In September 1964 an article in this Review discussed the relation between money supply, time deposits, money plus time deposits, and periods of national economic contraction and expansion. In particular, the historical data were reviewed in light of the hypothesis that an increase in growth of the money supply or some other specific monetary magnitude, relative to growth of the demand for it, would result in a rise in total spending. Conversely, a reduction in the growth of this key variable, without a corresponding decline in the growth of demand for it, would cause a decline in spending.