THE INCREASING USE OF THE TELEPHONE REQUIRES THE EXPENDITURE OF HUNDREDS OF MILLIONS ANNUALLY FOR EXTENSIONS AND IMPROVEMENTS It keeps faith with your needs An Advertisement of the American Telephone and Telegraph Company You have found a constantly growing use for the telephone. You have learned its value in business. You have found it helpful in keeping contact with family and friends. Its increasing use has given the telephone its humanly important place in modern life and requires the expenditure of hundreds of millions annually for extensions and improvements. In 1929 the Bell System's additions, betterments and replacements, with new manufacturing facilities, meant an expenditure of 633 million dollars. During 1930 this total will be more than 700 millions. Definite improvements in your service result from a program of this size and kind. They start with the average time required to put in your telephone-which in five years has been cut nearly in half. They range through the other ERICAN TELED GELL SYSTEM ASSOCIATED branches of your service, even to calls for distant points-so that all but a very few of them are now completed while you remain at the telephone. In order to give the most effective, as well as the most economical service, the operation of the Bell System is carried on by 24 Associated Companies, each attuned to the part of the country it serves. The Bell Laboratories are constantly engaged in telephone research. The Western Electric Company is manufacturing the precision equipment needed by the System. The staff of the American Telephone and Telegraph Company is developing better methods for the use of the operating companies. ELEGRAPH COMPARIS It is the aim of the Bell System continually to furnish a better telephone service for the nation. JOURNAL OF POLITICAL ECONOMY Volume XXXVIII AUGUST 1930 Number 4 Velocity of Bank Deposits in England Lionel D. Edie and Donald Weaver 373 Jacob Viner 404 English Theories of Foreign Trade before Adam Smith (Con cluded) The Elasticity of Bank Notes L. W. Mints 458 Childs, Labor and Capital in National Politics (Witte), 483.-Anderson, Fixation of Wages in Australia (Millis), 484.—Kuczynski, The Balance of Births and Deaths. Vol. I, Western and Northern Europe (Woodbury), 486.-Pasvolsky, Economic Nationalism of the Danubian States (Handman), 488.—Halm, Die Konkurrenz (Burns), 490.-Harms, Strukturwandlungen der Deutschen Volkswirtschaft. Vorlesungen gehalten in der Deutschen Vereinigung für Staatswissenschaftliche Fortbildung (Notz), 491.-Watkins, Bankers' Balances: A Study of the Effects of the Federal Reserve System on Banking Relationships (Brown), 493.-Tippetts, State Banks and the Federal Reserve System (Leffler), 495.-Hohman, The American Whaleman (Craven), 497.-Ware, The Labor Movement in the United States 1860-1895 (Keir), 498. Books Received $500 THE UNIVERSITY OF CHICAGO PRESS CHICAGO, ILLINOIS, U.S.A. August 1930 Volume XXXVIII, No. 4 THE JOURNAL OF POLITICAL ECONOMY EDITED BY JACOB VINER AND F. H. KNIGHT, WITH THE CO-OPERATION OF THE UNIVERSITY OF CHICAGO The Journal of Political Economy is published bi-monthly, by the University of Chicago at the University of Chicago Press, 5750 Ellis Avenue, Chicago, Illinois. The subscription price is $4.00 per year; the price of single copies is 75 cents. Orders for service of less than a half-year will be charged at the single-copy rate. ¶ Postage is prepaid by the publishers on all orders from the United States, Mexico, Cuba, Porto Rico, Panama Canal Zone, Republic of Panama, Dominican Republic, Canary Islands, El Salvador, Argentina, Bolivia, Brazil, Colombia, Chile, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Peru, Haiti, Uruguay, Paraguay, Hawaiian Islands, Philippine Islands, Guam, Samoan Islands, Balearic Islands, Spain, and Venezuela. ¶ Postage is charged extra as follows: for Canada, and Newfoundland, 25 cents on annual subscriptions (total $4.25); on single copies 4 cents (total 79 cents); for all other countries in the Postal Union, 35 cents on annual subscriptions (total $4.35), on single copies 6 cents (total 81 cents). ¶ Patrons are requested to make all remittances payable to the University of Chicago Press in postal or express money orders or bank drafts. The following are authorized agents: For the British Empire, except North America, India, and Australasia: The Cambridge University Press, Fetter Lane, London, E.C. 4, England. Yearly subscriptions, including postage, 19s. 6d. each; single copies, including postage, 3s. 10d. each. For Japan: The Maruzen Company, Limited, Tokyo. For China: The Commercial Press, Ltd., Paoshan Road, Shanghai. Yearly subscriptions, $4.00; single copies, 75 cents, or their equivalents in Chinese money. Postage extra, on yearly subscriptions 35 cents, on single copies 6 cents. Claims for missing numbers should be made within the month following the regular month of publication. The publishers expect to supply missing numbers