SUMMARY OF WEEKLY RETURNS OF BANKS OF ISSUE FOR FOUR WEEKS ENDING FEBRUARY 11th, 1882. Average Weekly Circulation of these banks for the month ending as above:- £1,685,492 1,670,548 £3,356,040 On comparing these amounts with the Returns for the previous month, they show: Decrease in the notes of Private Banks £4,005 2,009 And, as compared with the corresponding month of last year:- £18,180 Increase in the notes of Joint-Stock Banks 9,101 Total Decrease as compared with the corresponding period of last year The following is the comparative state of the circulation as regards the Fized Issues: £9,079 SUMMARY OF IRISH AND SCOTCH RETURNS TO FEBRUARY 11th, 1882. The Returns of Circulation of the Irish and Scotch Banks for the four weeks ending as above, when added together, give the following as the Average Weekly Circulation of these banks during the past month, viz. : Average Circulation of the Irish Banks On comparing these amounts with the Returns for the previous month, they show Total Decrease on the month.. And as compared with the corresponding month of last year- Total Increase as compared with the corresponding period of last year £585,495 The Fixed Issues of the Irish and Scotch Banks at the present time, are:- . £6,354,494 2,676,350 £9,030,844 The Actual Circulation compared with the above gives the following results:-- £777,968 2,579,447 Average amounts of Gold and Silver coin held by these banks during the past Being a Decrease of £64,378 on the part of the Irish Banks, and a Decrease of £329,509 on the part of the Scotch Banks as compared with the Return of the previous month. CIRCULATION OF THE UNITED KINGDOM TO FEBRUARY 11th, 1882. Average Weekly Circulation for the month ending as above, as compared with the previous month: As compared with the corresponding period of last year, the returns show a decrease in the Bank of England circulation of £876,526, a decrease in Private Banks of £18,180, and an increase in Joint-Stock Banks of £9,101; in Scotland an increase of £108,732; and in Ireland an increase of £476,763. Thus showing that the month ending Feb. 11th, as compared with the corresponding period last year, presents a decrease of £885,605 in England, and a decrease of £300,110 in the United Kingdom. this The Returns of the Bank of England for the month ending Feb. 8th give an average amount of Bullion, in both departments, of £19,756,081. On a comparison of with the Return for the previous month, there appears to be a decrease of £638,771, and a decrease of £5,381,719 as compared with the corresponding period last year. The average amount of Coin held by the Banks of Issue in Scotland and Ireland during the month ending Feb. 11th was £6,739,451, being a decrease of £225,188, as compared with the Return of the previous month, and an increase of £35,361, as compared with the corresponding period of last year. THE BANKERS' MAGAZINE AND Journal of the Money Market. MAY, 1882 THE DOUBLE STANDARD. A GREAT deal has been recently said and written on the question whether a double standard of value would be a desirable thing for this country to adopt, and it becomes therefore desirable to see how the matter stands. The existing standard in this country is of one of the precious metals only, and it is composed of gold. That metal was adopted as the exclusive standard in 1816. The standard had been different before that time. It was fixed to be of silver about 1567. In 1717, the value of the guinea was determined to be 21s. For a certain period, both gold and silver constituted a mixed standard of value. In 1774, it was enacted that no legal contract should be discharged in silver for any sum of more than £25. Thus gold became substantially the measure of value, and so it continued to be legally and practically until 1797, when the suspension of cash payments took place. In 1816, as mentioned above, the resumption of cash payments was agreed to on the basis of gold. Sir Robert Peel, remarking on this subject in his speech on the Bank Act in 1844, gave his well-known definition of what a "Pound" is. He explained that what was implied by the word "Pound" was a certain definite quantity of gold with a mark upon it to determine its weight and fineness, and that the engagement to pay a Pound means nothing, and can mean nothing, else than the promise to pay to the holder, when he demands it, that definite quantity of gold; the basis of value being that an ounce of gold is coined into the sum of £3. 17s. 10 d. This is briefly the history of the standard of value in this VOL. XLII. 27 country. The silver coinage in use in this country is only what is called a "token coinage "-that is to say, there is not, taking silver at five shillings an ounce, the value of the fourth part of a gold sovereign in a full weighted crown piece. Its metallic value would be between 4s. 6d. and 4s. 7d. The silver in use is thus a mere subsidiary coinage and does not in any way become the standard of value. A question may then be asked, Why was one metal chosen instead of more than one? The reason for making the standard of value of one metal only has been so well stated by Locke, that we cannot do better than quote his words "Two metals, as gold and silver, cannot be the measure of commerce both together, in any country: because the measure of commerce must be perpetually the same, invariable, and keeping the same proportion of value in all its parts. But so only one metal does, or can do itself: so silver is to silver, and gold to gold. An ounce of silver is always of equal value to an ounce of silver, and an ounce of gold to an ounce of gold; and two ounces of the one, or the other, of double the value to an ounce of the same. But gold and silver change their value one to another for supposing them to be in value as sixteen to one now; perhaps the next month they may be as fifteen and threequarters, or fifteen and seven-eighths to one. And one may as well make a measure, viz., a yard, whose parts lengthen and shrink, as a measure of trade of materials that have not always a settled, invariable value to one another. "One metal, therefore, alone can be the money of account and contract, and the measure of commerce in any country." Silver was the metal which Locke recommended for the purpose of the standard-but the argument holds equally good for gold. In practice it is found to be difficult to keep the two metals in circulation at the same time. When the two metals circulate side by side in a country, if one becomes more plentiful through improvements in mining, or any other cause, it becomes the interest of the debtor to pay in the cheaper metal. The coins formed of the dearer metal are collected for the purpose of being exported and sold. The currency therefore never consists long together of both metals, but only of the one which at the time suits the interests of debtors best, if the option of payment in either metal is given to them. The inconveniences of a double standard being thus apparent when the use of the two metals was limited to one country alone, a suggestion has been made that by extending the employment of them at the same ratio of change over the whole civilized world, |