to the extent that those social forces submit themselves to the money
measure, the possibility of applying the methods of static price-theory
wherever pecuniary concepts may be carried, does not exhaust the
possibilities of the static notion, at least as a schematic device.
There are many social values, particularly in the legal and moral
sphere, which do not readily come under the money measure, and where
such measurements as may be made in money terms seem obviously
inadequate. Of these values, as of all values, however, the law of
equilibration holds. _All_ tend to come into adjustment of a sort that
will allow the maximum of values to be realized. Something of the
exactness of the static method has recently appeared in a decision by a
famous jurist, confronted with the fact of the conflict of two legal
principles. Most judges would go on the legal theory that there can be
no conflict in the laws of a single sovereign. Of course, we have
courses in "Conflicts of Laws" in our law schools, but the subjects
treated in such courses relate to conflicts, say, between the laws of
New York and the laws of New Jersey. When a judge is presented with a
case of conflict between two laws of New York, he will commonly feel it
to be his duty to "remove" the conflict, by making distinctions, till
the conflict is whittled away. Not a little bad law has thus originated!
The law is "absolute." It knows no exceptions. It does not obey the law
of diminishing significance. Of course, "_de minimis non curat lex_,"
but that means, not that there is a delicate margin, where the law
ceases to apply, but merely that the law disregards trifles too
insignificant to attract its attention at all. They are, in mathematical
phrase, "infinitesimals of the second order," discontinuous with the
interests of magnitude great enough to attract the attention of the law.
There is little room in such a legal theory for notions of the sort
discussed in this chapter to find place! But a different theory of the
law is implied, and partly expressed, in a recent decision by Mr.
Justice Holmes: "All rights tend to declare themselves absolute to their
logical extreme. Yet all in fact are limited by the neighborhood of
principles of policy which are other than those on which the particular
right is founded, and which become strong enough to hold their own when
a certain point is reached. The limits set to property by other public
interests present themselves as a branch of what is called the police
power of the State. The boundary at which the conflicting interests
balance cannot be determined by any general formula in advance, but
points along the line, or helping to establish it, are fixed by
decisions that this or that concrete case falls on the nearer or farther
side.... It constantly is necessary to reconcile and adjust different
constitutional principles, each of which would be entitled to possession
of the disputed ground but for the presence of the others." (Hudson
County Water Co. vs. McCarter, 209 U. S., 349, 1908.) Here we have a
scheme very like that of static economic theory! "The boundary at which
the conflicting interests balance"--the _margin_ where the curves of
diminishing value of the two legal principles intersect! A plurality of
legal values, in marginal equilibrium! Lacking a tool of thought so
convenient as money has proved for the economist, the jurist finds
trouble in making his margins precise. He is dealing with quantities for
which he has found no common measure. There is no "standard or common
measure" of legal values. Hence, most lawyers content themselves with
qualitative reasoning, seeking to avoid the necessity of quantitative
weighing and comparison of the factors in their problem by making
distinctions of _kind_. Mr. Justice Holmes recognizes the necessity and
the existence of legal _quantities_, and of making quantitative
distinctions, _i. e._, distinctions of _degree_. He sees a generic
essence common to the whole body of laws, such that marginal equilibria
are possible and actual.
So far we have a static system of laws. But the same writer, in a later
decision, has said: "And yet again the extent to which legislation may
modify and restrict the uses of property consistently with the
constitution is not a question for pure abstract theory alone. Tradition
and the habits of a community count for more than logic." (Laurel Hill
Cemetery _vs._ San Francisco, 216 U. S. 358, 1910.) As these traditions
and habits of a community may change, so may the legal values change,
and new equilibria need to be reached in a process of readjustment.
But further, in this view, and in the view of the best students of
jurisprudence in general, the legal values are not an insulated,
self-contained system. In the sentence last quoted, Justice Holmes sees
their root in a total social situation. And it is easy to show that
economic values, in particular, are part of that social situation out of
which legal values derive their power. Legal values enter into economic
values. Economic values enter into legal values. And between legal
values and economic values are marginal equilibria. There is a vast
social system of values, legal, economic, moral, religious, etc., in
constant dynamic change, but tending also to static equilibrium. Changes
at any part of the system compel readjustments throughout. The process
of equilibration is often slow, but slow or rapid, smooth or violent, it
is in constant process. For the further elaboration of notions like
these, I refer again to my _Social Value_. Here, as in the narrower
economic sphere, we have men and institutions whose chief activity is
concerned with the manipulation and control of these values, with
effecting the readjustments, and bringing about the reequilibrations.
They have their appropriate tools and technology. Money and credit are
merely part of a much wider system concerned with social control and
social adjustment!
* * * * *
To summarize: The problem of this chapter has been to harmonize statics
and dynamics, the "theory of wealth" and the "theory of prosperity,"
"normal" and "transitional," and similar notions, commonly held to
belong to different spheres, and to be incapable of reduction to common
terms. A number of such contrasts have been passed in review, and
numerous illustrations of the various types of contrast have been given.
It is the contention of the present chapter that the most fundamental of
these contrasts, and the one which gathers up the meaning of most of
them, is that between the theory of value, and the theory of price. The
theory of value is dynamic, is concerned with the phenomena of
prosperity and depression, is realistic enough to deal with transitions
and readjustments; the theory of price is static, and rests in the
notion of accomplished equilibrium, abstracting from the problems of
friction and transition. The reconciliation comes from two angles: on
the one hand we have generalized price theory, showing that in large
measure the phenomena with which value theory, theory of prosperity,
dynamics, deal come under the money measure, are made "static" by
"discounting," and by the application of accounting principles; that
this tends to be more and more true as knowledge grows more accurate;
that "statics" means especially quantitative, as opposed to merely
qualitative, thinking. We have shown further that the static schema is
applicable even where the money measure is inapplicable, and even beyond
the economic sphere, as illustrated by a recent decision of Justice
Holmes. The other angle of approach was to universalize value theory,
dynamics, theory of prosperity, by showing that all prices, whether
"static" or "dynamic" have the same fundamental sort of explanation,
that value is always a matter of social psychology, and never a matter
of mere individual psychical magnitudes, or of "material fact." This is
not to deny that physical facts have their bearing in the scheme: (a)
they are among the objects of value, even though not the only objects,
and (b) material facts, technological, physiographic, and biological,
are the basis on which human nature rests, out of which it has
developed, even though human culture including social values has
increasingly emancipated itself from immediate dependence on them, and
has acquired a partially independent movement of its own. The effort was
not made to reduce mind and matter to common terms, but the case was
rested in an irreducible dualism, and the causal influence of
non-mental factors on the value-scales themselves cannot be measured by
the static scheme. The static scheme, assuming the value-scales, gives a
precise answer as to the influence of the quantities of physical objects
on the marginal values. The significant fact about the values with which
dynamics, theory of prosperity, etc., deal is that they are the values
of immaterial social relationships and institutions, in large part,
which are concerned with the problems of social adjustment and control,
with affecting equilibria in the economic sphere, with overcoming the
friction and effecting the transitions from which static theory
abstracts. This is a phase of production quite as important as the
physical activities of laborers or machines. It has its own technology,
appropriate to its problems. In particular, money and credit are part of
its tools. Since its problems are to control men's minds, it uses
psychological forces. Where the mechanic uses a storage battery, charged
with electricity, to move material things, the technologist of economic
readjustment employs a dollar, charged with social value, which is power
over the action of men. It is as a bearer of value, in form adapted to
the problem, that is in highly saleable form, that the dollar functions.
It is the psychological significance of the dollar, and not its physical
qualities _per se_, that enables it to do its work. The physical weight
in gold, which itself is an object of social value, is commonly the
immediate basis of the value of the dollar to-day, but money may get its
primary value from other sources than valuable bullion. Given this
primary value, the dollar may get an enhancement in that value from the
services which it performs in the social technology of adjustment.
* * * * *
INDEX
A
Aborn, W. H., 252, n.
Absolute _vs._ relative conceptions of value.
See VALUE, ABSOLUTE _vs._ RELATIVE.
Abstinence, 67ff., 484-85.
See COST OF PRODUCTION, INTEREST.
Abstraction, legitimate and illegitimate, 189-90, 553-54.
Acceptance house, 497, 542.
Acquisition _vs._ production, 482.
Adams, Brooks, 219.
Adams, T. S., 13.
"Adaptation," 573, n.
Advertising, 257-58, 367, 565.
Agger, E. E., 140, n.
Agio, 148-50, 390, 442-50.
See PREMIUM.
Agricultural credit, 262, 318-19, 430, 492, 504-05, 528-29.
"All other deposits," see "DEPOSITS" in KINLEY'S FIGURES.
_Americas, The_, 540.
Analytical _vs._ historical theories, 397-400.
See also HISTORICAL _vs._ CROSS-SECTION VIEWPOINTS, STATICS,
DYNAMICS, ETC.
Andrew, A. P., 170, n., 179, n., 537.
Animism, social explanation of, 16-17.
Ansiaux, M., 4, n.
"Appreciation and interest," 76ff., 333, n.
See INTEREST.