free only when losses have been sustained in transit and when the reserve stock will permit. Business Correspondence should be addressed to The University of Chicago Press, Chicago, Ill. Communications for the editors and manuscripts should be addressed to the Editors of THE JOURNAL OF POLITICAL ECONOMY, The University of Chicago, Chicago, Ill. The articles in this Journal are indexed in the Reader's Guide to Periodical Literature, New York, New York. Entered as second-class matter January 16, 1893, at the Post-office at Chicago, Illinois, under the Act of March 3, 1879. Acceptance for mailing at special rate of postage provided for in Section 1103, Act of October 3, 1917, authorized on July 15, 1918. PRINTED About the University of THE UNIVERSITY OF CHICAGO PRESS, the oldest and largest publishing unit of an American university, was organized in 1892 at the founding of the University of Chicago. It was conceived by President William Rainey Harper as one of the five great divisions of the University, and was one of President Harper's many innovations in American education. The PRESS has a distinct individuality as a publishing house. What that individuality is, The Press Imprint will indicate as it discusses books, authors, and events connected with the PRESS's activities. A few important features may be pointed out directly. The PRESS is interested primarily in the diffusion of knowledge. It encourages research by carrying scientific information through the printed page to the ends of the earth. Unlike the purely commercial publisher, it may publish not only the educational book for which a market is assured, but volumes that describe new and perhaps revolutionary methods of pedagogy. There are nearly a thousand titles now on the PRESS's rapidly growing list of publications. In these columns from time to time will be published brief items about these books, as well as about the new titles that are constantly being added. Additional information about any of them will be sent promptly on request. GOPRESS September 1925 Manuscript for the Printer An orange-jacketed volume packed full of the best things the PRESS has learned about book making is now going out to help those who prepare manuscript for the printer. It is the eighth edition of the UNIVERSITY OF CHICAGO PRESS Manual of Style, probably the most comprehensive and helpful manual of typographic style that has been published in any language. For twenty years the Manual has been an authority in the offices of thousands of printers, publishers, editors and advertising men. It would be difficult to say how many writers it has guided in the final preparation of manuscripts. Since 1906, seven editions, each running through several impressions, have attested to its value and popularity. The new edition has involved practically a re-writing of the whole new format, new chapters, new rules and suggestions, and new type faces representing the very latest mechanical aids for the making of good books. It now contains over 125 pages of type histories and specimens of types, ornaments, and symbols. Particulary valuable to many users will be the section entitled "Hints to Authors, Editors, and Readers." "THE UNIVERSITY OF CHICAGO PRESS has just reissued its famous Manual of Style," comments the New York Evening Post. "It is a volume of convenient size and excellent arrangement, and will prove useful to all who have to do with the writing or and we recommend it without reservation." A MANUAL OF STYLE. Containing Typographical Rules Governing the Publications of the University of Chicago, Together with Specimens of Type Used at the UNIVERSITY PRESS. Edited by the Staff. 391 pages, $3.00, postpaid $3.15. A practical manual for those who write . writing about the new literary figures brought to the task a fund of interpretative humor and a knowledge of literary history equal to that of any American critic of today. Mr. Boynton is professor of English literature in the University of Chicago, and has for many years been well known for his interpretation of American literature. In this series of sketches, he interprets the drama, the novel, and the poet's art from his background of American life and tradition. He writes of Amy Lowell, Robert Frost, and Bostonia as a New Englander, and of Masters, Sandburg, and Dreiser as a Chicagoan. Very neatly does he take H. L. Mencken's measure. Mr. Huneker the Bo BUSI-hemian is contrasted with Colonel Higgin son the Bostonian. An essay on "Biography and the Personal Equation" deals with the treatment of Mark Twain by Albert Bigelow Paine, Van Wyck Brooks, Essays, Critical and Other- William Dean Howells, and Gamaliel wise The PRESS has recently made some delightful excursions into the field of the personal essay. The first venture was Percy Holmes Bradford. Mr. Boynton sums up Amy Lowell thus: "On the whole, though, in this innocuous revolt, Miss Lowell is a kind of drum major. One cannot see the procession |