The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1920-02-19
B |GlNC r !: 1. + IN
:. PAPER MONEY
Worlds Supply Is Seven Times
What It Was in
1914.
FIGURES ARE ILLUMINATING

FIGURES ARE ILLUMINATING
Statistics Give an Idea Of Imitation Of
Worlds currency-centraI Powers
Worst oH-!ncrease Mostly In
eeIiserent Countries.
New York.-The worlds paper mon
ey is now seven times the amount 1t
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 L.
Eliminating
When the war started in 1914, ti1ir-
ty principal countries Of the world
had, in round numbers, about $780,
100000 of paper currency. At the
armistice it had jumped to about $780,
OOO,OOO,O00, or more than five times as
high. Since the armist1ce It has gone
up to about $4,000, 100000. This is
outside the $4,000, 100000 which, 1t 10
estimated. the bolshevist government
has industriously turned out.
r $4,000, ooo, 600 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 $6,000,000, 00O
They are now about 100000, 600.
Notes have thus increased more than
700 per cent anu gold less than 80 per
cent.
Back in 1914 the ratio Of gold re-
serves to outstanding notes in the thir-
ty countries were 70 per cent. BY the
time of the armistice it had fallen to
1874 per cent while last Christmas
time it had dropped still lower to 1877
per cent.
The allies, so the. tables of the Ma
tional City bank show, taken as
group at the start Of the war, had
So, 763, 100000 of goN and $4,000, 0OO.-
600 of paper. At.its finish they had
1921, 100000 Of gold and $25,OOO0oo,-
600 of paper. and now they have OF
gold $5,O71 900. 900 and Of paper $780,
OOO,OOO,O00.
The central powerS-Germany, Aus
tr1a- Hungary, Bulgaria. and Turkey
went into the war with 5000, 100000 Of
gold and $1,2OOO00,0Oo Of paper. At
the armistice they had $685. OOO,OOo OF
gold and. $123O5, 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. 1856 per cent; cen
trail powers, 49.7 per cent. At the ar
mistice. the ratio was: Allies. 2O.9
Der cent: central powers, 3.5 per cent.
AT the outset of 1920 the ratio stood:
Allies. Ill per cent: central powers,
IL per cent.
increase In BeIiioerent Countries.
Naturally most OF this increase oc-
cured in the belligerent countries.
The ratio between gold and notes in
the twentysth:ee countries and DOL
onies which participated in the war
fell fromf71.3 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
ment was the other way, their gold In
creasing faster than their currency.
The ratio rose from 443 per cent In
1914 to 500 per cent last December
From 1914 to lash necember the ra-
ito Of gold reserve to currency notes,
the. tables show. fell in France from
g. per cent to 9.6; in Great Britain
from 134 to 300 per cent; in Italy
from 20 per cent to rs; in the United
States from o9.G per cent to 523.
While world paper currency was in
creasing seven-fold national debts,
represented by bonds and other prom
fses to pay, rose from $4,000, 100000
to 100000 900; bank deposits and
the use of checks and other circulat-
ing media made corresponding ad-
vance, while meantime gold produc-
ton fell off from $500 OOO,0 900 year in
1914 to $35O,OOO,OOO in 1919.
The statisticians say that the most
astonishing, not to say Incompetent
sihle feature in the worlds finances