Section 2. Wealth and Prices

If the number of Europe's inhabitants has increased fourfold since Luther's time, the amount of her wealth has increased in a vastly greater ratio. The difference {459} between the twentieth and the sixteenth centuries is greater than anyone would at first blush believe possible. Moreover it is a difference that is, during times of peace, continually increasing. During the century from the close of the Napoleonic to the opening of the Great War, the wealth of the white races probably doubled every twenty-five years. The new factors that made this possible were the exploited resources of America, and the steam-engine. Prior to 1815 the increase of the world's wealth was much slower, but if it doubled once a century,--as would seem not improbable--we should have to allow that the world of 1914 was one hundred and twenty-eight times as rich as it was in 1514.

Of course such a statement cannot pretend to anything like exactitude; the mathematical figure is a mere figure of speech; it is intended only to emphasize the fact that one of the most momentous changes during the last four centuries has been that from poverty to affluence. That the statement, surprising as it may seem, is no exaggeration, may be borne out by a few comparisons.

One of the tests of a nation's financial strength is that of war. Francis I in time of war mustered at most an army of 100,000, and he reached this figure, or perhaps slightly exceeded it, only once during his reign, in the years 1536-7. This is only half the number of soldiers, proportionately to the population, that France maintained in time of peace at the opening of the twentieth century. And for more than four years, at a time when war was infinitely more expensive than it was when Pavia was fought, France kept in the field about an even five millions of men, more than an eighth of her population instead of about one one-hundred-and-fiftieth. Similar figures could be given for Germany and England. It is true that the power of {460} modern states is multiplied by their greater facilities for borrowing, but with all allowances the contrast suggests an enormous difference of wealth.

Take, as a standard of comparison, the labor power of the world. In 1918 the United States alone produced 685,000,000 tons of coal. Each ton burned gives almost as much power as is expended by two laborers working for a whole year. Thus the United States from its coal only had command of the equivalent of the labor of 1,370,000,000 men, or more than thrice the adult male labor power of the whole world; more than fifty times the whole labor power of sixteenth-century Europe. This does not take account of the fact that labor is far more productive now than then, even without steam. The comparison is instructive because the population of the United States in 1910 was about equal to that of the whole of Europe in 1600.

The same impression would be given by a comparison of the production of any other standard product. More gold was produced in the year 1915 than the whole stock of gold in the world in 1550, perhaps in 1600. More wheat is produced annually in Minnesota than the granaries of the cities of the world would hold four centuries ago.

In fact, there was hardly wealth at all in the Middle Ages, only degrees of poverty, and the sixteenth century first began to see the accumulation of fortunes worthy of the name. In 1909 there were 1100 persons in France with an income of more than $40,000 per annum; among them were 150 with an income of more than $200,000. In England in 1916 seventy-nine persons paid income taxes on estates of more than $125,000,000. On the other hand the richest man in France, Jacques Coeur, whose fortune was proverbial like that of Rockefeller today, had in 1503 a capital of only {461} $5,400,000. The total wealth of the house of Fugger about 1550 has been estimated at $32,000,000, though the capital of their bank was never anything like that. The contrast was greatest among the very richest class, but it was sufficiently striking in the middle classes. Such a condition as comfort hardly existed.

The same impression will be given to the student of public finance. As more will be said in another paragraph on the revenues of the principal states, only one example need be given here for the sake of contrast. The total revenue of Francis I was $256,000 per annum, that of Henry II even less, $228,000. The revenue of France in 1905 was $750,000,000. Henry VIII often had more difficulty in raising a loan of L50,000 than the English government had recently in borrowing six billions.

It is impossible to say which is the harder task, to compare the total wealth of the world at two given periods, or to compare the value of money at different times. Even the mechanical difficulties in the comparison of prices are enormous. When we read that wheat at Wittenberg sold at one gulden the scheffel, it is necessary to determine in the first place how much a gulden and how much a scheffel represented in terms of dollars and bushels. When we discover that there were half a dozen different guldens, and half a dozen separate measures known as scheffels, varying from province to province and from time to time, and varying widely, it is evident that great caution is necessary in ascertaining exactly which gulden and exactly which scheffel is meant.

