ferent countries is far
from being a true index of their industrial development or of their
commercial activity. Indeed, beyond a certain point the larger average
amount of money in circulation in a country may indicate backwardness
in the development of banks and other credit agencies rather than
greater amount of wealth or of business. Notice, for example, the
medium position of the great commercial countries, Germany and the
United Kingdom, as compared with other countries above and below them
in the following list.

PER CAPITA CIRCULATION OF MONEY IN LEADING COUNTRIES DECEMBER 31,
1912.

France..................$48.91 America (U.S.)..........$32.98

Australia............... 38.45 Portugal................ 29.46

Canada.................. 33.57 Netherlands............. 26.86

Switzerland............. 24.32 Mexico.................. 9.17

Germany................. 21.36 Finland................. 8.38

United Kingdom.......... 21.21 Chile................... 8.24

Spain................... 19.96 Turkey.................. 7.09

Brazil.................. 18.79 Russia.................. 6.45

Denmark................. 17.73 Japan................... 5.68

Belgium................. 15.83 Bulgaria................ 5.57

Austria-Hungary......... 14.68 Serbia.................. 5.49

Rumania................. 13.24 Venezuela............... 5.51

Italy................... 13.09 India (British)......... 5.19

South Africa............ 12.93 Ecuador................. 4.62

Norway.................. 12.50 Peru.................... 3.17

Sweden.................. 11.59 Colombia................ 2.32

Greece.................. 11.02 Paraguay................ .57

7. #Money defined and reviewed#. Money may be defined as a material
means of payment and medium of trade, generally accepted as the
price-good and passing from hand to hand. The definition contains
several ideas. The words "generally accepted" imply that money has a
peculiar social character, is not an ordinary good. As a price-good,
money itself must be a thing having value, otherwise it could not be
accepted. Trade means the taking and giving of things of value. Money
is, therefore, not merely an order for goods, as a card or paper
requesting payment; it is itself a thing of value (tho this value may
be due partly or solely to its possessing the money function). Such
things as a telegram when transferring an or