Produced by Curtis Weyant and the Online Distributed Proofreading Team at http://www.pgdp.net (This book was produced from scanned images of public domain material from the Google Print project.) HARVARD COLLEGE LIBRARY FROM THE QUARTERLY JOURNAL OF ECONOMICS THE MACMILLAN COMPANY NEW YORK . BOSTON . CHICAGO . DALLAS ATLANTA . SAN FRANCISCO MACMILLAN & CO., LIMITED LONDON . BOMBAY . CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA, LTD. TORONTO THE VALUE OF MONEY BY B. M. ANDERSON, JR., PH. D. ASSISTANT PROFESSOR OF ECONOMICS, HARVARD UNIVERSITY AUTHOR OF "SOCIAL VALUE" New York THE MACMILLAN COMPANY 1917 _All rights reserved_ COPYRIGHT, 1917 BY THE MACMILLAN COMPANY Set up and electrotyped. Published May, 1917. To B. M. A., III AND J. C. A. WHO OFTEN INTERRUPTED THE WORK BUT NONE THE LESS INSPIRED IT PREFACE The following pages have as their central problem the value of money. But the value of money cannot be studied successfully as an isolated problem, and in order to reach conclusions upon this topic, it has been necessary to consider virtually the whole range of economic theory; the general theory of value; the role of money in economic theory and the functions of money in economic life; the theory of the values of stocks and bonds, of "good will," established trade connections, trade-marks, and other "intangibles"; the theory of credit; the causes governing the volume of trade, and particularly the place of speculation in the volume of trade; the relation of "static" economic theory to "dynamic" economic theory.