Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1920-02-26
a. y : .
BIG heREhSE IN
paper MONEY
Worlds Supply Is Seven Times
What It Was in
1914.
FIGURES ARE IuuNINA7IA;
Statistics Give an Idea Of imitation Of
Worlds currency--central Powers
Worst off-increase Moetiy In
Beiiaerent Countries.

ey is now seven times the amount It
was, in 1914, while the. gold supply
back of the paper. has increased less
than one-half In the five years since
, the war started. This comparison
conveys faint idea Of the imitation
Of the worlds currency, which econ0-
mists reckon as one Of the chief caus-
es Of skyrocketing prices aud high
cost Of living.
The 700 per cent jump in paper
money, too. is exclusive Of the issues
Of currency by the bolslievist govern
'nent Of Russia which has kept the
,rintlng presses turning out shinplas-
ers by the bale. The situation IL
.rought right down to date by the sta
i.stical department Of the National
City bank Of New York. which hrs
lust issued world figures to the be-
ginning of 1920. The tables are Il.
Illuminating
When the war started In 1914, thir-
ty principal countries Of the world
had, In round numbers about $1,000
100000 of paper currency. At the
armistice 1t had Jumped to about $4O-
OOO OOO. 900. or more than five times as
high. Since the armlstice 1t has gone
IN to about SOL. n00OOOOOO. This Is
outside the S34. O0O, 100000 which, It is
estimated. the bolshevist government
has industriOusly turned out.
$4,000, 900 900 More Gold Reserve.
Meanwhile what was happening to
the gold reserves back Of the notes in
the thirty countries3 In 1914 they
amounted. roughly, to 5000, 100000.
They are now about $1,000 100000.
Notes have thus increased more than
700 per cent and gold less than so per
cent.
Back In 1914 the ratio OF gold re-
serves to outstanding notes In the thir-
ty countries were 20 per cent. BY the
time Of the arm!stice II had fallen to
1874 per cent, while Inst Christmas
time 1t had dropped still lower to 1871
per cent.
The allies. so the tables of the Ma
tiOnal City bank show, taken us a
group at the start Of the war. had
S3.783 100000 Of gold and $4,000 600
600 Of paper. At its finish they had
$5.217 100000 OF gold and $25.OOO 600
600 Of paper, and now they have Of
gold S5,O71 100000 and Of paper $780,
OOO.OOO.OOO.
The central powers-Germany. Aus
tria Hungary. bulgaria. and Turkey
went mo the var v'''h 500, 0NHN ~
gold and S1.2c9. OOOGo0 of paper. At
Nv, arm'stic" they had $6s8.OOO 600 Of
gold and $500 ,MOO.OOO Of pa. Ell,
while now their paper has gone up to
SlS.711 100000.
To reduce II TO percentages the ra-
ito Of gold to paper at the start of the
war was: Allies, 1853 per cent: cen
tral powers. 1917 per cent. At the ar
mistice the ratio was: Allies. 2O.9
per cent central powers, 3.5 per cent.
At the OUTSET Of 1920 the ratio stood:
Allies, I'll per cent; central powers.
IT. per cent.
Increase In Beliiaerent Countries.
Naturally most of this increase oc-
Cured in the beI!lgerent countries.
The ratio between gold and notes In
the twenty-three countries and col
Onies which participated In the war
fell from 71.3 per cent In July, 1914,
to 1873 per cent In November. 1913.
and to 11.2 last December. Among
the eight principal neutrals the move
ment was the other way, their gold In
creasing faster than their currency.
The ratio rose from 44.3 per cent In
1914 to 500 per cent last December.
From 1914 to last December the ra-
ito Of gold reserve to currency notes.
the tables show, fell in France from
82 per cent to 90; In Great Britain
from 1874 to 900 per cent: In Italy
from 70 per cent to rs; in the United
States from 996 per cent to 52.3.
While world paper currency was in
creasing seven-fold national debts,
represented by bonds and other prom
ises to pay. rose from $4,000, 100000
to 5000. OOO, OOO. 900: hank deposits and
the use of checks aud other circulat-
ing media made corresponding adj
vance, while meantime gold produc-
ton feil off from $4GO, 900, 600 year in
1914 to $3.50, 600 600 in 1919.
The statisticians say that the most
astonishing, not to say Incompetent
sib,e. feature In the worlds finances
has heen the imitation occurring In the
year following the armistice.