Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1879-08-12
nrruANY TO REaoNErlxE
SILVER.

Tho Official announcement that the
osrmsn Government has relaxed its OPP
eto silver currency so far as to
81 4fine TO discuss with the United
stssss. : proposition for an international
sgrssmsntppon tho bi.metallic standard,
IL Of great financial significance and i'm
por.anos. The ~telesrsph informs US
that acompstsnt special agent left Wash
inaton for Europe recently on this mis-
sion. There Is little doubt that Bis
msrck, having become satisfied that tho
German Treasury has lost heavily by
silver demonstration, is now disposed
to reverse his policy and adopt the
double standard. Is indispensable to
promote Gsrmauy's disorganizsd trade
With silver.dssling countries. English
economists are also coming to regard the
disuse Of silver - tho main cause OF
the country's general commercial de-
preston. France and Italy will resume
silver coinage as soon as relieved from
the danssroi German sales. which they
will DO, Il il believed. at an early day.
In pursuance OF this subject. . Berlin
correspondent writes:
There arc good reasons to doubt whether
the adoption Of the gold standard was .
wise measure for Germany. Sho has GER
tainly incurred very great losses BY the
sals Of silver made necessary BY its demon.
citation, and still more by the circum-
stance that her citizens own large mounts
Of Austrian stocks. bonds and shares. tho
dividend and interest Of which are now
paid in Q currency deprecated BY 10 per
cent. But, even II We accept the ueces-
atty or the advissbility Of the measure.
grave faults we're committed In carrying 1t
out. The great difficulty in passing from
q currency TO another Is that OF deter
mining the proportion from which to
start. Now, tho Governments at drst simply
intended to issue new gold coins. to DO
taken by all revenue Offices at . certain
value. which was on no account to be
diminished, but might be raised II the
price Of gold should rise In the general
market. This was simply rational. The
public, sure not 10 lose. would willingly
have accepted the new coins. while. with
any rise In the price Of gold. they a. well
- the Government would have made .
proft. Instead Of adopting this plan. the
leaders Of the majority induced the Gov.
srument 10 declare at once for the gold
standard, but to introduce Professionally
the double standard with the proportion
Of l:l6k, without considering that the i'm
pending demonstration Of silver was sure
10 altar that proportion In the general
markst 10 the disadvantage oil silver. and
that With q double standard everybody
{ pAys In the cheaper metal. while the
nonsy.deslsrs take advantage OF that dit.
ference By, buying up In the home
market Tie better metal with the
cheaper, In order TO export the
former. The speaker Of the majority.
Herr Bamberger tried to rsfuts argu-
msnts like these by maintaining that the
payment Of the French indemnity would
Tor years keep the rate Of exchange at .
hight advantageous for Germany. But DO
overlooked the circumstance that, with
the impending change In prospect. the
German mints had ceased to coin silver,
while gold was not yet coined I; thus re-
stricting the circulating medium q con-
tributing to raise the price Of bills on Ger
many. A soon, however. -. by the trans
formation Of the war-treasure and by the
repayment Of State loans from the pro-
cseds Of the French indemnity. large
quantities Of silver were thrown into the
market. its price began to sink. The ex-
pstienced French Minister. Leon Say.
took advantage Of IL. He bought 90 mil.
lions Of francs In German silver. coined
them into 6-franc pieces and sent them 10
Berlin. The indemnity was paid much
oauss which had kept the rate Of exchange
on Germany at an artificial hight disap-
form was far from being completed. the
n~swly-coined German gold began to emil
crate.