The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-02
SIR GEO. PAISH SEES
GOOD IN MONEY BILL
British Economist Views IL as
step in Advance, hut Not
Final solution.
WAY CONSERVE OUR GOLD
Important Effect, lie Says. Will
Bc TO Make L. s. Lender
to Nations.

- George Paish, editor Of the Stdfist.
london. approves of the currency law as
step in advance. though not the final
solution Of the problem of currency in
this country, in an article appearing In the
latest issue Of the Sfdtist
There IL no doubt that the new meas
ue will render the American banking
system much more elastic and efficient
than hitherto" he says. land that when
a central bank is ultimately formed the
system will be the most complete and
comprehensive that can be devised
1t is evident that the Federal reserve
notes viii gradually take the place of
gold certificates IN circulation and that
he United States will need to import no
gold from abroad or tn retain for cur
rency or for banking the gold produced
by their own mines for many years. The
Importance of this will be evident when
Il is realized that the gold certificates in
circulation in the last ten years have in
creased from 1877 100000 to $I.0Os .000,-
400. an increase OF no less than s63I 000.-
600. or at the rate of over FL, 900, 900 per
annun.
Much New Gold Absorbed.
AT the present time the amount of
rud in the Treasury, gold certificates in
circulation against which gold is held
IN the Treasury and coin in circulation
= computed at 81. 1867. UOO. 900, against ST.
.tS.O000O0 ten years ago and less than
$500, 600 900 In 1898. Therefore in twenty
wears the United States has absorbed
nearly 81 400, 600, 600 or over f260. 600, 900
II new gold. an absorption which would
never have taken place but for the archaic
character of the banking and currency
system of the United States.
Under the measure shortly to be-
come law the gold held Will he made to
perform much greater amount of SER
vice indeed. its efficiency may become
80 great that not only may N. United
States require 10 absorb no new gold for
many years. but IL may be able TO spare
some portion OF Its existing large stock
~ metal for other countries.
Indeed, unless care Is exercised the
new Federal reserve notes may take the
place OF the gold certificates in circula-
ION so rapidly that the United States
may lose Il larger amount of its existing
stock OF gold than is desirable. II will
ne the duty of the Federal Reserve Board
rot To permit more gold to be exported
;han the country can spare without EN-
aarrassment.
Until the measure IL In operation.
however and experience is gained no one
can calculate how much gold the country
wl need to safeguard its banking de
nosiis and to take care OF its new note
circulation.
EngIRnd's Per Capita Exceedci.
In England. which * a gold using
country. the amount of the gold In the
banks and In circulation is no more than
~ per head of the population, whereas
81 the United States, where notes are
he main circulating medium. the amount
"f gold in the Treasury. in the banks and
IN circulation is e. per head.
tn" total amount OF money nov IN
circulation In the United States. notes.
gold and silver. is nearly Il per head
and in comparison with less than 90 per
"ad in 1903 and under Is per head in
'NH3. Certainly s346I of circulating
medium per capita. OF which nearly $40
gold with II greatly improved banking
5 stem should be fully sufficient to NEE,
,ae needs Of every one.
should the United States cease to alb
sorh as large Il portion OF the new gold
supplies as IN the past decade there will
~ greater supply for other countries
\ diminished demand for gold would OF
course have the same effect upon trade
ana upon prices as an increased supply
o' gold would have. The effect of the
'ew law upon world conditions would he
still greater If il were to enable the
United States not only to refrain from,
ae'umulating gold but We're to bring
about some reduction in the existing
Sreat stock OF the metal in the country"