Indian Journal of Economics July 1943

The sky rocketing of prices the scarcity of almost every important household commodity the unsatisfactory attempts of the authorities at price control the impostions of mediaeval restrictions on the movement of goods and persons the galloping note circulation the famine of coins specially of small coins the reduction in the fineness of silver coins and the withdrawal of coins of standar [...] Unfortunately however for the student of economic affairs the publication of the Review of the Trade of India is being deliberately delayed owing to political and military considerations; while the use of Calendar year for the Banking Tables and financial year for the Currency. [...] For this purpose I took the private deposits of the Imperial Bank the deposits in India and Burma of the Exchange Banks the deposits of the Indian Joint-Stocks banks (Al and B class) the deposits and loans of the Co-operative Banks (A and B class); and dividing the total of cheques cleared through the clearing houses by the total of deposits of the above classes of banks found a crude velocity [...] The method followed is to take the total deposits of all the clearing banks whether scheduled or not (including the deposits and loans held at the end of the year from non-members and members in individual capacity of the coperative banks) and then distributing the total finis arrived at between demand and time liabilities in the same proportion as the total of demand and time liabilities of [...] Do the changes in the velocity of legal tender money follow closely the changes in the velocity of bank demand deposits ? It may be thought that an index of tfie rapidity with which money passes from hand to hand may be provided by the variations in the volume of balances which the scheduled banks maintain with the Reserve Bank in excess of the statutory minimum reserve.