The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-07
THE NEW SYSTEM OF CURRENCY
PROPOSED BY
SIR BERT PEEL
IN THE
British House of Commons.
MAY O, 1S44.
ICanfinutd ]

MAY o, 1914.
IContinued1
Then what are the principles contended for BY
those gentlemen! First OF all theyaugh at the notion
of using the standard Of value now that was used
300 years ago. They say the prosperity Of the
country has Increased both in commercial and ma
nufacturing transactions, and to use the standard
now that was used in the time of Elizabeth, and
has been used ever since, shows great want of
illumination on the subject. Now, positively there
would be Just as mnch sense In saying that having
increased IN population since the time of Elizabeth
having established railways and multiplied in
wealth-we ought TO have sixteen inches in the
foot measure (aughterl. The proposition would
saying that pound should not be the foundation
OF all transactions and measures of value, not
wlthstandlng our increase in wealth, than that
foot should be foot and a half (hear and laugh
ter). Then this which is repeated over and over
again by "Gemini," is conclusive proof that they
who published it have no more conception OF the
truth with respect to the measure OF value than OF
any speculation they ever heard of in the most dis
tant part of the globe. They say what a monstrous
injustice and folly il is to tie down the Bank to
issue gold at the old rate of b. U.s. lloyd. an ounce,
the ounce Of gold representing 81. us. l0ad; is
simply this--that that is the relation which silver
bears to gold. When we had double standard,
the pound OF gold was coined into "A guneas, bni
each was made legal for payment Of debts; and if
you make the calculation, you will Ind that the
relation which gold bears to silver is Is and 213hs
to l. And what IS the meaning now Tor asking
an ounce ? I can perfectly understand it il you
say that all those who had previously contracted
debts or engagements should be allowed to dis
charge them, the 81. being for such purpose equlva
lent to what the 81. us. I0ad. used to be. II you
mean to do that. say so. and make 1t to come into
operation at some distant date. But ii you attempt
to say that the ounce off old shall not be b. lis 10id
but S., depend upon it the country will be more
your leps As
Mr.. Harris said, make what reguatonsyo will tor
the payment of your own debts, cheat, if you will,
amongst one another, but i you tell the foreigner
lent to Is instead of f3 u.s. lloyd, he will not be
bound by it. He will tell you that the alteration
only affects past events, and not the future. The
quantity of gold, the real value OF the CON- will de-
termine all future contracts. You may raise the
value of the sovereign to 22s or 23s. but you may
depend upon it, it would have no corresponding ct
feet In foreign parts. Observe, do not deny that
It was a perfectly fair question for consideration
All contracts during an inconvertibie paper cur
rency having been made in a different medium
OF exchange, when you alter the currency you
must make allowance for the difference, and hav
ing done that it is perfectly open question: But
want to show that the rate of 81. It's. l0ad. per
ounce is the proper relation between gold and sill
yer. If You ask the price in the bullion market
now that silver is not the measure OF value, you
will find that the relative value OF gold to silver
differs very little from that established in the reign
OF George l. believe silver is now 81. per ounce
instead of 5s 3D., but the relation of gold to silver
Is nearly the same as formerly Those who con-
would not alter the value of geld with reference to
gold, yet still, by making the gold Of more amount
with reference to silver, they would influence Its
price and act in favour of the debtor. But very
supply of gold from Prussia and other places, that
if we were disposed to make an alteration in the
s;aadard we could procure relaxation of contracts
by adopting silver tor our currency instead OF gold
hiYd nl,i fhatI
to take as standard that which 10 extensively US
ed, not only for the purpose OF coin but as an
article oil commerce. Wise men write pamphlets
to show that have acted unwisely in taking gold
our coin, since as article OF commerce, 1t Is
likely to be taken out OF the country. Now
maintain that 1t is just because 1t IS an article OF
commerce (hear, hear), and subject to the same
laws as other articles OF commerce, that tbecomes
fit to be the standard, and is your security for its
continuance. (hear, hear). Precisely the same
laws which regulate the import and the possession
of all other articles ofcommerce regulate the I'M
port and possession of gold by this country Bullion
is distributed according to certain laws which may
not be well understood, but cannot be opposed
throughout the world, according to the necessities
of each country. 90 further than most men on
this subject, for / say that coin and bullion, as
articles OF commerce, are regulated by precisely
the same:principles as regulates the commerce In
other articles. Some say that when there is de-
fcient harvest, and there is great demand for
corn, all coin is sent out, because we have no
other article that bear universal value. Some
say that preference is given to bullion over coin
for the purpose. Now l say that there is no
preference OF bullion over coin; II there be
any preference, | should say it would be in
favour of coin, because the exporters have a
guarantee that it is of certain fineness (hear,
hear.) But depend upon. it, you can never send
coin out of this country IN exhange uniess 1t is
more profitable to send it. II will only be sent out
when It is dearer in other countries than in this
The law which governs 1t is precisely the same as
other articles. 1t proved by this that when there
is sudden demand Tor corn or anything else, II II
is more profitable to send out woollen manufactures
or cotton, depend uponet they will send them, and
not gold or bullion. Therefore coin and bullion
are identically the same, and there is no reason
eign commodities more than any other article
(hear) These are the great elementary truths
which apply to the measure Of value. If there are
contradictions to be brought forward want those
finite statement. I have not bewildered the house
with various measures of value; have taken a
pound as the measure of value, and if any objection
is made TO this measure, let US know what that OBJ
of reading my definition in some pamphlet in an
octave volume Though these are great truths, yet
/ admit there are occasionally small circumstances
which appear to be contradictions OF them, and
if there are small circumstances and contradic-
tons which do not bear ready explanation,
we find ingenious writers ready to take advan-
tage of these little circumstances, and TO say,
4" they do not conform to your great princi-
pies, and therefore your great principles are not
true.' (hear, hear.) Why, when SIR Isaac New
ton deduced the great truth OF the planetary
movements being caused by the principle of gravi
taton, there were slight phenomena and dstur-
Dances which he could not reconcile with his
theory but other philosophers who came afterwards
detected his slight errors, and reconciled the whole
OF the phenomena and the Disturbances with the ORR
ginal great principle. So that these small differ
ences, which at first appeared to be contradiction,
were found at last confirm and support the orr
ginal theory and so it will be here likewise [hearl
Depend upon it, if you had every circumstance
everything tending to some apparent deviation
fully explained, you would find it possible to re-
concile the apparent discrepancies with the great
arc be- o's CONSISTENT with
these principles to establish some other measure OF
value than the pound which you have taken. You
might, consistently with the principles have stated
society-you might. change the standard Of value,