OBJECTIONS CONSIDERED

worked no interference with the fundamental forces de-termining the rate of interest, we know that in actual ^fact, the interference of a changing money value withthese forces is tremendous—because of the “moneyillusion.”

Laws, gold movements, stock exchange speculation,banking customs and policies, governmental finance, cor-poration practice, investment trusts and many other fac-tors work their influences on the so-called money marketwhere interest rates are determined. Practically, thesematters are of equal importance with fundamental theory.While theory, in other words, assumes a waveless sea,actual, practical life represents a choppy one.

§9. Conclusion

In the study of such a complex and many-sided prob-lem as that of the rate of interest, it is natural (and infact, very desirable) that there should be many differentapproaches, views, and methods. Unfortunately, however,this latitude for individual interpretation and analysishas many times invited misunderstanding, confusion, andmagnification of non-essential differences.

I have attempted to set forth and analyze in this chap-ter those matters contained in the criticisms of The Rateof Interest which, to my mind, are of major importance,and concerning which there still exists considerable dis-agreement among students of the interest problem.

Many of these questions seem to me to be based onmisunderstandings of my theory of interest. I have beengreatly helped by criticisms of this kind to see the short-comings of my first attempt to expound that theory. I amhopeful that my present efforts to set forth in sharperrelief and with greater clarity one solution of the problem

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