Rashevsky's theory of nerve conduction has been extended to include the effects of distributed capacitance along the fiber. The simple theory of Rashevsky, based on the idea of local re‐excitation by bioelectric currents according to Blair's law of excitation, leads to a formula for the initial velocity of the nerve impulse:v=aklogA0/(A0−R),whereais the distance between Ranvier nodes,kis related to the chronaxie of the nerve,A0, is the local exciting current, andRis the threshold for excitation. This result does not depend explicitly onG, the node leakance. The present analysis gives for the initial velocity, in caseG/C»k,v=aklogA0/(A0−(R+A0&psgr;)),where &psgr; is a complicated function ofCand vanishes whenC=0. In caseG/Cis not »k, the velocity is given as the root of a transcendental equation which may be solved graphically. Formulae for the asymptotic velocity of propagation are similarly related in Rashevsky's and the present case. Empirical data necessary to check the validity of these results are as yet unavailable; the type of experiments needed to obtain these data are suggested.