Horace White, in his _Money and Banking_, in the earlier editions, speaks of the velocity of money, "_alias_ the state of trade." Is not this the truth? Is not money circulating rapidly, when business is active, and slowly when business is dull? Is not the velocity of circulation a highly flexible and variable average, a _cause_ of nothing, and an index of business activity? Or, better, perhaps, are not the V's and T both governed, in large degree, by more fundamental causes which are largely the same for both? Fisher would admit something of this for transition periods. Even for normal adjustments, he admits that an increase in T, unaccompanied by an increase in M, leads to some increase in the V's, though he doesn't say how much.[213] He denies, however, that an increase in the V's will increase T.[214] In general, it is clear that he regards the V's and T as governed by different causes. The control of the V's by T is not the only or the chief control of the V's. The V's can increase greatly without an increase of T, in his scheme. That this is so, will appear from a comparison of the list of causes which he gives as governing the V's and T respectively: Causes governing V's: 1. Habits of the individual. (a) As to thrift and hoarding. (b) As to book credit. (c) As to use of checks. 2. Systems of payments in the community. (a) As to frequency of receipts and disbursements. (b) As to regularity of receipts and disbursements. (c) As to correspondence between times and amounts of receipts and disbursements. 3. General causes. (a) Density of population. (b) Rapidity of transportation. Compare this list with the causes governing T:[215] 1. Conditions affecting producers: Geographical differences in Natural Resources; the division of labor; knowledge of technique of production; accumulation of capital. 2. Conditions affecting consumers: the extent and variety of human wants. 3. Conditions connecting consumers and producers: (a) Facilities for transportation. (b) Relative freedom of trade. (c) _Character_ of monetary and banking systems. (Not their _extent_.) (d) Business confidence.