The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-03-10
BIMETALLIsM.
An Interesting Article on This
Subject.

The following interesting article on
the advantages of bimetailism hy G. NJ.
Boissevain, Fellow of the London In
statute of Bankers, member fthe Coun
Amsterdam, and correspondent of tho
Society of Political Economy at Paris
and of the Manchester Statistical So
'ciety, which is taken from en- essay on
the monetary question tlat obtaiEed
the prize offered by Sir Fl. Nj. Meysey-
Thompson, Bart, at the Faris Monetary
Congress Of 1889 has been translated
from the French by G. Townsend War
ner, Fellow of Jesus Collage, Cam bridge.
The first advantage that claimed for
bimetallfsm was that it is the only sys-
tenn by which it is possible to attain
monetary unity in the commercial
world. This monetary unit existed, in
phrase, for admit that the state of af-
fairs was not perfect-from the COM
mencement of the century to about 1873.
During the whole of this period tho
system of the double standard with a
fixed ratio in France, and later in the
countries of the Latin Union, was suf-
ficent, owing to tho manner in which at
the time other countries were divided,
some with gold standard and others
with silver standard, and the condi-
ton of the two metals which was thus
established in the various countries, to
maintain everywhere ratio of value
between gold and silver which did not
differ widely from tho ratio established
by law in France.
Now, however, we know only too we'll
that this practical unity is no longer in
existence. Let us review as brieIy as
possible the causes of the rupture.
Between 1860 and 1870 there was
movement tending to the extension of
the monetary union inaugurated by the
Latin Union, and there was q general
inclination to agree that the new bond
OF union should DO and could be gold
standard as tho only standard. Then
came the war of 1870, which put an end
to all the negotiations which had been
opened on the matter.
But after the war Germany, having to
organize monetary system for the new
empire, adopted for purpose-whether
still under the influence of all that had
been said and written on the subject of
the monetary question in preceding
years, or whether for other reasons
the gold standard, replacing with it the
silver standard, which had hitherto been
the monetary standard in all the Ger
man countries.
1t is indubitable that that this none
tary reform brought about wides pread
revolution in the state of affairs. The
monetary equilibrium which had, till
then, existed was menaced and soon
completely destroyed. Could it possibly
have been maintained by any action on
the part of France or other members of
the Latin Union? That is hardly prob
able; we might go further and state it
was quite impossible.
1t was rendered still more impossible
as Germany, Norway and Sweden and
the Netherlands followed more Or less
the example set by the German empire
Above all, at the same time there be-
gan an alteration i'll the annual produc.
ton of gold and silver, which affected
the relative Importance of the two met
ais. On the one side the supply of sill
yer increased; first, because more was
produced, and, secondly, because states
who had formerly used it now had it to
sell, SO the demand for the metal dimin
ished.
On the other side thore was smaller
supply of new gold, while at the same
time the metal found new purchasers.
We IF ay then approve the resolve of tho
new French government and the other
members of the Latin Union to sus-
pend the minting of silver. But it is
none the less true that at stroke all
bond between the two metals was
broken. Since that time there has
been no direct connection between tho
value Of gold and silver Their rate
of exchange for other commodities is
now perfectly Independent. and is de.
termined for each of them by the action
of supply and demand acting on each
separately.
10 go back upon what has happened
in the last fifteen or twenty years is
impossible. The practical monetary
established as a result of similar
arrangement
There is only one means of regaining
this monetary unity; it lies in the or
ganization of general agreement, and
in all tho contracting parties taking
part In this organization on perfectly
equal footing.
m otner words; to re establish the
link which existed formerly between
gold and silver in the commercial world
as whole, 1t is necessary now to re-
store it in each sveral part OF the whole.
This will at the Same time be tho
means of establishing it more solidly.
Bimetallism is the one monetary
system which in practice lends itself to
this organization.
In theory ,rtainly it Ia easy to admit
monetary unity based on single stan
dard, but only up to a certain point.
For rich countries would never DO will
ing to give up the use of gold alto !.
gether; while it must be remembered
that in many countries the adoption of
gold standard would be an absnrdity,