Aquinas, Thomas, 30.
Arbitrage, 268, 585.
Aristotle, 118, n.
Ashley, W. J., 181, n.
Assets of banks, 285, 489-97, Ch. XXIV;
bonds in, 250, 488, 498, 506, 508, 523;
stocks in, 491-93, 498, 506, 523;
stock exchange items chief factor in, Ch. XXIV, especially 523ff.
See Loans, "COMMERCIAL PAPER," COLLATERAL LOANS, RESERVES, ETC.
Atwood, A. W., 173, n.
Auspitz and Lieben, 91, n.
Austrian School, 56, 70, 94, 300, 486, 562, n.
Austria, paper money in, 140, 434, n.;
foreign exchange policy of, 181-82, 434, n., 444, 530;
money rates and interest rates in, 429.
Averages, meaning of, 178, 292, 312-13, 315.
See CAUSATION.
Weighted. See WEIGHTING.
B
Babson and May, 501, n.
Backwardation, 146.
Bagehot, W., 18, 37, 540, n., 580.
Baker, G. F., 518, 519, n.
Balances, required by banks, 173, 377.
Balance of trade, 320, 551.
Baldwin, J. M., 18, 37.
Balkan Crisis, hoarding of bank-notes in Austria in, 140, n.
Banks. See ENGLAND, BANK OF, STATE BANKS, PRIVATE BANKS, ETC.
As book-keepers for business, 365;
correspondent relations of, 355, n.;
bank capital, 489, 491, 524;
bank-credit, Ch. IX, 261, 484ff., 489-97, Ch. XXIV;
elasticity of, 129, 183, 216, 281-88, 299, 320;
relation of, to trade, 260ff., 281.
See Trade. Functions of, 484-89, 492-95.
See CREDIT, FUNCTIONS OF.
Technique of, 489-97, Ch. XXIV;
bank-drafts, 355-58, 367;
on New York and other centers, 356-58;
bank-notes, 129, 139, n., 289, 322-23, 447, 448, 472, 473, 487, 495,
496, 511, 530, 539;
as "capital," 261, 484-88;
elasticity of, 129, 298, 448.
Banking School, 283ff., 395.
See CURRENCY SCHOOL.
Banker as centre of power, 32, 466, 484ff., 577, 583.
Banker's psychology, 141, 304.
Barbour, David, 154, 218, n.
Barnett, G. E., 347, n.
Barter, 99, 100, 130, 133, Ch. XI, 220, 226, 265, 369, 394, 404-07,
419-21, 493, 536;
highly important in modern life, Ch. XI, 394;
made easier by money as a measure of values, 201, 394, 421;
intellectual difficulties of, 418-20;
physical difficulties of, 423.
Bastiat, F., 552.
Bears. See BULLS AND BEARS.
"Bearer of options" function of money, 148, 201, 314, n., 418, 424-32,
436, 442, 451, 495, 536, 543;
distinguished from store of value, 425;
dynamic function of money _par excellence_, 426, 495, 536;
reserve function a special case of, 426, n., 536ff.
Belgium, National Bank of, 182.
Belief, as element in values, 40, 136, 462-68, 486ff., 574-75;
relation of, to credit, 262, n., 462-68, 486ff., 581.
See CREDIT.
Bendixen, F., 435, n.
Bergson, H., 579, n.
Bilgram, H., 3, n.
Bills of exchange, 167, 181-82, 201, 254-55, 288-90, 369, 444, 490-91,
530;
speculation in, 254-55, 514, 515, n.;
as reserves, 181-82, 444, 530.
See also FOREIGN BILLS, AND GOLD MOVEMENTS, INTERNATIONAL.
Bimetallism, 219, n., 221;
not logically related to quantity theory, 219, n.
Biological factors in social life, 571-73, 590.
Boehm-Bawerk, E. von, 9, n., 44, 48, 51, 70, 78, n., 91, 94, 96, n.,
113, n., 146, n., 301, n., 303, n., 437, 563, n.
Bonds, as bearers of options, 147-48, 425, 428;
listed, sold "over the counter," 250, 514;
bonds sold on Stock Exchange, not "cleared," 370;
held by banks.
See ASSETS OF BANKS.
"One house bond," 147.
Book-credit See CREDIT.
"Borrowing and carrying," See STOCKS.
Bosanquet, B., 18, n.
Boston, 289, n., 354, 368, 429 n., 503.
Brassage, 450.
Brokers, 168, 199, 235, 287, n., 367-68, 371, 372, 374-79, 409,
496-97, 429, n., 521, n., 531, 575.
Brown, H. G., 301, n.
Business, speculation in, 252ff.
"Business capital" vs. capital-goods, 482, 484ff., 560-61, 569,
580-82.
See also "GOOD WILL," STATICS, DYNAMICS, FRICTION, ETC.
Business confidence, 40-41, 97, 118, 185, 210-11, 214, 463-68, 530-31,
536, 574-75, 577.
Business cycle, 187-89, 254, 548-49, 555, 573-75.
"Business distrust," 426, 427, n.
Business man _vs._ economist, as value theorist, 573-78.
Bulls and bears, 145, 371-73, 406, 471-72, 522, 576, 579.
"Buying price" _vs._ "selling price," 402-04, 406-07, 476.
C
Cairnes, J. E., 47, 50, 55, n., 57-59, 62, 64, 67-69, 220, n., 428, n.
Call loans, 73, n., 375-78, 382, 425, 428ff.;
as "bearers of options," 425, 428ff.
Call rates, why low, 428ff.
See MONEY RATES, INTEREST.
Canada, 216, 284, n., 448, 450.
Cannon, J. G., 347, n.
Capital, Ch. IV, 98-99, 220, 222-23, 408, 410, 425, 429, 461, 484ff.,
526, 551, n, 560-62, 564-66, 569-70, 580-82;
circulating _vs._ fixed, 526.
Capital goods. See GOODS, INSTRUMENTAL.
Capitalist, 264.
Capitalization theory, Ch. IV, 260, 297, 300ff., 316, 318, 389,
416, n., 436-42, 459-60, 494, 562-64, 575;
assumes "banker's psychology," 305-06;
assumes fixed absolute value of money, 76ff., 313-14, 389, 438;
limitations of, 305-06,316-17, 481, n., 562, n.;
applied to value of money, Ch. IV, 111, 424, 436-42, 456;
conflicts with quantity theory, 300ff., 310-11, 389.
See also INTEREST, CAPITAL, RENT.
Capital value, Ch. IV, 149, 224, 318-19, 402, 424, 436ff., 452, 459.
Carey, H. C., 106.
Carlile, W. W., 37, n., 397, 400, 407, 411, n.
Carver, T. N., 4, n., 419, n., 453, n., 573, n.
Causation, 142-43, 190, 204, 224, 279, 292, 312, 315, 336, 403,
433, n., 437, 438, 454, 548;
exhibited by _change_, 190, 454-55.
Causal theory of value, 14ff., 90ff., 96, 114, n., 163, 165-66,
176-77, 186, 192, 204, 296, Ch. XV, 310, 336, 400-01,
433, n, 437-38.
Cause, a definition as, 143, 400-01.
Checks, 167, 168, 184, 281, 339ff., 354ff., 364-81, 499;
"accommodation checks," 243;
certified, 200, 322, 349, 370, 376;
cashier's, 349;
collection of, 354ff.;
proportions of checks and money in payments, 174, 338, 447, 449,
463.
Checking accounts, 173-74.
See DEPOSITS.
Chen-Huang-Chang, 407, n.
Chicago, 246, 259, 289, n., 354, 379-80, 503, 542;
chief centre for check collections, 354;
Board of Trade, 252-52, 268, 327, 379-80, 503, 542;
Board of Trade clearing house, 369, 379-80.
Circular reasoning in value theory, 15, 88, 89, 92, 100-01, 105, 112,
113, 115, 117, 132, 135, 143, 279, 438, 452.
Clark, J. B., 12-13, 48, 96, n., 264, n., 439, n., 440, n., 554-55.
Clark's Law, 439.
Clark, J. M., 3, n., 11, n., 14, n., 98, n., 413, n.
Classical School, 69.
See COST OF PRODUCTION, CAIRNES, SENIOR, RICARDO, JAS. MILL,
J. S. MILL, LABOR THEORY OF VALUE, ETC.
Clearing houses in speculative exchanges.
See STOCK EXCHANGE.
Clearing houses, bank.
See CLEARINGS.
New York Clearing House, 346, 354;
New York Clearing House banks, 179, 344.
Clearings, 200, 237-41, 345-46, 378, 392;
as index of "ordinary trade," 240-41, 516;
as index of speculation, 237ff., 378, 392, 516;
in New York City, 237-41, 339, 341-42, 345-47, 357-59, 360, 516;
of New York City trust companies, 345-47;
outside New York City, 239-41, 339, 340, 342, 348-53, 357-59,
516, n.;
ratio of, to "deposits," 341-42, 348-59, 516, n.;
ratio of, to "total transactions," 348-51, 353, 359, n.
Clow, F. R., 135, n., 144, n.
