[449] Cf. the discussion of the relation of P and T in the chapter on "The Equation of Exchange."
[450] Op. cit., p. 136.
[451] Ibid., pp. 70-71.
[452] Loc. cit., p. 487.
[453] Kemmerer does not accept Kinley's estimate of 75% for checks as compared with money in payments as a "sure minimum" for 1896, but rather counts it as a "fair maximum." (Loc. cit., p. 106.) Using this as a basis, he gets a monetary circulation for 1896 of 47.7 billions, and a "velocity of money" (since the monetary stock in circulation in 1896 was a little over 1 billion) of 47. (Loc. cit., p. 114.) Kinley's fuller investigation in 1909 has made it clear that his 1896 conclusions understated, rather than overstated, the proportion of checks to money. His "sure minimum" was needlessly low. He concludes in 1909 that 80 to 85% for checks is safe. (Op. cit., p. 201.) Cf. Fisher's comments, loc. cit., pp. 430; 460 et seq. Fisher's V is about half as great as Kemmerer's, and varies to some extent. I think Fisher, since his results are closer to Kinley's later figures, has made much the better estimate here.
[454] Since I have already compressed the contents of a book of 200 pages into Chapter I of the present book, it seems undesirable to attempt here a further compression of that chapter. These theses, therefore, do not give the substance of the social value theory.
[455] Menger, "Geld," Handwörterbuch der Staatswissenschaften; Carlile, Evolution of Modern Money.
[456] We should make a slight and unimportant qualification as to Kemmerer. Cf. our chapter on "Dodo-Bones," supra.
[457] It seems necessary to point out this essential lack of correlation between value and exchangeability, since Mr. Horace White, in his Money and Banking (5th ed., p. 135), identifies value and exchangeability: "Value is an ideal thing in the same sense that weight is. The former means exchangeability; the latter means force of gravity. A dollar is a definite amount of exchangeability." Cf. also Amasa Walker's contention that "exchangeable value" is tautology, equivalent to "exchangeable exchangeability!" Science of Wealth, 5th ed., p. 9. Cf. my article "The Concept of Value Further Considered," Quart. Jour. of Econ., Aug. 1915, pp. 696 et seq.
[458] This is stated by Schumpeter, so far as land is concerned. Vide Quarterly Journal of Economics, Aug. 1915, p. 704. It is due Menger to point out that he does not make the distinction between value and exchangeability which I have just made. His theory rests in an analysis of the saleability or exchangeability of goods. But Menger's conception of value is essentially different from my own. He commonly means by "Wert" merely subjective value, or marginal utility. He objects to the notion that one good measures the value of another, or that goods, when exchanged, are equivalent in value, on the ground that there must be a surplus in value (subjective value) for each exchanger, or exchange would not take place. He has, as a primary concept, no absolute social value. "Tauschwert" is for him a relative value, though he is finally driven to constructing what is virtually an absolute value notion, by distinguishing "äusserer Tauschwert" from "innerer Tauschwert" in the case of money, the latter being concerned exclusively with the causes affecting prices from the side of money, ignoring changes in prices due to causes affecting goods. (Cf. art. "Geld," in Handwörterbuch der Staatswissenschaften, 3d ed., pp. 592-593. He does not make this distinction in developing the theory of saleability of goods, however. Cf. the chapter, supra, on "Marginal Utility and the Value of Money." It is absolute social value which I am here distinguishing from exchangeability. It is equally true, however, that subjective value and exchangeability have no necessary correlation.)