148 STUDIES, SCIENTIFIC AND SOCIAL chap. 



his table of average values, and having had experience of 

 the effect produced by a given increase or diminution of 

 the currency, instructs the Mint to issue fresh money at a 

 given rate per week. This money is sent to the Treasury 

 and is at once brought into circulation by being paid away 

 in salaries, wages, purchase of materials, &c., in the various 

 Government departments. There is thus no difficulty 

 whatever in increasing the amount of the currency and 

 thus diminishing its purchasing power. The Registrar of 

 Prices carefully watches the effect upon the markets week 

 by week, and month by month, and when he sees that the 

 standard is very nearly attained he instructs the Mint to 

 stop further issues. 



On the other hand, when prices are rising, owing to there 

 being rather more money in circulation than is necessary, 

 instructions are sent to the Treasury to cancel a certain 

 amount of the money paid in for taxes, stamps, &c., till the 

 balance is restored. But this will very seldom, perhaps 

 never, be necessary. The continuous increase of the 

 population requires a constant increase in the currency, 

 while another constant renewal is required to make good 

 the losses by fire, water, and other accidents. And as the 

 amount required to keep average prices steady would be 

 so carefully watched, the mere stoppage of the normal 

 issues would in most cases suffice to bring back average 

 prices when they showed any tendency to rise above the 

 standard rate. 



The total gain to the country of such a currency would 

 be very great. All the additions required to keep up with 

 increase of population and to make up for accidental losses 

 would be clear gain, and would probably amount to a con- 

 siderable annual revenue ; while during the transition from 

 gold to paper an enormous amount of coin would be 

 accumulated by the Treasury which might be kept as a 

 reserve against foreign war expenses or might be supplied 

 to merchants as bullion of guaranteed quality for foreign 

 payments. Silver and bronze coins for payment of 

 wages and small transactions might be continued in 

 use, as they are both customary and convenient, but 

 their actual value in metal might be reduced, thus giving 



