_Per contra_, therefore, unless the currency be increased to meet such increased demand, there will be a tendency to decreased prices and consequent change in the value of money. Stronger statements than these of Mill's, or by an abler authority, could not be asked for. Prof. R. T. Ely, in his "Political Economy," remarks, p. 179:-- "Values are merely relative, and consequently there can be no such thing as a general rise or fall of values." "Value expressed in money is called price. There can be such a thing as a general fall or a general rise of prices. A general fall in prices means an increase in the value of money, and a general rise of prices means a fall in the value of money." David Ricardo observes that:-- "The value of money, then, does not wholly depend upon its absolute quantity, but on its quantity relatively to the payments it has to accomplish." The last edition of the "Encyclopædia Britannica" says, as a conclusion in discussing the value of money, and referring evidently to coin alone:-- "The most correct way to regard the question of money value is that which looks on supply and demand, as interpreted above, as the regulator of its value for a limited time, while regarding cost of production as a force exercising an influence of uncertain amount on its fluctuations during long periods." This view is in exact accordance with the conclusions previously stated in regard to the values of all commodities. The Encyclopædia further says:-- "Where the coinage of a State is artificially limited, the value of its money plainly depends on supply and demand." Quotations might be multiplied indefinitely to the same effect; but enough have been given to show the general consensus of opinion. Indeed it may seem that there is no necessity for accumulating evidence in support of propositions so apparent as those stated; unfortunately, however, not a few recent writers have ignored some of them, and the general public seem to make the same mistake; hence, it is of the utmost importance that they be kept clearly in mind. _Money Demand and Supply._ Mill affirms that: "The supply of money is all the money _in circulation_ at the time." Money that is hoarded has no more effect on prices than if it did not exist. Money lying in banks or in the hands of merchants or others to the extent necessary for the safe conduct of their business may be considered money in circulation, but beyond the amount needed for conducting any business the excess may be considered as hoarded. The supply of money in any country depends directly and primarily on the legislation of that country; and secondarily, in most, but not in all cases, on the legislation of other countries, and the production of precious metals available for coinage, etc., all of which can be better analyzed in explaining the different systems.