approval of the idea itself (for example, by K e y n e s ) , is undoubtedly sound. It seems preferable, however, to point to some theoretical weaknesses instead of repeating the empirical argument. On the legitimate assumption that the exceptional hoarding qualities of money originate in its exceptional liquidity, one can easily detect a fatal theoretical weakness of the entire proposition, for the simple truth is that the decisive reason for money's liouidity rests on the fact that money is, after all, the generally acceptable medium of payment. Hence, to make substantial inroads into money's hoarding qualities would be tantamount to tampering with one of its major functions, if not with both of them (general standard of value). Secondly, it is a known fact that 4 It is only fair to point out that S imons (op. eit.) recommends the adoption of this norm merely as an ultimate "ideal" depending on the eventual and presumably gradual achievement of the second prong of his attack, namely the already mentioned elimination of rigidities in the financial as well as commodityand factor price structures of the economy. For the immediate future, and on a transitional basis, he suggests adoption of a stable money value as a guide for monetary policy, in view of the difficulties which the secular deflationary consequences of the constant money-stock norm would entail in the presence of creditor-debtor relations, fixed income contracts and fixed or rigid commodity prices. Generally speaking, S i m o n s' proposal is one of the best exemplifications of over-lappings and blendings of thought expressed in our list of approaches. This blending is particularly in evidence as regards his treatment of the debt phenomenon, i. e., his sharp distinction between long-term and short-term debt. His misgivings about the former arise from the angle of rigidities in the financial structure, whereas his opposition to short-term debt is basically directed against the prevailing powers of the commercial banking system to create (and destroy) such debt in the form of bank loans. Since this process amounts to variations in the total money supply, it can easily be seen that this suggested reform here belongs in the money-supply category.