OKLAHOMA ACADEMY OF SCIENCE 101 



change in the volume of money within the boundaries of each 

 country because of changes which were being made in the currencies 

 of other countries. Therefore, we would have a constant fluctua- 

 tion in the internal price level in each country due to foreign causes. 



But it all currencies had the same degree or con- 

 stant ratios of internal depreciation the foreign exchange 

 ratios between them would be neither on a par basis 

 nor remain at any fixed ratios. As a matter of fact 

 foreign exchange rates were not on a par basis prior to the war 

 when all currencies were redeemable in gold and the markets of 

 the world were so free and open that practically the same price 

 level was maintained in each of the countries. The balance of 

 trade between the different countries constantly affected the foreign 

 exchange ratio of their currencies and the only way they were kept 

 near a par basis was by the shipment of gold from the countries of 

 excess imports to the countries of excess exports. 



As has already been indicated, under present conditions, there 

 are two fundamental factors which affect foreign exchange rates 

 between America and the countries of Europe. They are (1) the lack 

 of balance of trade between America and Europe, and (2) the depre- 

 ciation of the European currencies below a gold basis while America's 

 currency system remained on a gold basis. Professor Cassel's theory 

 takes into consideration only the second factor, that of the de- 

 preciation of the currencies of Europe, and to the extent to which 

 this depreciation plays a part in depressing exchange rates be- 

 tween Europe and America the application of his theory would 

 raise the exchange rate of those currencies in the American market. 

 But if his schem.e were put into full operation it would not bring 

 those currencies to a parity basis in the United States so long as 

 Europe continues to buy greater quantities of goods than she is 

 able to pay for in goods, gold, or securities. 



XLIX. RESPONSIBILITY IN STATE GOVERNMENT. 

 F. F. Blachly 



From the Department of Government, University of Oklahoma. 

 (Abstracted) 

 In every state of the United States, the government is organized 

 with a two-house legislature, a governor elected by the people, and 

 an independent judiciary. In many states, also, most of the im- 

 portant administrative officers are subject to popular election. 

 Theoretically, this system means control of the government by the 

 people, and a system of checks and balances which will assure ma- 

 ture consideration of all measures, and will prevent any one de- 



