180. Compare the advantages and disadvantages of a metallic and paper currency.
181. A member of Congress advocated expansion of the paper currency by the following argument: “Our currency, as well as everything else, must keep pace with our growth as a nation.... France has a circulation per capita of thirty dollars; England, of twenty-five; and we, with our extent of territory and improvements, certainly require more than either.” State your opinion of this argument.
182. Trace the effects, immediate and ultimate, on general prices of (a) an extended system of credit, (b) an enlarged issue of paper money, and (c) an addition to the stock of precious metals, respectively.
183. What is the error in the common notion that “a paper currency can not be issued in excess so long as every note represents property, or has a foundation of actual property to rest on”?
184. Explain the action of the check and clearing-house system, and state what is meant by the restoration of barter.
Over-Production.
185. State the relation between supply and demand as aggregates, e.g., between the aggregate supply of commodities in a given community and the aggregate demand for them, and show the bearing of the principle involved on the doctrine of “general over-production.”
186. Prove that the increase of capital and the extension of industry can not lead to a general over-production of commodities.
187. What is the error of those who believe in the danger of over-production?
188. Distinguish “excess of supply” from a “commercial crisis.”