New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-11-20
n cERyUsCHI ON BLuETALLISM.

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N. CERNUSCHI on BIMETALLISH
Henri Cernusch has published another
pamphlet, in answer TO letter from MI.
Gibbs. formerly Governor of the Bank OF
England discussing the question OF silver
RECOMMENDATION with especial application to
the interests Of Great Britain. The docu-
ment is n valuable contribution to the discus
sion of this subject, although it contains
much less that is applicable to the questions
arising in this country than the preceding
pamphlet from the same pen. The author
reasons with his usual earnestness and force
that III event of an agreement as to the ratio
of coinage between France, Great Britain,
Germany and the United States, all other
European nations would DO compelled
TO adopt the same position, and bi-
metallic system, strong enough TO con-
troll the commerce of the whole world,
would thus be established. There would re-
main. he reasons, the Asiatic silver system,
which he thinks would DO speedily modified
by an adoption of the bimetallic system in
India, under the direction of England, for Its
own protection. China and other Eastern
countries would doubtless adhere to the use
of silver only but the exchanges with these
countries are not so important that the COM
merce of the Western world would be greatly
disturbed 10y that adherence Moreover, NJ.
Cernuschi insists that the bimefallc plan
having been adopted 10y the -four nations
favorable to them. but that the only disturb
ance which could then arise would be in tho
form of a moderate rate Of exchange in favor
of Eastern nations.
Much of the pamphlet is devoted to a dis
cussion Of the possible effect of dOCblo coin
age Oh a fixed ratio upon the reserve of
the Bank of England. Apt quotations are
made from the speech OF Sir Robert Peel, at
the time of the passage of the Bank Act, in
which Mr.. Peel conceded that an issue of
notes based in part upon silver bullion was
desirable, and might become necessary. NJ.
Cernuschi reasons that no great increase in
the proportion of silver accommodating in the
reserve of the Bank could possibly occur
as long a. every nation could dispose of its
surplus readily through the coinage on n fixed
ratio. The present condition of the Bank of
France. as shown by return recently made,
might seem to controvert the reasons of Ger
nuschi in this particular. II appears that the
steady increase in the proportion of silver
reserve, which has been going on since 1876,
has been more rapid during the last year
than ever before; that the increase In the
amount Of silver on hand has been not less than
l54O00,000 francs to October %. and that the
entire specie reserve OF the Bank is now COM
posed OF 80 per cent silver and only IL per cent
cold. Undoubtedly since October %, the
change has been in the same direction, for
gold to a large amount has been shipped to
this country, and the loss of specie to the
Bank has been only in part compensated by the
increase OF silver. 1t is probable that the Bank
does not now hold more than about $50, 900, 900
francs in gold against 1880. 100000 francs
or more of silver. Still, il must be conceded
that this accumulation of silver and loss
of gold has been due to the peculiar
position of France with reference to Eng
land and Germany, two nations which
strive to exclude silver from their circu-
laton altogether. 1t Is at least possible
that under the system advocated by NJ. Ger
nuschl. the surplus of silver would be taken
away by Eastern nations, or so distributed
among the nations OF Europe and America "a
to cause no serious embarrassment at any
point.
The argument presented in this pampblet
indicates that public opinion in Great Britain
is becoming more fully aroused on the sub
iect which Mr.. Walker has recently so we'll
presented in his capacity as agent of the
State Department. The argument of Mr..
Gibbs, who was one of the British Commits
sioners to the Paris International Conference.
and there most stOutly opposed any stems
looking toward reconciliation of silver
has already been noticed, and other signs
of similar import are mentioned by NJ.
Cernuschi in his pamphlet. He believes
and there is good reason to believe
that the main obstacle to a change of
policy III Great Britain is the present atti-
tude of the United States. At the same con-
clusion, it appears, Mr.. Kelley, of Pennsyl-
vania, has arrived, for It Is announced that
after having most strenuOusly advocated sill
yer coinage in this country, he is determined
now to favor repeal of the Silver bill. Sec
rotary Sherman, it Is reported. will recon-
mend that course earnestly In his forthcoming
report, and 1t will surely attract more atten-
ton IN Congress, and be more likely To receive
favorable consideration. ON account of the
views of Mr.. Kelley and those so recently ex-
pressed with force by Henri Cernuschi.
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suit lust tried IN Brooklyn is noteworthy from
the peculiar character of the plaintiff and tho nov