The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-09-10
The silver Question in France.

HAYES, Mr.. TILDEN will receive three.
The Silver Question in France.
No country which accepts silver rs
legal tender, not even India has suffered
more than France from the remarkable
decline in the value of that metal. The
discussion which took place in the Senate
and Chamber OF Deputies just before the
adjournment of those bodies brought out
some untoward consequences OF the ut
most gravity, and the necessity of prompt
aud radical change in the monetary system
OF the country was distinctly recognized
Since the beginning OF this century, what
is known az the double standard has pre-
vailed III France, both metals being legal
tenders, and fifteen and half kilogrammes
OF silver beng declared by law equivalent
to one kilogramme of gold. The fve-frauc
piece, however, is the only silver coin
which has the attributes of money, all
Others being mere tokens, debased by
alloy. and not receivable for debts exceed
ing ten dollars. We may note further
that, contrary to the received opinion, il
is not the Government which fabrcates
and issues coin This business IL contided
to contractors, the so-called Directors Of
the Mint, who work for the account Of
private persons, under conditions, indeed,
fixed by the State and subject TO its vigil
liant control Every citizen who happens
10 possess iugots has the right TO have
them coined, for which service he pays
somewhat less than one per cent. From
this rule copper tokens aud tue smaller
silver pieces are excepted, because their
issue yields IA handsome profit which the
Government reserves 10 itself.
There is no doubt that the system Of the
compartment OF the equation between the
two metals formulated by the number
l5ts has derived certain amount OF in
fuence from the association known as tn
Latin League. This monetary union was
formed In 1895 between Fiance and three
contormnous States, Belgium, Switzer-
land, and Italy, TO which Greece has re-
Gently been added. According to the con-
vention then concluded, the moneys of
gold and silver, which were the same in
the four countries, were to preserve this
uniformity, together with the privilege OF
reciprocal circulation, up TO lsS0 In other
in favor OF the ratio l5.s, although facts
might meanwhile destroy It.
1t is true that during the first seventy
years OF the present century the relative
value of the two metals was expressed
with tolerablo accuracy by the above
named formula. Nevertheless, in 1920,
the Superior Board OF Trade charged by
the Government with an investigation OF
the subject. recommended by dccisiv @
majority the adoption OF n gold standard
and but for the interruption Of the
Franco-Prussian war il is probable that
their conclusions would have received
legislative sanction. AT all events the
precipitate decline in the commercial value
o. silver which has marked the past year,
and especially tine last few months, has for
the most part .ilenced the partsans OF the
existing monetary regime. The quota
tions in London, which is the principal
market for both metals, show that the
equivalent OF a kilogramme OF gold is no
longer fifteen and a half. but about nine.
teen kilogrammes of silver. The diverg-
enco in respective values exhibited since
1870 10 well nigh equal to that produced by
the discovery Of America. Moreover, ac-
cordlng to tho late exhaustive report of a
committee of the British House OF Com
mons, said to have been written by Mr..
GoscHEN, and whiot was cited with great
respect in the French Chambers the sub.
stitution of gold for silver has gone so far
that a further depreciation Of the latter
metal is inevitable. While the Senate, in
fact, was celebrating upon the bill pro.
posed by NJ, LEON SAY, silver was nlready
| at discount OF fifteen per cent, which by
the early days q July had advanced to
twenty, aud little later was again III
| creased
Under the present circumstances, il is
| obvious that France must suffer loss OF
twenty per cent. in the ad iustment of bal
| anccs with all countries maintaining gold
standard, Thus IL London jobbius house
| owing, say, one hundred thousand francs
to a elk factory OF Lyons, buys hve-franC
| pieces either of French origin, or pertain.
| iug to some other member of the Latin
League, and transmits the deprecated sill.
yer to its correspondent. During the past
six months all obligations of long standing
between citizens, MS for instance mortgage,
| Of real estate, have suffered an naogou.
shrlnkage, the debtor purchasing silver
| ingots in open market and exchanging
| them at the mint for their full weight in
nye-frano pieces, less one per cent. More
over Belgium and Italy, where the righI
OF coinage is monopolized by the Govern.
ments, have prolted by the present none
tary crisis to food France with silver. Ii
order TO appreciate the consequences o.
this course, we must bear in mind that tn,
public funds Of those countries, who's,