document_title: Gold standard

question_text: when did we go away from the gold standard

question_tokens: when did we go away from the gold standard

text: Gold standard

text: History

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text: Origin

text: The gold specie standard arose from the widespread acceptance of gold as currency.[5] Various commodities have been used as money; typically, the one that loses the least value over time becomes the accepted form.[6] Chemically, gold is of all major metals the one most resistant to corrosion.

text: The use of gold as money began thousands of years ago in Asia Minor.[7]

text: During the early and high Middle Ages, the Byzantine gold solidus, commonly known as the bezant, was used widely throughout Europe and the Mediterranean. However, as the Byzantine Empire's economic influence declined, so too did the use of the bezant.[8] In its place, European territories chose silver as their currency over gold, leading to the development of silver standards.

text: Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa, circa CE 757–796.[9] Similar coins, including Italian denari, French deniers, and Spanish dineros circulated in Europe. Spanish explorers discovered silver deposits in Mexico in 1522 and at Potosí in Bolivia in 1545.[10] International trade came to depend on coins such as the Spanish dollar, the Maria Theresa thaler, and later, the United States trade dollar.

text: In modern times, the British West Indies was one of the first regions to adopt a gold specie standard. Following Queen Anne's proclamation of 1704, the British West Indies gold standard was a de facto gold standard based on the Spanish gold doubloon. In 1717, Sir Isaac Newton, the master of the Royal Mint, established a new mint ratio between silver and gold that had the effect of driving silver out of circulation and putting Britain on a gold standard.[11][self-published source]

text: A formal gold specie standard was first established in 1821, when Britain adopted it following the introduction of the gold sovereign by the new Royal Mint at Tower Hill in 1816. The United Province of Canada in 1853, Newfoundland in 1865, and the United States and Germany (de jure) in 1873 adopted gold. The United States used the eagle as its unit, Germany introduced the new gold mark, while Canada adopted a dual system based on both the American gold eagle and the British gold sovereign.

text: Australia and New Zealand adopted the British gold standard, as did the British West Indies, while Newfoundland was the only British Empire territory to introduce its own gold coin. Royal Mint branches were established in Sydney, Melbourne and Perth for the purpose of minting gold sovereigns from Australia's rich gold deposits.

text: The gold specie standard came to an end in the United Kingdom and the rest of the British Empire with the outbreak of World War I.

text: Silver

text: From 1750 to 1870, wars within Europe as well as an ongoing trade deficit with China (which sold to Europe but had little use for European goods) drained silver from the economies of Western Europe and the United States. Coins were struck in smaller and smaller numbers, and there was a proliferation of bank and stock notes used as money.

text: United Kingdom

text: In the 1790s, the United Kingdom suffered a silver shortage. It ceased to mint larger silver coins and instead issued "token" silver coins and overstruck foreign coins. With the end of the Napoleonic Wars, the Bank of England began the massive recoinage programme that created standard gold sovereigns, circulating crowns, half-crowns and eventually copper farthings in 1821. The recoinage of silver after a long drought produced a burst of coins. The United Kingdom struck nearly 40 million shillings between 1816 and 1820, 17 million half crowns and 1.3 million silver crowns.

text: The 1819 Act for the Resumption of Cash Payments set 1823 as the date for resumption of convertibility, which was reached by 1821. Throughout the 1820s, small notes were issued by regional banks. This was restricted in 1826, while the Bank of England was allowed to set up regional branches. In 1833 however, Bank of England notes were made legal tender and redemption by other banks was discouraged. In 1844, the Bank Charter Act established that Bank of England notes were fully backed by gold and they became the legal standard. According to the strict interpretation of the gold standard, this 1844 act marked the establishment of a full gold standard for British money.

text: United States

text: In the 1780s, Thomas Jefferson, Robert Morris and Alexander Hamilton recommended to Congress the value of a decimal system. This system would also apply to monies in the United States. The question was what type of standard: gold, silver or both.[12] The United States adopted a silver standard based on the Spanish milled dollar in 1785.

text: International

text: From 1860 to 1871 various attempts to resurrect bi-metallic standards were made, including one based on the gold and silver franc; however, with the rapid influx of silver from new deposits, the expectation of scarce silver ended.

text: The interaction between central banking and currency basis formed the primary source of monetary instability during this period. The combination of a restricted supply of notes, a government monopoly on note issuance and indirectly, a central bank and a single unit of value produced economic stability. Deviation from these conditions produced monetary crises.

text: Devalued notes or leaving silver as a store of value caused economic problems. Governments, demanding specie as payment, could drain the money out of the economy. Economic development expanded need for credit. The need for a solid basis in monetary affairs produced a rapid acceptance of the gold standard in the period that followed.

text: Japan

text: Following Germany's decision after the 1870–1871 Franco-Prussian War to extract reparations to facilitate a move to the gold standard, Japan gained the needed reserves after the Sino-Japanese War of 1894–1895. For Japan, moving to gold was considered vital for gaining access to Western capital markets.[13]

text: Bimetallic standard

text: US: Pre-Civil War

text: In 1792, Congress passed the Mint and Coinage Act. It authorized the federal government's use of the Bank of the United States to hold its reserves, as well as establish a fixed ratio of gold to the U.S. dollar. Gold and silver coins were legal tender, as was the Spanish real. In 1792 the market price of gold was about 15 times that of silver.[12] Silver coins left circulation, exported to pay for the debts taken on to finance the American Revolutionary War. In 1806 President Jefferson suspended the minting of silver coins. This resulted in a derivative silver standard, since the Bank of the United States was not required to fully back its currency with reserves. This began a long series of attempts by the United States to create a bi-metallic standard.

text: The intention was to use gold for large denominations, and silver for smaller denominations. A problem with bimetallic standards was that the metals' absolute and relative market prices changed. The mint ratio (the rate at which the mint was obligated to pay/receive for gold relative to silver) remained fixed at 15 ounces of silver to 1 ounce of gold, whereas the market rate fluctuated from 15.5 to 1 to 16 to 1. With the Coinage Act of 1834, Congress passed an act that changed the mint ratio to approximately 16 to 1. Gold discoveries in California in 1848 and later in Australia lowered the gold price relative to silver; this drove silver money from circulation because it was worth more in the market than as money.[14] Passage of the Independent Treasury Act of 1848 placed the U.S. on a strict hard-money standard. Doing business with the American government required gold or silver coins.

