currency mechanism. Now, the growing efficiency of industry has an effect in lowering the (material) cost of production of the precious metals and so increasing the ease with which they are supplied, after the same manner as it affects the supply of goods for industrial or consumptive use. But the increased supply of the precious metals has, of course, an effect upon prices contrary to that ex- \ erted by the increasing supply of goods. In so far as this effect is had, it acts to correct or mitigate the trend of business toward chronic depression.'
' In point of direal materi&l Bervic«abilit]r, no doabt, a [resh snpply of the preciniM metals ia one ot the Isasl useful forma of wealth to the production of which ioduatrial effort can be directed, but for the purposes of business proeperity ai large it is probably Ibe most serviceable addiUon that cm be made to the aggregate wealth. Bapidl;
THE THEORY OF BUSINESS EKTERPEI8E
But certain circumstances come in to qualify the salutary effect of a lowered cost of the precious metala. Improvements in the industrial proceasea affect the