In this section, the author adds to his preceding discussion of the reasons for holding money in stationary conditions. The additions in this section amount to two further reasons for holding money when conditions are not stationary.
The first reason is the result of a person's planning to undertake "some considerable increase in his expenditure in the near future." Because of uncertainty about when such funds would be needed, as well as the convenience of transferring needed funds in a single transaction, a person planning on such a rise in future expenditure will very likely prepare for it by increasing his demand for money in the present.
A second reason results from having plans, not for increased consumption, but for increased investment in securities in the near future. As the author implies, the reason an individual would make such investments is "to be able to be able to spend more than he receives at some distant and probably conjectural future date." For the near term, however, such increased holding of cash reflects a plan to purchase securities, given an assumption that such investments are cheaper when multiple 'weeks' of 'savings' are consolidated into a single transaction.
The author summarizes his findings thus far as being that "we should not go far wrong if we said that the demand for money depends on the rate of interest, and upon the volume of planned expenditures in the near future (in money terms), some attention being paid to the confidence with which it is expected that this expenditure and no more will be carried out." This summary, as he notes, does not apply to his last reason for holding money, namely, "an increase in the amount of securities that the individual plans to buy in the near future." He calls this "an awkward exception" to his rule for the demand for money but states that, "I do not see any convenient way of reformulating the rule by which it can be avoided."
