The Value of Money

Bank clearings, stock borrowing and the financing of industry give Benjamin M. Anderson concrete ways to test his account of money's value. His economic study links that question to credit, trade, speculation and the wider theory of value. In the preface, he argues that much exchange arises from changes in business conditions, so monetary theory must account for adjustment. He also challenges the quantity theory of money and considers the value of shares, bonds and business goodwill.

The middle excerpt follows transactions through the Stock Exchange Clearing House, distinguishing share sales from borrowed stocks and estimating how clearing reduces the need for checks. Anderson then turns to loans between banks and brokers, noting the difficulty of obtaining complete figures. This combination of theoretical dispute and detailed financial calculation offers readers a view of how one economist connected monetary transactions with broader changes in economic life.