Chapter XIX

STATISTICAL DEMONSTRATIONS OF THE QUANTITY THEORY--THE REDISCOVERY OF A BURIED CITY

Criticism of quantity theory statistics yields constructive
conclusions; Mitchell and Greenbacks; Kemmerer's and
Fisher's statistics of "equation of exchange"; Kemmerer's
criticism of earlier statistics 331-335

Kemmerer's and Fisher's figures all wrong except for volume
of money and deposits, and prices in base year; if correct,
would not prove quantity theory 335-337

Fisher's statistics, resting on Kemmerer's, chiefly studied:
their relation to Kinley's "deposits" figures 337-338

M'V' calculated: errors in calculation; New York very
incomplete in Kinley's figures; private banks and trust
companies; clearings and "deposits," in New York and
outside; "total transactions" and clearings; Fisher
exaggerates country checks by at least 116 billions, for
1909; major part of all "check deposits" in New York City 348-353

New York as "clearing house" for United States: extent of,
and influence of on New York clearings, much overestimated;
bulk of New York clearings and New York "deposits" grow
out of New York business 353-361

Index of variation for M'V' wrongly weighted; V' wrongly
calculated for all years; which upsets calculation of V 361-363

Volume of trade: greatly exaggerated by bank transactions,
which include vast deal of duplications in checks, loans
and repayments, etc. 363-368

Fisher's reply; _under_counting offsets _over_counting 368-369

Main items of undercounting in clearing houses of speculative
exchanges; measurement of, in New York Stock Exchange, and
Chicago Board of Trade; swamped by call loan transactions,
which exceed security sales 369-381

Price-indexes of Kemmerer and Fisher, dominated by wholesale
prices, have no relevance to their "equations of exchange" 381-383

In general, their figures bury speculation and New York City 383

PART III. THE VALUE OF MONEY

CHAPTER XX

RECAPITULATION OF POSITIVE DOCTRINE

Recapitulation of constructive theses of Parts I and II,
and program of Parts III and IV 387-396

CHAPTER XXI

THE ORIGIN OF MONEY, AND THE VALUE OF GOLD

Problem stated 397-401

Value _vs. saleability_: degrees of saleability; theory
of saleability; "buying price" _vs._ "selling price";
indirect exchange in barter economy; development of
commodity of superior saleability into money 401-406

Money never unique 406-407

Origin of gold money: ornament; store of value; social
prestige of prodigality and of ornament; love of
approbation, sex-impulse, and competitive display;
elastic value-curve of gold; industrial employments
of gold 407-413

Distribution of wealth and power, and value of gold 413-416