Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1920-03-12
Worlds Supply Is Seven Times
What It Was in
1914.
FIGURES ARE ILLUMINATING
Statistics Give an Idea Of Imitation Of
Worlds currency-CentralP Powers
Worst Oh-Increase Mostly In
BeIigerent Countries.

New York.-The worlds paper mon
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 a faint idea of the imitation
Of the worlds currency, which econo-
mists reckon as one of the chief caus-
es of skyrocketing prices and high
cost Of living.
The 700 per cent jump in paper
money, too, Is exclusive Of the issues
Of currency by the bolshevist govern
ment Of Russia, which has kept the
printing presses turning out shinplas-
tiers by the bale. The situation is
brought right down to date by the sta
tistical department of the National
City bank of New York, which has
just issued world figures to the be-
ginning of 1920. The tables are H.
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 it had jumped to about $4O,-
OOO,OOO,OOO, or more than five times as
high. Since the armistice it has gone
up to about $51, ZOO, 100000 This is
outside the $34,OOO,OOOOO which, it is
estimated, the bolshevist government
has industriously turned out.
$4,000, 100000 More Gold Reserve.
Meanwhile what was happening to
the gold reserves back Of the notes in
the thirty countries? In 1914 they
amounted. roughly. to $4,000, 600, OOO
They are now about 100000, 900.
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 thlr-
ty countries were 70 per cent. BY the
time Of the armistice 1t had fallen to
1874 per cent, while last Christmas
time 1t had dropped still lower to 1877
per cent.
The allies, so the tables Of the Ma
tional City bank show, taken as a
group at the start of the war, had
So, 763, 100000 Of gold and $4,000, OOO,-
600 Of paper. At its finish they had
1921, 100000 Of gold and $25,OOO, OOO,-
600 of paper, and now they have of
gold $5.O71 100000 and Of paper $780,
OOOOOO,OOO.
The central pOwers-Germany, Aus
tria-Hungary, Bulgaria, and Turkey
went into the war with 5000, 900, 900 Of
gold and ,2O0OOO.OOO Of paper. At
the armistice they had $3.50, OOO, 900 Of
gold and s123O5, 100000 Of paper,
while now their paper has gone up to
$1s.771. 100000.
To reduce it to percentages, the ra-
ito of gold to paper at the start Of the
war was: Allies. 1865 per cent; CEN
trail powers. 49.7 per cent. At the ar
mistice the ratio was: Allies. 2O9
per cent; central powers, 35 per cent.
At the outset Of 1920 the ratio stood
Allies, III per cent; central powers,
1T per cent.
Increase in BelIioerent Countries,
Naturally most of this increase oc-
Cured In the belligerent 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. 1918,
and to 11.2 last December. Among
the eight principal neutrals the move