"I now call your attention to the fourth lesson, where the first, second and third sections of credit are all expanded beyond their proportion to primary money.
"The fifth lesson shows the result this produces.
"Panics thus caused are of longer duration, and more disastrous than the first. They breed distrust in the money of the country; and with those who do not distinguish between primary money and credit money, the prejudice raised goes to the whole financial system. When demonetization took place, the column representing primary money was reduced a small percentage over one-half—for convenience we will say one-half—and this half that was demonetized was added to the first column of credits—credit money. The people, a short time before this was done, had been prosperous, and had expanded abnormally columns 2 and 3. So we then had conditions as illustrated in lesson six.
"Though previously based on the declared in-
