Page:The Economic Journal Volume 1.djvu/750

 728 THE ECONOMIC JOURNAL of this kind are undoubtedly economical in reducing the number of cash remittances, but it is obvious that they must be employed with considerable prudence to prevent a run on any one circle affecting its solvency. Moreover, the policy of employing these cash reserves by storing them in outlying districts renders the possibility of the introduction of a really convertible paper currency more remote than ever. This long digression upon the movements of cash, the Paper Currency Act, and the handling of Government funds, may have appeared to be only remotely relevant, but it has been introduced to demonstrate the following propositions, that (a) the tendency of late years has been towards the domestication, so to speak, of the rupees circulating in each province, this circulation being normally replenished from the provincial mint or by direct remittances of new coin, and that (b) this tendency is liable to be interrupted by inter-provincial movements of c'ash due to famine, public works expenditure, and trade. The following tables show the variations from year to year of the percentages of each coinage present n every year's circulation, by expressing the difference each figure h any row of Table B and the figure immediately precedhg as a percentage of that preceding figure. For example, taking the year 1874 in Table B 84'507 in the fourth column is 15'493 per cent. less than the entry i the third column. I therefore substitute 15'493 in Table C for 84'507 i Table B. Similarly 75'117 in the fifth colum of Table B is 11'112 per cent. less than 84'507 in the fourth column; 11'112 is therefore entered in Table C, and so on. Table C is chronological, while Table I) is framed by bringing together in one column the maximum percentages of each year. This maximum is represented in each case by 100.