ABSTRACT
The total quantity of money at any time consists of the total quantity of cash that is in the hands of the public outside the banks plus the total deposits of cash and credit money with the banks. The overwhelming proportions of the quantity of credit money in relation to the quantity of cash in the advanced countries must be emphasized. In England, for instance, as already shown, only about 12 per cent of the deposit of the clearing banks consists of reserves, and of these reserves only a part consists of cash, the other part being merely deposits of credit money at the Bank of England.
