New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-09-10
WORLD INITIATION
MAKES PRICES JUMP
New York Banking House Dis
CuSSeS Financial Situation

New York. Sept. 7.-World inf1a-
ton, as one of the causes of world
advance in prices, is discussed in tn
current issue of The Americas, issued
sby The National City Bank of New
York. The author of the article, Mr..
o. P. Austin, the banks statistician,
after referring to the generally &C
'cepted theory that imitation causes an
advance in prices, calls attention to
the fact that world money and world
promises to pay money have enor-
Nmously increased during the period in
which pricts have been so rapidly ad-
vancing. World currency, he says,
has increased 80 per cent. since 1913.
world national obligations LAP per
cent. and world population but 2h
per cent while prices of commodities
show advances ranging from so per
cent. to 100 per cent. in the same
period. ..#
The worlds money, as classified by
accepted authorities, is gold, silver
and uncovered paper and world ma
tional obligations, while not currency
in the accepted stnse of the torn, do
pass current among f1nanciers and are
always available for obtaining cur
rency when passed across the counter
of a bank. In the thirteen years pre-
ceding the war, 190O-191S, the cur
rency Of the 40 principal countries of
the world-gold, silver and uncov.
cred; paper combined-grew from
$8f,0D0. 100000 to 1860 1000, an
increase Of Is per cent; national
debts from $s1,e0o,ooo,0oo to s43.-
840,000,000, an increase Of 40 per
cent, while population was increasing
but 10 per cent. in that 13-year pc
ha nd tod
by index numbers of leading author
tiles show advances in %the thirteen
years preceding the war ranging from
is per cent to Is per cent. With the
beginning of the war period however,
both world currency and national in
debtedness increased with great
rapidity and with this came also a
rapid advance in prices. World cur
rency jumped from $13, $50, 100000 in !
1913 to $24,660, 900, 900 in 1917, and
national debts from s43,s40, 0OO,O00
to $106,o0O. 100000. The increase in
tne short 1897 period in world
currency was 80 per cent, of world
Indebtedness 142 per cent. and world
population but " per cent, while
the advance in prices in the 1897
period ranged from 60 per cent 20
100 per cent.
ing the war period occurs chiefly in
uncovered paper. The gold money
Of the 40 principal countries, for
which statistics are available, grew
from $S,021, 100000 in 1918 to S.
560,00O,0OO in 1917: silver money de- !
creased from s2.S6o, 100000 in 1913 |
to $4,000, 100000 in 1917 Uncovered !
paper Jumped from s2,799, 10000 in
1913 to $4,000, 100000 in 1917. This
large increase in uncovered pa per" 4
since 1913 occurred chiefly in the
countries at war. The uncovered pa !
per of the United Kingdom in 1913
was but $115, 100000 and in 1917
s660.O00,OOO; Germany In 1913 $751;
100000 and in 1917 $1,613, 100000;
France in 1913 s326,00o,o00 and !,
1917 $2.0o0,o0o,00O; Italy in 1912
Z $1s2,00o,o00 and in 1917 $6s1,o00.0oo;
Russia has no ready figures for 1913,
but for January 1, 1915 the total is
1904, 100000 and in July, 1917, 81.
285,OOO,000 Most of the $4,000.
900, 900 increase in national debts
from $43,S4O. 100000 in 1913 to $780,
900, 10000 in 1917, has also occurred
in the countries at war
The statement showing the increase
in world currency and nationa, debts
Is accompanied by index mum bers rep
resenting prices Of principal commod-
tiles as compi2ed by three leading au-
thoritiea, London Statist Bradstreets
and the Bureau of Labor for the
years 1900, 1913 and 1917 The Stat
ist index number shows an advance
from rs in 1900 to IS in 1913 and
ITO in 1917: Bradstreets from 70 in
1900 to 90 in 1913 and 161 in 1917
Z ard the Bureau of Labor an advance
100 in 1917.