52 Colorado College Studies. 



silver bought is 54 million ounces annually, which is sub- 

 stantially the whole amount available for Treasury pur- 

 chase or export.* The domestic production of silver is 

 increasing by about 4 million ounces per year; but sup- 

 posing (to keep on the less favorable side of probabilityf) 

 that the amount exported in the next dozen years should 

 average only 6 million ounces, while 54 millions were still 

 bought, the amount through which the higher price could 

 operate to diminish the true cost would be about GO 

 million ounces annually; worth ^60,000,000 at one dollar, 

 $45,000,000 at 75 cents. Accordingly the note-element, on 

 the three-quarters scale, lies between zero and 15 millions 

 in the improbable event of a rise of silver that carried it 

 to average $1 an ounce, between zero and 11 millions if 

 silver averaged 75 cents. A smaller government purchase 

 would not change the quantity of silver affected, but it 

 would of course bring the note-element nearer to the zero 

 limit through affecting the price less. 



( 2. ) Revival of the Act of 1878. Taking its minimum 

 purchase of $24,000,000 worth of silver annually, the dol- 

 lars coined would be, with silver at $1 an ounce, 31 mil- 

 lions; with silver at 75 cents, 41 millions. The seigniorage 

 would thus be 7 and 17 millions at those prices respectively. 

 The other part of the note-element, by the three-quarters 

 rule, would be (as under the Act of 1890) between zero and 

 15 millions at the former price, between zero and 11 mil- 

 lions at the latter. The whole note-element is thus between 

 7 and 22 millions when silver is at one dollar an ounce, 

 between 17 and 28 millions at 75 cents. Evidently the 

 note-element is enlarged by increased purchases or by a 

 fall of silver. 



( 8. ) Issue of notes ivitli a constantly equivalent silver 

 hacking; a backing kept equivalent, when the price of silver 

 declines, by purchase of more silver without issue of notes 



*The net import was about 3 millions in the fiscal year 1891; net export 6 

 millions in 1892. 



t A larger supposed export would increase the note-element and decrease the 

 sacrifice. 



