Table 4.2 Average annual rates of change 1882–1913 of American and British money supplies (domestic and international), incomes, prices and interest rates (percentages; standard errors in parentheses)
| United States | |||
|---|---|---|---|
| 1 | Money supply attributable to gold flows | 2.22 (2.41) |
−0.09 (2.89) |
| 2 | Money supply attributable to other influences | 0.12 (2.51) |
5.77 4.56 |
| 3 | Total money supply | 2.35 (1.78) |
5.68 (5.21) |
| 4 | Real income | 1.84 (2.33) |
3.69 (5.35) |
| 5 | Implicit price deflator | 0.24 (1.75) |
0.23 (3.09) |
| 6 | Long-term interest rates (absolute change in basis points) | 2.9 (2.0) |
−2.3 (15.0) |
Sources:
Line 1. The rate of change of the money supply attributable to gold flows was calculated as:
where M is the total money supply, H is ‘high-powered money’ (Mt,/Ht, therefore, is the so-called ‘money multiplier’) and R is the annual net flow of gold. The figures on money supply and high-powered money for the United Kingdom were taken from Sheppard (1969), p. 16; and for the United States from Friedman and Schwartz (1963), pp. 704–7. The figures on gold flows for the United Kingdom were compiled from Beach (1935), pp. 46 ff. These are for England alone, excluding Scotland and Ireland, but there is little doubt that they cover the great bulk of flows into and out of the United Kingdom. Gold flows for the United States are given in US Bureau of the Census (1960), ser. U6.
Line 2.=Line 3—Line 1.
Line 3. Source as in Line 1.
Line 4. US real gross national product is from Simon Kuznets’ worksheets, reported in Lipsey (1963), p. 423; for years before 1889, the Kuznets figure Lipsey used was inferred from Lipsey’s ratio of GNP to farm income and his estimate of farm income (pp. 423–4). UK real gross domestic product is from Feinstein (1971), appendix table 6, col. 4.
Line 5. For the US the figure is from Lipsey (1963), p. 423. For the UK the figure is from Feinstein, appendix table 61, col. 7.
Line 6. The US interest rate is Macauley’s unadjusted index number of yields of American railway bonds (US Bureau of the Census, 1960, ser. X332). The UK rate is the yield of consolidated government bonds (consols) in Mitchell (1962), p. 455.