When coin and measure have been reduced to known quantities, there remains the problem of fixing the quality. Cloth is quoted in the sixteenth century as of standard sizes and grades, but neither of these important factors is accurately known to any modern {462} economist. One would think that in quoting prices of animals an invariable standard would be secured. Quite the contrary. So much has the breed of cattle improved that a fat ox now weighs two or three times what a good ox weighed four centuries ago. Horses are larger, stronger and faster; hens lay many more eggs, cows give much more milk now than formerly. Shoes, clothes, lumber, candles, are not of the same quality in different centuries, and of course there is an ever increasing list of new articles in which no comparison can be made.

Nevertheless, some allowance can be made for all factors involved, as far as they are mechanical; some comparisons can be given that bear a sufficiently close relation to exactitude to form the basis from which certain valid deductions can be drawn. Now first as to the intrinsic value, in amounts of gold and silver in the several coins. The vast fluctuation in the value of the English shilling, due to the successive debasements and final restitution of the coinage, is thus expressed:

Year Troy grains Year Troy grains 1461 . . . . . . 133 1551 . . . . . . 20 1527 . . . . . . 118 1552 . . . . . . 88 1543 . . . . . . 100 1560 . . . . . . 89 1545 . . . . . . 60 1601 . . . . . . 86 1546 . . . . . . 40 1919 . . . . . . 87.27

A similar depreciation, more gradual but never rectified, is seen in the value of French money. The standard of reckoning was the livre tournois, which varied intrinsically in value of the silver put into it as follows:

Years Intrinsic value of silver 1500 . . . . . . . . . . . . . . . . . . 93 cents 1512-40 . . . . . . . . . . . . . . . . . 78 cents 1541-60 . . . . . . . . . . . . . . . . . 66 cents 1561-72 . . . . . . . . . . . . . . . . . 62 cents {463} 1573-79 . . . . . . . . . . . . . . . . . 57 cents 1580-1600 . . . . . . . . . . . . . . . . 51 cents

The standard Spanish gold coin after 1497 was the ducat, which had 3.485 grammes of gold (value in our money $2.40). This was divided into 375 maravedis, which therefore had a value of about two-thirds of a cent each. A Castilian marc of gold had 230 grammes or a value of about $16. After 1537 a handsome silver coin, known as the peso fuerte or "piece of eight" because each contained eight reals, was minted in America. Its value was about $1.06 of our money, it being the predecessor of our dollar.

The great difficulty with the coinage of Germany and Italy is not so much in its fluctuation as in the number of mints. The name gulden [Sidenote: Gulden a general term] was given to almost any coin, originally, as its etymology signifies, a gold piece, but later also to a silver piece. Among gold guldens there was the Rhenish gulden intrinsically worth $1.34; the Philip's gulden in the Netherlands of 96 cents and the Carolus gulden coined after 1520 and worth $1.14. But the coin commonly used in reckoning was the silver gulden, worth intrinsically 56 cents. This was divided into 20 groschen. Other coins quite ordinarily met with in the literature of the times are pounds (7.5 cents), pfennigs (various values), stivers, crowns, nobles, angels ($2), and Hungarians ducats ($1.75). Since 1518 the chief silver coin was the thaler, at first considered the equal of a silver gulden. The law of 1559, however, made them two different coins, restoring the thaler to what had probably been its former value of 72 cents, and leaving the imperial gulden in law, what it had commonly become in fact, a lesser amount of silver.

The coinage of Italy was dominated by the gold gulden or florin of Florence and the ducat of Venice, {464} each worth not far from $2.25 of our money. Both these coins, partly on account of their beauty, partly because of the simple honesty with which they were kept at the nominal standard, attained just fame throughout the Middle Ages and thereafter, and became widely used in other lands.

