A rise in prices quickly affects governments - national, state, city. All of the states, for example, expend large sums annually on charitable institutions, the amount of which is usually determined at stated intervals. If after the size of an appropriation is fixed, the prices of foodstuffs, or fuel, or clothing rise, the appropriation is bound to prove inadequate to meet the needs for which it was made. Salaries, too, must be adjusted to meet the increased cost of living. Even stationery, printing, and office supplies cost more than formerly. Here is a partial explanation for the rapid increase in taxation following the year of 1900. The effects of higher prices on government show themselves quickly under the stress of war. The national government borrows huge sums. Prices rise as a result of war demands. Usually, additional funds are necessary to cover unanticipated rises in prices. Thus the problems of war have added to them the problem of securing funds to cover inflated prices.