be expressed as that proportion of his income that is to him of more
value retained in money form for any period than if at once expended.

In this conception of the individual monetary demand, must, however,
be included not merely the demands of retail purchasers, made by
themselves, but also those of all agencies such as merchants, bankers,
and transportation companies, serving the needs of ultimate consumers
of goods. The use of money may be necessary several times before a
commodity completes its journey from producer to consumer.

Of two persons whose expenditures of money are of the same kind and
made at the same rate, the one having the larger amount of purchases
to make has the larger monetary demand. But the amount of purchases
does not always vary directly with the amount of real income[2]; for
example, a farmer and a village mechanic may have at their disposal
incomes equal in the quantities of goods, such as food, fuel,
clothing, and house-uses (worth, let us say, $1000 for each), but the
farmer would be getting a larger part of his goods directly from his
farm and by his own labor, while the mechanic would be getting first
a money income to be expended afterward for food, clothing, and rent.
The mechanic would in this case have an average monetary demand much
larger than the farmer.

We see thus that a person's monetary demand at any time is that amount
of money which rests in his possession as the necessary condition to
making his purchases as he desires. Individual monetary demand varies
in proportion directly to the delay, and inversely to the rapidity
with which the individual passes the money on; and directly to
the amount of the person's income that is received and expended in
monetary form.