Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-02-08
THE SILVER CONTROVERSY.
Important Historical Facts ON the Double and
Single Monetary Standard.
Letter From Minister washburne.


interesting summary of the views o
the more prominent European minds
on the decline in the value of silver
and also on the propriety of doubl,
monetary standard The following Il
the text of this important paper:
UNITED STATES LEGATION. PARIS.
Sir: The rapid and growing depre
citation of silver, which has for some
time attracted the attention of the
principle economists and financial
men of Europe, is becoming mat
ter of serious uneasyness to the gov
ernments that have the largest pro
portion of silver currency in the world
/ mean America, France, Germany
and England, the last named for her
Indian empire.
The question is of such vital impor.
lance, it threatens to assume such vast
proportions, and is, in so many re-
spects, connected with the measures
at present under consideration in our
country regarding the resumption Of
specie payments, that | have thought
it would not be uninteresting to you
to know how it is presented in
Europe, and what solutions the most
competent French economists propose
for crisis whose consequences might
prove disastrous for the whole com.
mercial world.
The European states may be divid
ed into two classes with regard to me-
talIc currency: those which have
adopted gold alone for their monetary
standard, and those which use both a
gold and silver standard. The first
are England, Germany, (the latter
since the first of January only and
Holland 1t may be noticed, how.
ever, that while England recognizes
no other legal standard than gold,
her immense Indian empire has no
other currency than silver. The Sec
ond class comprises France, Italy.
Belgium, Switzerland and Greece To
these we should, temporarily at least,
add Germany; for though the German
Empire has begun to withdraw its
various silver coins, and has decided
by law that on and after the 1st of
January Of the present year the gold
mark shall be the only legal tender,
il has, nevertheless, authorized, for an
indeterminlte lapse ftime, the circula-
ton of thalers.
Russia and Austria, which are both
doomed to paper currency for long
time to come, need not be taken into
The bimetalic or double-standard
system can evidently subsist but by
The assumption of an unvarible ratio
between the value of gold and that of
silver. In France that ratio was de-
termined by law of the year XII,
C803, (which is the basis ofthe French
system, and which estab-
lished for the relative value of gold
and silver the ratio of to 15t. This
means that to have in silver the equiv
alent of any given weight of gold, We
must multiply that weight by Isl.
The French ratio was successfully
by the six above named
States, and during a long time the
value thus settled underwent very
slight variations. When goldYwas
discovered in California, it was believ-
ed in Europe that this metal would
suffer a certain depreciation, and var
ious measures were resorted to in or
der to avoid the impending danger.
Holland even went so far as to declare
that gold should no more be legal
tender, but after a short perturba-
ton the relative value of the two me-
tails was brought back to its former
state, and the ratio of Isl to l re-
manned unchanged.
1t was not until 1867 that the ratio
began to experience variations detri-
mental to silver and favorable to gold.
Eighteen hundred and sixty-seven
was the year of the universal exhibit
ton at Paris. On that occasion an
monetary conference was
held there, the great object of which
was the investigation of the means of
monetary unity. The
conference, in which nearly all the
civilized countries, the United States
among others, were represented, and
to which men eminently skilled in fl
Eancial matters bad been called, gave
a large majority 10 favor of the adop-
ton of gold as the sole monetary
standard. From that moment the
value of silver began to decline. AT
first the depreciation was very slow
and hardly perceptible, but by degrees
it went on accelerating, In 1872 il
was as yet put per cent; in 1878 il
had become per cent. more. In the
course of the latter year the French
Government, in hopes of preventing
or at least restraining, the further de.
probation of silver, determined to re.
strict the coming of that metal. This
measure which was contrary to the
spirit if not to the letter of the law o.
the year XI, flor the mint for coming
as much metal as he chose, produced
an effect quite the reverse OF what was
expected; the value of silver continu
ed declining, and in 1874 its depreci
alton with regard to gold was pei
cent.
At that time other events took place
which seem also to have essentially
contributed to the depreciation of sill
yer.
Germany, whose metallic currenc!
had, up to 1870, been almost entirel,
limited to silver, finding herself aftel
the conclusion of peace possessed 0
an immense capital, resolved to unlfl
her monetary system and adopt golt
as the sole standard. She therefore
ordered that none of the foreign
coins, of which a great number wer'
in free circulation throughout the En-
pire, should thereafter be legal ten
der, called in the forms and Other
silver coins of Southern Germany ant
of the Hanseatic cities, decreed tina
on and after the lst of January, 1876
the sole legal tender should be th
gold mark, and coined gold pieces o