Coin, 139, n., 167, 443-50;
coinage, 443-50;
statistics of, 412, n.
Collateral loans, 461, 462, 463, 493, 494, 497, 502-06, 513, 523-26;
percentages of, on stocks and bonds, and on "other collateral
security," 502-09;
on "other collateral security" analyzed, 502ff.
Collection of out of town checks, 354-55.
See CHECKS.
Commerce. See TRADE.
Commercial banks, 357, 488, 490, 498-99, 519-20, 523-29;
financing commerce no longer the chief function of, Ch. XXIV,
esp. 523ff.
Commercial cities, outgrow manufacturing cities, 259.
"Commercial paper," 431, 457, 490, 496-97, 498-520.
_Commercial and Financial Chronicle_, 272.
Commodity theory (Metallist theory, Bullionist theory), 81, 85, 129,
135, 144, 151-53, 330, 390, 391, 435, n.;
hypothetical case illustrating, 151-53, 327-28, 390, 421;
contrasted with quantity theory, 151-53.
Competitive display, relation of, to value, 410-11, 438-42, 452.
Conant, C. A., 73, n., 182, n., 323, n., 347, n., 412, n., 418, n.,
428, n., 502, 510, n., 511, n., 535, n.
Conant, L. Jr., 252, n.
Concatenation of values and prices.
See VALUES, PRICES.
Consols, 470.
Contango, 145.
Cooley, C. H., 3, 4, n., 19, 21, n., 30, 37, 484, n.
Corporations. See STOCKS, BONDS, STOCK EXCHANGE.
Consolidations of, 198-258, 366-67;
lead to duplications of "deposits," 366-67;
corporation finance, 198-99, 201, n. 3, 432, 460-61, 476-77;
corporation securities as credit instruments, 460-61, 476-77,
492-93, 527.
Correlation, coefficient of, 237, 237, n.
Cost of production, Ch. III, 193, 221, n., 257ff., 295, 300, 306-07,
309, n., 389, 562, n., 565-66;
inapplicable to value of money, Ch. III, 389, 451;
relation of, to supply and demand, 50, Ch. III;
not related to quantity theory, 46ff.;
conflicts with quantity theory, 300, 306-07, 310-11, 389;
assumes fixed absolute value of money, Ch. III, 313-14, 389, 451;
"real costs," 44-45, 64ff., 96, 117, n. See LABOR THEORY OF VALUE.
Money costs, Ch. III, 90, 95;
Austrian cost theory, 56, Ch. III, 90, 95, 116, n.
See also SELLING COSTS.
Cotton speculation. See NEW YORK COTTON EXCHANGE, AND SPECULATION.
Credit, 42, 98-99, 130, 143-44, 166ff., Ch. IX, Ch. XIII,
Ch. XIV, 318, Ch. XVIII, 392-393, 395, 427, 441, 447,
Ch. XXIII, Ch. XXIV, 581;
not based on money, 326-27;
based on values, 326-27, 478-86, 485-86, 528-29;
part of general system of values, 40-41, 460, 462-68, 480, 486ff.,
574-75;
definition of, 459-60, 472-74, 489;
distinguished from credit transaction, 473;
juridical aspects of, 395, 460-61, 468-73; relation of, to belief.
See BELIEF.
Functions of, 263-66, 391-92, 395, 407, 441, 475-78, 484ff., 511-12,
523-29;
relation of, to money, Ch. IX, Ch. XVIII, 393, 395. See also
RESERVES.
Relation of, to trade, Ch. XIII, Ch. XIV, 391-92, 393;
volume of, a function of dynamic change, 474;
elastic. See BANK CREDIT.
As "capital," 261, 461, 484ff.;
in "equation of exchange," 166ff.;
book-credit, 167ff., 226, 369; time-credit, 168.
See LOANS, INTEREST.
See also BANK-CREDIT, DEPOSITS, LOANS, COLLATERAL LOANS, CALL LOANS,
ASSETS OF BANKS, BELIEF, BUSINESS CONFIDENCE, etc.
_Credit Lyonnais_, 530, n.
Credit theory of paper money. See PAPER MONEY and GREENBACKS.
Crises, 213, 254, 520, 548-49, 555.
See PANICS, BUSINESS CYCLES, BUSINESS CONFIDENCE, THEORY OF
PROSPERITY.
Cross-section analysis. See HISTORICAL _vs._ CROSS-SECTION VIEWPOINTS.
Curb, 250.
Currency School, 283ff., 395;
"currency theory of deposits," 283.
Curves applied to money, 451-53.
See MARGINAL ANALYSIS.
Custom, 36, 109, 135, 136, 183-84, 205ff., 391, 405, 562, n., 589.
See HABIT.
D
Davenport, H. J., 12, n., 14, n., 21, n., 25, 65, n., 67, 78, n., 80,
91, n., 94, 103, n., 113-15, n., 218, n., 314, 418, n.,
419, n., 426, n., 429, n., 434, 447, n., 482, n.
Davidson, T., 18, n.
Dean, Rodney, 354, n.
Debtor Class, 139.
Debts, 433, n. ff., 472-75, 489;
repudiation of, 581.
DeCoppet and Doremus, 249, 370.
Definition, a, as cause for the circulation of money, 143, 400-01.
DeLaunay, L., 412, n., 415, n.
Demand. See SUPPLY AND DEMAND.
Increase of, 53;
nominal increase of, 54;
elasticity of, 55, 224-27, 411-13;
for money, in what sense used, 62;
elasticity of, 224-27;
demand curves, 51;
applied to gold, 451ff.;
social value explanation of, 42, Ch. II, 93;
distinguished from utility curves, 49, 52, 70, 80, 113, n.,
115, n., 116.
"Demand Notes," 322, 448, n.
Deposits, 129, 143, Ch. IX, 186, 296, 344, 345-47, 453, 472, 487;
by one bank in another, 358, n., 349, 355, n., 357, 365, n.,
367, n., 500, n., 508, 515, n., 530-32;
relations of, to "money in circulation," Ch. IX, 185, 294;
relation of, to reserves, Ch. IX, 286-87, 298-99;
activity of, 345-47, 512-16;
in Europe 262.
SEE GIRO-SYSTEM.
Deposits as "bearers of options," 425;
relation of, to loans, 285ff., 512;
relation of, to trade and prices, Ch. XIII, Ch. XIV, 287;
of private banks, 344;
deposits distinguished from "deposits," 339, n., 343-44, 512;
relation of, to "deposits," 512ff.
"Deposits" in Kinley's studies of payments, 230, 232-36, 242-43,
338ff., 392, 512-16;
retail "deposits," 232, 243, 269, 338, 367, n., 368, 392, 513;
wholesale "deposits," 232, 243, 338, 392, 513;
"all other deposits," 232, 235-37, 243, 338, 514;
relation of, to trade, 230, 243-45, 248, 339-40.
See OVERCOUNTING AND UNDERCOUNTING.
New York City, 233, 234, 242, 246, 340ff.;
country, 246;
in Pittsburg, 245-46;
check "deposits," volume of, 339, 360-62, 392.
_Deutsche Bank_, 530, n.
Dewey, John, 17, n., 22, 579, n.
Dibblee, G. B., 259-60.
Differential principle, and theory of rent, 430-41;
applied to money, 439-41, 529.
Director of the Mint, statistics of gold consumption, 413, n.
Discount. See TIME-DISCOUNT and CAPITALIZATION THEORY;
rate of, see INTEREST;
rate of, _vs._ money rates, see INTEREST;
on Greenbacks, see GREENBACKS, PREMIUM, AGIO.
"Discounting," 298, 597.
Distribution of wealth, 15, 31, 33, 37, 38, 97, 102-03, 246, 247, n.,
413-16, 465-67.
See also INTEREST, CAPITAL, CAPITALIZATION THEORY, RENT, IMPUTATION
THEORY.
Division of labor in banking, America and Germany contrasted, 527;
extent of in England, 530, 540-41, 542.
Dodo-Bones, 82, CL VII, 155, 280, 304, 321, 325.
"Dollar exchange," 541.
"Domestic trade" _vs._ foreign trade, appendix to Ch. XIII.
See TRADE.
Double counting in estimating volume of trade. See OVERCOUNTING.
Dualism, most useful metaphysics for social sciences, 571-72.
_Dun's Review_, 272, n., 273, n.
Dynamics, 42, 106, 178, n., Ch. X, 254, 262-66, 392-93, 395-96, 426,
474, 484-89, 495, 527-28, Ch. XXV;
dynamics and statics, reconciliation of, 42, 395-96, Ch. XXV;
"dynamic credit," 484-89.
See TRANSITION PERIODS, PROSPERITY, THEORY OF, STATICS, "NORMAL,"
FRICTION, FLUIDITY, LIQUIDITY, SALEABILITY, EQUILIBRIUM,
BUSINESS CAPITAL, INTANGIBLE CAPITAL, etc.
E
Elasticity. See DEMAND, ELASTICITY OF, AND BANK-CREDIT, ELASTICITY OF.
Ellwood, C. A., 4, n., 21, n.
Emery, H. C, 146, n., 371, n., 576, n.
