It may be argued that this would lead to a free and larger production of silver, which is certainly not wanted in the present circumstances. It is a statement of fact that, since 1890, when silver prices began to fall heavily, the production of silver has been considerably restricted. There was, however, talk of opening up the mines, that had remained closed for a long while, in 1912, when the possible demand both from India and China appeared to be sufficiently large. The collapse of prices is only too recent to need any special explanation. But the production of silver is not the only one that would have to be regulated. There were alarmists who predicted that a very large increase in the production in gold would lead to a large increase in prices. There is no doubt that prices did rise enormously when the production of gold increased 50 per cent, in the course of six years. The fortuitous circumstance of India being able to absorb a large part of the supply during recent years and the political crisis since 1911 culminating the present war, postponed what would otherwise have been a momentous question to-day. If the production of gold had remained at its present total, without any corresponding demand, prices would have risen so much that in the natural course of events either the production would have had to be reduced or some other arrangements made involving practically the dethronement of gold as the sole standard of value. On account of the war, and the economic condition likely to result, and to be felt for decades to come, the question of the relation between money and gold supply is likely to need a better adjustment. When such a time comes it is better for China not to have an additional mill-stone round her neck. It is not at all impossible, that, in the near future, the relation between gold and silver, including production and demand and their relative values as money, would have to be put on a new basis. Even supposing that conditions continue to be what they are to-day, the adoption of silver by China is sure to restrict the range of fluctuation in values. When the fluctuation of the prices of commodities in the interior is kept within normal limits and is solely regulated by economic forces, apart from currency, the chances are that the prices of the same commodities in international trade would show relatively small variations. As the foreign trade of China is conducted almost exclusively with gold standard countries the steadiness of prices in this country would exercise a great deal of influence in other parts of the world. I have shown in "Finance in China" how, apart from other causes, the course of foreign trade in China has had a particular effect on silver values. There is every reason to believe that the steadiness of prices in the interior would make its effect doubly felt on silver and prices, also in other parts of the world. In brief, the effect will be to keep the fluctuations of silver prices within very narrow limits. After a while, it would be easy to bring about a more or less fixed ratio Between gold and silver - although, of course, it is not at all improbable that the production of gold and silver might have to be regulated from time to time.