The standard of value determined, it is now possible to compare the prices of some staple articles. First in importance comes wheat, which fluctuated enormously within short periods at the same place and in terms of the same amounts of silver. From Luther's letters we learn that wheat sold at Wittenberg for one gulden a scheffel in 1539 and for three groschen a scheffel in 1542, the latter price being considered "so cheap as never before," the former reached in a time almost of famine and calling for intervention on the part of the government. However we interpret these figures (and I believe them to mean that wheat sold at from twelve cents to eighty cents a bushel) they certainly indicate a tremendous instability in prices, due to the poor communications and backward methods of agriculture, making years of plenty alternate with years of hunger. In the case of Wittenberg, the lower level was nearer the normal, for in 1527 wheat was there sold at twenty cents a bushel. In other parts of Germany it was dearer; at Strassburg from 1526-50 it averaged 30 cents a bushel; from 1551-75 it went up to an average of 58 cents, and from 1576-1600 the average again rose to 80 cents a bushel.

Prices also rose in England throughout the century even in terms of silver. Of course part of the rise in the middle years was due to the debasement of the coinage. Reduced to bushels and dollars, the following table shows the tendency of prices:

1530 . . . . . . . . . . . . . . 17 cents a bushel 1537 . . . . . . . . . . . . . . . . . . 30 cents {465} 1544 . . . . . . . . . . . . . . . . . . 45 cents 1546 . . . . . . . . . . . . . . . . . . 69 cents 1547 . . . . . . . . . . . . . . . . . . 12 cents 1548 . . . . . . . . . . . . . . . . . . 24 cents 1549 . . . . . . . . . . . . . . . . . . 48 cents 1550 . . . . . . . . . . . . . . . . . . 54 cents 1572 . . . . . . . . . . . . . . . . . . 66 cents 1595 . . . . . . . . . . . . . . . . . . $1.14

Wheat in France averaged 23 cents a bushel prior to 1540, after which it rose markedly in price, touching $1.50 in 1600, under exceptional conditions. In order to compare with prices nowadays we must remember that $1 a bushel was a remarkably good price before the late war, during which it was fixed at $2.20 by the American government. Barley in England rose from 6 cents a bushel in 1530 to 10 cents in 1547 and 33 cents in 1549. It was in 1913 70 cents a bushel. Oats rose from 5 cents a bushel in England in 1530 to 18 cents in 1549; in 1913 38 cents.

Animals sold much lower in the sixteenth century than they do now, though it must be remembered that they are worth more after several centuries of careful breeding. Horses then sold at $2.50 in England and at $4 to $11 in France; the average price in 1913 was $244 for working animals. Cows were worth $2 in England in 1530; from $4 to $6.40 in France; oxen apparently came considerably higher, averaging in England $10 a head in 1547 and in France from $9 to $16 a yoke. At present they are sold by weight, averaging in 1913 9 cents per lb., or $90 for one weighing a thousand pounds. Beef then cost about 2/3 of a cent a pound instead of 40 cents as in 1914. A sheep was sold in 1585 at $1.60, a large swine at $5, and pigs at 26 cents apiece. Pork cost 2 cents a pound; hens sold in England at 12 cents a piece and geese and ducks for the same; at Wittenberg geese fetched only 6 cents in 1527. Eggs might have been bought at 2 cents a dozen.

{466} [Sidenote: Groceries]

Wholesale prices of groceries, taken mostly from an English table drawn up about 1580, were as follows: Oil was $140 the ton, or 55 cents a gallon; train-oil was just half that price; Newfoundland fish cost then $2.50 the quintal dry, as against $7.81 in 1913. Gascon wines (claret) varied according to quality, from 16 cents to 24 cents a quart. Salt fetched $7.50 a ton, which is very close to the price that it was in 1913 ($1.02 per bbl. of 280 lbs.). Soap was $13 the hundredweight. Pepper and sugar cost nearly the same, about $70 the hundredweight, or far higher than they were in 1919, when each cost $11 the hundredweight. Spices also cost more in the sixteenth century than they do now, and rose throughout the century. By 1580 the wholesale price per hundredweight was $224 for cloves, the same for nutmegs, $150 for cinnamon, $300 for mace. Ginger was $90 the hundredweight, and candles 6.6 cents the lb. as against 7.25 cents now.