text: Government accounts were legally separated from the banking system. However, the mint ratio (the fixed exchange rate between gold and silver at the mint) continued to overvalue gold. In 1853, the US reduced the silver weight of coins to keep them in circulation and in 1857 removed legal tender status from foreign coinage. In 1857 the final crisis of the free banking era began as American banks suspended payment in silver, with ripples through the developing international financial system. Due to the inflationary finance measures undertaken to help pay for the US Civil War, the government found it difficult to pay its obligations in gold or silver and suspended payments of obligations not legally specified in specie (gold bonds); this led banks to suspend the conversion of bank liabilities (bank notes and deposits) into specie. In 1862 paper money was made legal tender. It was a fiat money (not convertible on demand at a fixed rate into specie). These notes came to be called "greenbacks".[14]

text: US: Post-Civil War

text: After the Civil War, Congress wanted to reestablish the metallic standard at pre-war rates. The market price of gold in greenbacks was above the pre-War fixed price ($20.67 per ounce of gold) requiring deflation to achieve the pre-War price. This was accomplished by growing the stock of money less rapidly than real output. By 1879 the market price matched the mint price of gold. The coinage act of 1873 (also known as the Crime of ‘73) demonetized silver. This act removed the 412.5 grain silver dollar from circulation. Subsequently silver was only used in coins worth less than $1 (fractional currency). With the resumption of convertibility on June 30, 1879 the government again paid its debts in gold, accepted greenbacks for customs and redeemed greenbacks on demand in gold. Greenbacks were therefore perfect substitutes for gold coins. During the latter part of the nineteenth century the use of silver and a return to the bimetallic standard were recurrent political issues, raised especially by William Jennings Bryan, the People's Party and the Free Silver movement. In 1900 the gold dollar was declared the standard unit of account and a gold reserve for government issued paper notes was established. Greenbacks, silver certificates, and silver dollars continued to be legal tender, all redeemable in gold.[14]

text: Fluctuations in the US gold stock, 1862–1877

text:
US gold stock

1862
59 tons

1866
81 tons

1875
50 tons

1878
78 tons

text: The US had a gold stock of 1.9 million ounces (59 t) in 1862. Stocks rose to 2.6 million ounces (81 t) in 1866, declined in 1875 to 1.6 million ounces (50 t) and rose to 2.5 million ounces (78 t) in 1878. Net exports did not mirror that pattern. In the decade before the Civil War net exports were roughly constant; postwar they varied erratically around pre-war levels, but fell significantly in 1877 and became negative in 1878 and 1879. The net import of gold meant that the foreign demand for American currency to purchase goods, services, and investments exceeded the corresponding American demands for foreign currencies. In the final years of the greenback period (1862–1879), gold production increased while gold exports decreased. The decrease in gold exports was considered by some to be a result of changing monetary conditions. The demands for gold during this period were as a speculative vehicle, and for its primary use in the foreign exchange markets financing international trade. The major effect of the increase in gold demand by the public and Treasury was to reduce exports of gold and increase the Greenback price of gold relative to purchasing power.[15]

text: Gold exchange standard

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text: Towards the end of the 19th century, some silver standard countries began to peg their silver coin units to the gold standards of the United Kingdom or the United States. In 1898, British India pegged the silver rupee to the pound sterling at a fixed rate of 1s 4d, while in 1906, the Straits Settlements adopted a gold exchange standard against sterling, fixing the silver Straits dollar at 2s 4d.

text: Around the start of the 20th century, the Philippines pegged the silver peso/dollar to the U.S. dollar at 50 cents. This move was assisted by the passage of the Philippines Coinage Act by the United States Congress on March 3, 1903.[16] Around the same time Mexico and Japan pegged their currencies to the dollar. When Siam adopted a gold exchange standard in 1908, only China and Hong Kong remained on the silver standard.

text: When adopting the gold standard, many European nations changed the name of their currency, for instance from Daler (Sweden and Denmark) or Gulden (Austria-Hungary) to Crown, since the former names were traditionally associated with silver coins and the latter with gold coins.

text: Impact of World War I

text: Governments with insufficient tax revenue suspended convertibility repeatedly in the 19th century. The real test, however, came in the form of World War I, a test which "it failed utterly" according to economist Richard Lipsey.[5]

text: By the end of 1913, the classical gold standard was at its peak but World War I caused many countries to suspend or abandon it.[17] According to Lawrence Officer the main cause of the gold standard’s failure to resume its previous position after World War 1 was “the Bank of England's precarious liquidity position and the gold-exchange standard.” A run on sterling caused Britain to impose exchange controls that fatally weakened the standard; convertibility was not legally suspended, but gold prices no longer played the role that they did before.[18] In financing the war and abandoning gold, many of the belligerents suffered drastic inflations. Price levels doubled in the US and Britain, tripled in France and quadrupled in Italy. Exchange rates changed less, even though European inflations were more severe than America’s. This meant that the costs of American goods decreased relative to those in Europe. Between August 1914 and spring of 1915, the dollar value of US exports tripled and its trade surplus exceeded $1 billion for the first time.[19]

text: Ultimately, the system could not deal quickly enough with the large balance of payments deficits and surpluses; this was previously attributed to downward wage rigidity brought about by the advent of unionized labor, but is now considered as an inherent fault of the system that arose under the pressures of war and rapid technological change. In any case, prices had not reached equilibrium by the time of the Great Depression, which served to kill off the system completely.[5]

text: For example, Germany had gone off the gold standard in 1914, and could not effectively return to it because War reparations had cost it much of its gold reserves. During the Occupation of the Ruhr the German central bank (Reichsbank) issued enormous sums of non-convertible marks to support workers who were on strike against the French occupation and to buy foreign currency for reparations; this led to the German hyperinflation of the early 1920s and the decimation of the German middle class.

text: The US did not suspend the gold standard during the war. The newly created Federal Reserve intervened in currency markets and sold bonds to “sterilize”[vague] some of the gold imports that would have otherwise increased the stock of money.[citation needed] By 1927 many countries had returned to the gold standard.[14] As a result of World War 1 the United States, which had been a net debtor country, had become a net creditor by 1919.[20]

text: Abandonment of the gold standard

text: The gold specie standard ended in the United Kingdom and the rest of the British Empire at the outbreak of World War I, when Treasury notes replaced the circulation of gold sovereigns and gold half sovereigns. Legally, the gold specie standard was not repealed. The end of the gold standard was successfully effected by the Bank of England through appeals to patriotism urging citizens not to redeem paper money for gold specie. It was only in 1925, when Britain returned to the gold standard in conjunction with Australia and South Africa that the gold specie standard was officially ended.

text: The British Gold Standard Act 1925 both introduced the gold bullion standard and simultaneously repealed the gold specie standard. The new standard ended the circulation of gold specie coins. Instead, the law compelled the authorities to sell gold bullion on demand at a fixed price, but "only in the form of bars containing approximately four hundred ounces troy [12 kg] of fine gold".[21][22] John Maynard Keynes, citing deflationary dangers, argued against resumption of the gold standard.[23] By fixing the price at the pre-war rate of $4.86, Churchill is argued to have made an error that led to depression, unemployment and the 1926 general strike. The decision was described by Andrew Turnbull as a "historic mistake".[24]

text: Many other countries followed Britain in returning to the gold standard, this was followed by a period of relative stability but also deflation.[25] This state of affairs lasted until the Great Depression (1929–1939) forced countries off the gold standard. In September 19, 1931, speculative attacks on the pound forced Britain to abandon the gold standard. Loans from American and French Central Banks of £50,000,000 were insufficient and exhausted in a matter of weeks, due to large gold outflows across the Atlantic.[26][27][28] The British benefited from this departure. They could now use monetary policy to stimulate the economy. Australia and New Zealand had already left the standard and Canada quickly followed suit.

