Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1896-08-13
COINAGE. CATECHISM.
From The Nation.

has been decreasing since the demoneti-
cation OF silver, and that this decrease has
caused general fall in prices
Q. Is it true that the money supply has
been decreasing? A. 1t is not.
Q. What are the facts? A. So far as
the United States is concerned, there has
been an enormous increase. In 1860 the
money in circulation in this country was
si42, 1O2, AT; in 1872 it was .73S 800, $40; by
the treasury bulletin, at the beginning OF
the present month of July, it was 81 500
725, 200. $50
Q. What does this show? A. 1t shows
that our money supply has increased 2i0
per cent. rs compared with 1860, and 1O4
per cent.ias compared. with 1S72..
Q. Has the money supply increased
faster than the population! A. Very
much faster.
Q. How do you prove this? A. By
dividing the total money in circulation at
each date by the total population Of the
country at the same date, and thus
finding he circulation per capita
q. What does such process show? A.
I he per capita circulation OF the United
States on July l, 1860, was s14.O6; on July
1, 1872, it was $3.50; at the beginning OF
July in 1896 it was s2115
q. But has not the money supply OF
the world at large been decreasing? A.
On the contrary: it has been increasing
rapidly.
Q. How is this proved? A. By the
statistics of new gold production.
q. How large has this production been?
A. The reports of the director of the
mint, which are acknowledged authority,
show that from 1873 to 1894 inclusive, the
worlds total new gold production has
been 3, 526 ,S34 800
Q. Is this new product of gold increas
ing or decreasing? A. 1t is increasing
with enormous rapidity.
q. Give the figures A. In 1873 the
worlds gold production was 500, 100000;
in 1850 it wasI S106 436 500. In the year
1890 it was Sis, $40 600. In 1894 it was $780,
626 100. For 1895 the exact total is not yet
compiled, but it is closely estimated at
S199, 100000
/ @. What does this mean? A. 1t means
that the amount of gold annually added
to the worlds money supply has more
/ than doubled in the last % years.
! Q. lsuot this annual rate of production
liable to decrease? y. ON the contrary,
all experts i'll the American, Australian
and South African gold fields look for a
further and very heavy increase over the
present rate of production.
q. But has not the disuse of silver with
full coinage privileges cut down the total
annual addition to the worlds metallic
money supply? A. 1t has not
q. Why? Az In 1873 he world : gold
production was go, POO, 600; its silver pro-
ductiou, Isl 100000; total,l s11S000,000.
. Last year the production of gold atone was
:19a, 100000
q. Was not the combined annual pro-
duction of gold and silver larger than this
3 in the "bonanza days. a. 1t was not.
q. W hat WAS the highest record of that
period? \. Between 1856 and 1860 the
worlds average annual production of gold
Was s13l, Os3 900; of silver, S37 61S 600; total,
iii, 101 co., or less, by 100000, than
last years production of gold alone.
q. What are we to say, then, of the ar
gument that the money supply, since sill
yer free coinage was abandoned, has been
contracting? A. That it is utterly false
a. app lied to.the world at large and es-
n.eialIv so appIied tothe United States.
q * if true nevertheless. int the
prjce Of " heat and many other farm prod
met. has fallen heavily? \. 1t is.
q. How ere sucb declines. in wheat for
ir.tance,tto .be exclaimed? \. Bv the
enormously rapid increase in arain-grow
,rg ar4a throupbout the world.
q. Hast his increase been especially
r,nid since 1872 \ The increase in
.,r,in-yrowinp eres in This period. espec-
;,uv in North America south America
ont Asia. has never been approached in
INV eouaI reriod in the history of the
,,.,'rId