PART II 
FURTHER ELUCIDATIONS 
§ I. The Supply of Currency and the *' Quantity 
Theory.” 
The sad experience of unlimited currencies which 
followed the writing of the First Part of this book do 
not suggest the desirability of abandoning or even 
modifying any part of the doctrine taught therein, 
but they do suggest that further elucidation of 
several matters is required. 
Some readers have asked, and others probably will 
ask, ‘“ What is the relation of this doctrine to the 
Quantity Theory of the value of money ? ” 
It includes the Quantity Theory, but contains 
something more. The Quantity Theory, like so 
many other statements in economic literature, insists 
that X ‘“ depends on A, other things being equal or 
remaining the same,” regardless of the fact that it 
would be equally true to say ‘“ X depends on B, other 
things (including A) being equal or remaining the 
same.” It is possible that there may be ten or a 
thousand things on which X depends, and of each of 
them it is true to say that it depends’on that one when 
the others are, as it is said, “‘ impounded in ceferis 
paribus.” Writers on economic questions frequently 
overlook this, and imagine themselves at variance 
about fundamentals, when in fact the only difference 
between them is that one is more struck by the 
importance of A and therefore says ‘“ X depends upon 
A, other things (including I} being equal,” while the 
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