text: The interwar partially backed gold standard was inherently unstable, because of the conflict between the expansion of liabilities to foreign central banks and the resulting deterioration in the Bank of England's reserve ratio. France was then attempting to make Paris a world class financial center, and it received large gold flows as well.[29]

text: In May 1931 a run on Austria's largest commercial bank caused it to fail. The run spread to Germany, where the central bank also collapsed. International financial assistance was too late and in July 1931 Germany adopted exchange controls, followed by Austria in October. The Austrian and German experiences, as well as British budgetary and political difficulties, were among the factors that destroyed confidence in sterling, which occurred in mid-July 1931. Runs ensued and the Bank of England lost much of its reserves.

text: Depression and World War II

text: Great Depression

text: Some economic historians, such as Barry Eichengreen, blame the gold standard of the 1920s for prolonging the economic depression which started in 1929 and lasted for about a decade.[31] In the United States, adherence to the gold standard prevented the Federal Reserve from expanding the money supply to stimulate the economy, fund insolvent banks and fund government deficits that could "prime the pump" for an expansion. Once off the gold standard, it became free to engage in such money creation. The gold standard limited the flexibility of the central banks' monetary policy by limiting their ability to expand the money supply. In the US, the central bank was required by the Federal Reserve Act (1913) to have gold backing 40% of its demand notes.[32] Others including former Federal Reserve Chairman Ben Bernanke and Nobel Prize-winner Milton Friedman place the blame for the severity and length of the Great Depression at the feet of the Federal Reserve, mostly due to the deliberate tightening of monetary policy even after the gold standard.[33] They blamed the US major economic contraction in 1937 on tightening of monetary policy resulting in higher cost of capital, weaker securities markets, reduced net government contribution to income, the undistributed profits tax and higher labor costs.[34] The money supply peaked in March 1937, with a trough in May 1938.[35]

text: Higher interest rates intensified the deflationary pressure on the dollar and reduced investment in U.S. banks. Commercial banks converted Federal Reserve Notes to gold in 1931, reducing its gold reserves and forcing a corresponding reduction in the amount of currency in circulation. This speculative attack created a panic in the U.S. banking system. Fearing imminent devaluation many depositors withdrew funds from U.S. banks.[36] As bank runs grew, a reverse multiplier effect caused a contraction in the money supply.[37] Additionally the New York Fed had loaned over $150 million in gold (over 240 tons) to European Central Banks. This transfer contracted the US money supply. The foreign loans became questionable once Britain, Germany, Austria and other European countries went off the gold standard in 1931 and weakened confidence in the dollar.[38]

text: The forced contraction of the money supply resulted in deflation. Even as nominal interest rates dropped, inflation-adjusted real interest rates remained high, rewarding those who held onto money instead of spending it, further slowing the economy.[39] Recovery in the United States was slower than in Britain, in part due to Congressional reluctance to abandon the gold standard and float the U.S. currency as Britain had done.[40]

text: In the early 1930s, the Federal Reserve defended the dollar by raising interest rates, trying to increase the demand for dollars. This helped attract international investors who bought foreign assets with gold.[36]

text: Congress passed the Gold Reserve Act on 30 January 1934; the measure nationalized all gold by ordering Federal Reserve banks to turn over their supply to the U.S. Treasury. In return the banks received gold certificates to be used as reserves against deposits and Federal Reserve notes. The act also authorized the president to devalue the gold dollar. Under this authority the president, on 31 January 1934, changed the value of the dollar from $20.67 to the troy ounce to $35 to the troy ounce, a devaluation of over 40%.

text: Other factors in the prolongation of the Great Depression include trade wars and the reduction in international trade caused by barriers such as Smoot–Hawley Tariff in the US and the Imperial Preference policies of Great Britain,[41] the failure of central banks to act responsibly,[42] government policies designed to prevent wages from falling, such as the Davis–Bacon Act of 1931, during the deflationary period resulting in production costs dropping slower than sales prices, thereby injuring business profits[43] and increases in taxes to reduce budget deficits and to support new programs such as Social Security. The US top marginal income tax rate went from 25% to 63% in 1932 and to 79% in 1936,[44] while the bottom rate increased over tenfold, from .375% in 1929 to 4% in 1932.[45] The concurrent massive drought resulted in the US Dust Bowl.

text: The Austrian School asserted that the Great Depression was the result of a credit bust.[46] Alan Greenspan wrote that the bank failures of the 1930s were sparked by Great Britain dropping the gold standard in 1931. This act "tore asunder" any remaining confidence in the banking system.[47] Financial historian Niall Ferguson wrote that what made the Great Depression truly 'great' was the European banking crisis of 1931.[48] According to Fed Chairman Marriner Eccles, the root cause was the concentration of wealth resulting in a stagnating or decreasing standard of living for the poor and middle class. These classes went into debt, producing the credit explosion of the 1920s. Eventually the debt load grew too heavy, resulting in the massive defaults and financial panics of the 1930s.[49]

text: World War II

text: Under the Bretton Woods international monetary agreement of 1944, the gold standard was kept without domestic convertibility. The role of gold was severely constrained, as other countries’ currencies were fixed in terms of the dollar. Many countries kept reserves in gold and settled accounts in gold. Still they preferred to settle balances with other currencies, with the American dollar becoming the favorite. The International Monetary Fund was established to help with the exchange process and assist nations in maintaining fixed rates. Within Bretton Woods adjustment was cushioned through credits that helped countries avoid deflation. Under the old standard, a country with an overvalued currency would lose gold and experience deflation until the currency was again valued correctly. Most countries defined their currencies in terms of dollars, but some countries imposed trading restrictions to protect reserves and exchange rates. Therefore, most countries' currencies were still basically inconvertible. In the late 1950s, the exchange restrictions were dropped and gold became an important element in international financial settlements.[14]

text: Bretton Woods

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text: After the Second World War, a system similar to a gold standard and sometimes described as a "gold exchange standard" was established by the Bretton Woods Agreements. Under this system, many countries fixed their exchange rates relative to the U.S. dollar and central banks could exchange dollar holdings into gold at the official exchange rate of $35 per ounce; this option was not available to firms or individuals. All currencies pegged to the dollar thereby had a fixed value in terms of gold.[5]

text: Starting in the 1959–1969 administration of President Charles de Gaulle and continuing until 1970, France reduced its dollar reserves, exchanging them for gold at the official exchange rate, reducing US economic influence. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led U.S. President Richard Nixon to end international convertibility of the U.S. dollar to gold on August 15, 1971 (the "Nixon Shock").

