The expression that “the Bank bought so much gold to-day” appears to cause difficulty in some minds, in that some people cannot understand how the Bank benefits by buying gold. “What can be the use of the Bank buying gold?” they say. “It must give gold for gold, which won’t alter its position in the slightest!” This matter is a very simple one really, and explains itself with a little thought. The usual procedure of dealing with an import of gold is for the importer, or his agent, to hand the gold to the Banking Department of the Bank of England, which _credits_ him for the value of the gold. Of course, if the importer were then to draw out this amount in gold the Bank would not be benefited, but this does not happen under any ordinary circumstances. The Banking Department passes the gold on to the Issue Department in exchange for notes, and the extent to which the Bank benefits is shown in the ensuing Return, when “Other Deposits” will be increased, owing to some account having been credited for the gold received, and on the other side of the account “Notes” will be so much higher; that is, the Reserve and Ratio will both be increased. The figures of the Issue Department will be increased on each side by the amount of gold received and notes issued. The question of silver is then dealt with in the article. This question is not now of such importance as was the case a few years ago, when the bi-metallic theory was so much to the fore. The position of silver is very different now from what it was up to quite recent years. For many centuries previous to about thirty years ago, the price of silver as compared with that of gold was about as 15 is to 1; in other words, an ounce of silver was worth about 5_s._, and an ounce of gold about 75_s._ to 80_s._ This state of things has now entirely disappeared, however, and we find silver fluctuating rapidly and extensively in price—having in the course of the year 1902 been as low as 21⁹/₁₆_d._ per ounce. The reason for this fall in the price of silver is not far to seek; supply has largely exceeded demand. Several countries which had been large consumers of silver for currency purposes have, during the last thirty years, thrown over their silver system and adopted gold in its place, as a standard of value. This, of course, largely decreased the demand for the metal, and in addition it threw a large amount of silver out of circulation and on to the market. The supply of the metal has also been largely increased, owing to extensive discoveries of new mines, and to improvements in the method of mining, which have made it possible for mines of a low grade of ore to be worked at a commercial profit.