to somewhat less than 

 half of what it was able to issue previous to 1914. A further 

 proviso must be made that the possibility is entirely dependent on 

 the devotion and willingness of the permanent staff in assisting 

 the Society to tide over a critical period, and that it may be 

 necessary to abandon or diminish some minor activities which, 

 however desirable in themselves, would interfere with others of" 

 greater importance. We are, therefore, of opinion that no sufficient 

 case has been made out for the immediate submission to the Society 

 of a proposal for modification in the contributions of its Fellows, 

 and that it is preferable to wait until it is seen whether the amount 

 of original matter offered for, and worthy of, publication is so far- 

 in excess of that which it will be possible to publish as to justify 

 the proposal. 



(9) No provision has been made for arrears of publication in the 

 allotment of expenditure detailed above. These Ave believe can be 

 provided for by the sum now invested, which we have mentioned 

 as equitably applicable to this purpose, and by the balances at 

 credit of the Sorby and Hudleston bequests, which could be- 

 diverted to this purpose, if necessarj^, from that for which it had 

 been intended to use them. 



(10) In the course of their investigation of the Society's finances, 

 the Officers' attention has been given to two points in the form of 

 the Annual Accounts. 



The first is the inclusion of the List of Fellows under the heading: 

 of Publications. As this is not a scientific publication, but an 

 incident of the administration of the Societ}'', the cost seems more 

 appropriate to the heading of Office Expenditure. 



The second is the treatment of sums received as Composition 

 and Entrance Fees. The reasons of accountancy which justify the 

 treatment of regularly recurring receipts as part of the ordinary 

 income are fully recognized, but these reasons carry Avith them the 

 correlative obligation to make provision, on the other side of the 

 account, for possible unforeseen expenses, as Avell as for those Avhich 

 recur at longer interA''als and in larger amounts than can be pro- 

 vided for out of a single year's income. We think that it would 

 be easier for an un financial body to understand the position, if a 

 proportion of the Composition and Entrance Fees Avere automatically 

 carried to a reserve fund, from AA'hich expenditure of the character 

 just referred to could be met, and that part of the reserve fund so- 

 established should be held in some more liquid form than the 

 permanent investments AAdiich now constitute the only reserve .at 

 the disposal of the Society. 



