50 Colorado College Studies. 



That is to say, the country has given full value in goods 

 and labor for somewhere between 677 and 797 millions of 

 its increase of money-supply since 1879; and for between 

 367 and 464 millions of the increase since 1882. 



The money-supply itself, outside of the Treasury, in- 

 creased by 778 millions from 1879 to 1892 (see table, p. 46) ; 

 but the decrease of national bank notes caused the increase 

 of the other elements of the currency to be still larger. 

 Gold increased 424 millions, silver dollars 375 millions, 

 " greenbacks " 40 millions, and 98 millions of 1890 notes 

 were added; making an increase, aside from national bank 

 notes and pieces less than one dollar (which last would 

 have shown about the same behavior under any system of 

 major currency), of 937 millions. This last is the amount 

 of money that has been added in thirteen years past to 

 meet the needs of inci-eased business and take the place of 

 the declining bank note circulation. But we have seen 

 that the country earned meanwhile, /. c, bought with 

 goods and labor for which it received nothing else in 

 exchange, between 677 and 797 millions.* That is, the 

 note-elementf in the addition of 937 millions was between 

 140 and 260 millions. If 1882 and 1892 be compared, the 

 whole addition of money other than national bank notes 

 and small pieces will appear as 599 millions, and the note- 



* This comparison of increase of monoy-supply outside tho Treasury with 

 increase of money-metal both within and without tlie Treasury maj'. seem irra- 

 tional. But the former is the true measure of past additions to the money-supply 

 and the better basis for judging what future additions are probable, and hence 

 what the strain of making them will bo ; while the sacrifice in former acquisi- 

 tions is better measured by the addition of metal in Treasury and outside circu- 

 lation together. If any one nevertheless prefers to compare outside circulation 

 in both cases, he will find tho increase of silver dollars (table, p. 46) from 1S79 to 

 1892 to be 375 millions, 1890 notes 98 millions, gold 424 millions, and the resulting 

 " lower and upper limits " about 700 and 825 millions ; differing from the G77 and 

 797 millions, reckoned above, in the direction of decreasing the note-element in 

 past acquisitions, and therefore of decreasing the sacrifice needed in future acqui- 

 sitions that may contain a less note-element or none at all. That is, it would 

 strengthen the conclusion that in the text above is based upon a less favorable 

 supposition. 



tNot the note-element reckoned upon the present bullion value of silver, 

 but the unearned part of the issues of silver dollars and 1890 notes as they were 

 made. 