Drygoods varied immensely in cost. Raw wool sold in England in 1510 for 4 cents per lb., as against 26 cents just four hundred years later. Fine cloth sold at $65 "the piece," the length and breadth of which it is unfortunately impossible to determine accurately. Different grades came in different sizes, averaging a yard in width, but from 18 yards to 47 yards in length, the finer coming in longer rolls. Sorting cloths were $45 the piece. Linen cost 20 cents a yard in 1580; Mary, Queen of Scots, five years later paid $6.50 the yard for purple velvet and 28 cents the yard for buckram to line the same. The coarse clothes of the poor were cheaper, a workman's suit in France costing $1.80 in 1600, a child's whole wardrobe $3.40, and a soldier's uniform $4.20. The prices of the poorest women's dresses ranged from $3 to $6 each. In 1520 Albert Duerer paid in the Netherlands 17 cents for one pair of shoes, 33 cents for another and 20 cents for a {467} pair of woman's gloves. A pair of spectacles cost him 22 cents, a pair of gloves for himself 38 cents.

Metals were dearer in the sixteenth century than they are now. Iron cost $60 a ton in 1580 against $22 a ton in 1913. Lead fetched $42 the ton and tin $15 the cwt. The ratio of gold to silver was about 1 to 11. The only fuel much used was wood, which was fairly cheap but of course not nearly as efficient as our coal.

Interest, as the price of money, varied then as it does now in inverse ratio to the security offered by the debtor, and on the whole within much the same range that it does now. The best security was believed to be that of the German Free Cities, governed as they were by the commercial class that appreciated the virtue of prompt and honest payment. Accordingly, we find that they had no trouble in borrowing at 5 per cent., their bonds taking the form of perpetual annuities, like the English consols. So eagerly were these investments sought that they were apportioned on petition as special favors to the creditors. The cities of Paris and London also enjoyed high credit. The national governments had to pay far higher, owing to their poverty and dishonesty. Francis I borrowed at 10 per cent.; Charles V paid higher in the market of Antwerp, the extreme instance being that of 50 per cent. per annum. In 1550 he regularly paid 20 per cent., a ruinous rate that foreshadowed his bankruptcy and was partly caused by its forecast. Until the recent war we were accustomed to think of the great nations borrowing at 2-4 per cent., but during the war the rate immensely rose. Anglo-French bonds, backed by the joint and several credit of the two nations, sold on the New York Stock Exchange in 1918 at a price that would yield the investor more than 12 per cent., and City of Paris bonds at a rate of more than 16 per cent.

{468} Commercial paper, or loans advanced by banks to merchants on good security, of course varied. The lowest was reached at Genoa where from time to time merchants secured accommodation at 3 per cent. The average in Germany was 6 per cent. and this was made the legal rate by Brandenburg in 1565. But usurers, able to take advantage of the necessities of poor debtors, habitually exacted more, as they do now, and loans on small mortgages or on pawned articles often ran at 30 per cent. On the whole, the rate of interest fell slightly during the century.

The price of real estate is more difficult to compare than almost anything, owing to the individual circumstances of each purchase. Land in France sold at rates ranging from $8 to $240 the acre. Luther bought a little farm in the country for $340, and a piece of property in Wittenberg for $500. After his death, in 1564, the house he lived in, a large and handsome building formerly the Augustinian Cloister, fetched $2072. The house can be seen today and would certainly, one would think, now bring fifteen times as much.