England, 142, 184, 447-48, 450, 530, 534, 536-43.
See LONDON, and LIVERPOOL.
Bank of England, 183, 319, 323, 350, 538ff.;
"Bank Restriction" in, 323, n.
English School, 96.
See CLASSICAL SCHOOL.
Entrepreneur, 67, 485ff., 539, 583-85.
"Epi-phenomenon," money as, 266.
"Equation of Exchange," Ch. VIII, 186, 188, 191, 204, 283,
Ch. XV, 326, 363, 520-22, 527, n., 528, n.;
as equation of "values," 159;
mathematical analysis of, 158-66;
factors in, highly abstract, 162-63, 176-77;
"equation of exchange" _vs._ causal theory, 163, 165-66, 186,
189, n.
See CAUSAL THEORY OF VALUE.
Statistics of, Ch. XIX.
See QUANTITY THEORY, DEPOSITS, VELOCITY, TRADE, VOLUME OF,
PRICE-LEVEL, etc.
Equation of supply and demand, 51.
See SUPPLY AND DEMAND.
Equilibrium, 91ff., 105, 115, n., 116, 117, 119, 156, 187, 190, 222,
225, 254, 262-66, 293, 298-99, 328, 333, n., 392-93, 401,
451-57, 557, 570-73, 583, 586-89.
European Banking, 262, 497, 511, 523, 527, 530.
See ENGLAND, GERMANY, FRANCE, AUSTRIA-HUNGARY, BELGIUM, etc.
Exchange, 9-11, 133, 224ff., 398ff., 468-69, 520-23;
creates _values_,
not _utilities_, 111, n., 145, 423-24, 424, n.;
in static state, 262-66, 401-02;
relation of, to value, 9-11, 401ff., 468-69.
See TRADE, GOLD MOVEMENTS, INTERNATIONAL, ETC.
Exchangeability. See SALEABILITY.
F
Fashion. See SUGGESTION.
Federal Government, 147, 322, 332, 368, 432, 476, 549;
Federal war tax as index of grain speculation, 251.
Federal Reserve System, 299, 490, 499, 518-20;
should rediscount stock collateral loans, 518-20;
"money trust" and, 518-20.
Fetter, F. A., 7, n., 48, 78, n., 301, n., 303, n., 437, 440, n.,
562, n.
Fiat theory, 136, 142.
See also LEGAL THEORY, _Staatliche Theorie_.
Fichte, J. G., 22, 137.
Fisher, I., 47, 56, 81, 91, n., 99, 117, n., 124, 128, 130, 143, 152,
154ff., 172ff., 186ff., 196, 200, n., 203ff., 209ff., 216ff.,
222, 226-29, 231, 240, 247, 248, n., 254, 256, 261, 262, 274,
281ff., 291ff., 301, n., 302-04, 306, 308, 311, 312, 324,
326, 331, 333, n., 335ff., 348-49, 351-52, 360ff., 371, 376,
381-83, 400, 437, 455, 522, 537, 555, 559, 563.
Fite, W., 21, n.
Fluidity, 143, 403, 456, 476, 542, 563, n.
See also LIQUIDITY, SALEABILITY, STATIC THEORY, ETC.
Flux, W. A., 49.
Foreign bills of exchange, in reserves, 181-82.
See BILLS OF EXCHANGE AND GOLD MOVEMENTS, INTERNATIONAL.
Foreign trade, 261, 265, 503;
ratio of, to "domestic trade," appendix to Ch. XIII.
See TRADE, BILLS OF EXCHANGE, GOLD MOVEMENTS, INTERNATIONAL.
France, 136, 139, n., 450, 530, n., 533;
_Banque de_, 136, 183, 425, 538-39.
Friction, 11, 94, 262-66, 392, 426, 543-44, 554-55, 563.
See also STATICS, DYNAMICS, SALEABILITY.
Functions of money, 76, 81, 83, 93-94, 110-11, 144-48, 151-53, 201,
263-66, 313-14, 327-28, 390-91, 394, 399, Ch. XXII, 536ff.,
543;
in relation to value of money, 144ff., 390-91, 309-400, Ch. XXII.
Functions of value. See VALUE, FUNCTIONS OF.
"Futures," 243, 251.
See STOCKS, "BORROWING AND CARRYING" OF.
Future values, 40, 107, 459-60, 480, 486, 585.
See CREDIT, PART OF GENERAL SYSTEM OF VALUES.
Futurity, not peculiar to credit, 459-60, 475.
G
George, Henry, 78, n., 301, n.
Germany, 136, 139, n., 145-46, 167, 425, 433, n., 435, n., 527,
530, n.;
giro-system in, 150, 167, 289;
great use of domestic bills of exchange in, 288-89;
limited division of labor in banking in, 527;
Reichsbank, 182, 183.
Giddings, F. H., 87, n., 556-57, 571, 573, n.
Giro-system. See GERMANY.
Gold, 84, 143, Ch. XXI, 422, 432, 436, 441-43, 443-44, n., 530,
535-56, 538-39, 567, 591;
in arts, 84, 135, 151-53, 224, 314, 330, 390, 400, Ch. XXI, 451-57;
as money, 84, 135, 141, 146, 224, 304, 322-23, 390, 408-16, 441-43,
445, 451-57, 495-96, 530, 535-56, 538-39;
value of, 84, Ch. XXI, esp. 408-16, 451-57;
in reserves, 147, 180-81, 324-28.
Gold mining camps, high prices in, 220, n.
Gold movements, international, 60-61, 129, 142, 181-82, 183, 261,
280, 292, Ch. XVI, 434, n., 531, 533-34.
Gold production and prices, Ch. XVIII, 535-36;
new world discoveries, 219ff.;
Californian and Australian discoveries, 220-21, 221, n.
Goods, consumers', 34ff., 82, 96, 481;
ranks or orders of. See RANKS.
Instrumental, 38, 81, 297, 482, 484, 500, 569, 579.
"Goods side" of "equation of exchange," no, 159.
"Good will," 260, 482-83, 561, 564.
See BUSINESS CAPITAL, INTANGIBLE CAPITAL, SELLING COSTS, ETC.
Grain speculation. See SPECULATION, COMMODITY.
Greenbacks, 141, 146, 147, 194, 304, 322-23, 332-33, 422, 432, 435,
436, 567-68.
Gresham's Law, 129, 140, n., Ch. XVII;
conflicts with quantity theory, Ch. XVII;
quantity theory version of, 321-22.
H
Habit, 104, 109, 138, 225, 554-55, 589.
See also CUSTOM.
Hadley, A. T., 157.
Haig, R. M., 552, n.
Hamburg, coffee speculation in, 252;
Giro-Bank, 150.
Haney, L. H., 3, n.
Harvey, "Coin," 327.
Havre, coffee speculation in, 252.
"Hedging," 243, 253, 264.
Hegel, G. W. F., 18, n.
Helfferich, Karl, 14, 82, n., 110, n., 134, 418, n., 419, n.
Heredity, 571-73.
Hermann, F. B. W. von, 438, n.
History, economic interpretation of, 33.
Historical vs. cross-section viewpoints, 101ff., 119-20, 135-39,
397-400, 548, 553-54, 578-81.
See also STATICS, DYNAMICS.
Hoarding, 140, n., 174, 207, 208, 211, 333, n.
Hobson, J. A., 73, n., 308, n.
Hollander, J. H., 154, 250, n.
Holmes, Justice O. W., 24, 587-90.
Holt, Byron W., 222, 249, 370.
Hubbard, Guy C., 260, n.
Hughes Commission, 252, n.
Hume, David, 21, 47.
I
Ideal credit economy, 543.
Ideal values, 467, 480.
Imitation. See SUGGESTION.
Imputation theory, 28, 38-40, 99, 300, 389, 424, 481;
conflicts with quantity theory, 300, 303-04, 310-11, 389.
Income, money. See MONEY INCOME.
Income, net, of the United States, appendix to Ch. XIII.
Index numbers, of check circulation, 361-62, 383;
of net income of the United States, 278;
of prices, 278, 381-82, 383, 436;
of railway gross receipts, 278;
of trade, 227-29, 255-56, 278, 363, 381, 383.
See STATISTICS.
India, 140, 143, 149, 181, 443, 444, n., 449;
a liability, rather than an asset, to quantity theory, 444, n.
Individual interest and social advantage, 397-99.
Individual values, 19, 43-45.
See also VALUE, SUBJECTIVE, PERSONAL, SUBJECTIVE EXCHANGE.
Individualistic theories, 14-16, 20, 21, 22ff.
Individuality, a social product, 16-19.
Industry, rather than commerce, chiefly financed by modern banks,
Ch. XXIV, esp. 523-29.
See ASSETS OF BANKS, BANK CREDIT, FUNCTIONS OF.
Inertia. See HABIT, CUSTOM.
Institutional values, 29-30, 413, 484.
Institutions, 19, 27, 484, 487, 562, n., 570.
Insurance policies as credit instruments, 472.
Intangible "capital" _vs._ capital goods, 482-83, Ch. XXV.
See also GOOD WILL, BUSINESS CAPITAL, ETC.
