are many precedents, have been aided by a political cause for the
efficacy of which there is no precedent.

'But though plentiful money is necessary to high prices, and though
it has a natural tendency to produce these prices, yet it is not of
itself sufficient to produce them. In the cases we are dealing with,
in order to lower prices there must not only be additional money,
but a satisfactory mode of employing that additional money. This is
obvious if we remember whence that augmented money is derived. It is
derived from the savings of the people, and will only be invested in
the manner which the holders for the time being consider suitable to
such savings. It will not be used in mere expenditure; it would be
contrary to the very nature of it so to use it. A new channel of
demand is required to take off the new money, or that new money will
not raise prices. It will lie idle in the banks, as we have often
seen it. We should still see the frequent, the common phenomenon of
dull trade and cheap money existing side by side.

'The demand in this case arose in the most effective of all ways. In
1867 and the first half of 1868 corn was dear, as the following
figures show:

GAZETTE AVERAGE PRICE OF WHEAT.
s. d.
December, 1866 60 3
January, 1867 61 4
February 60 10
March 59 9
April 61 6
May 64 8