official and market rates current in London in the past four half-years :

In spite, therefore, of the scarcity of money, the Bank of England has been underbid to a greater extent than since 1879. This of itself would show an increased competition for bills, but we must remember that only part of the question is answered in this contrast of differences. To arrive at a clear perception of the bankers' profit margins, we must take into consideration what the average allowance on deposits has been during the half-year. While the Bank rate was 5 per cent. bankers allowed 1 per cent. under Bank for deposits; and when the Bank rate was 6 per cent. they paid 2 per cent. under. Consequently, the deposit allowances have exhibited a wider variation from the Bank discount rate than is usually the case; and the following table indicates that the "margin" measured by this test has been practically on a level with the preceding halfyear, and higher than in the corresponding period of 1881:

These figures indicate a fair profit on discounting best paper, for though banks have underbid the "official minimum" more, they have paid a lower rate to their depositors. It has been rather, therefore, a question of supplies of bills and money wherewith to discount them, than of adverse rates. With the discount houses, which have paid an average of nearly £3. 1s. for money at notice, the case has been somewhat different.

Looking back over the six months and to the comparative cheapness of rates at the close, we are inclined to anticipate moderate, rather than large profit earnings. The Stock Exchange demand has been small, and money lent in that direction has not realised the handsome return which it did in the first half of 1881. Investments, too, are not so profitable when the average market rates for money rule as high as in the past twelve months. But then banks have so much money in their hands upon which they pay nothing, that high rates are found to yield good results, if, as at present, the losses by bad debts are small. The recent falling off in the Clearing-house returns is, after all, the worst feature of the past half-year.

REPORT OF THE DEPUTY MASTER OF THE MINT. THE Hon. C. W. Fremantle, in his twelfth annual report for the year 1881, states that no imperial gold coinage has taken place during the year 1881, but the department has been fully occupied in maintaining the supply of silver and bronze coins and the smaller colonial coins, and in providing a large stock of silver coins. The total number of pieces struck was 30,351,285, and their value £1,021,739 10s. 1d. The amount of gold coin received by the Bank of England from the Australian mints during the year was £3,306,000, and exceeded by nearly a million the amount received in 1880, being topped only during the last six years by the amount received in 1877. Half-crowns continue in demand for circulation; the amount issued for the year has been £229,400, and the amount placed in circulation since their coinage was resumed in 1874 has reached a total of £1,221,490. On the contrary, fourpences appear to be withdrawn from circulation, none of these coins having been issued since 1856, whilst the demand for threepences is still large, the amount issued being £23,625 during the year, and applicants for small sums of these were referred to London banks holding a surplus stock of them.

The average market price at which silver bullion was purchased during the year was 5113d. per ounce, as against 521d. in 1880 and 523d. in 179, and as the Mint issuing price is 66d. per ounce

the signorage accruing to the State in 1881 was 14 d. per ounce, or 27 per cent. The amount of bronze coinage issued during the year was £23,405, the greater portion of which was coined by contract at Birmingham; applicants for supplies were at times referred in London to the brewing firms, and in the North to a Lancashire Banking Company holding a surplus stock. The general account shows a net profit on the year of £93,822, this favourable result being due to the exceptional amount of silver bullion purchased, viz.: £608,231. At the same time a loss is recorded on worn silver coins of £54,200, the silver thus withdrawn from circulation being purchased at its full nominal value.

The subject of chief importance to bankers in this report is the condition of the gold coinage, and it is satisfactory that the Deputy Master calls their lordships' attention to it; as he remarks, it has been growing more and more unsatisfactory, but it has hitherto been impossible to undertake the increase of work which a re-coinage would entail; now, however, that the Mint is undergoing a reconstruction upon an enlarged scale, it is hoped that it will, before the end of the year, be in a position to undertake a long and continuous gold coinage, and that steps will be taken to rectify the serious condition at present existing. In the May number of the Bankers' Magazine we referred to the valuable contribution of Mr. J. B. Martin on this subject in a paper read before the Institute of Bankers, and Mr. Fremantle adopts the conclusions of Mr. Jevons and Mr. Martin that a sovereign becomes light eighteen years after its issue, whereas it is thirty-eight years since any serious attempt has been made to withdraw light gold coin from circulation.

the

It is assumed that about 50 per cent. of the gold coinage in circulation is light, taking the amount at £100,000,000, and considering that a large portion of it is also deficient in fineness, the sum of £650,000 is reckoned as the loss to be sustained transaction, without including the expense of the re-coinage. Now that the opportunity for dealing with the defective gold coinage is in view at the mint it is to be hoped that the Government may be able to take up the question and arrange it in a manner satisfactory to the banking interest, as well as the public at large.

had rendered to the bank during that period, and the agreeable way in which the directors proposed to release him from the more harassing details of business arising out of that position by appointing him Managing Director of the bank.