Interest, 146, 219, 223-24, 225, 301ff., 333, n., 416, n., 428-32,
437, 471, 472;
"appreciation and," 76-78;
productivity theory of, 224, 302-03, 437;
"use" theory of, 437, 438, n.;
"pure rate" of, 75, 76, 77, 428-29;
_vs._ "money rates," Ch. IV, 224, 428-32, 461, 521, n., 523-24,
526, 529.
See also MONEY RATES, CALL RATES, CAPITALIZATION, TIME DISCOUNT.
International banker, 409, 446, 539ff.
See GOLD MOVEMENTS, INTERNATIONAL.
International trade. See FOREIGN TRADE.
Investment, 270, 523ff., 528;
_vs._ speculation, 521, n., 523-26;
banker, 489, 519, 523, n., 527-28.
"Invisible items" in foreign trade, 268, 270, 320.
J
James, William, 579, n.
Jenks, J. W., 260, n.
Jevons, W. S., 25, 48, 91, n., 107, 522, n.
Jewelers, 409, 454-57;
paper of, in the money market, 454-57.
Johnson, A. S., 4, n., 13, 105, 115, n., 265, n., 403, n., 440, n.,
563, n.
Johnson, J. F., 73, n., 333, n., 418, n.
Joint Stock Banks, 184, 530, 539.
See LONDON, ENGLAND.
Jurisprudence, 23-24, 588.
See LAW, LEGAL VALUES.
Juristic thinking, 24-25, 29, 433, n., 586-88;
contrasted with economic thinking, 433, n.
K
Kant, I., 22, 137.
Kemmerer, E. W., 48, 129, 135, 140, 141, 156, 157, 167, 170, 175, n.,
220, n., 226, 240, n., 254, 256, 274, 312, n., 321, 334-37,
359, n., 361, n., 363-65, 381-83, 400, 426, n., 443, n.,
444, n., 522, n., 537, 538, n.
Keynes, J. M., 180, 181, 182, n., 184, 207, 443, n., 535.
King, W. I., 242, 243, 246, n., 247, n., 248, n., 269, 271-72, 275, n.
Kinley, D., 13, 48, 78, n., 80, 110-11, 174, 208, n., 230, 233-36,
237, n., 242-45, 249, 254, 256, 269, 321, 337-45, 349,
350-52, 360, 365, n., 368, 376, 383, n., 419, n., 447, 449,
463, 498, n., 512-15.
Kirkbride and Sterret, 347, n.
"Kiting," 368.
Knapp, G. F., 49, 150, 418, n., 433-5, n.
Knies, Carl, 12, 133, 323, n., 418, n., 419, n.
Kuhn, Loeb & Co., 343-44, 515, 515, n.
L
Labor theory of value, 12, 44-45, 64ff., 139, 570.
See VALUE, COST OF PRODUCTION, ADAM SMITH, RICARDO, MARX, CAIRNES.
Land speculation, 254, 264, 317.
See SPECULATION.
Laughlin, J. L., 48, 135, 141, 144, 146, 177, 219, n., 281, 282, n.,
283, n., 284, 312, n., 319, n., 327, n., 418, n., 419, n.,
443, n., 444, n., 459.
Law, theories of, 23ff., 586-89;
statics and dynamics of, 586-88.
LeBon, G., 37.
Legal tender, 147, 418, 422, 432-36, 442, 445-47, 448, n.
See FUNCTIONS OF MONEY.
Legal theory of money, 134, 136, 405, 433n., ff.
See _Staatliche Theorie_.
Legal thinking. See JURISTIC THINKING.
Legal values, 23-29, 40, 138-39, 413, 414, 435, n., 562, n., 586-89.
Lewes, G. H., 87, n.
Liabilities of banks, 285;
relation of, to loans, 286.
See DEPOSITS, BANK-NOTES, ETC.
Liquid paper, 455, 489-91, 499ff., 513-18.
Liquidity, 455, 475, 489, 495, 499ff., 508, 513-18, 526-27, 529-44.
See SALEABILITY, STATICS, FRICTION.
Liverpool, 252, 259.
Loans, on call. See CALL LOANS.
On cotton, 481, 504, 508, n.;
on grain, 380, 503, 508, n.;
to stock market, 375ff., 379, n., 430, 488, 502-03, 507-12,
518-20, 523-28;
to wholesalers and retailers, 504-05;
consumption, 463;
war, see WAR LOANS.
Collateral, see COLLATERAL LOANS.
Activity of, 512-14;
relation of, to deposits, 285ff.;
relation of to "deposits," 375-81, 512-14;
relation of, to trade, 287, 287, n.;
relation of, to international gold movements, 318-19;
short loans as bearers of options, 425, 428-32.
See also ASSETS OF BANKS, "COMMERCIAL PAPER," "MORNING LOANS,"
"OVERCERTIFICATIONS."
Locke, John, 47.
London, 145, 251, 259, 259, n., 497, 522, n., 539ff.;
stock exchange, 451;
money market, illustrates assumptions of static theory, 539ff.
M
"Manipulation," of values and prices, 575ff., 589.
Manufacturers' "paper," 454, 457, 500, 513, n.
"Margins," 372, 488, 489, 493, 521, n., 523-26, 528;
"margin operator" as "banker," 524-26.
Marginal analysis, 24, 51, 440, Ch. XXV;
applied to law, 586-89;
applied to money, 152-53, 199, 208, 225, 227, 451-57, 534.
Marginal utility, 13, 14-15, 30, 34-35, 38, 40, 42, 44, 46, 49,
Ch. V, 137, 440, n., 562, n., 570, 583-86;
applied to value of money, Ch. V, 137;
essentially static theory, 106ff.;
Schumpeter's version of, 44, 90ff., 113, n., ff., 583-86;
limitations of, 92ff.;
"relative marginal utility," 113-114, n., 115, n., 440, n.;
quantity theory and, 46.
"Market letter," 222, 575.
Marshall, A., 48, 105, 265, n.
Marx, Karl, 12.
Mathematical economics, 91, n., 117, 139, 142, Ch. VIII, 310, 438,
553.
McCulloch, J. R., 66.
Mead, G. H., 4, n.
Meade, E. S., 198, n., 202, n., 477, n.
Measure of values, 133, 150-53, 201, 265, n., 325, 327-28, 391, 417,
418-23, 436, 451, 543, 567-69, 538;
must have value, 133, 326;
relation of, to commodity theory, 151-53;
applied to non-economic values, 567-69.
See also FUNCTIONS OF MONEY.
Medium of exchange, 133, 201, 327-28, 391, 404, 418, 420-24, 425-26,
433, n., 434, n., 436, 442, 543;
must have value, 133.
See FUNCTIONS OF MONEY.
Meinong, A., 467.
Menger, Karl, 14, 48, 82, n., 88, 96, n., 110, 397, 398, 400, 401, n.,
402-04, 406, 407, n., 418, 476, 493.
Mercantilism, 225, 551.
Merriam, L. S., 13, 419, n.
Metallist theory. See COMMODITY THEORY.
Middlemen, effect of eliminating, on price level, 306-07.
Mill, James, 66.
Mill, J. S., 46, 47, 50-52, 55, n., 58, 59, 61, 67, 69, 94, 129, 132,
161, n., 172, 192, 193, n., 265, 285, n., 319, n., 333, n.,
548.
Minneapolis, bills of exchange in, 289, n.
Mises, L. von, 14, 48, 49, 80, 83, 88, 100, 109-11, 120, n., 182, n.,
418, n., 429, n., 434, n., 556.
Mitchell, W. C., 91, n., 179, n., 188, 213, n., 265, n., 286, n.,
323, n., 329, n., 332-34, 363, 412, n., 430, n., 448, n.,
449, n., 522, n., 533, 536, 568, 574.
Mode. See SUGGESTION.
Money, abstracted from by static theory, 99, 265-66, 392;
definitions of, 167, 169, 325-26, 495-96;
functions of, see FUNCTIONS OF MONEY;
must have value from non-pecuniary source, Ch. VII, 326, 390-91,
417, 440, 449, 591;
origin of, 394, Ch. XXI;
money not unique, 82-83, 85, 137, 145, 147, 148, 325, 329-30, 389,
406-07, 417, 425, 437-50, 477-78, 535, 542, 544;
peculiarities of, 3, 57-58, 64, 69, 71, 74ff., 78-79, 81-83, 85,
88, 91, 101, 124, Ch. VII, 132, n., 134, 144-45, 153, 392-93,
Ch. XXI, Ch. XXII, 406, 437ff.;
tool or instrumental good, Ch. IV, 82-83, 224, Ch. XXII, 591;
theory of, developed in isolation, 46ff.;
theory of, must be dynamic, 262-66, 393.
See also STATICS, DYNAMICS.
Value of, _vs._ "reciprocal of price-level," 8, 56-57, 77, 100,
123, 128-29, 155-56, 312-13, 382, 388-89, 433, n., 449.
See VALUE, ABSOLUTE _vs._ RELATIVE.
Relation of, to credit. See CREDIT, RESERVES, RATIO, FIXED, M:M'.
