522 Dr. E. J. Mills on Elective Attraction, 



pose there are two stocks, A and B ; A (originally 100) sells for 

 35, and is a 5 per cent, stock ; B sells for 70, and is a 2 per cent, 

 stock. Now although interest, we may say, depends on the mere 

 occurrence or negotiation of the loan, yet, in forming ana/?7wi 

 estimate of it, we must be guided by the fluctuations of loans gene- 

 rally. In the case of A little more than one third of the original 

 price is the basis of a transaction, in the case of B rather less 

 than three fourths. The actual absolute prices are to each other 

 A : B : : 1 : 2. Now we might value the stocks by their per- 

 centage return, namely, A at 14 and B at 2*8 ; or we might 

 value them by 100 x the reciprocals of these numbers, that is, A 

 at 7 and B at 35. In what manner can we decide as to the validity 

 of either method ? By first supposing both stocks to rise to par, 

 and multiplying each by its own rate of interest, A : B : : 500 : 200, 

 we find that A is worth 5 : 2 times B, in accordance with the 

 common estimate. When A and B are at 35 and 70 respect- 

 ively, we have, by a similar comparison, 



A :B = 35x 14: 70x2-8 = 5 :2j 



but, by the use of the reciprocals already mentioned, 



A :B = 35x7: 70x35 = 1:10. 



The latter result is manifestly false. The former is correct; 

 because it coincides with the principle underlying such transac- 

 tions, that all stocks tend to have more nearly the same rate 

 per cent, as they approach par. Now this principle, if we make 

 due allowance for the nature of an analogy, is identical with the 

 one employed in deciding as to the construction of the ratio a. 

 The low price of a stock corresponds with the sluggishness of a 

 nitrate to enter into reaction, as especially instanced in plumbic 

 nitrate ; the high price of a stock corresponds with the tendency 

 for the whole mass of a nitrate to enter into reaction, as instanced 

 in lithic nitrate. A high-priced stock pays a low rate of interest ; 

 a wholly reactive nitrate has a low elective coefficient. I repeat 

 in this place my former statement, that the elective coefficient a 

 represents the dynamical use that can be made of a nitrate. 

 See also (7) . 



(3) In the silver group the mean value of Q is 31*11, and the 

 following equation may be accepted therefore : — 



"=3m- 



Similarly, in the potassium group we have 



" 50-42* 

 Hence within each set of nitrates the elective coefficient is directly 



