Sold did not regulate prices ; that the scarcity of gold had nothing 

 to do with prices. Mill said that if the whole money in circulation 

 was doubled prices would be doubled. GiffeD, a greater authority 

 than Ricardo— [Mr. Johnston : He was not a political economist] — 

 showed that the alteratious in value and prices were due to the scarcity 

 °i gold ; that the gradual adjustment of prices must be subject to the 

 gradually smaller supply of gold ; that a fall in prices implied a contrac- 

 tion in money, but Mr. Johnston laid it down emphatically that it was 

 not so. [Mr. Johnston : Certainly] Professor Foxwell, of Cambridge, 

 said : " There can be no question that where the value of money has 

 risen the price of commodities has fallen." Giffen said that banking 

 facilities did not meet the difficulty, and did not compensate for a 

 scarcity of gold. Saurbeck said that a great increase of production and 

 a n insufficient supply of gold were the causes of lower prices. 



Mr. Justioe Dodds rose to a point of order. He thought gold 

 should not be considered as gold, for the purposes of the discussion, 

 *°r gold had a fixed stmdard that was simply used as a medium of 

 exchange. Mr. Johnston's paper dealt with the primary cost of the 

 production of commodities, and that had not a fixed standard. 



The Chairman : That is the point. 



Mr. Johnston : Hear, hear. This is bordering upon the question of 

 bimetallism. 



Dr. Benjafield (proceeding) said that Professor Nicholson ridiculed 

 the idea of gold being a foot-rule, as the value of a sovereign was 

 changing frequently. Mr. Johnston had said that the fall of silver 

 Wa s due to cheapened production. Giffen said that its purchasing 

 power was greater than ever, and had not really fallen at all, They 

 should speak of silver as appreciating a little and gold a very great 

 deal. They would find that what had occurred to silver had occurred 

 '0 gold. The cheaper means of abstraction of gold had also been 

 Very great. Last year's output was the largest, yet its purchasing 

 Power had doubled within 20 years, 



Mr. Pysh : Why do you argue it is scarce? Is it scarce ? 



Dr. Benjafield said it was scarce in the banks. 



Mr. Pysii referred to the millions lying idle in the banks. 



Dr. Benjafield said that gold appreciation had occurred through 

 legislative interference, and silver hid failed to equally appreciate 

 through the same cause. 



After Mr. W oollnough, M.H.A., had offered some observations, the 

 discussion was adjourned for a week. 



At an adjourned meeting of the Royal Society of Tasmania on 

 Monday, October 28th, Sir James Wilson Agnevv, K.C.M.G., M.D., 

 M.E.C. (Vice-Fresident) occupied the chair, and there was a good 

 attendance of both ladies and gentlemen. The meeting had been 

 a< ljourned until this evening to further discuss Mr. R. M. Johnston's 

 Paper on " The Primary Law of Value or Price." 



DEATH OF MRS. MEREDITH. 



The Chairman, upon taking the chair, said : — Ladies and gentle- 

 men, — Before we proceed to business I have to say how sorry I have 

 "3en to hear this afternoon — and I am sure you are very sorry too — of 

 the death of Mrs. Charles Meredith. Mrs. Meredith has been a 

 distinguished resident of Tasmania and a hon. member of this 



