Chapter XIII: The Volume of Money and the Volume of Trade--Trade and Speculation

Quantity theory doctrine that volume of trade, and volume
of money (and credit), are independent; trade governed
by physical and technical conditions, not money 216-219

View that quantity of money vitally affects production and
trade 219

Walker, Sombart, Withers, Price, Holt 219-222

Increase of money increases trade, even on static theory:
increase of money increase of capital; lowered margin
in exchanges; money-rates and interest; money tool of
exchange; elasticity of demand for money-service; in
Arizona and New York City 222-225

_Trade_ distinguished from _production_ and from _stock_ 225-226

Trade chiefly speculation; Fisher's $387,000,000,000 of
trade in U. S. in 1909 analyzed; index of variation in
trade; figure based on Kinley's returns from 12,000
banks; double-counting 227-230

Figure largely represents speculation; statistics of total
wealth of U. S.; small role of wholesale and retail
deposits; "all other deposits" bunched in speculative
centers, especially New York; trifling "deposits" in
country banks; evidence of bank-clearings: clearings
and stock speculation; clearings and ordinary business 230-241

Measurement of "ordinary trade" 241-248

Volume of stock speculation 248-251

Commodity speculation 251-252

Unorganized speculation 252-254

Bill and note speculation 255

Fisher's and Kemmerer's indicia of trade variation wholly
misleading 255-257

Production waits on trade; selling costs _vs._ "cost of
production"; "good will"; are banks useless? 257-262

"Normal _vs._ transitional": statics _vs._ dynamics; money
and credit make static assumptions possible; very little
trade in "normal equilibrium" or static state; volume
of trade depends on transitions and dynamic changes;
functional theory of money and credit must be dynamic
theory; abstraction from money by static theory; no
static theory of money and credit possible; quantity
theory misses whole point of money-functions 262-266

APPENDIX TO CHAPTER XIII

THE RELATION OF FOREIGN TO DOMESTIC TRADE IN THE UNITED STATES

Ambiguity of "domestic trade": figures comparable with
export and import figures cannot include turnovers; net
income of United States, minus imports on retail basis,
counted as domestic trade; exports on retail basis
counted as foreign trade; net income for 1910; index of
variation for other years; cautions and qualifications;
ratio of foreign to domestic trade, 1890-1916 267-278

CHAPTER XIV

THE VOLUME OF TRADE AND THE VOLUME OF MONEY AND CREDIT

Interdependence of trade, and money (and credit);
increasing trade causes increase of money and credit 279-281

Quantity theory doctrine: Fisher _vs._ Laughlin 281-282

Quantity theory has no explanation of elastic bank credit:
"Currency Theory" of deposits 282-285

Loans and deposits 285-288

Bills of exchange 288-290

Summary of quantity theory doctrine 290-291