Note 331 — Chapter XIV

Vide my criticism of his statistical fallacy in this connection, in the Annalist of Feb. 7, 1916. He rules out foreign trade from his "equation of exchange" by the device of assuming that imports and exports cancel one another. This, however, to the extent that it is true, makes the bill of exchange more, rather than less, important as a substitute for money and deposits. Fisher, loc. cit., pp. 306, and 374-375. See appendix to chapter XIII of the present book.