Relation of, to trade, Ch. XIII, Ch. XIV.
See TRADE.
See ANALYTICAL TABLE OF CONTENTS.
"Money in circulation," Ch. VIII, 173, 175, n., 179, 185.
Money economy, 90, 220, 225, 265, n., 397, 399, Ch. XXI,
Ch. XXII, 555.
"Money-funds," distinguished from money, 63, 427, 453, 495-96.
Money income, distinguished from real income, 89;
distinguished from quantity of money, 90, 307-310.
Money market, 32, 62, 221, 222, 319, 406, 427, 430, 453-58, 461,
495-97, 516-20, 522, n., 524, 529-44, 575-76.
"Money Post," on New York Stock Exchange, 372, 375, 430-31.
Money rates, Ch. V, 145, 149, 183, 223, 224-26, 316, 319-20, 378,
406, 428-32, 453-57, 461, 495, 523-24, 526, 529-30, 534;
_vs._ interest rates. See INTEREST.
Relation of, to bank reserves, 378;
to clearings, 378;
to international gold movements, 316, 318-20;
to dividend and interest payments, 522, n.;
to plans for corporate consolidations, 198;
to jewelers' profits, 454;
to trade, 223, 224, 226;
to volume of speculation, 378, 522, n.
"Money Trust," 518-20.
Monism, unsatisfactory metaphysics for social sciences, 571-72.
Moore, H. L., 237, n., 238, n., 574.
Morality, theories of, 22-23.
Moral values, 22-29, 40, 137-38, 480, 562, n., 567-69, 582, 589.
Morgan, J. P., 140, 519, n., 577;
J. P. Morgan & Co., 343-44, 375, 515, n.
"Morning loans," 376, 377, 509, 510.
See "OVERCERTIFICATIONS."
N
National banks, 234, 338, 342, n., 343, 345, 347, 355, n., 359, 375,
498-99, 502-03.
National City Bank, 375, 521, n., 540, n.
Negative values, as "real costs," 71, n.
New York City, 233-35, 259, 259, n., 340ff., 383, 392, 430-31,
439, n., 502, 503, 506, 511, 514-16, 520, 541-42;
as "clearing house" for country, 236, 353ff.;
contrasted with London, 541-42;
"deposits" in, 233, 340ff., 392, 515;
"all other deposits" in, 235-37;
Cotton Exchange, 252, 503, 541;
Coffee Exchange, 252, 268, 503, 541;
Stock Exchange. See STOCK EXCHANGE.
Money market. See MONEY MARKET.
Clearings. See CLEARINGS.
Newcomb, Simon, 156.
Nicholson, J. S., 81-82, 124, 129-32, 134, 151, 167, 325-29.
"Nominalism" in monetary theory, 433, n., ff.
See _Staatliche Theorie_.
"Normal tendency," 176, 218, 254, 262-66, 293, 298-99, 315, 392-93,
395, 536ff.;
"normal _vs._ transitional."
See "TRANSITION PERIODS," STATICS, DYNAMICS.
Norton, J. P., 179, n., 287, n.
Note-brokers, 496-97, 499.
O
"Odd lot" dealings in securities, 249, 370.
"One house bonds," 147.
Origin of money, 394, Ch. XXI.
Ornament, and origin of money, 408ff.
Orthodox economist, 258, 549, 560.
"Other collateral security," analyzed, 502ff.
"Other loans and discounts," analyzed, 500ff.
"Overcertification," 200, 376, 509, 510.
See "MORNING LOANS."
Overcounting in estimates of volume of trade, 168, n., 200, n.,
230, 243-45, 247, n., 255, 339-40, 364-81.
See UNDERCOUNTING.
Overproduction, 258, 550.
"Over the counter" dealings in securities, 249, 370.
P
Panics, 174, 273, 435, 446, 448, 520, 548-49, 555.
See CRISES, BUSINESS CYCLES.
Paper money, 143, 150, 151, 418, 421, 473, 495, 496, 538;
inconvertible, 57, 84, 108, 132, 134, 136, 140, n., 141, 321-23,
391;
credit theory of, 141, 146.
See GREENBACKS, AUSTRIA.
Parasitic occupations, 482;
gold mining as, 262, n.;
American banking as, 527.
Patten, S. N., 558, n.
Paulsen, F., 22.
Payments, 177-78, 338, 367, n.;
proportions of money and checks in, 174, 338, 383, 447, 449, 463;
wage, 174, 531;
relation of, to volume of trade.
See OVERCOUNTING, UNDERCOUNTING, BARTER.
Pay rolls, money for, 174, 349.
Pearson, Karl, 237, n.
Perry, R. B., 3, n., 16, n., 21, n., 25, n., 97, n., 117, n., 118, n.,
119, n.
Persons, W. M., 241, n., 276, n.
Phillips, C. A., 174, n.
Phillips, Osmund, 272, n., 353, n., 354, n.
Physiographic factors in social life, 571-73, 574, 590.
Pierson, N. G., 221, n.
Pittsburg, "deposits" in, 245-46.
"Platform" of quantity theorists, 155.
Poker chips, 132.
Pope, J. E., 316, 317, 319, n., 502, n., 504, n., 505.
Populists, and quantity theory, 141.
Positive doctrine, in Parts I and II, summarized, Ch. XX.
"Power in exchange," 9-10, 388.
Pragmatism in economic theory, 41-42, 93, 96-97, 98-99, 553, 571-72.
Pratt, S. S., 248, n., 251, n., 252, n., 369, 370, 374, 476, n.
Premium, 146, 194, 322, 332, 390, 442-50, 471.
See AGIO.
Gold, _vs._ general price level as index of value of money, 194.
Prestige as economic power, 33, 37, 41, 405, 409, 411, 438-42, 463,
465-66, 487, 489, 570;
prestige values.
See VALUES.
Price, Theodore, 222.
Price, 7ff., 388, 440, n.;
and value, 8ff., 298.
See VALUE.
"Buying price" _vs._ "selling price," 402-04, 406-07, 476;
"just price," 24.
Price level, 56, 86, 87, Ch. VI, Ch. VIII, 188-89, Ch. XV, 315-17,
328, 381-82, 388-89, 416, 416, n., 456, 520-23;
relation of, to particular prices, 156, 183, 295, 311-12, 315-17,
388-89;
_weighted_ average, tied to T, 163ff., 363, 381-82;
supposed "passiveness" of, 126, 186, 187, 192, 290, Ch. XV, 389;
"reciprocal of," _vs._ value of money.
See MONEY, VALUE OF.
Price-theory _vs._ value-theory, 49, 78, 389, 558-59, 570-77, 589-90.
See SUPPLY AND DEMAND, COST OF PRODUCTION, CAPITALIZATION THEORY,
IMPUTATION THEORY.
Prices, concatenations of, 112-13, 300, 310, 313-14;
customary, 144;
fluid, 143;
world prices, and gold production, Ch. XVIII.
Private banks, 338, 343-45, 348, 355, n., 357, 488, 498-99, 514-16,
527-28, 531;
deposits in, in New York City, 344, 515;
"deposits" in, in New York City, 343-45, 515-16.
Produce exchanges, 200, 251ff., 406, 541.
See SPECULATION, COMMODITY, CHICAGO BOARD OF TRADE, LONDON MONEY
MARKET, NEW YORK COTTON EXCHANGE, ETC.
Production, confused with trade. See TRADE.
Relation of, to trade, 257ff., 269, 393;
exchange as.
See EXCHANGE.
Factors of, 268, 481-82; index of, 278;
money as instrument of.
See MONEY.
"Productive," meaning of, 257, 591.
Prosperity, theory of, 262, 395, 548, 555, 556, 569, 573ff.
See STATICS, DYNAMICS.
Protective tariffs, 550-52, 553, 580-81.
Pujo Committee, 344, 373, n., 375, 491, n., 515, n., 518-19.
"Purchasing power," 9-10, 88, 98-99, 484;
of money, 86, 88, 155-56, 388, 583-86.
Q
Qualitative _vs._ quantitative thinking, 191-92, 195, 324, 433, n.,
553, 586-88, 590.
See JURISTIC _vs._ ECONOMIC THINKING.
Quantity theory, 42, 79, 81, 99, 110, Pt. II, esp. Ch. XV, 435, n.,
444, n., 448-49, 478, 520-23, 537ff., 550, 558, n.;
modicum of truth in, 195, 330, 448-49;
as basis of prediction, 334-35;
doctrine of, that quantity of money is of no importance, 219,
219, n., Ch. XIII, _passim_, 265, 391-92;
conflicts with other theories, see SUPPLY AND DEMAND, COST OF
PRODUCTION, CAPITALIZATION THEORY, IMPUTATION THEORY,
GRESHAM'S LAW.
"Long run" _vs._ "short run" versions of, 170-71, 188-89, 192ff.,
262, 393;
not a functional theory, 262-66, 400-401;
not logically related to bimetallism, 219, n.;
applied to international trade, 61, 129, 183, 280-81, 292,
Ch. XVI;
not related to general theory of value, 46ff., 305;
psychological assumptions of, 143-44, 305, 444;
relation to medium of exchange function, 152, 266;
contrasted with commodity theory, Ch. VII, esp. 151-53;
types of, Ch. VII, Ch. VIII, 172, 177, n., 182-85, 192-94,
210, n., 216-17, 218, n., 219, n., 220, Ch. XVIII, 521, n.,
522, n., 537, 538, n.