text: This was meant to be a temporary measure, with the gold price of the dollar and the official rate of exchanges remaining constant. Revaluing currencies was the main purpose of this plan. No official revaluation or redemption occurred. The dollar subsequently floated. In December 1971, the "Smithsonian Agreement" was reached. In this agreement, the dollar was devalued from $35 per troy ounce of gold to $38. Other countries' currencies appreciated. However, gold convertibility did not resume. In October 1973, the price was raised to $42.22. Once again, the devaluation was insufficient. Within two weeks of the second devaluation the dollar was left to float. The $42.22 par value was made official in September 1973, long after it had been abandoned in practice. In October 1976, the government officially changed the definition of the dollar; references to gold were removed from statutes. From this point, the international monetary system was made of pure fiat money.

text: Production of gold

text: An estimated total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012. This is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9,261 cubic metres (327,000 cu ft), or a cube 21 metres (69 ft) on a side. There are varying estimates of the total volume of gold mined. One reason for the variance is that gold has been mined for thousands of years. Another reason is that some nations are not particularly open about how much gold is being mined. In addition, it is difficult to account for the gold output in illegal mining activities.[50]

text: World production for 2011 was circa 2,700 tonnes. Since the 1950s, annual gold output growth has approximately kept pace with world population growth (i.e. a doubling in this period)[51] although it has lagged behind world economic growth (approximately 8-fold increase since the 1950s[52], and 4x since 1980[53]).

text: Theory

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text: Commodity money is inconvenient to store and transport in large amounts. Furthermore, it does not allow a government to manipulate the flow of commerce with the same ease that a fiat currency does. As such, commodity money gave way to representative money and gold and other specie were retained as its backing.

text: Gold was a preferred form of money due to its rarity, durability, divisibility, fungibility and ease of identification,[54] often in conjunction with silver. Silver was typically the main circulating medium, with gold as the monetary reserve. Commodity money was anonymous, as identifying marks can be removed. Commodity money retains its value despite what may happen to the monetary authority. After the fall of South Vietnam, many refugees carried their wealth to the West in gold after the national currency became worthless.[citation needed]

text: Under commodity standards currency itself has no intrinsic value, but is accepted by traders because it can be redeemed any time for the equivalent specie. A US silver certificate, for example, could be redeemed for an actual piece of silver.

text: Representative money and the gold standard protect citizens from hyperinflation and other abuses of monetary policy, as were seen in some countries during the Great Depression. Commodity money conversely led to deflation and bank runs.

text: Countries that left the gold standard earlier than other countries recovered from the Great Depression sooner. For example, Great Britain and the Scandinavian countries, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had a silver standard, almost entirely avoided the depression (due to the fact it was then barely integrated into the global economy). The connection between leaving the gold standard and the severity and duration of the depression was consistent for dozens of countries, including developing countries. This may explain why the experience and length of the depression differed between national economies.[55]

text: Variations

text: A full or 100%-reserve gold standard exists when the monetary authority holds sufficient gold to convert all the circulating representative money into gold at the promised exchange rate. It is sometimes referred to as the gold specie standard to more easily distinguish it. Opponents of a full standard consider it difficult to implement, saying that the quantity of gold in the world is too small to sustain worldwide economic activity at or near current gold prices; implementation would entail a many-fold increase in the price of gold.[citation needed] Gold standard proponents have said, "Once a money is established, any stock of money becomes compatible with any amount of employment and real income."[56] While prices would necessarily adjust to the supply of gold, the process may involve considerable economic disruption, as was experienced during earlier attempts to maintain gold standards.[57]

text: In an international gold-standard system (which is necessarily based on an internal gold standard in the countries concerned),[58] gold or a currency that is convertible into gold at a fixed price is used to make international payments. Under such a system, when exchange rates rise above or fall below the fixed mint rate by more than the cost of shipping gold, inflows or outflows occur until rates return to the official level. International gold standards often limit which entities have the right to redeem currency for gold.

text: Advantages

text:
Long-term price stability has been described as one of the virtues of the gold standard.[59] The gold standard makes it difficult for governments to inflate prices through expanding the money supply. Under the gold standard, significant inflation is rare, and hyperinflation is essentially impossible because the money supply can only grow at the rate that the gold supply increases. High inflation under a gold standard is seen only when warfare destroys a large part of an economy, reducing the production of goods, or when a major new gold source becomes available.[60] In the U.S., inflation occurred during the Civil War, which destroyed the economy of the South.[61] Inflation also followed the California Gold Rush that made large amounts of gold available for minting.[62] Historical data shows that the magnitude of short run swings in prices were far higher under the gold standard.[63][59]
The gold standard provides fixed international exchange rates between participating countries and thus reduces uncertainty in international trade. Historically, imbalances between price levels were offset by a balance-of-payment adjustment mechanism called the "price–specie flow mechanism".[60] Gold used to pay for imports reduces the money supply of importing nations, causing deflation, which makes them more competitive, while the importation of gold by net exporters serves to increase their money supply, causing inflation, making them less competitive.[64]
A gold standard does not allow some types of financial repression.[65] Financial repression acts as a mechanism to transfer wealth from creditors to debtors, particularly the governments that practice it. Financial repression is most successful in reducing debt when accompanied by inflation and can be considered a form of taxation.[66][67] In 1966 Alan Greenspan wrote "Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."[68]

text: Disadvantages

text:
The unequal distribution of gold deposits makes the gold standard more advantageous for those countries that produce gold.[69] In 2010 the largest producers of gold, in order, were China, Australia, U.S., South Africa and Russia.[70] The country with the largest unmined gold deposits is Australia.[71]
Some economists believe that the gold standard acts as a limit on economic growth. "As an economy's productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow."[72]
Mainstream economists believe that economic recessions can be largely mitigated by increasing the money supply during economic downturns.[73] A gold standard means that the money supply would be determined by the gold supply and hence monetary policy could no longer be used to stabilize the economy.[74] The gold standard is often blamed for prolonging the Great Depression, as under the gold standard, central banks could not expand credit at a fast enough rate to offset deflationary forces.[75]
Although the gold standard brings long-run price stability, it is historically associated with high short-run price volatility.[59][76] It has been argued by Schwartz, among others, that instability in short-term price levels can lead to financial instability as lenders and borrowers become uncertain about the value of debt.[76]
Deflation punishes debtors.[77][78] Real debt burdens therefore rise, causing borrowers to cut spending to service their debts or to default. Lenders become wealthier, but may choose to save some of the additional wealth, reducing GDP.[79]
The money supply would essentially be determined by the rate of gold production. When gold stocks increase more rapidly than the economy, there is inflation and the reverse is also true.[59][80] The consensus view is that the gold standard contributed to the severity and length of the Great Depression.[81][82]
Hamilton contended that the gold standard is susceptible to speculative attacks when a government's financial position appears weak. Conversely, this threat discourages governments from engaging in risky policy (see moral hazard). For example, the U.S. was forced to contract the money supply and raise interest rates in September 1931 to defend the dollar after speculators forced the UK off the gold standard.[82][83][84][85]
Devaluing a currency under a gold standard would generally produce sharper changes than the smooth declines seen in fiat currencies, depending on the method of devaluation.[86]
Most economists favor a low, positive rate of inflation of around 2%. This reflects fear of deflationary shocks and the belief that active monetary policy can dampen fluctuations in output and unemployment. Inflation gives them room to tighten policy without inducing deflation.[87]
A gold standard provides practical constraints against the measures that central banks might otherwise use to respond to economic crises.[88] Creation of new money reduces interest rates and thereby increases demand for new lower cost debt, raising the demand for money.[89]

