MENT SECURITIES: I890-I909 The following tables of,the prices of bonds and of the interest yielded by investment securities, commercial paper, and call loans have been made in connection with an investigation into business cycles since I890. They are companion pieces to the tables of relative prices of common and preferred stocks, published in the issues of this Journal for May and July, I9I0. The text of the present paper is limited to a description of the tables, a brief analysis of the results, and a comparison between the course of interest rates and bond prices in America and Europe. While certain special problems suggested by the statistics are discussed, no systematic effort is made to account for the fluctuations in the rates of interest; for that general problem canlnot be treated adequately without thorough analysis of the whole business situation.

reasonable being who always intelligently seeks his own good or is guided in all his activities by enlightened self-interest." The truth is, Mr. McDougall asserts that "mankind is only a little bit reasonable and to a great extent very unintelligently moved in quite unreasonable ways."32 That is, the economists have committed "the intellectualist fallacy." In considering whether this criticism is just with reference to contemporary economics, it is necessary to summarize the psy? chological assumptions commonly made. The statement which follows is intended to apply primarily to economic theory of the eclectic type. An element of psychological unreality is clearly present in most expositions of the theory of value. Bargainers are usually represented as exchanging two consumption goods?say nuts and apples. They come to market with definitely formulated ideas of how many units of the good in their possession they will give to get each successive unit of the other good. These demand schedules rest upon equally definite ideas concerning the varying marginal utilities which each good has for them as the supply is increased or diminished. The artificiality of the whole picture is further enhanced by using diagrams to show the vary? ing marginal utilities of goods, and the varying disutility of successive hours of labor.