But this departs from fundamentals of utility theory; other difficulties 101-110 Kinley's doctrine 110-111 General criticism of utility theory 111-115 Davenport, Wicksteed, Fisher, Perry 113-120 _PART II. THE QUANTITY THEORY_ CHAPTER VI THE QUANTITY THEORY OF PRICES. INTRODUCTION Preliminary statement of quantity theory, and of critical theses to be developed in following chapters. Virtually every contention and every assumption of quantity theory to be challenged 123-129 CHAPTER VII DODO-BONES Quantity theory doctrine that valueless objects can serve as money; Nicholson's assumption: money made of dodo-bones 130-131 Fisher's view also 130 And Ricardo's 131-132 Will dodo-bones circulate? Dodo-bones and poker chips; circular reasoning 132 Both medium of exchange and standard of value must be valuable 133 Is inconvertible paper an exception? 133-134 Doctrine that money gives legal claim to things in general 134 Kemmerer's assumptions; money made of commodity, once valuable, now used only as money 135 Commodity theory requires present commodity value 135 Historical _vs._ cross-section view: possibility that such money would circulate 135-136 Value not tied up with marginal utility or commodities: social value theory; derived values often become independent of original presuppositions, in economic as well as legal and moral spheres 136-139 But this no basis for quantity theory: social psychology, not mechanics 139 "Banker's psychology" _vs._ psychology of blind habit: India, Austria, United States; monetary phenomena of war times; "credit theory" of Greenbacks 139-142 Question-begging definitions 142-143 Assumptions of quantity theory: blind habit and fluid prices 143-144 Extreme commodity theory denies that money-use adds to value of money; usually not true; analysis of money-functions 144-150 Hypothetical case in which whole value of money comes from commodity value 150-152 Money must have value apart from monetary employments, but, in general, gains additional value from employment as money 152-153 CHAPTER VIII THE "EQUATION OF EXCHANGE"