The authors investigate the development of instability when a current is passed through a strongly ionized potassium plasma of non-uniform density. The collisionless plasma, having a density of 109 to 1010 cm−3, is subjected to magnetic fields of 400 to 2000 Oe. In accordance with earlier experiments, “universal” instability in the form of drift waves is observed when no current is present. The coefficient of diffusion across the magnetic field is some two orders of magnitude greater than the classical coefficient. When a current is passed through the plasma two oscillation branches are excited: drift and ion-sound waves. With the first branch the oscillation frequency is inversely proportional to the magnetic field and the waves have an azimuthal component, the azimuthal phase velocities of all the harmonics being the same. With the second branch the oscillation frequency is independent of the magnetic field and varies inversely with the length of the system. For practical purposes, the phase velocity of the longitudinal component coincides with the ion-sound velocity. The critical drift velocity of the electrons and of the ions, at which ion-sound waves are excited, is approximately 2 × 106 cm/ sec, an order of magnitude less than the theoretical critical drift velocity for an homogeneous, almost isothermal, plasma. When the current instability is excited, the diffusion coefficient increases by a factor of 1.5 to 2.5, diffusion beginning to increase simultaneously with the increase in oscillation amplitude.