KUVIN, LEONARD. Private Long-Term Debt and Interest in the United States. Pp. xiv, 138. New York: National In dustrial Conference Board, 1936. $2.50

• Author: Clarence Dickinson Long
• Published date: 01 March 1937
• Date: 01 March 1937
• DOI: http://doi.org/10.1177/000271623719000157
• Subject Matter: Articles

261
neer work done by writers like Karl Sny-
supposed by most sponsors. But only dy-
der (who strangely enough is not even
namic theory, not statistical correlations,
mentioned by Angell) .
valid in the past, could procure sufficient
The statistical investigations are con-
understanding of the monetary develop-
ducted with great care, and in most parts of
ment under the circumstances concerned.
the book, analytical conclusions are drawn
At this point, certain defects of Angell’s
with the utmost caution.
(The reviewer
theoretical analysis become visible: he
cannot but object, however, to the use of
seems to attach undue importance to the
the term &dquo;trend&dquo; for a period as short as
concept of &dquo;circular velocity&dquo; (national in-
that from 1921 to 1934, which scarcely
come divided by money-stock), which, be-
covers more than one cycle. The trend
ing itself a highly complex phenomenon,
approach prevents Angell from ascertain-
could not be used for explaining economic
ing that the failure of the exchange veloc-
variations; moreover, he neglects business
ity index to rise together with the business
cycle theory entirely, and does not give a
activity series is due to the particular prop-
complete theory of the basic factors deter-
erties of the monetary policy of the New
mining exchange velocity.
Deal. Here, as in the whole book, too
One theoretical error frequently found
much emphasis seems to be laid on small
with monetary theorists may be noted in
deviations in the path of the correlated
brief: &dquo;If business becomes more highly
series; there is no reason whatever to ex-
integrated, exchange velocity will fall,
pect that any two economic series should
other things being equal, since a larger pro-
run exactly parallel.)
Angell seldom goes
portion of the total payment operations is
even as far as in the following statement:
now being carried on by book transfers
&dquo;This lends some support to the view that
within the integrated units than before;
the ratio, like outside currency itself, rises
these book transfers do not require the use
at the end of periods of business activity
of actual ’money’ for effecting settlements&dquo;
and does not reach bottom till after busi-
(p. 94). But would not the money spared
ness has begun to pick up&dquo; (p. 33) .
be expended as usual without being al-
The more surprising are the rather bold
lowed to increase the idle balances of the
and, in the opinion of the reviewer, uncon-
integrated concern? It is not the ex-
vincing inferences to questions of mone-
change velocity, but the volume of mone-
tary policy: &dquo;... since deposits ordina-
tary transactions that is reduced.
rily move with or after business activity,
On the whole,...