92 MODERN MONETARY SYSTEMS 
to 2,324 milliards by September 30th in the same year, 
and reached 4,080 milliards when the unsecured issue 
ceased at the end of 1922. In August 1923 it reached 
5,643 milliards, and on December 31st 7,126 milliards, to 
fall back to 6,492 in January 1924. 
Although the note issue has a very large cover (63:89, 
in gold and foreign currencies in January 1924)! iz is clear 
that inflation continues? and there is still a discrepancy 
between the increase in the fiduciary circulation and the rate 
of exchange, which being once more restricted by the gold points 
remains stable. 
The price movement does not seem to have been 
affected by currency expansion, once the exchange was 
stabilised. It is true that in the third report of the Com- 
missioner General it was pointed out that after the fall 
which followed stabilisation the index rose a little in 
March, showing an increase of 69%, on the previous 
month ; but it was pointed out at the same time that, 
apart from a slight boom, a rise in prices on the world 
market had brought about a corresponding rise in the 
prices of imported commodities. The index continued to 
show a very slight rise of 19, between May 14th and 
June 15th. But a fall of 59, took place in the following 
month, apparently in accordance with the normal seasonal 
fluctuation, and a further similar drop took place in 
August.? 
1 J .e., the value of 4,147 milliard paper crowns, equivalent to 188 million 
gold crowns. 
2 The Eighth Report of the Commissioner General of the League of 
Nations also points out (art. 7) an increase in the figures for deposits in the 
National Bank. He sees in this a sign not of an increase in the circulation 
but of a decrease in the velocity of circulation, an observation which goes 
against those who believe that bank deposits and notes need only to be 
added together in order to obtain the total circulation. 
3 The information in the text is taken from the League of Nations 
Reports. It is corroborated by the statistics quoted by M. Aftalion in an 
article on “La circulation, les changes et les prix” (Rev. Econ. Intern., 
February 1924, p. 268). Fuller information may be obtained from an 
article on “Die Kosten der Lebenshaltung zu Anfang Jaenner 1924,” by 
Philipp Knab, which appeared in the Oesterreichische Volkswirth of 
January 5th, 1924. As regards foodstuffs the results are the same. It