text: Gold standard and Bitcoin

text: According to research produced by the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on gold standard, in particular:[90][91]

text:
limited and predictable supply of the anchor of the monetary system
no central bank or monetary authority controls the supply
low or non-existent inflation
virtually no arbitrage costs for international transactions
Governments have less control over their domestic economies
Governments lose seigniorage revenues that they obtain from the ability to almost costlessly create money

text: Edward Hadas and Michael Hiltzik noted that monetary systems based on Bitcoin and gold have some similar disadvantages:

text:
independence from government[92][93]
price declines[92]
less spending during crisis times[92]

text: George Gilder, a proponent of gold standard, proposed breaking "the government monopoly on money" by using a combination of Bitcoin for the internet and treating gold in tax terms as currency.[94][95]

text: Advocates

text: A return to the gold standard was considered by the US Gold Commission back in 1982, but found only minority support.[96] In 2001 Malaysian Prime Minister Mahathir bin Mohamad proposed a new currency that would be used initially for international trade among Muslim nations, using the Islamic gold dinar, defined as 4.25 grams of pure (24-carat) gold. Mahathir claimed it would be a stable unit of account and a political symbol of unity between Islamic nations. This would purportedly reduce dependence on the US dollar and establish a non-debt-backed currency in accord with Sharia law that prohibited the charging of interest.[97] As of 2013[update] the global monetary system continued to rely on the US dollar as the main reserve currency.[98]

text: Former U.S. Federal Reserve Chairman, Alan Greenspan acknowledged he was one of "a small minority" within the central bank that had some positive view on the gold standard.[99] In a 1966 essay he contributed to a book by Ayn Rand, titled "Gold and Economic Freedom", Greenspan argued the case for returning to a 'pure' gold standard; in that essay he described supporters of fiat currencies as "welfare statists" intending to use monetary policy to finance deficit spending.[100] More recently he claimed that by focusing on targeting inflation "central bankers have behaved as though we were on the gold standard", rendering a return to the standard unnecessary.[101]

text: Similarly, economists like Robert Barro argued that whilst some form of "monetary constitution" is essential for stable, depoliticized monetary policy, the form this constitution takes—for example, a gold standard, some other commodity-based standard, or a fiat currency with fixed rules for determining the quantity of money—is considerably less important.[102]

text: The gold standard is supported by many followers of the Austrian School of Economics, free-market libertarians and some supply-siders.[103]

text: US politics

text: In the United States, strict constitutionalists object to the government issuing fiat currency through central banks. Some gold-standard advocates also call for a mandated end to fractional-reserve banking. Many similar alternatives have been suggested, including energy-based currencies, collections of currencies or commodities, with gold as one component.

text: Former congressman Ron Paul is a long-term, high-profile advocate of a gold standard, but has also expressed support for using a standard based on a basket of commodities that better reflects the state of the economy.[104]

text: In 2011 the Utah legislature passed a bill to accept federally issued gold and silver coins as legal tender to pay taxes.[105] As federally issued currency, the coins were already legal tender for taxes, although the market price of their metal content currently exceeds their monetary value. Similar legislation is under consideration in other US states.[106] The bill was initiated by newly elected Republican Party legislators associated with the Tea Party movement and was driven by anxiety over the policies of President Barack Obama.[107]

text: In 2013, the Arizona Legislature passed SB 1439, which would have made gold and silver coin a legal tender in payment of debt, but the bill was vetoed by the Governor.[108]

text: In 2015, some candidates for the 2016 presidential election advocated for a gold standard, based on concern that the Federal Reserve’s attempts to increase economic growth may create inflation. Economic historians did not agree with candidate's assertions that the gold standard would benefit the US economy.[109]

text: Critics

text: In 2012 a poll of 40 U.S. economists in the IGM Economic Experts Panel found that none of them agreed with a claim that a return to the gold standard would result in "price-stability and employment outcomes [that] would be better for the average American." The panel of polled economists included past Nobel Prize winners, former economic advisers to both Republican and Democratic presidents, and senior faculty from Harvard, Chicago, Stanford, MIT, and other well-known research universities. (The specific question posed to the economists was: "If the US replaced its discretionary monetary policy regime with a gold standard, defining a 'dollar' as a specific number of ounces of gold, the price-stability and employment outcomes would be better for the average American.") [3]

text: The economist Allan H. Meltzer of Carnegie Mellon University presented arguments against Ron Paul's advocacy of the gold standard since the 1970s. He sometimes summarizes his opposition by stating simply, "[W]e don’t have the gold standard. It’s not because we don’t know about the gold standard, it’s because we do."[110]


document_title: Treaty of Paris (1783)

question_text: who helped negotiate the treaty of paris of 1783

root

text: Treaty of Paris (1783)

text: Agreement[edit]

text: Peace negotiations began in April 1782, and continued through the summer. Representing the United States were Benjamin Franklin, John Jay, Henry Laurens, and John Adams. David Hartley and Richard Oswald represented Great Britain. The treaty was signed at the Hotel d'York (presently 56 Rue Jacob) in Paris on September 3, 1783, by Adams, Franklin, Jay, and Hartley.[6]

tag: p

text: Regarding the American Treaty, the key episodes came in September, 1782, when the French Foreign Minister Vergennes proposed a solution that was strongly opposed by his ally the United States. France was exhausted by the war, and everyone wanted peace except Spain, which insisted on continuing the war until it could capture Gibraltar from the British. Vergennes came up with the deal that Spain would accept instead of Gibraltar. The United States would gain its independence but be confined to the area east of the Appalachian Mountains. Britain would take the area north of the Ohio River. In the area south of that would be set up an independent Indian state under Spanish control. It would be an Indian barrier state.[7]

text: However, the Americans realized that they could get a better deal directly from London. John Jay promptly told the British that he was willing to negotiate directly with them, cutting off France and Spain. The British Prime Minister Lord Shelburne agreed. He was in full charge of the British negotiations (some of which took place in his study at Lansdowne House, now a bar in the Lansdowne Club) and he now saw a chance to split the United States away from France and make the new country a valuable economic partner.[8] The western terms were that the United States would gain all of the area east of the Mississippi River, north of Florida, and south of Canada. The northern boundary would be almost the same as today.[9] The United States would gain fishing rights off Canadian coasts, and agreed to allow British merchants and Loyalists to try to recover their property. It was a highly favorable treaty for the United States, and deliberately so from the British point of view. Prime Minister Shelburne foresaw highly profitable two-way trade between Britain and the rapidly growing United States, as indeed came to pass.[10]

