HALM, GEORGE N. Monetary Theory. Pp. xi, 347. Philadelphia: The Blakiston Co., 1942. $3.50

Date01 November 1942
Published date01 November 1942
Subject MatterArticles
tory conclusion to an otherwise excellent
dramatizing an escape from subsistence
series. Heralded on the jacket as an at-
drudgery. Nor do we see the other side of
tempt to answer objectively questions that
the picture-prosperous companies which,
have long been dealt with on the basis of
lacking markets for a product, compete in
hopes and fears, the book leaves one with
lending some of their surplus funds to those
unfulfilled expectations.
who would at a high interest rate mortgage
The writer establishes a familiar theme
their future earning power. With theoreti-
-the volume of consumer credit moves in
cal finesse, such issues are dismissed with
close correspondence with general business
a quiet comment-that the system on the
cycles, with retail sales credit following the
whole assists those without the will power
curve more closely than cash loan credit.
to save first and buy later.
A distinction is made between the long-run
It is unfortunate that the National Bu-
ascent of installment credit (which is ac-
reau of Economic Research has not re-
credited to an increasing emphasis upon
capitulated the installment credit problem
consumer durable goods and the emergence
in a manner that might be more helpful in
of institutions for lending and financing)
framing a postwar national policy. One
and the explanation of cyclical fluctuations
fears that the difficulty lies in the tendency
in this field. The latter are explained by
of the economist to employ his specialized
forces operating on supply and on demand.
talents in reaching a tenable statistical con-
Most of the cyclical problem emerges from
clusion rather than an inquiring: What
the demand side of the equation. The
kind of institution is this? How does it
demand for credit is greatly altered by
arise? Is human welfare fully served by
shifts in down-payment requirements and
it? If not, what steps should be taken to
in the length of time of the contract. De-
alter or abolish it?
mand is, however,...

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