Books were comparatively cheap. The Greek Testament sold for 48 cents, a Latin Testament for half that amount, a Latin folio Bible published in 1532 for $4, Luther's first New Testament at 84 cents. One might get a copy of the Pandects for $1.60, of Vergil for 10 cents, a Greek grammar for 8 cents, Demosthenes and Aeschines in one volume at 20 cents, one of Luther's more important tracts for 30 cents and the condemnation of him by the universities in a small pamphlet at 6 cents. One of the things that has gone down most in price since that day is postage. Duerer while in the Netherlands paid a messenger 17 cents to deliver a {469} letter (or several letters?), presumably sent to his home in Nuremberg.

In accordance with the general rule that wages follow the trend of prices sluggishly, whether upwards or downwards, there is less change to be observed in them throughout the sixteenth century than there is in the prices of commodities. Subject to government regulation, the remuneration of all kinds of labor remained nearly stationary while the cost of living was rising. Startling is the difference in the rewards of the various classes, that of the manual laborers being cruelly low, that of professional men somewhat less in proportion to the cost of living than it is today, and that of government officers being very high. No one except court officials got a salary over $5000 a year, and some of them got much more. In 1553 a French chamberlain was paid $51,000 per annum.

A French navvy received 8 cents a day in 1550, a carpenter as much as 26 cents. A male domestic was given $7 to $12 a year in addition to his keep and a woman $5 to $6. As the number of working days in Catholic countries was only about 250 a year, workmen made from $65 to as low as $20. If anything, labor was worse paid in Germany than it was in France. Agricultural labor in England was paid in two scales, one for summer and one for winter. It varied from 3 cents to 7 cents a day, the smaller sum being paid only to men who were also boarded. In summer freemasons and master carpenters got from 8 cents to 11 cents for a terribly long day, in winter 6 cents to 9 cents for a shorter day. The following scale was fixed by law in England in 1563: A hired farmer was to have $10 a year and $2 for livery; a common farm hand was allowed $8.25 and $1.25 extra for livery; a "mean servant" $6 and $1.25 respectively, a man child {470} $4 and $1; a chief woman cook $5 and $1.60, a mean or simple woman $3 and $1; a woman child $2.50 and $1. All were of course boarded and lodged.

The pay of French soldiers under Francis I was for privates $28 a year in time of war; this fell to $1 a year in time of peace; for captains $33 a month in time of peace and $66 in time of war. Captains in the English navy received $36 a month; common seamen $1.25 a month for wages and the same allowance for food.

The church fared little better than the army. In Scotland, a poor country but one in which the clergy were respected, by the law of 1562, a parson if a single man was given $26 a year, if a married man a maximum of $78 a year; probably a parsonage was added. Doubtless many Protestant ministers eked out their subsistence by fees, as the Catholic priests certainly did. Duerer gave 44 cents to a friar who confessed his wife. Every baptism, marriage and burial was taxed a certain amount. In France one could hire a priest to say a mass at from 60 cents to $7 in 1500, and at from 30 to 40 cents in 1600. At this price it has remained since, a striking instance of religious conservatism working to the detriment of the priest, for the same money represents much less in real wages now than it did then.

Fees for physicians ranged from 33 to 44 cents a visit in Germany about 1520. Treatment and medicine were far higher. At Antwerp Duerer paid $2.20 for a small quantity of medicine for his wife. Fees were sometimes given for a whole course of attendance. In England we hear of such "cures" paid for at from $3.30 to $5. Very little, if any, advice was given free to the poor. The physicians for the French king received a salary of $200 a year and other favors. William Butts, physician to Henry VIII, had $500 per {471} annum, in addition to a knighthood; and his salary was increased to over $600 for attending the Duke of Richmond.

Teachers in the lower schools were regarded as lackeys and paid accordingly. Nicholas Udal, head master of Eton, received $50 per annum and various small allowances. University professors were treated more liberally. Luther and Melanchthon at Wittenberg got a maximum of $224 per annum, which was about the same as the stipend of leading professors in other German universities and at Oxford and Cambridge. The teacher also got a small honorarium from each student. When Paul III restored the Sapienza at Rome he paid a minimum of $17 per annum to some friars who taught theology and who were cared for by their order, but he gave high salaries to the professors of rhetoric and medicine. Ordinarily these received $476 a year, but one professor of the classics reached the highwater-mark with nearly $800.

