The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1920-02-27
Worlds Supply Is Seven Times
What 1t Was in
1914.
FIGURES ARE ILLUMINATING
statistics Give an Idea of IN On Of
Worlds Currency-Central r. ,rs
Worst O~t-Increase Mostly in
~BeIigerent Countries.

New Gork.-The worlds paper mon.
z! ~ now seven times the amount il
was Ill 1914, while the gold supply,
Dack OF the paper, has increased less
IMAM 0ne-llalf i'll the five years since
the war started. This comparison
conveys a faint idea of the initiation
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
or currency by the bolshevist govern
ment Of Russia, which has kept the
printing presses turning out shinplaS-
terS 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 IL
Eliminating.
When the war started i'm 1914. thir-
~ principal countries of the world
't' III JUN IIVlIIbtIS, dDOul Nt,OVD,-
100000 Of paper currency. At the
armistice it had jumped to about $40
WO,OOO,OOO, or more than five times as
high. Since the armistice it has gone
up to about SOL 900, OOO,O 600. This is
outside the $34 600, 100000 which. il is
e1tintated, the bOlshevist government
has industriouSly turned out.
$4,000, 00o, 900 More Gold Reserve.
Meanwhile what was happening 10
the gold reserves back of the notes in
the thirty countries? In 1914 they
amounted, roughly, to $1,000, OOO, 600.
They are now about $1,000, 1000.
Notes have thus increased more than
700 per cent and gold less than 80 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 armistice ii had fallen to
1874 per cent. while last Christmas
time il had dropped still lower to 1871
per cent.
The allies, so the tables of the Ma
tioy,ai City bank show, taken as Il
group at the start of the war. had
50. IG3 ZOO. 600 of gold and $4,000, 0O0,-
600 of paper. At its finish they had
So 100000 of gold and $2J,OO0, OO0,-
600 of paper, and now they have OF
gold $5,071 100000 and of paper 500
900, coo, 600.
The central powers-Germany, Aus
tria-iIungary. Bulgaria, and Turkey
Went into the war with 5000, 1000 of
gold and 81, POO, 100000 of paper. At
Ile nrmistice they had $3.50, 100000 of
golG and $40, 300, 100000 of paper,
while now their paper has zone up to
S1S.i7l,0 600. 900.
TO reduce il TO percentages, the ra-
ito OF gold to paper at the start Of the
war vas: Allies, 1876 per cent cen
tral powers, 49.7 per cent. At the ar
mistice the ratio was: Allies. 200
per cent central powers, 3.5 per cent.
AT the outset of 1920 the ratio stood
Allies, III per cent; central powers.
- per cent.
Increase in %BeIlieerent Countries.
Naturally most of this increase oc-
Cured in the belligerent countries.
The ratio between gold and notes in
the tw%enty-three countries and col
on < which participated in the war
fell from 7l.3 per cent in July, 1914,
TO 1873 per cent in November, 1918,
and to 10 last December. Among
the eight principal n%eutrals the move