text: Great Britain also signed separate agreements with France and Spain, and (provisionally) with the Netherlands.[11] In the treaty with Spain, the territories of East and West Florida were ceded to Spain (without a clear northern boundary, resulting in a territorial dispute resolved by the Treaty of Madrid in 1795). Spain also received the island of Menorca; the Bahama Islands, Grenada, and Montserrat, captured by the French and Spanish, were returned to Britain. The treaty with France was mostly about exchanges of captured territory (France's only net gains were the island of Tobago, and Senegal in Africa), but also reinforced earlier treaties, guaranteeing fishing rights off Newfoundland. Dutch possessions in the East Indies, captured in 1781, were returned by Britain to the Netherlands in exchange for trading privileges in the Dutch East Indies, by a treaty which was not finalized until 1784.[12]

text: The United States Congress of the Confederation ratified the Treaty of Paris on January 14, 1784. Copies were sent back to Europe for ratification by the other parties involved, the first reaching France in March 1784. British ratification occurred on April 9, 1784, and the ratified versions were exchanged in Paris on May 12, 1784.[13]

text: Treaty key points[edit]

text: Preamble. Declares the treaty to be "in the name of the most holy and undivided Trinity", states the bona fides of the signatories, and declares the intention of both parties to "forget all past misunderstandings and differences" and "secure to both perpetual peace and harmony".

text:
Britain acknowledges the United States (New Hampshire, Massachusetts Bay, Rhode Island and Providence Plantations, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, South Carolina and Georgia[14]) to be free, sovereign, and independent states, and that the British Crown and all heirs and successors relinquish claims to the Government, property, and territorial rights of the same, and every part thereof;
Establishing the boundaries of the United States, including but not limited to those between the United States and British North America;
Granting fishing rights to United States fishermen in the Grand Banks, off the coast of Newfoundland and in the Gulf of Saint Lawrence;
Recognizing the lawful contracted debts to be paid to creditors on either side;
The Congress of the Confederation will "earnestly recommend" to state legislatures to recognize the rightful owners of all confiscated lands and "provide for the restitution of all estates, rights, and properties, which have been confiscated belonging to real British subjects" (Loyalists);
United States will prevent future confiscations of the property of Loyalists;
Prisoners of war on both sides are to be released; all property of the British army (including slaves) now in the United States is to remain and be forfeited;
Great Britain and the United States are each to be given perpetual access to the Mississippi River;
Territories captured by Americans subsequent to the treaty will be returned without compensation;
Ratification of the treaty is to occur within six months from its signing.

tag: ol

text: Eschatocol. "Done at Paris, this third day of September in the year of our Lord, one thousand seven hundred and eighty-three."

text: Consequences[edit]

text: Historians have often commented that the treaty was very generous to the United States in terms of greatly enlarged boundaries. Historians such as Alvord, Harlow, and Ritcheson have emphasized that British generosity was based on a statesmanlike vision of close economic ties between Britain and the United States. The concession of the vast trans-Appalachian region was designed to facilitate the growth of the American population and create lucrative markets for British merchants, without any military or administrative costs to Britain.[15] The point was the United States would become a major trading partner. As the French foreign minister Vergennes later put it, "The English buy peace rather than make it".[2] Vermont was included within the boundaries because the state of New York insisted that Vermont was a part of New York, although Vermont was then under a government that considered Vermont not to be a part of the United States.[16]

text: Privileges that the Americans had received from Britain automatically when they had colonial status (including protection from pirates in the Mediterranean Sea; see: the First Barbary War and the Second Barbary War) were withdrawn. Individual states ignored federal recommendations, under Article 5, to restore confiscated Loyalist property, and also ignored Article 6 (e.g., by confiscating Loyalist property for "unpaid debts"). Some, notably Virginia, also defied Article 4 and maintained laws against payment of debts to British creditors. The British often ignored the provision of Article 7 about removal of slaves.[17]

text: The actual geography of North America turned out not to match the details used in the treaty. The Treaty specified a southern boundary for the United States, but the separate Anglo-Spanish agreement did not specify a northern boundary for Florida, and the Spanish government assumed that the boundary was the same as in the 1763 agreement by which they had first given their territory in Florida to Britain. While that West Florida Controversy continued, Spain used its new control of Florida to block American access to the Mississippi, in defiance of Article 8.[18] The treaty stated that the boundary of the United States extended from the "most northwesternmost point" of the Lake of the Woods (now partly in Minnesota, partly in Manitoba, and partly in Ontario) directly westward until it reached the Mississippi River. But in fact that Mississippi does not extend that far northward; the line going west from the Lake of the Woods never intersects the river.

text: Great Britain violated the treaty stipulation that they should relinquish control of forts in United States territory "with all convenient speed." British troops remained stationed at six forts in the Great Lakes region, plus two at the north end of Lake Champlain. The British also built an additional fort in present day Ohio in 1794, during the Northwest Indian War. They found justification for these actions in the unstable and extremely tense situation that existed in the area following the war, in the failure of the United States government to fulfill commitments made to compensate loyalists for their losses, and in the British need for time to liquidate various assets in the region.[19] All posts were relinquished peacefully through diplomatic means as a result of the 1794 Jay Treaty. They were:

text:
Name
Present day location

Fort au Fer
Lake Champlain – Champlain, New York

Fort Dutchman's Point
Lake Champlain – North Hero, Vermont

Fort Lernoult (including Fort Detroit)
Detroit River – Detroit, Michigan

Fort Mackinac
Straits of Mackinac – Mackinac Island, Michigan

Fort Miami
Maumee River – Maumee, Ohio

Fort Niagara
Niagara River – Youngstown, New York

Fort Ontario
Lake Ontario – Oswego, New York

Fort Oswegatchie
Saint Lawrence River – Ogdensburg, New York

tag: table


document_title: Three-point field goal

question_text: when did they start the 3 point shot in basketball

text: Three-point field goal

text: History[edit]

text: The three-point line was first tested at the collegiate level in 1945 in a game between Columbia and Fordham, but it was not kept as a rule. At the direction of Abe Saperstein, the American Basketball League became the first basketball league to institute the rule in 1961. Its three-point line was a radius of 25 feet (7.62 m) from the baskets, except along the sides.[2] The Eastern Professional Basketball League followed in its 1963–64 season.

text:
The three-point shot later became popularized by the American Basketball Association (ABA), introduced in its inaugural 1967–68 season.[3][4] ABA commissioner George Mikan stated the three-pointer "would give the smaller player a chance to score and open up the defense to make the game more enjoyable for the fans."[5] During the 1970s, the ABA used the three-point shot, along with the slam dunk, as a marketing tool to compete with the NBA; its ninth and final season concluded in the spring of
1976.[6][7][8]

text: Three years later in June 1979, the NBA adopted the three-point line for a one-year trial for the 1979–80 season,[9][10][11] despite the view of many that it was a gimmick.[12] Chris Ford of the Boston Celtics is widely credited with making the first three-point shot in NBA history on October 12, 1979; the season opener at Boston Garden was more noted for the debut of Larry Bird (and two new head coaches).[13][14] Rick Barry of the Houston Rockets, in his final season, also made one in the same game, and Kevin Grevey of the Washington Bullets made one that Friday night as well.[14][15]

text: The sport's international governing body, FIBA, introduced the three-point line in 1984, at 6.25 m (20 ft 6 in), and it made its Olympic debut in 1988 in Seoul, South Korea.

