15. X is an isolated industrial country with a certain volume of money. Its government on a given day doubles the amount of currency. What will be the effect upon the rate of interest. (a) of long-time loans, (b) of short-time loans, and (c) of demand loans? 16. The rate of interest on long-time investments in a certain isolated community has been six per cent. The amount of money in this community is increased so as to raise the general level of prices by 100 per cent. Assuming that the increase in money has come wholly from the more copious output of money-metal from the mines, to what extent will this rise in the general level of prices affect the rate of interest when thereafter capital is loaned for long-time periods? 17. Could a railway in the United States advantageously float a large issue of 20-year bonds in the year 1916? Give reasons for your answer. Show clearly what you mean by "advantageously." Would a railroad wish to float such an issue if it could? Why? 18. Is there anything in the nature of mining that keeps the ratio of the supply of gold and silver nearly uniform? 19. Some say Providence has indicated gold and silver as the materials for money. How has this been done? 20. What are the main reasons given for the ratio of 16 to 1? 21. Does the principle of the substitution of goods have any bearing on the value of metals under bimetallism? 22. What is the theory of money held by bimetallists? 23. "Inasmuch as gold (before 1848) was more valuable on the world's market than at the French mint, relatively to silver, it was impossible that gold should circulate in France." Is this a necessary conclusion? 24. What arguments advanced in favor of bimetallism in 1896 are inapplicable to-day? 25. What is the extent of the influence one nation can have on the ratio of the two precious metals? 26. How would the adoption of international bimetallism to-day at the ratio of 32 to 1 affect (a) the circulating medium, (b) the standard of value in different countries? Consider both the immediate and the eventual results. 27. What would have happened if a free silver law had been enacted in the United States in 1900? 28. Would an ideal monetary standard always measure the same quantity of goods? 29. A owes B a long term debt, which falls due just before the commencement of a commercial crisis; would it be to the advantage or disadvantage of A if the contract called for payment in terms of a tabular standard? 30. Why has not the tabular standard of deferred payments come into common use? Is the tabular standard sound or unsound in principle? Would your answer apply to the labor standard? CHAPTER 7 THE FUNCTIONS OF BANKS REFERENCES. _Cleveland, F. A._, Funds and their uses. 1902. _Conant, C. A._, History of modern banks of issue. 5th ed., 1915.