[61] Kemmerer, _Money and Credit Instruments_, pp. 9-18, 74-82. [62] _Ibid._, pp. 82-8, 121-6, 145-8. [63] _Ibid._, p. 9. [See Fisher: _Purchasing Power of Money_, pp. 175-180.] [64] The value of gold bullion deposited at the United States mints and assay offices increased from $87,924,000 for 1897 to $205,036,000 for 1907. Figures furnished by the Director of the Mint. [65] It is noteworthy that the reserves of the New York associated banks for example are usually kept very close to the legal reserve requirements. Cf. Sprague, _Crises under the National Banking System_, p. 222. [66] Gold produced before 1492 represents an insignificant part of the existing supply. [67] Useful tables summarizing all of these index numbers, except those of Canada, are given by Achille Necco, in his article on _La curva dei prezzi delle merci in Italia negli anni 1881-1909_, in _La Riforma Sociale_, Sept.-Oct., 1910. [68] Comparison is for 1897 and 1906, figures for 1907 not being available. [69] De Launay thinks that the industrial consumption averages somewhere between 40 and 50 per cent. of the annual output, but believes that for several years past the industrial uses have been absorbing a decreasing proportion, though an increasing amount. (_The World's Gold_, pp. 176-7.) [70] Bulletin, Am. Econ. Assoc., Fourth Series, No. 2, 1910, pp. 59-61. [71] _Ibid._, pp. 61-63. [72] _Ibid._, p. 64. [73] The quotation here referred to is omitted.--EDITOR. [74] _Ibid._, pp. 64-65. [75] _Ibid._, pp. 65-67. [76] _Ibid._, pp. 67-69. [77] Adapted from _The Purchasing Power of Money_, pp. 150-157; and Bulletin of the American Economic Association, Fourth Series, No. 2. Papers and Discussions of the Twenty-third Annual Meeting, December, 1910. p. 70. [78] David Ricardo, _Reply to Mr. Bosanquet's Practical Observations on the Report of the Bullion Committee_, Works, pp. 326-328. John Murray. London. 1888. [79] The Bank could not on their own principles, then urge that most erroneous opinion, that the rate of interest would be affected in the money market if their issues were excessive, and would therefore cause their notes to return to them, because, in the case here supposed, the actual amount of the money of the world being greatly diminished, they must contend that the rate of interest would generally rise, and they might therefore increase their issues. If, after the able exposition of Dr. Smith, any further argument were necessary to prove that the rate of interest is governed wholly by the relation of the amount of capital with the means of employing it, and is entirely independent of the abundance or scarcity of the circulating medium, this illustration would I think afford it. CHAPTER XII THE GOLD EXCHANGE STANDARD