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In this edition I have added a new second part to the Treatise on Money, with special reference to the efifects of the production of the precious metals upon industry and trade. Undoubtedly the question of most interest at the present time in the monetary controversy is whether the quantity theory of money can be reconciled with the great increase in the production of gold, and with the unprecedented accumulation of gold in theB ank of England. In my view there is sufficient gold to support a higher level of prices, and one of the principal reasons why this higher level is not attained is the continued depreciation of silver. It is, I think, largely owing to this cause that the recent gold discoveries haye not had the same stimulating effects upon trade as the discoveries about the middle of this century inC alifornia and A ustralia.
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