[586] Loc. cit., ch. IV. Vide Veblen's discussion of Fisher in the Pol. Sci. Quart. of 1908, and his discussion of Clark in the Quart. Jour. of Econ., Feb. 1908.
[587] Chapter on "Volume of Money and Volume of Trade."
[588] On Oct. 9 of 1916, I still venture the opinion that the stock market has shown wonderful conservatism in the face of extraordinary temptations. From Oct. 1915, to Aug. 1916, the "bears" dominated the market, and prices fell pretty steadily. The "bull" movement of Sept. 1916, seems to have reached its crest without passing the level of a year ago. The market may "run away," but it has not yet done so.
[589] Psychologie Économique, vol. I, pp. 77-78.
[590] Nor do I see any method for bringing into our equilibrium picture the control which the environment retains over values by its power to eliminate those groups whose choices vary too widely from the norms of "survival-necessities." Vide Giddings, Principles of Sociology, ed. 1905, p. 20; Carver, Essays in Social Justice, passim. I think that the range of choices compatible with survival is very wide. Moreover, "adaptation" is not a simple matter of adjustment to the physiographic environment. It includes adjustment to the social values, both of the group in question and of other groups.
[591] Cf. H. C. Emery's discussion of "manipulation" in his Speculation in the Stock and Produce Exchanges, pp. 171ff.
[592] Cf. Dewey, Essays in Logical Theory; Bergson, Time and Free Will, passim, and Creative Evolution; James, Problems of Philosophy.
[593] Cf. Bagehot's discussion in Lombard Street of the features of English organization which prevented supremacy in the Eastern trade from passing to Greece and Italy with the opening of the Suez Canal. (Introductory chapter.) See also the discussion of the English money market in ch. XXIV, supra.
[594] Cf. my article on "Schumpeter's Dynamic Economics" in Political Science Quarterly, Dec. 1915, and ch. XXIII, supra.
[595] In my article on Schumpeter's theory above mentioned, I have pointed out that his contrast between statics and dynamics is not by any means a fixed one, and that in particular he shifts back and forth between a hypothetical static state, primarily a methodological device, which assumes perfect fluidity and mobility of the objects of exchange, on the one hand, and a realistic static state, immobile, held in the bonds of custom and tradition, illustrated by India and China, on the other hand. The version of the distinction between statics and dynamics here discussed is only one of several which he gives. It is, however, the one which at present I wish to contrast with my own view. With many of Schumpeter's doctrines I am in hearty accord, and I have learned much from his book. I think that his book affords abundant evidence of the usefulness of the static-dynamic contrast.