New-York tribune., 1920-01-26
w Orld Flooded
With Paper Money
During the War
Printing Presses Turned Out
~ Billion Of Currency
Since 1914; Gold Re-
serves Increased but 400

World paper currency has ncrcascd
500 per cent since the beginning of
the war, while the gold reserves behind
1t have increased only 40 per cent. The
lace value Of the paper currency of
thirty leading countries of the world
aggregated $3.50, 900 in 1914. $40
O00,000,0O0 at the time of the signing
OF the armstice and $4,000 ,OOO, 900 in
December, 1919, these figures being
exclusive of the $34,000,O0O, 900 of paper
issued by the Russian Bolshevik gov
ernment. Including the latter the to-
tai increase was nearly $1,000, 900, 900.
Meantime bank deposits and the conse-
quent use of checks as a circulating
medium have correspondngly increased
and the world national debts have
grown from $4O,00O,O00, 900 in 1914 to
$500, 100000 900 in 1919.
1hese figures are presented as a
summarization of study of world
currency and Indebtedness in the Jan
uary number of "The Americas" pub
hshcd by the National City Bank. They
show in detail the note circulation and
gold reserve in each of the principal
countries of the world in July, 1914,
November, 1918, and December, 1919,
utilizing the official statistics of the
state banks Of the European countries
and in the case Of the United States
figures supplied by the Treasury De-
partment, all figures of foreign cur
rency being transformed into American
dollars as at the prc-war face value
of the respective currencies.
"The four central powers, Germany
Austria Hungary, Turkey and Bull
garia," says the City Banks publica-
ton, "show an advance in note circu-
!ation from $1,2O0,000,OOO in 1914 to
SIP 2,300000,0 600 at the close of the war
and $l8,770,000 in December, 1919.
the gold reserve falling from S6OO,000,-
coo in 1914 to 1927 900, 900 in 1919, the
ratio of gold to notes declining from
49.7 per cent in 1914 to 5.5 per cent in
November, 1913, and IT. per cent in
December, 1919 The Allied group Of
eighteen countries (ncludng Russia
up, to October 1910 shows notes aggre-
eating $4,000 100000. in 1914, 1925, ,00O,-
600 900 in November, 1918, and $780,
oOo,o0O,OOO in December, 1919, their
gold reserve $3,763 ,O0O,0 900 in 1914. and
07O,O0O,000 in 1919, the ratio of gold
to notes declining from 766 per cent
IN IVA to 2O.9 per cent in November.
!.lo, and III per cent in December,
1918. The eight principal neutrals
named aggregated S1,166,O 900 of
notes in 1914 and $2,42O 900 900 in 1919.
tnelr gold reserve increasing from
Sol6,ooo,oo0 to Sl,450 900 900, and their
ratio OF gold to notes advancing from
44:3 per cent in 1914 to 500 in 1919.
In the case of the United States the
hgures supplied by the Treasury De-
partment show note circulation at
81 l,oo6 100000 in June, 1914, S3,643 600
600 IN November, 1918, and $l,05l 600
ooo m December. 1919; the gold re-
serve serve 81 W., 100000 in 1914 and S2.1O7.-
ooo,ooo IN 1919, and the ratio of gold
10 ho.es 9"'6 per cent in 1914, 63.2 per
cent In November, 1918. and 20 ror
cent IN December, 1919, these figures of
notes beng exclusive of the gold and
SILVER certificates which arc considered
as 'warehouse receipts" for an eauiva-
lent amount of metal deposited with
the United States Treasurv."