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