DODO-BONES
Quantity theory doctrine that valueless objects can serve as
money; Nicholson's assumption: money made of dodo-bones 130-131
Fisher's view also 130
And Ricardo's 131-132
Will dodo-bones circulate? Dodo-bones and poker chips;
circular reasoning 132
Both medium of exchange and standard of value must be
valuable 133
Is inconvertible paper an exception? 133-134
Doctrine that money gives legal claim to things in general 134
Kemmerer's assumptions; money made of commodity, once
valuable, now used only as money 135
Commodity theory requires present commodity value 135
Historical _vs._ cross-section view: possibility that such
money would circulate 135-136
Value not tied up with marginal utility or commodities:
social value theory; derived values often become
independent of original presuppositions, in economic
as well as legal and moral spheres 136-139
But this no basis for quantity theory: social psychology,
not mechanics 139
"Banker's psychology" _vs._ psychology of blind habit:
India, Austria, United States; monetary phenomena of war
times; "credit theory" of Greenbacks 139-142
Question-begging definitions 142-143
Assumptions of quantity theory: blind habit and fluid prices 143-144
Extreme commodity theory denies that money-use adds to value
of money; usually not true; analysis of money-functions 144-150
Hypothetical case in which whole value of money comes from
commodity value 150-152
Money must have value apart from monetary employments, but,
in general, gains additional value from employment as
money 152-153