Page:Indian Journal of Economics Volume 2.djvu/598

 H. STANLEY JEVONS that the Gold Stand. ard Reserve has been built up to an enormous sum. At present (December, 1918) the Gold Standard Reserve consists of 85,400,000 which 'is held entirely in London, invested 'mainly in War Loans of the British Government. It is very doubtful whether so large 'difBeult to find any determine the Reserve. of view, it should of payments which months due to an sum is proper size really needed. It is measure by which to of the Gold Standard I would say that from te theoretical point depend upon the possiMe balance might arise within the next few imports over excess of Such excess would arise through considerable exports. mpors being made in anticipation of a good season and long credit being given followed by a failure of the crops and a reduced surplus for export from India If we assume the average period of ;redit on import trade to be three months, and the value of the export could half the value of the imports if we assume that hardly be less than in any period, this would seem to show that the maximum figure Ukely to be required for .a Reserve in London, needed to mee reverse councils would be one-eighth of the total value of the imports int India during $ whole year. Of course this total very considerably; but we value find of imports varies that the highest amount yet recorded is 183 erores, or t lgg, 160 000 in 1913-14. The figure of 25,000,000 is distinctly more than one-eighth of this and might, therefore, be regarded as a safe maximum for the Reserve. It would seem, therefore, that or twelve million pounds could be made in London for other purposes from. the Standard Reserve. Next we have fiduciary portion (old Stsnds some ten Gold the Paper Currency Reserve. The in India is ten erores, whilst in