text: The NCAA's Southern Conference became the first collegiate conference to use the three-point rule, adopting a 22-foot (6.71 m) line for the 1980–81 season.[16][17] Ronnie Carr of Western Carolina was the first to score a three-point field goal in college basketball history on November 29, 1980.[17][18][19] Over the following five years, NCAA conferences differed in their use of the rule and distance required for a three-pointer. The line was as close as 17 ft 9 in (5.41 m) in the Atlantic Coast Conference (ACC), and as far away as 22 ft (6.71 m) in the Big Sky.[20][21][22]

text: Used only in conference play for several years, it was adopted by the NCAA in April 1986 for the 1986–87 season at 19 ft 9 in (6.02 m)[23][24][25][26] and was first used in the NCAA Tournament in March 1987.[27] The three-pointer was adopted in women's basketball on an experimental basis for that season at the same distance, and made its use mandatory beginning in 1987–88.[28]  In 2007, the NCAA lengthened the men's distance by a foot to 20 ft 9 in (6.32 m), effective with the 2008–09 season,[29] and the women's line was moved to match the men's in 2011–12.[28] American high schools, along with elementary and middle schools, adopted a 19 ft 9 in (6.02 m) line nationally in 1987, a year after the NCAA.[30] The NCAA used the FIBA three-point line (see below) in the National Invitation Tournament (NIT) in 2018.[31]

text: For three seasons beginning in 1994–95, the NBA attempted to address decreased scoring by shortening the distance of the line from 23 ft 9 in (7.24 m) (22 ft (6.71 m) at the corners) to a uniform 22 ft (6.71 m) around the basket. From the 1997–98 season on, the NBA reverted the line to its original distance of 23 ft 9 in (22 ft at the corners, with a 3-inch differential). Ray Allen is currently the NBA all-time leader in career made three-pointers with 2,973.[32]

text: In 2008, FIBA announced that the distance would be increased by 50 cm (19.7 in) to 6.75 m (22 ft 1 3⁄4 in), with the change being phased in beginning in October 2010. In December 2012, the WNBA announced that it would be using the FIBA distance, starting in 2013. The NBA has discussed adding a four-point line, according to president Rod Thorn.[33]

text: In the NBA, three-point field goals have become increasingly more frequent along the years, with effectiveness increasing slightly. The 1979-80 season had an average 2.2 three-point goals per game and 6.6 attempts (33% effectiveness). The 1989-90 season had an average 4.8 three-point goals per game and 13.7 attempts (35% effectiveness). The 2009-10 season had an average 6.4 three-point goals per game and 18.1 attempts (36% effectiveness). The 2016-17 season had an average 9.7 three-point goals per game and 27.0 attempts (36% effectiveness).[34]

text: Rule specifications[edit]

text:
A three-point line consists of an arc at a set radius measured from the point on the floor directly below the center of the basket, and two parallel lines equidistant from each sideline extending from the nearest end line to the point at which they intersect the arc. In the NBA and FIBA standard, the arc spans the width of the court until it is a specified minimum distance from each sideline. The three-point line then becomes parallel to the sidelines from those points to the baseline. The unusual formation of the three-point line at these levels allows players some space from which to attempt a three-point shot at the corners of the court; the arc would be less than 2 feet (0.61 m) from each sideline at the corners if it was a continuous arc. In the NCAA and American high school standards, the arc spans 180° around the basket, then becomes parallel to the sidelines from the plane of the basket center to the baseline (5 feet 3 inches or 1.60 metres).
The distance of the three-point line to the center of the hoop varies by level:

text:
Arc radius

Minimum distancefrom sidelines

NBA

23 ft 9 in (7.24 m)

3 ft 0 in (0.91 m)

[35]

FIBA, WNBA

22 ft 2 in (6.76 m)

4 ft 1 in (1.24 m)

[36]

NCAA

20 ft 9 in (6.32 m)

4 ft 3 in (1.30 m)

[37]

U.S. high schools

19 ft 9 in (6.02 m)

5 ft 3 in (1.60 m)

[38]

text: A player's feet must be completely behind the three-point line at the time of the shot or jump in order to make a three-point attempt; if the player's feet are on or in front of the line, it is a two-point attempt. A player is allowed to jump from outside the line and land inside the line to make a three-point attempt, as long as the ball is released in mid-air.

text: An official raises his/her arm with three fingers extended to signal the shot attempt. If the attempt is successful, he/she raises his/her other arm with all fingers fully extended in manner similar to a football official signifying successful field goal to indicate the three-point goal. The official must recognize it for it to count as three points. Instant replay has sometimes been used, depending on league rules. The NBA,[39] WNBA, FIBA and the NCAA specifically allow replay for this purpose. In NBA, FIBA, and WNBA games, video replay does not have to occur immediately following a shot; play can continue and the officials can adjust the scoring later in the game, after reviewing the video. However, in late game situations, play may be paused pending a review.

text: If a shooter is fouled while attempting a three-pointer and subsequently misses the shot, the shooter is awarded three free-throw attempts. If a player completes a three-pointer while being fouled, the player is awarded one free-throw for a possible 4-point play. Conceivably, if a player completed a three-pointer while being fouled, and that foul was ruled as either a Flagrant 1 or a Flagrant 2 foul, the player would be awarded two free throws for a possible 5-point play.

text: Related concepts[edit]

text: Major League Lacrosse features a two-point line which forms a 15-yard (14 m) arc around the front of the goal. Shots taken from behind this line count for two points, as opposed to the standard one point.

text: In gridiron football, a standard field goal is worth three points; various professional and semi-pro leagues have experimented with four-point field goals. NFL Europe and the Stars Football League adopted a rule similar to basketball's three-point line in which an additional point was awarded for longer field goals; in both leagues any field goal of 50 yards (46 m) or more was worth four points. The Arena Football League awards four points for any successful drop kicked field goal (like the three-point shot, the drop kick is more challenging than a standard place kick, as the bounce of the ball makes a kick less predictable, and arena football also uses narrower goal posts for all kicks than the outdoor game does).

text: During the existence of the World Hockey Association in the 1970s, there were proposals for two-point hockey goals for shots taken beyond an established distance (one proposal was a 44-foot (13.4m) arc, which would have intersected the faceoff circles), but this proposal gained little support and faded after the WHA merged with the NHL. It was widely believed that long-distance shots in hockey had little direct relation to skill (usually resulting more from goalies' vision being screened or obscured), plus with the lower scoring intrinsic to the sport a two-point goal was seen as disruptive of the structure of the game.

