The influence of the large production of gold upon the level of prices in the last decade presents one of the most interesting problems in theoretical as well as in practical economics. Since Ricardo, and even before him, the familiar theory has been held that an increase of the circulating medium necessarily produces an increase in the prices of goods. Yet, in the United States, we have had falling prices with an increasing circulation. Indeed, the old theory of Ricardo and Hume no longer holds undisputed sway. There seems to be general agreement hat the price of an article, like wheat, is the quantity of the given standard for which it will exchange. Obviously, price is an expression of the exchange-ratio between a commmodity, likewheat, and a standard, like gold. Hence, in these later days, it has been seen that this ratio can be changed by forces affe;cting either term of the ratio. While the causes influencing the supply and demand of gold are supposed constant, we know that causes touching the demand and supply of wheat can modify its gold price. A scanty harvest and a reduced supply of wheat, or a new demand, will raise its price; while reduced freights, improved processes, an increase of supply, or a diminished emand, will lower its price. These facts, touching wheat alone, are self-evident; and they show that changes in price are not to be attributed solely to forces affecting

The inelasticity of our forms of money is by this time a trite subject; but the conditions of the money market, which recently led to a general resort to clearing-house certificates throughout the country, has brought new interest in measures of reform. Obviously, a strong impetus has been given to the discussion of an emergency issue by the national banks, and there is an evident determination to secure currency legislation from the coming session of Congress. As everyone knows, in amount, our greenbacks (United States notes), and our silver circulation are fixed at a rigid limit, which can be neither increased nor diminished. The national bank notes are, also, inelastic, for all practical purposes, for elasticity implies the possibility of expansion in case of a real need, and of automatic contraction when the need has passed. The banks can take out new circulation only by securing and depositing United States bonds with the comptroller. Inasmuch as these notes are printed from separate plates for each bank, the sending in of bonds, the printing of the notes in Washington, their shipment to the bank, and the signing of the notes by the respective bank officials, cause more or less delay before the notes are ready to be issued. This delay is such that, unless foreseen, bank notes can seldom be obtained soon enough to meet a sudden emergency. On the other hand, their contraction is much more delayed than their expansion. The very uniformity and safety of national bank notes constitute the reason why they would not be sent in for redemption by anyone else than the issuing bank. The circulation being out in all parts of the country, any one bank can but seldomn get hold of its own notes. Just so far as they are presented to the one Redemption Agency in Washington will the bank have its own notes returned. If a bank wishes to withdraw its circulation, it can begin the process by depositing lawful money with the treasury to the amount of the notes to be withdrawn, and thereupon it can take away the bonds so far kept for their ultimate redemption. This "doomed circulation" is still out in the hands of the public, and cannot be contracted except by the slow method of waiting until the notes are sent in by other banks, or until they become worn or mutilated enough to be sent in