lO 



THE POPULAR SCIEXCE MONTHLY. 



of the Precious Metals," wbieh gives the estimates of Messrs. Soetbeer, 

 of Germany, and Pixley, of London, two of the best recognized au- 

 thorities on this subject, as to the average yearly amount of gold 

 available for the supply of coin at different periods since 1850 : 



Soetbeer. 



Pixley. 



1857-'«0 £22,780,000 



1861-'70 14,060,000 



1871-'80 li),25o,000 



1881-'84 4,050,000 



1852-'00 £27,600,000 



1861-'70 17,600,000 



1871-80 18,700,000 



1881-'85 11,200,000 



That trade, in the sense of diminishing volume, has not been ob- 

 structed, and that the decline in prices in recent years has not been occa- 

 sioned, to any appreciable extent, by reason of the scarcity of gold, 

 would appear to be demonstrated by the evidence that has been here- 

 with presented. For the assertion that wages, generally, have fallen, 

 there is absolutely no foundation, as will be shown hereafter. That 

 profits have fallen must be admitted ; but such a result has been due, 

 in almost every case, to the severe competition engendered by the de- 

 sire to effect sales in face of a continued supply of commodities in ex- 

 cess of any current market demand. While in contravention of the 

 assumption that the supply of gold in recent years has been inade- 

 quate to meet the increased demands of the world for coinage, etc., 

 the following facts are in the highest degree pertinent, if not wholly 

 conclusive : 



No one doubts that the amount of gold in the civilized countries 

 of the world has largely increased in recent years. M. Soetbeer names 

 $538,000,000 as the increase from 1877 to 1885. It is absolutely cer- 

 tain that the reserves of gold in the principal banks of Europe and the 

 United States have in recent years largely increased, and not dimin- 

 ished. Professor Laughlin estimates this increase to have been "from 

 $477,000,000 in 1870-'^80 to $830,000,000 in 1885." In 1871-'74 there 

 was, according to the same authority, *'81 in gold for every $3.60 of 

 the paper circulation of the banks of the civilized world ; in 1885 there 

 was $1 of gold for every $2.40 ; the total note circulation increasing 

 during the same time to the extent of $464,000,000, or 29 per cent." 

 In 1870-'74 the gold reserves amounted to 28 per cent of the total note 

 circulation, and 64 per cent of all the specie reserves ; in 1885 "the 

 gold bore a larger ratio to a larger issue of paper, or 41 per cent of the 

 total note circulation, and 71 per cent of the specie reserves. This," 

 as Professor Laughlin remarks, " is a very significant showing. What 

 it means, beyond a shadow of doubt, is that the supply of gold is so 

 abundant that the character and safety of the note circulation has 

 been improved in a signal manner." 



Since 1873-'74 Germany has radically modified her metallic circu- 

 lation, giving i)reference to and using additional gold, and the United 

 States and Italy have resumed specie payments. But the supply of 



