The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-18
Present State of the Silver Question in
Germany.

The German Government has lately sent
70 the Rechstag report setting forth the
progress SO far accomplished in the project
cd Introduction Of gold standard. In this
account Of the practical difficulties which
have attended the decentralization Of silver
some points merit special attention.
In order to appreciate the measures which
have been framed to carry out the proposed
reform, 1t mayb be well to glance at some pro-
visions Of the original law, the so-called
Monetary act OF 1871. The important fea-
ture is that while one article adopts gold as
the sole standard, another confers provision
Ally on the old silver thaler the privileges OF
gold coin. According to another clause, each
emission OF new silver must be balanced by
che withdrawal from circulation Of an equiv
alent sum In old silver pieces. 1t Is further
enacted that the new silver coinage, which
is strictly n subsidiary or token money, shall
be a legal tender only TO the extent of five dol
lars, but that the Imperial Treasury shall
give gold in exchange for it when offered in
amounts not exceeding fifty dollars. One or
two obvious defects In these provisions led
the Government to commit some blunders.
The work Of monetary reform was be-
gun by the coinage Of gold pieces on the
largest scale; indeed no silver, nickel, or
copper money was issued until some two
hundred and fifty millions OF dollars In gold
pieces had been coined. Now, the article
shove cited, which regulates the emission
Of now silver money, permits by its silence
the issue Of gold without retirement Of
equal values in old silver. This, unuckily
was done. According to figures furnished
u the Relchstag, the Government had dis
tributed 10y November, 1874 almost two hun
dred million dollars In gold coin over and
above the existing coinage, thus dlating the
metallic circulation Of Germany In less than
two years by that enormous accession. We
need not say that the consequence Of such
measure Is either an abrupt rise in the
prices Of commodities or n wholesale cxpor-
On =" Of surplus coin. The German En-
MR. .oo,,. 4, ba =" suffered both. From the
moment when the new gold crowns '"Sah to
circulate, toward the close Of 1872, prices
commenced to go up, and to stimulate
the speculation which eliminated in the
crisis Of 1873 Not, OF course that
,hia monetary error caused, but .
nreciuitated the crisis; and the PROOF IL mat
M. anprcclation Of values started e Berlin.
where the emission g; coin took place. We
may add ths.t at the epoct. named the plcth-
ora IN the circulation could not be relieved
Nv export OF gold, since France had not yet
completed its payments to Germany, and OK
change, therefore, was IN favor OF the latter
country When, howe YER that operation
was concluded, and the demand for bills on
Germany had ceased the rate OF exchange
I'll. hA
expectation Of the new gold coins began,
speedily acquiring such proportions as TO
discharge from the country in six months a
volume OF metal variously estimated at from
nfty TO one hundred and twenty million dol
lars. There was nothing abnormal in this
event but everybody, not excepting the