gram, illustrating the exchanges of the London Clearing House upon the fourth of each month, indicate how extreme are the fluctuations in demand for media of exchange, which are thus satisfied:

Nevertheless, in the country districts, even of England, there are periodic demands for other forms of currency; and the fluctuations in the note-issues of the country joint-stock and private banks give evidence of these seasonal demands to the extent to which they respond to them. The amount of such issues is not large, usually less than $10,000,000, but the fluctuations within this limit indicate considerable elasticity.

The following diagram' shows the course of the bank issues of the English Private and Joint-Stock Banks in 1894 and 1895. There appears a distinct increase of the circulation at quarterly intervals-especially marked in April and October. This will be recognized as being in response to the demand for currency in the form of notes growing out of the payment of interest and dividends to or by those who do not make use of the deposit system:

CHART IV

NOTE-ISSUES OF ENGLISH PRIVATE AND JOINT-STOCK BANKS.

PER

PER JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR MAY JUNE JULY AUG. SEP OCT. NOV. DEC. CENT

CENT

115

105

100

In the preparation of this diagram and those which follow the circulation at weekly or monthly intervals has been ascertained and the amount for each date compared with the lowest amount reported for the two years in question. The amounts indicated on each diagram are thus percentages of the lowest circulation for the banks in question during the years 1894 and 1895.

115

110

105

100

212. In Scotland, both deposit- and note-currency have been highly developed; but on account of the greater freedom left for the expansion of the notes, that form of the medium of exchange occupies a much more important field than in England. But the nature and extent of the demand for varying supplies of media of exchange are not materially different. The extent to which note-currency meets these fluctuations is shown by the following diagram:

PER JAN. FEB. MAR. APR. MAY JUNE JULY AUG SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC. FER

CENT

CENT

125

120

115

110

105

100

Practically the only difference between this showing and the preceding one is that the slight January and July upward movements in England do not appear in Scotland, while the two marked semi-annual movements are slightly later — that in the autumn being the more pronounced.

In Ireland, the movement differs from that in Scotland in

125

120

115

110

105

100

indicating a more prominent demand for note-currency in the autumn, growing out of crop movements among an agricultural class less conversant with the deposit system. The movements are also slightly earlier the maximum being reached in April and October rather than in May and November.

CHART VI

NOTE-ISSUES OF BANK OF IRELAND AND IRISH JOINT-STOCK BANKS.

PER JAN. FEB. MAR. APR. MAY JUNE JULY AUG SEP OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC. PER

CENT

CENT

120

115

110

105

100

213. In Germany, the absence of the development of the check and deposit-system has left the burden of increased demand to fall almost exclusively on the note-currency. The result is a much more marked fluctuation in the supply of that particular medium of exchange than was exhibited in England, Ireland or Scotland, where the extreme elasticity of the depositcurrency permitted the heaviest demands to be met without the use of notes. It will be noticed that in addition to the movements in January, April, July, and October, resulting from the settling of dividends, interest and other quarterly payments, there are well defined monthly movements arising from the requirement of more currency in the settlement of accounts, rents, salaries, etc., at the end of each month.

120

115

110

105

100

CHART VII

NOTE-ISSUES OF THE IMPERIAL BANK OF GERMANY.

PER JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY AUG SEP OCT. NOV. DEC. PER

CENT

CENT

214. In Canada, the characteristic, as shown by the diagram below, is a single annual movement of currency to meet the demands for "moving the crops." The deposit-system is far enough developed in all the commercial centers and even to a large extent throughout the rural communities, where the

120

115

110

105

100