Mr. Giffen said in 1879 :—

" I have como to the coiiclusiou that not only is there a
" decline of prices at the present time from the high level estab-
" lished a. few years ago, but that this decline is more serious
"than the downward fluctuations of prices usually exhibited in
" dull times, aud that it may bo partly of a permanent character,
" unless some great change should occur in the condition of
" business at an early date

" The reason is that a sudden pressure on the precious metals
" at a given period tends to disturb the money markets of the
" countries using them

" Altogether, during the last six years, Germany has coined
" 84,000,000, the accumulation of gold in the United States
" amounts to 30,000,000 sterling."

A falling off iu the supply of gold, as well as the
increased demand, is then described.
