The above chart shows the growth of the different types of the U.S. money supply back to 1892. The Federal Reserve only provides online data back to 1959. The Federal Reserve Bulletins, published since 1914, and Comptroller of the Currency reports are available on the Federal Reserve Bank of St. Louis’ website. They provide enough data on currency in circulation, demand deposits, time deposits, and non-financial institution deposits to recreate the series back to 1892.
Between 1892 and 1912, the money supply expanded at about 3.71% per year. All U.S. Dollars were redeemable for gold. Between 1913 and 2003, the money supply expanded at about 6.84% per year. All U.S. Dollars are redeemable for other U.S. Dollars.
The thing that stood out about this graph is that the monetary base jumped from just above M0 to surpassing M1, meaning banks now have more money in reserve than Americans have in deposit. Once new money flows from the monetary base into the different levels of the money supply, it begins to multiply. We’ve got a long way left to climb!