The daily Minnesota pioneer. [volume] (St. Paul, Minn.) 1854-1855, 1855-07-12
Money and Prices.

We find the following interesting sum-
mary of facts in an Essay on 7 be History of
Money and PRICES, by John Eadie, pub
lished in the Bankers Magazine for April:
The stock of coin in Europe and America,
in 1899, is estimated to have been 400 MIL
lions of dollars. One hundred years later,
about the close of the last century, it amounted
to 900 millions. In 1902 it began to decline,
from abrasion, or absorption in Asia, or con-
sumption in manufactures, as we'll rs the stop
page of the Spanish American mines, until the
discovery of gold in California and Australia,
in l84s-49, when it had been reduced to about
1900 millions. In the early part of our his
tory the enligrants had very little specie in
circulation. In Virginia, in l648, price was
fixed upon commodities, at which they might
pass current. Tobacco was legal tender, at
thirteen shillings per pound. Massachusetts
adopted coin as q circulating medium, In l64l,
making it payable for all debts at fixed price.
Paper money was issued in Massachusetts
in 1890, and other colonies soon followed their
example. Prices rose so rapidly with the in
crease of this currency, that q man who bought
an OK on six months credit, could pay his note
when it became due with the money for which
he could sell half year old calf. Property
which cost a thousand dollars, could be sold
Ssithin a vear for two thousand. The Home
Pariiament at length interferred, and prohib-
tied apv future issues of such cOrrency. The
amount in circulation just before the revolu-
tionary war, was twelve millions of dollars, but
its value in coin was only about ten millions
In 1882, the whole of the celebrated continent
tai money issued amounted to three hundred
and fifty-nine millions of dollars. 1t gradually
deprecated until its value became 80 low that
one silver dollar could purchase five hundred
dollars of it, wnen its circulation ceased.
Notwithstanding the experience OF colonial
times, excessive issues of paper money became
popular again after the revolution Banks
were chartered in all directions, until lnnatlons
and contractions of paper money terminated IN
almost universal suspension OF specie pay
ments, not long after the close OF the last
century. Similar results were taking place Id
England. The Bank of England suspended 10
1877, and did not resume until 1871: Their
followed another expansion in England, stimuli
itaneously with one in this country enhanced
prices and an appearance of prosperity which,
in the case of England, had no parallel in her
annals but, in 1925, both countries were Wis
iited by fearful panic. These alterations
continued with greater or less intensity until
1896. when, after huge imitation in America
and England, sudden contraction took place
in England, followed by almost universal sus-
nension of the banks, and widespread bank.
ruptcy among individuals in this country, in
1887. -.
Followiug the example of this country
ENGLAND adopted o fixed metallic basis for thu
Rank Of England in l845, and the regular pub
hcation of the condition of that institution
when viewed in connection with the price
consols, has become reliable index to tn
course OF the European money market. II
l775, just before the American war broke Out
consols sold at 80, or ten per cent. below par
but they steadily declined during that war un
til they reached 81. After peace they rose Z
971-2. The French revolution sent then