Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-03
SUPPLY AND DE "A N ID


half was in paper money not fully covered
by metallic reserves. The situation at the |
beginning of 1900 showed total monetary. |
stock Of about $11 GOO, 600, 900, of which but
little more than one-fourth was in uncov-
cred paper The actual amount Of paper |
money in circulation is greater than these |
figures Indicate, but a portion is omitted
from the net statistics because 1t is covered
dollar for dollar by the great gold and sill
yer reserves Of the countries where the
money is issued. 1t is considered a fair
statement of the monetary condition OF the
country to set off these reserves against the
paper which they cover and estimate the
actual paper margin only at the amount In
excess of the reserves BY this method OF
computation, Mint Director Roberts finds
that, while the total money supply of the
world has increased about $1,000 OO0oO0.
the increase in gold money since 1873 has
been about $4,000, 5000 in silver about
50. $50, 100000 and in uncovered paper only
about $500 100000 A large proportion of
the increase in gold has taken place within
the short space of seven years, while the
quantity of silver money, which was at Its
maximum of about 81, go 600 600 at the be-
ginning of 1896, has since been somewhat
reduced by the sale of silver by Germany
and its retirement in other countries. r!e
conditions of 1893 showed a total monetary
supply of about $40, 500, 0OO, 900. which has
since been increase by about 81, 100. DOC, 900.
About $94O,OOOOOO of this increase has been
in gold money. The great outburst of ac-
tivity In the mining of gold which followed
the suspension Of the coinage of silver IN
India and the United States, involving the
rapid development Of the mines of South
Africa and the klOndike region, with the
increased output of Australia and Califor-
MIA, has resulted, therefore, in supplying
nearly the entire monetary needs of the
world, without resort to any material m
crease In the net supply of paper money in
circulation.
Great Britain and Germany.
1t is an interesting inquiry what countries
have absorbed this great increase of gold
money since 1873 An outlet for the new
gold has been found partly in the greatly
increased equipment with gold of the gold
standard countries of that time, but has
been found also in countries which were
then drifting toward the silver standard or
which We're struggling in the meshes of ir-
redeemable and fiuctuating paper. Among
the distinctly gold standard countries which
have increased their stock of the yellow
metal are Great Britain and Germany, the
latter country having in 1873 Just entered
upon the policy Of the gold standard. Great
Britain was estimated to have a stock of
gold money in 1873 amounting to 100000
600. This has been multiplied by nearly
three within the past generation and now
stands at s4s6, 100000. Germany, which en-
tered upon the experiment of the gold
standard with an equipment of almost ex-
actly the same amount of gold as Great
Britain then had-$16O, 200. 000-haS raised
her gold resources to $691 900, 600 and re-
duced her silver stock from s3O6 235 900 to
s20S 100000. Still further reductions in full
legal tender silver have been made during
the current year by the law authorizing
the melting up of the old silver thalers.
France. when had gold stock in 1873 of
only S450,G0O,000 and a silver stock of $780,
900. has nearly doubled her gold supply
and reduced her fund of overvaued silver
Her equipment of gold money is now reck-
oned at $50, 600 and of silver at s421-
300, 900.
The United States and Russia.
Turning to the countries which were
struggling with irredeemable paper cur
rency In 1873, the striking examples of an
increase Of gold supply since the resump-
ton of specie payments are the United
States and Russia. The United States was
estimated to have only s135 900 900 In gold
money in 1873, including what in circu-
laton on the Pacific coast and the scat
tered funds in the national and state banks
The amount had risen at the close of 1878,
on the of specie resumption, to S213.-
,977, but it required the big export
movement in food products during the next
three years TO raise the gold stock at the
end of 1881 TO s,4s4. 53s. Then came a
period when the increase of gold was
checked by the infusion of silver into the
currency. which finally left the gold stock
at the close Of 1896, after the business de-
velopment of fifteen years, at only $780,
597. 1854. The record Of the last four years
has been strangely different. The suspen-
sion Of further purchases of silver bullion
and the arrest of bank note expansion I'M
til the passage of the refunding law left a
vacuum for gold which was filled like the
| rush of a mighty golden river down to the
present time.
An increase of more than GO per cent in
three years carried the gold money of the
country on June 80, 1899, to s962. Ss5. sos,
and further increase of another year car
ried it to 81 .034 1884 444 on July l, 1900 The
| latest available figures, for December l,
CHI Cd coli nf
| A few months more at the present rate Of
| increase will dover the country within less
| than five years with double the gold cur
| rency which was available In the summer
| Of 1896.
The Russian empire was credited in 1873
| with a gold stock Of $40 100000, and I'M
covered paper to the amount of s6ls, 400, 600.
| 1t not until nearly 1895 that serious
preparatio began for the resumption Of
| gold payments and the retirement Of the
| redundant mass Of paper. At the begin
| gold fund Of $4SS. 100000, but still had in
| circulation a margin of uncovered paper to
| the amount Of $467, 2O0.O 600 The process Of
retiring and canceling the paper roubles and
pushing gold coin into circulation has pro-
crossed at such a rate within the last five
years that more gold is now held by the
treasury and Imperial Bank than all the
| paper outstanding and the total gold stock
| of the country at the beginning of 1900 was
$791 700, 600. Russia thus stands third, fol-
lowing the United States and France. In her
|
| gary, another state which endeavored to re-
| sumo gold payments. has been less success
full. Her gold equipment was $35, OOO, 600 in
| 1873, and has risen to $244 300. 900. but she
| still has 500. SOC. 600 in outstanding paper,
| and has not been able to establish free ex-
change between gold and the paper notes
| of the Austro-Hungarian Bank. Japan has
entered the list Of gold-standard countries.
with a gold stock Of SCI 100000. and even
| Spain and the South American states al
though mainly on a paper basis. hold gold
| to the amount Of ST 100000 in the former
case, and $72,9O0.OOO in the latter. The
countries named hold the principal gold
| stocks Of the world except the fund Of
SIPS, 100000 which makes up the currency
Of Australasia and the fund Of $9s, OOO, 600
| held by the banks of Italy.
Gold Equipment of the World.
The following table illustrates the rapid
growth in the gold equipment of the world
within the present generation. and the COM
paratively moderate growth in the margin
| Of outstanding paper money:
| MONETARY STOCK OF THE WORLD
Date. Gold. Silver. Uncoy'd Paper
1873 $1,000 100000 81 o57. es5 900 g. 500 545 900
| 1898 1901 100000 1881, GOO 2. ZOO, 600 900
| 1896 4.143 zoe, 600 236, 900 600 1858 900 600
1850 4,614,6o0.0OO 1856. 100000 2,s46. 100000