The advocate and Topeka tribune., 1892-10-05


Of an exclusive gold standard. What 1t
did recommend was such unihcation OF
the gold coins of the leading commercial
nations as would render them convenient
for International use. The practical
measure proposed was that the British
pound sterling should be reduced to
twenty five francs, and the American
eagle to fifty francs. The demonetization
of silver formed no part of the policy
proposed. The only recommendation ON
that point was, that nations having the
double standard should agree TO establish
such legal relation Of value between the
two metals as would not practically ex-
clude the circulation Of gold. This rec
ommendation was embodied in the fol-
lowing resolution:
The advantage Of international use which viii
be acquired bv coins Of the metal selected as
common standard will not OF Itself pc sufnclent
guarantee for th0 maintenance OF Gnelr clrCu'
latOn in each nation. but lC Will also be necessary
to be further stipulated, by nations now navlng
which have the double standard, that the re-
latiOn OF the value Of the two metals snail not
be 90 fixed as to prevent the circulation OF gold
After long discussion, this resolution
was adopted unanimously. The repre-
sentstives of two nations Prussia and
the United States) declined to vote, and
the latter (Mr. Ruggles) for the express
reason that 1t recognized the continuance
of the double standard, to which he was
opposed.
It will thus be seen that the action Of
Germany in 1871 was In no respect con-
formable to the recommendations OF the
Paris conference. Germany, In demone-
tizing silver, did what that conference
did not recommend, and In refusing TO
adapt its coinage to international use, did
not do what that conference did recon-
mend.
It Is, therefore, not the Paris conference
Of 1867 but the legislation Of Germany Of
1878, which compels 8 review Of the
grounds upon which gold and silver have
always and almost universally been re-
garded as equally money metals, and a
consideration Of the policy and the con-
sequences of abandoning the monetary
use of one Of them. No question more
Vltally affecting the interests and happi-
,.onr ~ Rho human vaoo h0a auap cIaimad
discussion and decision. 1t Is no such
question as was supposed to exist twenty
years ago, when the anticipations Of the
Californian and Australian yield were 30
exaggerated beyond the actual event as
to create belief, more or less extensive,
that the stability Of the standard Of values
required the demonetlzRtlon Of one Of the
metals. The yield Of the two metals
since 1848 has not, upon the whole, raised
the prices of commodities much, if at all,
and this yield, instead Of increasing, has
been for several years rather decreasing.
The danger which mensces is, therefore,
not plethora, OuG scarcity OF money
even if both metals are retained as such.
But with the demonstration Of one Of
them we should witness contraction
and scarcity of money and fall in prices
which, in magnitude and SuddennesG
combined, has no precedentin the history
of the world, and in respect to the con-
sequences of which we have no adequate
experience to guide US. The money stocks
OF the world were diminished after the
overthrow Of Roman civilization, but only
by the slow process of current supplies
falling below current consumption and
loss. But the general demonstration oi
either metal. IL carried into immediate