Thomas Tooke

Decrease in Gold backing of the currency and deposits in 1920 in different countries.

In Gold vs monetary base on April 29, 2012 at 4:12 pm

Kemmerer writes

[…]

The proportion of gold in our total circulation has likewise materially declined. On July 1, 1914, our stock of monetary gold (namely, gold coin, plus gold bullion in the treasury) was equivalent to 55.3 per cent of our total monetary circulation (as computed by the Treasury Department); and on June 1st, 1920, it was equivalent to 43.6 per cent. On June 30th, 1914, the stock of monetary gold was equivalent to 29.7 per cent of our national banks deposits bank deposits (exclusive of bankers´balances), and on December 31st, 1919 (the date of the last Comptroller´s call for which figures are available), the stock of monetary gold, less than held by the federal reserve notes, was equivalent to only 14.1 per cent of the national bank deposits.

[…]

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