schoumacher: in march, congressional banking committees under senator william proxmire and representativess began to pressure arthur burns and the fed to relent and allow the money supply to grow more rapidly. the nation's money supply has been increasing at an annual rate of only 1.3% since mid-june. and you may call that a middle course, but i consider it a very restrictive course. we will not open up the spigot... and permit the money supply to increase rapidly, because if we did, in our judgment, we would not be helping significantly to relieve unemployment, and we would be, on the other hand, releasing forces that could accelerate what is already a dangerous inflation. schoumacher: burns predicted that the modest easing that the fed had permitted would be sufficient to stimulate the economy due to an increase in the velocity or turnover of money. the high dynamic variable in the business cycle is not the stock of money, but the rate of turnover of money. velocity is simply the number of times, the rate, at which a dollar of money turns over. and, of course, if you have a lot of veloc