The Denison review. [volume] (Denison, Iowa) 1867-current, 1916-02-16


we kept at home the $100,000,000 gold
that we produced and that ordinarily
would have been in greater part sent
away. Adding this to the $42O,OOO,O 900
drawn from abroad makes the enor-
nous total Of $4,000 increment in
our stock
Showing Is Impressive.
This means that the United States
has now just about two billion dollars
use as coin, or $40 per capita. We
have gained immensely while every
other country possessed of large gold
stock has been losing. TO what ex-
tent the warning countries have lost
gold there is no worth while informa-
ton; fiscal authorities are sure that
all of them ares misrepresenting the
facts and making their gold holdings
look bigger than the facts warrant,
and even the countries at war accuse
each other of this Misrepresentation.
But comparing Americas gold store
| of two billions Of dollars even with
the holdings of other countries before
the war began draining it away from
them the showing of this country is
Impressive. Austria Hungary had
$3.50, 100000; Germany $205,OOO,OO0;
the united kingdom S715.000.O00;
France $1.2OO,OOO,O00; Russia $94S,-
100000; Italy $2SS,O00,O00. The whole
British empire was credited with only
about $1,000 100000, or little more
than half what the United States now
holds, and this includes the India, Ca
h,e vi fri1
dominions.
In this computation the entire
worlds money stock OF gold was set
down as seven billions. The United
States then would appear to have near
ly 80 per cent of the gold money stock
of the whole world.
Finsnciers Are Afraid.
Financiers are frankly afraid of this
condition. Some relief was recently
expressed in Washington when .ex-
ports of gold to Canada and Argen-
tina were reported. 1t was hoped that
this indicated that Americans were
buying securities in those countries,
and that the business would continue,
so as to diminish the tendency to pile
up gold here as temptation to low
,intcrest and big speculation.
Comparing the $346,00O,O00 OF the
greenbacks that are theoretically in
circulation, st is evidont that the
grecnbacks are good deal less i'm
portant element in the national circu-
lation than they were even few years
ago. Moreover nobody believes there
would be nearly this amount of the
greenbacks to redeem and retire. Since
they were first issued in 1862 a good
many millions of them have been lost,
burned or otherwise destroyed. Care |
full calculations from all kinds OF eX-
perience have been prepared by sta
tistically disposed people to approx
mate the probable losses in these ways
but the results are only guesses. Some |
place the shrinkage as low as $15,000,-
600; the highest 90 up to $5O,O0O,0O0,
witt, the higher figures generally re-
garded as more probable than the
lower.
The federal reserve board would
like to see the country done with the
greenbacks, but it has no notion of
trying to get legislation to accomplish
this. There is still too much fiatist
sentiment in the country. "A measure
to provide specifically for retirement
Of the greenbacks would not have a I
chance, in my opinion, at this time"
declared one fiscal officer OF the gov
eminent. at would be senseless to
involve the new banking system in
such quarrel. with all the preju-
lices that would be aroused.
1.-THE time may not be far away
when the retirement can be undertake
en-; and it is altogether probable that
The sound financial judgment Of the
country would agree that this ought
70 be done during the present perics
Of big gold receipts and excessive cir.
culatiOn.
'After the war there will be great
demands from all over the world for
use of the credit facilities of the
United States, and We will have to
stand heavy drafts OH our gold. 1t is
altogether desirable to keep it in hand
where it may be used most effectively.
The reserve banks now hold $144,O OO,-
300 of gold, while there is deposited
with the federal reserve board $780,
300 900 more On the other hand there
ire $22O,0OO,OOO of federal reserve
notes outstandil 3. That is. there is
1904. 600, 900 of gold held against 1920
700 900 of reserve notes. That indi-
Gates gold reserve OF about SO per
cent back of the notes; to say nothing
II the deposited securities. A re-
serve Of 40 per cent in gold would be
ample" s7s.s4