[567] Money and Credit Instruments, p. 80.
[568] Ibid., p. 82. Italics mine.
[569] Kemmerer, in general, is less concerned, apparently, with defending a causal quantity theory than with defending the "equation of exchange." To the extent that this is true, I have little quarrel with his doctrines. To "prove" the "equation of exchange," however, is, first, a work of supererogation, and, second, in no sense a proof of the quantity theory. Vide the chapters, supra, on the equation of exchange and on statistics of the quantity theory.
[570] Published by the National City Bank of New York. Vide also Bagehot. Lombard Street, introductory chapter, and Withers, The Meaning of Money.
[571] This information is supplied me by an official of the New York Coffee Exchange, through the courtesy of Mr. W. H. Aborn, of Aborn and Cushman, Coffee Brokers, 77 Front St., New York.
[572] Principles of Economics, passim.
[573] Theorie der wirtschaftlichen Entwicklung.
[574] The writer has ventured some tentative predictions as to conditions following the present War in the New York Times Sunday magazine of Dec. 10, 1916, pp. 10-11.
[575] There are important dynamic and "frictional" considerations opposed to protective tariffs, as well as static considerations. Very many of the "intangibles" later to be discussed depend on free trade. A high percentage of England's "capital" would be destroyed by protective tariffs and trade restrictions, and to a less degree this is true of all countries. Vide N. Y. Times Sunday magazine, Dec. 10, 1916, pp. 10-11.
[576] A case in point is the discussion of the effects of increment taxes on the building trade, participated in by Professor R. M. Haig and the present writer in the Quarterly Journal of Economics, Aug. 1914, and Aug. 1915. The doctrines criticised in my article were static theories, and my criticisms made the static assumptions. Professor Haig, accepting the validity of my criticisms on the assumptions laid down, for the most part, seeks to recast the argument on a dynamic basis, emphasizing dynamic and "frictional" considerations from which my argument had abstracted. I think that what difference of opinion remains between us would probably be removed if the distinction between static and dynamic were clearly drawn and rigidly adhered to.