Addendum

(In this revised edition figures for 1910-1912 are given on pages 304, 317. See also page 492.)

Data have just become available by which to bring down through 1910 the statistics of Chapter XII. The results are as follows:

MAGNITUDES IN THE EQUATION OF EXCHANGE FOR 1910

The table shows that the figures, as first calculated, conform admirably to the equation of exchange. The adjustment needed, to produce perfect conformity, in only one case reaches the half of one per cent!

From the adjusted figures we may calculate the percentages of cash and check transactions (MV ÷ MV + M'V' and M'V' ÷ MV + M'V'). These are 8% and 92%, which may be added to the table on page 317. The ratio of deposits to money (M'/M) is 4.4, which shows Edition: current; Page: [xxiv] a great increase over 1909. The disproportionate growth of deposits relatively to money and the excessive velocity of circulation (52.7) of deposits, substantially equal to the unprecedented figure for 1909, are disquieting symptoms and serve only to confirm the forebodings in the text.

For aid in working out the figures in this addendum I am indebted to three of my students, Mr. H. A. W. Duckert, Mr. J. M. Shortliffe, and Mr. M. G. Hastings.