New-York tribune., 1882-04-28


England" must be permitted to quote entire
passage from Mr.. Gibbs's pamphlet at page ~:
That any single metal should be universally
money we need intern ational consent: but neither
for a gold measure of value alone nor for silver
measure of value alone have that International
consent and see moi hing IN the of the thing
why all nations should not arrive AT a common con
sent both together in certain relative ratio
TO the establishment of tree mintdge to pro-
duce as its consequence continuous and unTesriced de-
mand and thus to preserve that ratio unaltered
The italics are my ownl
He goes on to examine with great candor and
ability the objections that have been urged, and
answers them. He fully perceives the distinction
between attempting to fix by law the money vaue
of anv commodity, which is impossible and the
legal enactment that debt of f3 lis. 10l2d. may
be discharged either in an ounce of standard gold
or in l5lo ounces of standard silver To quote him
again:
The words price " and value y seem to me to be
misapplied in describing the mutual relation of the
metals forming together what venture 20 call one
metallic standard of value, that is to say, forming
inseparable parts of one monetary system Money
cannot measure money, both metals being accepteu
as money. up. 4s-9.l
He shows that in Bimetallic Union of the COM
mercial nations there could be no cheaper > or
dearerD metal. and therefore that the fears are
groundless that the dearer" metal would dIsap-
pear. There could be no difference between the
| mint-prlce aud market-price of silver; for no
holder of silver would sell his 15l2 ounces stand
| ard for less sum than f3 us 10l2d. or f3 LIS.
| Cd bank price when by taking them to the mint
| he could by law have them coined for hlm into
pieces of silver nineteen double forlns and small
changer which would be a legal discharge for a debt
of that amount" Nowhere could silver be procured
at cost of fewer commodities than gold. Nor,
| reasons Mr.. Gibbs will the silver miner anywhere
sell his silver for less than he coud get for 1t at the
nearest mint less cost of carriage and interest no
matter what the cost of production. There would
| be 10 cheaper metal" for debtors 10 get the
| benefit Of Prices will be counted not IN the
| miners silver only. but in his neighbors gold as
we'll" Surprising both metals to be money under
! an international compact Their cost of produc
ton will then regulate their value, not IN one an
other, but IN other commodities only" p 81
Nh Gibbs advises England to coin full legal
tender silver coin, double form or dollar with Tree
coinage of both gold and silver; and he urges thst
! England should lead the way toward blmetalllc
union lest the other commercial nations, influenced
| by the expectant attitude of Great Britain shoulu
| be forced to ADOPT the gold standard. with the
disastrous effect upon the worlds prices which
would necessarily result therefrom he thinks
that all Europe would follow Englands lead INTO
an international compact; but even II all the
nations did not and if Mexico, China and others
remained outside. stll the monetary union OF the
principal commercial countries would keep the
ratio steady bet ween gold and silver How great
would be the difference between the action OF the
whole commercial world heretofore upon France,
and the action OF a few nations upon large
number in case of a bimetac union Mr.. Gibbs
is convinced that the simultaneous use of both
metals az legal tender would not materially change
the habits of the respective nations in their modes
of domestic payments; in England ali large sums
would be paid, as now by check, lesser sums by
bank-n notes and all smaller ones by sovereigns and
silver change Local payments in silver standard
coins would be only exceptional The real differ
ence would be in international payments" IN
shipments of bullion TO rectify the balance OF trade
between ourselves and other countries The Bank
of England would hold gold and silver bullion in
discriminately. upon which It's notes would be
issned and the silver would for the most part
remain in the vaults The amounts of the two
metals so held would be always varying. not by
reason of any imaginary cheapness or dearness Of
either metal but according to the varying condition
of the balance of trade of the sver-usng or gold
usnp countries respectively in relation to Eng
| land" (p co.
| I have quoted thus freely from the opinions of
| Mr. Gibbs because of their great value and espe-
callv a. coming from an Englishman of the highest
standing and ability in the English financial and
commercial comm unity. The appearance of his
pamphlet. backed by his high authority and that
| Of the present Governor of the Bank of England,
was an event calculated to produce profound inn
| nression IN the commercial centre of the world.
| His arguments could not be sneered at or laughed
| down. and | am not aware OF any OF his learned
| tbeoretic antagonists having attempted 70 refute
| his logical and practical reasonings. On the con-
trary his views already shared By many of his
| countrymen, and working that change IN
British public opinion, the evidence of which are
SHOWN themselves on all sides.
In The NiaeteeRth Century magazine for June,
1851. Henry T. Grenfell, the aforementioned
Governor of the Bank of England, published a
verv important article entitled "What Is
Ponpd :" with the object of showing that England
ourht TO return 10 the ancient standard of the
realm which was bimetallic previous to the sus-
pensiOn of cash payments at the time OF the Napo-
leonic wars, rather than adhere to the system
founded upon Lord Liverpools letter. Mr.. Grenfell
quotes Mr. Gilen the eminent authority IN proof
of the present decline of prices simultaneous with
falling off IN the supply of gold and increased de-
mand for that metal and deprecates the evil OF vlo-
lent, sudden and frequent oscillations IN the price
| of commodities He refers to the fact that England
! was bimetallic from 1717 to 177s and he might
have said down to 179S for silver was legal tender
| bv weight down to the latter date that during
| the activity of French bimetasm from the begin
ming of the century down to 1873, gold and silver
were kept almost exactly at the French legal ratio
of lJLo to l. not only in France but IN the markets
| of the world that Engand's resumption of cash
pavments in gold in 1915 caused sn important loss
TO debtors and gain 10 creditors and that the more
| serious of the monometallists admit the superior
steadiness Of the bmetallic system. Giving full
credit to Lord Liverpool, he argues that neither
| that eminent man nor Locke had any idea of cos
| mopoltan agreement upon such matters; and Mr.
Grenfell finds the most telling argument IN favor Of
| hinetallisn bx AGREEMENT in Lord LLverpOOIs