The rewards of literary men were more consistently small in the sixteenth century than they are now, owing to the absence of effective copyright. An author usually received a small sum from the printer to whom he first offered his manuscript, but his subsequent royalties, if any, depended solely on the goodwill of the publisher. A Wittenberg printer offered Luther $224 per annum for his manuscripts, but the Reformer declined it, wishing to make his books as cheap as possible. In 1512 Erasmus got $8.40 from Badius the Parisian printer for a new edition of his Adages. In fact, the rewards of letters, such as they were, were indirect, in the form of pensions, gifts and benefices from the great. Erasmus got so many of these favors that he lived more than comfortably. Luther died almost a rich man, so many honoraria did he collect from noble admirers. Rabelais was given a benefice, though {472} he only lived two years afterwards to enjoy its fruits. Henry VIII gave $500 to Thomas Murner for writing against Luther. But the lot of the average writer was hard. Fulsome flattery was the most lucrative production of the muse.

Artists fared better. Duerer sold one picture for $375 and another for $200, not counting the "tip" which his wife asked and received on each occasion from the patron. Probably his woodcuts brought him more from the printers than any single painting, and when he died he left the then respectable sum of $32,000. He had been offered a pension of $300 per annum and a house at Antwerp by that city if he would settle there, but he preferred to return to Nuremberg, where he was pensioned $600 a year by the emperor. Leonardo da Vinci and Michelangelo both received $129 a month for work done for a prince, and the latter was given a pension of $5200 a year by Paul III. Raphael in 1520 left an estate of $140,000.

If a comparison of the value of money is made, the final impression that one gets is that an ounce of gold was in 1563, let us say, expected to do about ten times as much work as the same weight of precious metal performed in 1913. If a few articles were then actually dearer, they were comparatively unimportant and were balanced by other articles even more than ten times as cheap. But a dollar will buy so many articles now which did not exist in former ages that a plausible case can be made out for the paradox that money is now worth more than it ever was before. If an ounce of gold would in Luther's time exchange for a much larger quantity of simple necessaries than it will purchase now, on the other hand a man with an income of $5000 a year is far better off than a man with the {473} same income, or indeed with any income, was then.

Notwithstanding the great difficulties of making out any fair index number representing the cost of living and applicable to long periods, owing to the fact that articles vary from time to time, as when candles are replaced by gas and gas by electricity, yet the general trend of prices can be pretty plainly ascertained. Generally speaking, prices--measured in weight of gold and not in coin--sank slowly from 1390 till 1520 under the influence of better technical methods of production and possibly of the draining of gold and silver to the Orient. From 1520 till 1560 prices rose quite slowly on account of the increased production of gold and silver and its more rapid circulation by means of better banking. From 1560 to 1600 prices rose with enormous rapidity, partly because of the destruction of wealth and increase in the cost of production following in the wake of the French and Dutch wars of religion, and still more, perhaps, on account of the torrent of American silver suddenly poured into the lap of Europe. Taking the century as a whole, we find that wheat rose the most, as much as 150 per cent. in England, 200 per cent. in France and 300 per cent. in Germany. Other articles rose less, and in some cases remained stationary, or sank in price. Money wages rose slowly, far less than the cost of living.

