About This Quote
It is not easy to determine whether there are any who still adhere in good faith to the doctrine that traces back the depreciation of money to the activity of speculators. The doctrine is an indispensable instrument of the lowest form of demagogy. The idea that the value of money depends on its supply and demand, and that it is not possible to increase or decrease the supply, has been so long recognized as a part of orthodox economics that it is sometimes said to be an accepted truth. But it is not so much a truth as a fiction beneficial to certain classes of traders and speculators who would otherwise have no business. There are certain classes of traders and speculators who find in this fiction a means of increasing their gains and decreasing their losses and who thereby make, in the ordinary course of trade, a living at the expense of others.