See RICARDO, MILL, J. S., TAUSSIG, NICHOLSON, FISHER, WALKER,
F. A., JOHNSON, J. F., JEVONS, BARBOUR, ANDREW,
DAVENPORT (p. 218, n.), KEMMERER.
R
Railway gross receipts, 240-41, 278, 516;
relation of, to clearings, 240-41.
"Ranks" or "orders" of goods, 34, 38, 96, 481, 562, n.
See IMPUTATION THEORY, AUSTRIAN SCHOOL, CAPITALIZATION THEORY.
Ratio of exchange, 6ff., 25, 92, 388, 584;
abstract, as value, 25, 92.
See VALUE, ABSOLUTE _vs._ RELATIVE, PRICE, "PURCHASING POWER."
Ratio, fixed, M:M', Ch. IX, 187, 206, 281, 288, 290, 294, 328-29,
529-44.
See RESERVES, DEPOSITS, "MONEY IN CIRCULATION."
Real estate trade. See TRADE.
Rediscounting, 490, 494, 518-20.
_Reichsbank._ See GERMANY.
Religious values, 414.
Rent, 316, 439-41;
as cost, 70;
of money, as "money rates," Ch. IV, 145, 149, 424, 438-42, 451-57;
capitalization of. See CAPITALIZATION.
Reserve cities, 233, 343, n., 357, 359, n.
Reserve function of money, Ch. XVIII, 418, 421, 424, 436, 536-44;
special case of "bearer of options" function, 426, n., 536ff.
See FUNCTIONS OF MONEY.
Reserves, Ch. IX, Ch. XVIII, 393, 395, 447, 451, 491, 517, 529-44;
bills of exchange as, 181-82, 444;
legal reserve requirements, 175, n., 184, 447, 448, 449;
ratio of, to deposits, 175, n., 179, 286-87, 298, 324ff., 529-44;
ratio of, to "money in circulation," 175, n.;
relation of, to money rates, 378;
"secondary reserves," 530.
Resumption of specie payments, 146, 323.
Retail "deposits," see "DEPOSITS."
Retail trade. See TRADE.
Ricardo, David, 47, 50, 51, 64, 65, 66, 106, 131, 550.
Ridgeway, W., 407, n.
Ripley, W. Z., 275.
Risk, 67, 527, 542-43.
See DYNAMICS, "BEARER OF OPTIONS."
Ross, E. A., 37, 568, 571.
Royce, J., 18, n.
Rupee. See INDIA.
Rural banks, 232-35, 491, 517-18;
"all other deposits" in, 233-35;
loans by, in Wall Street, 517-18;
small volume of transactions of, 235, 342, n.
S
Saleability, 10, 94, 99, 401-07, 430, 440-41, 453, 475-78, 489,
493ff., 524-25, 526-27, 529, 540ff., 591.
Santos, coffee speculation in, 252.
Savings banks, 342, n., 409, 472, 498-99, 523.
Savigny, F. C., von, 24, 398.
Schumpeter, J., 44, 49, n., 80, 83, 90-100, 111, 113, n., ff.,
264, n., 265, 401, 429, n., 484-85, 488, 526, 549, 554-55,
558, n., 583-86.
Scott, DR, 78, n.
Scott, W. A., 13, 48, 81, 132, 141, 144, 327, n., 418, n., 419, n.,
422, n., 431, n., 498, n., 501, n.
Seager, H. R., 301, n., 303.
Sea Board Air Line Adjustment 5's, 471.
Seasonal changes, 187, 192, 533.
Seignorage, 131.
Self, the, 19.
Seligman, E. R. A., 73, n., 301, n., 418, n., 548.
Selling costs, 257ff., 393, 565.
"Selling price" _vs._ "buying price." See "BUYING PRICE."
Senior, N. W., 14, n., 67.
Sex, social transformation of, 35-36;
role of, in origin of money, 409-13.
Shakspere, 25.
Share sales. See STOCK EXCHANGE, CLEARINGS.
Shaw, A. W., 259, n.
Silver, 139, n., 150, 151, 152, 219, 221, n., 327, 397, 412, 414,
415, 421, 434;
certificates, 432.
Simmel, G., 101, 418, n.
Single tax, 318-19, 552, n.
Smith, Adam, 12, 50, 64, 65, 222, 526-27, 550, 556.
Smith, B. F., 366, n.
Smith, Munroe, 24.
Social control, Ch. I, 395, 409, 435. n., 482, 584;
technology of, 577ff., 589, 591;
"radiant points of," 37, 576.
Social psychology, 17, 36-37, 143-44, 560, 569-70, 577-78, 586.
Social value theory, Ch. I, 87, n., 98-99, 137ff., 158, 279, 310-11,
Ch. XX, 402, n., 408-16, 433, n., 435, n., 438-42, 464-67,
469, 480, 560, 569-82, 586-89;
pragmatic character of, 40-42;
applied to law, 24, 586-89;
applied to morals, 22-24, 589.
Social advantage, relation of, to individual interest, 397-99.
Social "consciousness," 16;
social expectation, 409;
social forces, 26;
"social marginal utility," 12;
social mind, 7, 12, 34, 87, n., 557, 560, 570, 578;
social objectivity, theories of, 20ff.;
social organism, 16, 577;
social "oversoul," 16;
"social use-value," 12;
social _vs._ individual values, 43-45.
"Socially necessary labor-time," 12, 15.
Society and individual, 16-26, 118.
Soetbeer, A., 413, n.
Sombart, W., 220.
South Atlantic States, "deposits" in, 233, 246.
Spahr, C. B., 274.
Specie, 182.
Speculation, 60, n., 85, 143, Ch. XIII, 221, 225, 231, 233-41, 248ff.,
267, 298, 363-64, 382, 392, 503, 514-28, 540ff., 566-67, 579,
585;
by manufacturers, wholesalers, and retailers, 243-44, 252-54;
commodity, 251ff., 379-80, 406, 503, 540-42;
influence of, on bank clearings, 237-41;
land, 254;
in London, 540ff.;
"odd lot," 249, 370.
Speculators, 31, 249, 263, 322, 488, 499, 523-27, 529, 544;
_vs._ investors. See INVESTMENT.
Spencer, Herbert, 571.
"Spot" transactions, 251.
Sprague, O. M. W., 174, n., 200, 354, n., 378, 502, n.
_Staatliche Theorie_, 433, n., ff.
Stabilizing the value of money, 152, 194.
Standard, of deferred payments, 326, 391, 418, 436;
of value, 133, 201, 390, 418-23.
See MEASURE OF VALUES.
Money, 135, 325-26, 421, 445;
"primary" and "secondary," 422;
tabular, 152, 436.
State banks, 234, 322, 338, 342, n., 343, 345, 347, 498-99, 505-09;
collateral loans in, 505-06, 507.
Static theory, 11, 42, 93, 106ff., 176, n., 177, n., Ch. X, 219, n.,
223, 254, 262-66, 292-93, 395-96, 403, 426, 433, n., 474,
481, n., 485, 487, 488, 536-44, Ch. XXV;
abstracts from money, 99, 265-66, 392;
relation of, to speculation, 263ff., 392, 474;
dynamics and, reconciliation of, Ch. XXV.
See also, SALEABILITY, LIQUIDITY, FLUIDITY, "NORMAL TENDENCY,"
EQUILIBRIUM, "WEALTH OF NATIONS, THEORY OF," DYNAMICS,
TRANSITION PERIOD, PROSPERITY, THEORY OF, GOOD WILL,
"BUSINESS CAPITAL," FRICTION, HISTORICAL _vs._ CROSS-SECTION
VIEWPOINTS.
Statistics, 237, n., 272, n., Ch. XIX;
of banking assets, 498, 503-04, 506, 509-11;
of bank-drafts on New York and other centres, 357;
of "equation of exchange," 191, 213, Ch. XIX;
of foreign and domestic trade, appendix to Ch. XIII;
of gold consumption, 412, n.;
of money in banks, _vs._ money in circulation, 179;
of money-rates, 430-31;
of net income of the United States, 246, 247, n., 278;
of prices, 278;
of quantity theory, 285, n., Ch. XIX;
ratio, loans to deposits, 286-87, n.;
reserves, 178-79, 286-87, n.;
of speculation, 248ff.;
of trade, 227ff., Ch. XIII, 363-81;
"ordinary trade," 240-47;
of velocity, 339, 361-63.
See WEIGHTING IN STATISTICS.
Stevens, W. S., 199, n.
St. Louis, 246, 252, 289, n., 503; Merchants' Exchange, 253.
