_Trade_ distinguished from _production_ and from _stock_ 225-226 Trade chiefly speculation; Fisher's $387,000,000,000 of trade in U. S. in 1909 analyzed; index of variation in trade; figure based on Kinley's returns from 12,000 banks; double-counting 227-230 Figure largely represents speculation; statistics of total wealth of U. S.; small role of wholesale and retail deposits; "all other deposits" bunched in speculative centers, especially New York; trifling "deposits" in country banks; evidence of bank-clearings: clearings and stock speculation; clearings and ordinary business 230-241 Measurement of "ordinary trade" 241-248 Volume of stock speculation 248-251 Commodity speculation 251-252 Unorganized speculation 252-254 Bill and note speculation 255 Fisher's and Kemmerer's indicia of trade variation wholly misleading 255-257 Production waits on trade; selling costs _vs._ "cost of production"; "good will"; are banks useless? 257-262 "Normal _vs._ transitional": statics _vs._ dynamics; money and credit make static assumptions possible; very little trade in "normal equilibrium" or static state; volume of trade depends on transitions and dynamic changes; functional theory of money and credit must be dynamic theory; abstraction from money by static theory; no static theory of money and credit possible; quantity theory misses whole point of money-functions 262-266 APPENDIX TO CHAPTER XIII THE RELATION OF FOREIGN TO DOMESTIC TRADE IN THE UNITED STATES Ambiguity of "domestic trade": figures comparable with export and import figures cannot include turnovers; net income of United States, minus imports on retail basis, counted as domestic trade; exports on retail basis counted as foreign trade; net income for 1910; index of variation for other years; cautions and qualifications; ratio of foreign to domestic trade, 1890-1916 267-278 CHAPTER XIV THE VOLUME OF TRADE AND THE VOLUME OF MONEY AND CREDIT Interdependence of trade, and money (and credit); increasing trade causes increase of money and credit 279-281 Quantity theory doctrine: Fisher _vs._ Laughlin 281-282 Quantity theory has no explanation of elastic bank credit: "Currency Theory" of deposits 282-285 Loans and deposits 285-288 Bills of exchange 288-290 Summary of quantity theory doctrine 290-291 CHAPTER XV THE QUANTITY THEORY: THE "PASSIVENESS OF PRICES"