The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-01-30

central powers The drop im fato
OF gold notes being In the case OF
France from SO per cent N lsl4 I"
~ per cent Of the close Of the war
and 90 per cent in 1918, Rally from
20 PEI cent in tRii 10 90 per cent
In 1913. while ln uur own case b
ratio Of gold 60 notes dropped from
500 per cent in 1914 10 6a.2 per cent
In 1918. and f2.a per cen In 1919.
The nuutrils Of course Jared better
in the matter Of their currency than
ala those participating IN the war,
though the total 81 their paper fig
urcs did increase from Fi.tG6. 00O. 600
in the eight countries for which fig
ufcs are available 90 katgt. cot. 0UU
Ia 1919, though the Increase 81 gold
wlts sin larger proporuonatcly, from
fhi6. oU0 .000 In 1914 To- si.ial 100. Gee
In 1919, hrnEinE the ratio 81 gold 90
notes in this group VI eight ucutrai-
from t2 per cent In 1914 20 bg.a
per rent IN 1913.
The most astonishing. not to say
alarming feature " this growth OF
world paper currency and reduction
ln the ratio Of gold reserve. occur lea
ne development of the year following
me war. % was NJ course necessary
thut tho governments participating In
the war should AVE large quantities
OF currency, aud they cid, as is shown
hy tho fact that the paper currency
Of The twenty three countries be-
question jumped from sG.iOs. coo. 900
in July 1914 To- Sai. 2Nf.nOO. OOV at
Nio end Of the war November 1918.
though why it should hatf been neccs-
sary pl add another eleven billion
dollars tu the yea following the close
81 the war and bring the grand total
uf December 1919 up To flt 362 600
600 Is difficult 20 understand, per
hHps iu,omprrhVnsible. especially
a 100. a.. H..N|.. HN.H HLHH. 80 HN#. To-.
crease of eleven billion dollhrs ln The
thirteen months following thc arwls-
Urp Included amy of tuc thlrty-f.u r
billion dollars uf paper emitted hg
the BulshcNiki government from its
establishment in October 1919 TO th.
en-, OF 1919. and which b. described
hN persons familiar with conditions
boz HoisheNik Russia as having no gold
backing and therefore absolutely
VutuciesH'
SAN another enlargement - the
worlds circulating media lH the In
crease boz world national indebtedness,
for 81 Duurs' tn, bonds ana other
governmental promises o. pay while
NOT t lDFul tender do form iu nearly
an oascs q more SLOWLY movinp mass
60. currency. since they are available
at 600 least thvlr market value fUr use
lu many business transactions ur us q
basis tor loans bon banks and other
financial institutions. Tn fact. world
indebtedness Increased in nearly as
great uropurti I- world currency.
b total OF world national debts haN-
INK advanced from about $40. 0nn
900. nnO ht the beginning % iqlt to
about g1GU 600 rUu. I0t tI fnu present
time
During 800 this period. IN which
world paper currency wus advancing
from % little over 50. 900. 900 600 fo ap-
proylmutels ISL 600, 900 poo tho ma
uuuul Indebtedness. represented bv
bonds "a Their promises to pay. from
$50 600. 900 uOu 20 $3.50 200 nup, 900.
and bank deposits and The use or
bank checks showing q correspondent;
lu,folsH. the gold production has de-
,Ilucd. dropping from Hicu.UNu. 600 20
sUtr ut Che beginning nf GA. war 10
about $3.50 Hun uuU boo 1919 while fh"
prUpurf Uuafr Nee ul The newly mined
q %. whIsl iH being demanded iu the
arts and H%UIvHrvs. ls probably greater
ana tho quantity available aa % hHsis
for currency therefor, showing 70
comparatively small growth durinr
'hy war The uuHuuty Of gold rec
gtryt' standing behind the paper yur-
rpuuy uf tho world has Increased less
thuu s. 600. uuu uHH since the begin
ming ui the war Will, the llrc value
OF tho paper Increased about 1GI. 600
900 600. and tnv evidence uf uutsfuud-
lng national Indebtedness Increased
SEQ 600. 600. 600. 90 $50. nothing or
the great increase Iu circulating media
due o. Increase lu nHuh deposits ana
consequent u., rf hrgks drtrs and
other paper of lhIa uhuru# ter.