Apart from special circumstances affecting the production of particular classes of goods, the main cause of the general trend of prices upwards was probably the increase in the volume of the precious metals. Just how great this was, it is impossible to determine, and yet a calculation can be made, yielding figures near enough the actual to be of service. From the middle of the fifteenth century there had been a considerable increase in the production of silver from German, Bohemian and Hungarian mines. Although this {474} increase was much more than is usually allowed for--equalling, in the opinion of one scholar, the produce of American mines until nearly the middle of the sixteenth century--it was only enough to meet the expanding demands of commerce. Before America entered the market, there was also a considerable import of gold from Asia and Africa. The tide of Mexican treasure began to flood Spain about 1520, but did not reach the other countries in large quantities until about 1560. When we consider the general impression concerning the increase of the currency immediately following the pillage of the Aztecs and Incas, the following statistics of the English mint are instructive, if they are not enigmatical. During the first fourteen years of Henry VIII (1509-23) the average amount of gold minted in England was 24,666 troy pounds per annum, and of silver 31,225 troy pounds. But in the years 1537-40, before the great debasement of the currency had taken place, the amount of gold coined fell to 3,297 Troy pounds per annum, and that of silver rose only to 52,974 troy pounds. As each pound of gold was at that time worth as much as eleven pounds of silver, this means that the actual amount of new money put into circulation each year in the latter period was less than a third of that minted in the earlier years. The figures also indicate the growing cheapness of silver, stimulating its import, while the import of gold was greatly restricted, according to Gresham's law that cheap money drives out dear.

The spoil of Mexico and Peru has frequently been over-estimated, by none more extravagantly than by the Conquistadores and their contemporaries. But the estimates of modern scholars vary enormously. Lexis believes that the total amount of gold produced by Europe and America from 1501 to 1550 (the greater part, of course, by America) amounted to $134,000,000. {475} F. de Laiglesio, on the other hand, thinks that not more than $4,320,000 was mined in America before 1555. The most careful estimate, that made by Professor Haring, arrives at the following results, [Sidenote: Haring's estimate] the amounts being given in pesos each worth very nearly the same as our dollar. Mexican production:

1521-44 1345-60 Gold . . . . . . . . . . . . 5,348,900 343,670 Silver . . . . . . . . . . . 4,130,170 22,467,111

For Peru the proportions of gold and silver cannot be separated, but the totals taken together from 1531-1560 amounted to probably 84,350,600 pesos. Other small sums came from other parts of the New World, and the final total for production of gold and silver in America until 1560 is given at 139,720,000 pesos. This is a reduction to 70 per cent. of the estimate of Lexis. Assuming that the same correction must be made on all of the estimates given by Lexis we have the following figures for the world's production of precious metals in kilogrammes and in dollars:

Gold Silver Average per annum Average per annum in pesos or dollars of 25

in kilos in dollars kilos grammes 1493-1520 . . . 4270 3,269,000 31,570 1,262,800 1521-44 . . . 4893 3,425,000 52,010 2,080,400 1545-60 . . . 4718 3,302,600 184,730 7,389,200 1561-80 . . . 4718 3,302,600 185,430 7,417,200 1581-1600 . . . 4641 3,268,700 230,480 9,219,200

{476} Combining these figures we see that the production of gold was pretty steady throughout the century, making a total output of about $330,000,000. The production of silver, however, greatly increased after 1544. From the beginning of the century to that year it amounted to $75,285,600; from 1545 to 1600 inclusive it increased to $450,955,200, making a total output for the century of $526,240,800. Of course these figures only roughly approximate the truth; nevertheless they give a correct idea of the general processes at work. Even for the first half of the century the production of the precious metals was far in excess of anything that had preceded, and this output, large as it was, was nearly tripled in the last half of the century. These figures, however, are extremely modest compared with those of recent times, when more gold is mined in a year than was then mined in a century. The total amount mined in 1915 was $470,000,000; in 1917 $428,000,000; for the period 1850 to 1916 inclusive the total amount mined was $13,678,000,000.

See the photograph in my Life and Letters of Luther, p. 364.

No valid comparison can be made for the years after 1913, for in most nations paper currencies have ousted gold.

These figures are based on those of Sommerlad in the Handwoerter-buch der Staatswissenschaften, s.v. "Preis," taken from Wiebe, who based on Lexis. Figures quite similar to those of Sommerlad are given by C. F. Bastable in the Encyclopaedia Britannica, s.v. "Money." I have incorporated Haring's corrections.