text: The Super Goal is a similar concept in Australian rules football, in which a 50-meter (55 yd) arc determines the value of a goal; within the arc, it is the usual 6 points, but 9 points are scored for a "super goal" scored from outside the arc. To date the super goal is only used in pre-season games and not in the season proper.[40]

text: The National Professional Soccer League II, which awarded two points for all goals except those on the power play, also used a three-point line, drawn 45 feet (14 m) from the goal. It has since been adopted by some other indoor soccer leagues.


document_title: List of country subdivisions by area

question_text: what is the biggest state in the world

question_tokens: what is the biggest state in the world

text: List of country subdivisions by area

text: List of the 50 largest country subdivisions by area[edit]

text:
Largest country subdivisions by area

Rank
Subdivision flag
Subdivision name
Capital
Country
Area (km2)
Population
Country similar in area (km2)
Rank in country
Rank among subdivisions that have that rank in their country

1

Sakha Republic
Yakutsk
 Russia
3,103,200
950,300
India
3,287,263
1
1

2

State of Western Australia
Perth
 Australia
2,645,615
2,610,600
Kazakhstan
2,724,900
1
2

3

Krasnoyarsk Krai
Krasnoyarsk
 Russia
2,339,700[1]
2,628,200
Democratic Republic of the Congo
2,344,858
2
1

4

Greenland
Nuuk
 Denmark
2,166,086[2][3]
56,615
Saudi Arabia
2,149,690
1
3

5

Territory of Nunavut
Iqaluit
 Canada
2,093,190
33,303
Mexico
1,964,375
1
4

6

State of Queensland
Brisbane
 Australia
1,852,642
4,516,361
Sudan
1,886,068
2
2

7

State of Alaska
Juneau
 United States
1,717,854
710,231
Iran
1,648,195
1
5

8

Xinjiang Uyghur Autonomous Region
Urumqi
 China
1,660,000
21,813,334
Iran
1
6

9

State of Amazonas
Manaus
 Brazil
1,570,947
3,480,937
Mongolia
1,564,110
1
7

10

Province of Quebec
Quebec City
 Canada
1,542,056
8,214,672
Mongolia
2
3

11

Northern Territory
Darwin
 Australia
1,420,968
229,675
Mongolia
3
1

12

Northwest Territories
Yellowknife
 Canada
1,346,106[4]
43,537
Peru
1,285,216
3
2

13

State of Pará
Belém
 Brazil
1,253,164
7,588,078
Angola
1,246,700
2
4

14

Tibet Autonomous Region
Lhasa
 China
1,228,400
3,002,166
South Africa
1,221,037
2
5

15

Inner Mongolia Autonomous Region
Hohhot
 China
1,183,000
24,706,321
South Africa
3
3

16

Province of Ontario
Toronto
 Canada
1,076,395
13,210,667
Bolivia
1,098,581
4
1

17

State of South Australia
Adelaide
 Australia
1,043,514
1,644,642
Mauritania
1,030,700
4
2

18

Province of British Columbia
Victoria
 Canada
948,596
4,510,858
Tanzania
945,087
5
1

19

State of Mato Grosso
Cuiabá
 Brazil
906,807
3,033,991
Venezuela
916,445
3
4

20

State of New South Wales
Sydney
 Australia
809,444
7,238,819
Mozambique
801,590
5
2

21

Khabarovsk Krai
Khabarovsk
 Russia
788,600
1,344,200
Turkey
783,562
3
5

22

Irkutsk Oblast
Irkutsk
 Russia
767,900
2,428,700
Chile
756,102
4
3

23

Yamalo-Nenets Autonomous Okrug
Salekhard
 Russia
750,300[5]
522,800
Zambia
752,612
5
3

24

Chukotka Autonomous Okrug
Anadyr
 Russia
737,700
50,500
Zambia
6
1

25

Qinghai Province
Xining
 China
721,000
5,626,722
Zambia
4
4

26

State of Texas
Austin
 United States
696,241
25,145,561
Myanmar
676,578
2
6

27

Eastern Province
Dammam
 Saudi Arabia
672,522
3,360,157
Myanmar
1
8

28

Province of Alberta
Edmonton
 Canada
661,848
3,724,832
Afghanistan
652,230
6
2

29

Province of Saskatchewan
Regina
 Canada
651,036
1,114,170
Afghanistan
7
1

30

Province of Manitoba
Winnipeg
 Canada
647,797
1,232,654
France
640,679
8
1

31

Agadez Region
Agadez
 Niger
634,209
321,639
Somalia
637,657
1
9

32

Arkhangelsk Oblast
Arkhangelsk
 Russia
587,400
350,985
Madagascar
587,041
7
2

33

State of Minas Gerais
Belo Horizonte
 Brazil
586,528
19,595,309
Madagascar
4
5

34

State of Bahia
Salvador
 Brazil
564,273
14,021,432
Kenya
580,367
5
4

35

Tamanrasset Province
Tamanrasset
 Algeria
556,200[6]
198,691
Kenya
1
10

36

Khanty–Mansi Autonomous Okrug
Khanty-Mansiysk
 Russia
523,100[5]
1,532,000
Yemen
527,968
7
3

37

Orientale Province
Kisangani
 Democratic Republic of the Congo
503,239[7]
5,566,000
Spain
505,992
1
11

38

Katanga Province
Lubumbashi
 Democratic Republic of the Congo
496,871[8]
4,125,000
Turkmenistan
488,100
2
7

39

Tombouctou Region
Timbuktu
 Mali
496,611
681,691
Turkmenistan
1
12

40

Sichuan Province
Chengdu
 China
485,000
80,418,200
Turkmenistan
5
5

41

Yukon Territory
Whitehorse
 Canada
482,443
34,246
Turkmenistan
9
1

42

Kufra District
Al Jawf
 Libya
479,160[6]
50,104
Cameroon
475,442
1
13

43

Kamchatka Krai
Petropavlovsk-Kamchatsky
 Russia
472,300
321,800
Cameroon
8
2

44

Magadan Oblast
Magadan
 Russia
461,400
157,000
Papua New Guinea
462,840
9
2

45

Heilongjiang Province
Harbin
 China
460,000
38,312,224
Papua New Guinea
6
3

46

Gansu Province
Lanzhou
 China
454,000
25,575,254
Sweden
450,295
7
4

47

Adrar Province
Adrar
 Algeria
443,782
402,197
Morocco
446,550
2
8

48

New Valley Governorate
Kharga
 Egypt
440,098
208,000
Iraq
438,317
1
14

49

Zabaykalsky Krai
Chita
 Russia
431,500
1,106,600
Iraq
10
1

50

Karagandy Region
Karagandy
 Kazakhstan
428,000
1,375,000
Iraq
1
15

text:
Area in square kilometers
Number of country subdivisions

2,000,000+
5

1,500,000–1,999,999
5

1,000,000–1,499,999
7

500,000–999,999
20

428,000–499,999
13

Total
50

text:
Country
Number of subdivisions

Russia
11

Canada
9

China
7

Australia and Brazil
5

United States, Algeria and the Democratic Republic of the Congo
2

Denmark, Egypt, Kazakhstan, Libya, Mali, Niger and Saudi Arabia
1