At the same meeting a spontaneous resolution was put to the shareholders present, and carried unanimously, for the presentation to Mr. Beattie of a testimonial in recognition of his distinguished services to the bank, and a committee was formed for the purpose of carrying out this resolution in the shape of a work of art, to be provided by means of voluntary subscriptions of the shareholders.

On the 9th of June the presentation took place at the Queen's Hotel, Birmingham, where an influential and numerous meeting was held, under the presidency of Mr. Jaffray, chairman of the bank. The Mayor of Birmingham, Alderman Avery, undertook the presentation, and in doing so referred to the origin and progress of the resolution which had resulted in the subscription of a sum of upwards of £1,000, which it was proposed to appropriate to the presentation of two pictures with the contingency of a third small picture; the commission to execute the work had been given to Mr. H. S. Marks, R.A., and Mr. McWhirter, A.R.A. The pictures were to be handed to Mr. Beattie as an expression of the sympathy, good wishes, approval and admiration of the shareholders of the bank.

Mr. Beattie, rising to acknowledge the presentation, was received with applause. He said he was deeply grateful to the Mayor for the very flattering and courteous terms in which he had made the presentation of their handsome gift. He hoped to have the pleasure of showing them, in the course of a few months, the two pictures, which he thought would evidence the judicious and pleasing selection that had been made. He thanked the shareholders very heartily for this spontaneous present. By it they had added another to their many claims upon his gratitude, which he assured them was very deep, and would be of life-long duration. This additional tribute of their kindness was in keeping with the unbounded confidence and good will that they had shown him for the past twenty years. His whole heart was wedded to the stability and prosperity of the bank, and no effort on his part should be wanting in fully continuing both. He begged to tender his especial thanks to the gentlemen who so kindly formed the committee, and to Mr. Sharp for his very efficient and kind services.

TEN YEARS' AUSTRALIAN BANKING: A COMPARISON AND A RESULT.

WE derive from The Australasian Insurance and Banking Record a ten years' comparison of the leading banking figures of the seven colonies of the Australasian group. There are few facts or figures which better mark the progress of the last decade. Ten years ago the entire advances of the banks amounted to £31,521,000; they are now £71,340,000; increase in the period, £39,819,000. Ten years ago the banks' indebtedness to the colonies for the note circulation and deposits amounted to £33,527,000; it is now £68,075,000; an increase in the period of £34,548,000. Ten years ago the banks' assets in the colonies, being their coin, their investments in premises and property, their bills discounted, advances, and all securities held, were £42,824,000; they are now £85,454,000, an increase in the period of £42,630,000. Ten years ago the banks employed in the colonies of their own capital and reserves £9,297,609; now they employ £17,378,000, an increase in the period of £8,081,000. A glance at the foregoing figures shows that in round numbers the Australian colonists have in ten years more than doubled their deposits in the banks. The banks have, on the other hand, nearly doubled the capital of their own which they employ in the colonies. The advances made by the banks are now much more than double what they were ten years since and the total assets of the banks, including advances, are almost precisely doubled in the decade. There is, in fact, in ten years a cent. per cent. increase in the volume of banking in the Australian colonies. This is an experience to which it would be difficult, or perhaps impossible to furnish a parallel in the history of banking; and it surely speaks trumpettongued of substantial Australian progress.

Contrasting the growth of advances in the different colonies in the decennial period, the figures quite confirm the prevailing idea of their comparative expansion. Victoria has an increase from 13 to 22 millions; New South Wales, from 83 to 21 millions; New Zealand, from 4 to 13 millions; South Australia, from 2 to 6 millions; Queensland, from 1 to 5 millions; Tasmania, from less than 1 to 1 millions.

The liabilities of the banks, chiefly for deposits. show this progress-Victoria, from 14 to 22 millions; New South Wales, from 10 to 22 milions; New Zealand, from 4 to 10 millions; South Australia, from 2 to 5 millions; Queensland, from nearly 2 to 5 millions; Tasmania, from over to 2 millions sterling.

To this may be added the information that at the market price of shares, bank stocks return to investors not more than about 5 per cent. per annum, so highly are they esteemed as investments,