54 



Colorado College Studies. 



probably increase the note-element unless silver declined 

 2 cents or more yearly. 



(4.) Sus2^ensio7i of silver purchases, except for small 

 coins. This would leave the natural movement of gold to 

 make the necessary increase of money, and would provide 

 no note-element. 



Tabulating the effects of these methods of dealing with 

 silver, we have the note-element appearing as follows: 



The past annual increase of the whole money-supply, 

 together with the money that replaced bank notes, has in- 

 cluded a note-element lying somewhere between 11 and 23 

 millions (see page 51). If we continue to extinguish bank 

 notes at the same rate, make no change in the amount of 

 greenbacks, and increase the whole money-supply at the 

 same rate as before, it appears from the table above that 

 Method (2) would involve no appreciable decrease, per- 

 haps an increase, in the note-element; that is, the money 

 to serve the growing needs of trade and to take the place 

 of disappearing notes would cost us not appreciably more, 

 perhaps less, than it has in the recent ijast. Under Method 

 ( 1 ) the national expense on this score would be say 8 to 12 

 millions more, annually, than it has been in the recent past. 



*For ten years only, and as an average; the note-element being less than 

 zero in the later years, and going further below after the ten years, if the fall of 

 silver continued at anything like the same rate. 



