At the close of the preceding meeting of the Society a discussion arose concerning the effect of a uniform rise in prices upon the amount of small money necessary for the transaction of business. It was clear that the total amount of money must be increased, but in the case of small money, which is used only when fractional parts of the larger unit are involved, the effect was less obvious. It is the fact, however, that more small money required. The present paper attempts an explanation of that fact.