Stock exchange, 31, 145, 254, 282, n., 369ff., 406, 458, 491, 520,
521-23, 527, 541, 564;
New York Stock Exchange, 242, 248ff., 268, 344, 430-31, 514, 521-23,
541;
clearing house in, 199-200, 369-75;
share sales on, volume of, 248ff., 521, n., 522, n., 541;
share sales on, correlated with bank clearings, 237ff., 516;
bond sales on, 249, 370;
"odd lot" dealings on, 249, 370, 374;
security dealings outside, 250-51, 514;
compared with other exchanges, 250, 541.
Stocks and bonds, essential identity of, 460-61, 476-77;
"borrowing" of, 145-46, 371-74, 471-72; value of.
See VALUE.
"Stop loss" orders, 249, 373, n.
Store of value, 314, n., 408, 418, 424, 426, 451.
Sec FUNCTIONS OF MONEY.
Substitutes for money. See MONEY, NOT UNIQUE.
Suess, Eduard, 413, n.
Suggestion, 18, 36-37, 97, 118, 405, 410, 411, 464-66, 560, 570,
577-78.
Supply and demand, Ch. II, 80, 295, 299-300, 311, n., 389, 453;
applicable to general price level, 299-300, 389;
assumes fixed absolute value of money, 52ff., 313-14, 389;
conflicts with quantity theory, 299-300, 310-11, 389;
not related to quantity theory, 46-47, 59-61, 295;
inapplicable to money, Ch. II, 389;
applied to money, 59-62, 325, 453, n.;
in "money market," 62-63, 224, 453;
relation of, to cost of production, 50, 69-70;
relation of, to marginal utility, Ch. II, Ch. V, esp. 94-95,
and 114, n.
T
Tabular standard, 152, 436, 451.
Tarde, G., 18, 37, 466, 568.
Tariff. See PROTECTIVE TARIFF.
Taussig, F. W., 48, 49, 107, 123, n., 129, 151, n., 155, 182-85, 192,
216, 254, 276, n., 379, 532, n., 537.
"Taxonomy" in economic theory, 563-64, 565, 566.
Taylor, Jas. H., 252, n.
Taylor, W. G. L., 13.
Technology, 571-74, 576, 590-91;
"technology of social control." See SOCIAL CONTROL.
Temporal _regressus_. See HISTORICAL _vs._ CROSS-SECTION VIEWPOINTS.
Thompson, Burton, on barter in New York City real estate dealings,
198, n.
Ticker, 248-49, 373, n.
"Till money," 183, 530, 539.
Time credit. See CREDIT, FUTURITY, BOOK-CREDIT, BILLS OF EXCHANGE.
Time discount, Ch. IV, 92, 93, 224.
See INTEREST, CAPITALIZATION.
Time, influence of, of money-rates, 428-32.
Timeless-logical _vs._ causal-temporal, relationships, 403, 548.
See CAUSATION, STATICS.
Token money, 325, 326.
Touzet, A., 412, n.
Trade, various meanings of, 267ff.;
"domestic" _vs._ foreign, appendix to Ch. XIII;
"ordinary," volume of, 241-47, 369.
Trade, volume of, 59-61, 117, Ch. VI, 144, 149, 159ff., 194, 215,
Ch. XIII, 332, n., 339-40, 363-81, 521-23;
an abstract number, distinguished from concrete goods, 161;
a pecuniary magnitude, 16-64, 271, 277-78;
confusions of, with production, or with stock, 225ff., 281,
296, n., 306-07, 363, n., 521, n.;
governed by dynamic causes, 262-66, 392, 474;
quantity theory doctrine of causes governing, 217-18, 218, n.,
240, 255, 256, 257, 294, 522, n.;
real estate trade in, 198, 254, 264, 317;
relation of, to money and credit, Ch. XII, Ch. XIV, 391-92,
532-36;
relation of, to price level, 160-66, 363, 381-82, 536;
retail trade in, 173, 184, 232, 242-44, 369, n., 444-45, 447,
448-49, 463, 489, 531;
speculation chief factor in, Ch. XIII.
See SPECULATION.
Wholesale trade in, 232, 243, 244-46, 253-54, 369, n., 381.
See also BARTER, TRANSACTIONS, PAYMENTS, OVERCOUNTING,
UNDERCOUNTING.
"Transactions, total," relation of, to bank clearings, 348-51, 353,
359, n., 360;
relation of, to "deposits," 349-51, 353.
"Transition periods," Ch. X, 196, 218, 262-66, 293, 298-99, 392-93,
537ff., 548, 578-81, 589.
See "NORMAL TENDENCY," STATICS, DYNAMICS.
Trosien, 319, n.
Trust companies, 338, 342, n., 343, 345-48, 498-99, 505-09, 516, n.;
New York City, "deposits" in, 345-48;
clearings of, 345-47;
deposits of, 345, 516, n.;
collateral loans of, 505-07;
reserves of, 346-47, 531
Turgot, 78, n., 301, n.
U
Undercounting in estimates of volume of trade, 168, n., 200, n.,
231, n., 364-65, 369-81.
See OVERCOUNTING, BARTER.
Underwriters, 32, 488, 523, n.
Urban, W. M., 29, n.
"Use theory." See INTEREST.
Utility. See MARGINAL UTILITY.
V
Vacuum, monetary, 323.
Value, Part I, 388-89 and _passim_;
absolute _vs._ relative, 7ff., 56-57, 77-78, 81, 86ff., 109-110,
123, 156, 158-59, 303, 312, 328, 388-89, 402, n., 440, n.,
449;
abstract units of, 451;
exchange and, 9-11, 401ff., 483-84;
wealth and, 5, 41, 388;
as generic, 26, 288, 467;
_differentiae_ of species of, 26ff.;
as quality, 5, 41, 97-98, 388;
as quantity, 5, 41, 97, 98, 388;
control over, 575ff.;
causal theory of. See CAUSAL THEORY.
Definition of, 5-7, 388;
derived, becomes independent, 40, 137ff., 391, 480, 481, n.,
562, n., 563, n.
See also IMPUTATION THEORY, CAPITALIZATION THEORY, RANKS OR ORDERS
OF GOODS.
Formal and logical aspects of, 5ff., 41, 86, 98, 388-89, 401-02, n.;
functions of, 10, 27, 43, 57, 87, n., 388, 440, 487, 552, 562, n.,
572, 585-86;
"human nature," 30, n.;
"inner objective," 13, 88, 110, 402, n.;
institutional. See INSTITUTIONAL VALUES.
"Intrinsic," 24;
"intrinsic causes of," 14, n.;
objective, 85, 87, 100;
of consumers' goods, 34ff., 300;
of diamonds, 438-42;
of gold. See GOLD.
Of instrumental goods, 38ff., 297, 300ff., 304, 467;
of money. See MONEY and ANALYTICAL TABLE OF CONTENTS.
Of stocks and bonds, 30-31, 32, 36-41, 300ff., 462;
"participation," 29, 30, n.;
"personal," 19, 86, 88, 89;
"prestige," 410-11, 438-42, 452-53;
"public economic," 13, 86, 88, 89;
"something physical," 135;
subjective, 85, 86, 88, 99, 100, 401-02, n.;
subjective, in exchange, 88, 89, 91, 99, 100, 101, 112-119,
137, n.
See MONEY, VALUE OF, SOCIAL VALUE, PRICE, RATIO OF EXCHANGE,
"PURCHASING POWER," "POWER IN EXCHANGE," MARGINAL UTILITY,
COST OF PRODUCTION, SUPPLY AND DEMAND, ETC.
Value theory _vs._ price theory. See PRICE THEORY.
Values, concatenation of, 313-14;
simultaneous rise or fall of, 8.
Van Antwerp, W. C., 372, n., 374, n.
Van Hise, C. R., 208, n.
Variables and constants, 97, 119, 143-44, 204-05, 256-57.
Veblen, T. B., 37, n., 411, 439, 477, n., 556, 560-64, 569, 570, 580,
582, 585.
Velocity of circulation, 85, Ch. VI, 117, 131, 143, 194, Ch. XII, 290,
292, 298, 309, 310, 333, n., 339, 361-63, 394;
"coin transfer" _vs._ "person-turnover" concepts of, 203-04, 308;
as causal entity, 204, 209, 213-13, 214;
quantity theory analysis of causes governing, 143, 203, 205ff., 309;
most highly flexible factor in "equation of exchange," 205;
varies with trade, 209ff., 306-08, 394;
varies with prices, 308-10, 394;
varies with value of money, 215;
meaningless abstract number, 204.
W
Wagner, A., 25, n.
Walker, Amasa, 401, n.
Walker, F. A., 46, 62, 169, 170, n., 219, 220, n., 237, 414, n.,
419, n., 521, n.
Wall Street. See NEW YORK CITY, STOCK EXCHANGE, NEW YORK CITY CLEARING
HOUSE, SPECULATION, MONEY MARKET, "MONEY TRUST," ETC.
Walras, L., 91, n.
Walsh, C. M., 188, n.
Wants, social nature of, 35ff.;
competitive. See COMPETITIVE DISPLAY.
War, 108, 140, n., 194, 427, 549-51;
World War, 136, 139, n., 142, 416, 427, 481, 521, 539, 550, n.;
American securities returned during, 521, n.
War loans, 463, n., 464, n., 480-81.