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 times as well as the stringency of bad ones, instead of only the latter as under the existing system." Why our peevish friend should suppose that the community as a whole does not share the prosperity of good times we need not pause to inquire. What is curious is to find his system of currency regulation depending on the existence of a national debt, in view of the many eloquent passages in his pamphlet which are devoted to denunciations of usury. The fact, however, that only a nation with a debt can use the system is never likely to be an objection.

In this country the system would work, I suppose, somewhat on this wise. If prices went down and it was therefore desired to increase the volume of currency, the official broker would be sent into the Consols market to buy the necessary number of millions of Government securities, and new notes, either Treasury notes or Bank of England notes, would be issued to the sellers in payment for their stock; this would be a simple and inexpensive operation. Interest bearing debt would be paid off by the issue of paper which would only bear the cost of printing.

But when it is the other way and debt is issued so as to contract currency at a time of rising prices, the process seems likely to be