We have already examined one of the objections that have been brought against the Quantity Theory; the objection that it only holds good ceteris paribus. No more tenable as an objection against the determinatives of our conclusions is reference to the possibility that an additional quantity of money may be hoarded. This argument has played a prominent role in the history of monetary theory; it was one of the sharpest weapons in the armory of the opponents of the Quantity Theory. Among the arguments of the opponents of the Currency Theory it immediately follows the proposition relating to the elasticity of cash-economizing methods of payment, to which it also bears a close relation as far as its content is concerned.

The Theory of Money and Credit