The American Economic Review
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... out Early Journal Content at http://about.jstor.org/participate--jstor/individuals/early-journal--content. JSTOR is a digital library of academic journals, books, and primary source objects. JSTOR helps people discover, use, and build upon a wide range of content through a powerful research and teaching platform, and preserves this content for future generations. JSTOR is part of ITHAKA, a not--for--profit organization that also includes Ithaka S+R and Portico. For more information about JSTOR, please contact email@example.com. Reviews of Books [March tinguished publicists who are struggling to get their countrymen to see the evils of the situation and restore sound conditions. The circumstances make it necessary, in the author's judgment, to offer his fellow citizens a treatise on the theory and history of paper money; but the portion of the book which may be regarded as peculiarly authoritative is, of course, that which relates to Chile, for the author is one of the leading advocates of monetary reform in his own country. The first issue of inconvertible money in Chile occurred in 1865, during the war with Spain, and consisted of inconvertible notes of the bank of Chile. Resumption was undertaken after the war, and Chile entered upon a period of bimetallism. By 1878 the falling value of silver had driven gold from circulation. The banking law of Chile, which our author tells us followed the liberal inspiration of Courcelle-Seneuil, who was at one time a professor of the University of Chile, fixed -the maximum note issue at 150 per cent of the paid-up ciapital of the bank. Taking advantage of the needs of the government in 1878, the bank obtained the privilege of issuing its own notes in payment of public dues; in that same year the law authorized the issue of the notes without convertibility, and provided for forced circulation. This privilege was for one year, but appears to have been continued much longer. The law was modified from time to time so that there ensued in Chile typical instances of a paper money regime. Nevertheless, metallic money came into circulation in 1895, and the government undertook to put the money of the country on a sound basis. War and political causes prevented, and three or four years afterwards a run on the banks of the capital intensified the difficulties of the situation and led to tan issue of government notes. We find in Chile, according to the author, the usual evils of a paper money regime, fluctuating currency, unstable foreign exchange, with the coincident evils of inflated prices and injustice to the poor. Various attempts to put the money interests of the country on a sound basis seem to have been checked by "special interests" which, even more there than here, dominate public policy. The book is welcome as evidence of the activity in economics of our neighbors to the south. DAVID KINLEY. NEW BOOKS BAYS, A. W. Banks and banking; containing the text of the national bank act, with questions, problems and forms. (Chicago: Callaghan & Co. 1913. Pp. 228.) 1914] Money, Prices, Credit, and Banking 171 1914] Money, Prices, Credit, and Banking 178 LAMAS, D. Reforma monetaria. (Buenos-Aires: Compania Sud-americana de Billetes de Banco. 1913.) LAWSON, T. W. High cost living. (Scituate, Mass.: T. W. Lawson. 1913. Pp. 180, illus.) LEMCKE, E. Die Entwicklung der Raiffeisen-Organisation in der Neuzeit. (Karlsruhe: Braun. 1913. Pp. viii, 139. 3 M.) MACGREGOR, T. D. Talks on thrift. (New York: Bankers Pub. Co. 1913. Pp. 116.) MASsON-FORESTIER, L. Les caisses de conversion et la reforme mon'taire en Argentine et au Br'sil. (Paris: Giard & Briere. 1913. Pp. 240.) Contains an account of monetary depreciation in Argentine and Brazil, its causes and remedies. MORAWITZ, K. 50 Jahre Geschichte einer Wiener Bank. (Vienna: Heller. 1913. Pp. 80. 1.25 M.) MIORSON, WV. R. The high cost of living and its remedy. (Buffalo, N. Y.: Haussauer-Jones Prg. Co. 1913. Pp. 86. $1.) NOGARO, B. and OUALID, W. L evolution du commerce du credit et des transports depuis cent cinquante ans. (Paris: Alcan. 1913. Pp. 444. 5 fr.) To be reviewed.