The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-03-11
RlME rALLlsM.
(coNcLuDED.)

only stand up for single standard and
against double standard but they
particularly advocate the gold STANDARD
as against the bimetallic one. But il
must further DO added that. while they
take this position, it is extremely rare
that they are logical, and dare to follow
their propositions to its logical conse
quences.
Thus, TO begin with the case Of Eng
land: while on one side there is no in
ciination to abandon the gold standard,
on the other there is desire to keep
the silver standard for British India; ii
is obvious there is still some light want
of onviction in tho matter.
Unless, indeed, there were wish to
keep what is good for oneself, and to
leave what is not good for others; but
no one would admit that this is the
sentiment of England towards it's Indian
empire
And in the same way at the Paris
Monetary Congress we have heard NJ.
Levasseur asserting that with the dou-
BILE standard not only are fluctuations
moro frequent, but that there is good
reason for surprising that they will
always tend towards a lowering of
price.
need not traverse this statement
again. l have already proved that in
this respect the double standard un.
doubtedly promises to gives US much
greater stability than the single stan.
dard. Itcannot be questioned, in my opin-
ion, that even should the fluctuations be
more frequent, they will be less seri-
Gus. This certainly will be an advan-
tage.
But il one believes that there is rea-
son to predict that with the double
standard these fluctuations will always
tend towards fall, which is tho Same
as saying that tho value of money as a
whole will feel the influence of the fall
in the value of silver, then one must
have have poor opinion of what is
likely to be the stability in value of
money in oou utry with a simple silver
standard. And yet Nj. Levasseur does
not seem to think that the East, with
no other money but silver, would have
any reason to complain.
confess that in all this argument M.
Levasseur has some appearance of being,
just like monometallist England, astride
on two opinions, which are contradic-
tory.
Let us confine ourselves, however, to
the assertion that the gold standard
promises greater stability in value than
the double standard, and see If that in
itself is we'll founded.
M. Levasseur said that those who
affirm that gold is scarce; that it is in
creasing and will increase in value, for
get two things: First, that instru-
ments of credit to great extent take
the place of money in exchanges, and
that there is still in business ample
room for the development of me thods
of clearing and flduciary circulation.
Secondly, that new discoveries may
add to the stock Of precious metals.
think l may say most definitely on
the contrary that those who base their
belief in the stability of the value of
money under a single gold standard
upon such reasons as these are building
their house upon sand.
1t is true, however, that instruments
OF credit can to great extent supple.
ment money in exchanges, and in
several countries great economies of
cash might still be made in this way.
But the development of a system of
credit, here referred to- dor not usually
arise except in connection with a gen
eral movement of commercial progress
In country. Perhaps it is even Cor
rect to say that it can only be the con-
sequence of such general movement:
and, II this Is so, it follows that
although it is possible enough in this
manner to do away with the necessity
OF an increase in cash, yet no real
economy, in comparison with the other
state OF things, can ever be obtained
thus.
Take, as an example of this, what
has been happening in Germany during
the last few years. The use of methods
OF clearing at the State Bank of Ger.
many has received great extension,
owing to the trouble taken by the direc-
tors OF the bank to make the process
easy. Still, even so, the development
In this direction has hardly kept pace
with the progress of business in gen.
eral A proof of this is that Germany
has required to increase it's stock of
money, rather than to decrease it by
handing over even the smallest amount
to others.
And 1t is fact beyond question that
In no case, at any time or in any coun.
try, has such a recourse to instruments
OF credit with the view of cconomizinp
the use of metallic money ever been
successful, il it has been attempted to
introduce the system in manner moro
or less artificial, or in the belief that
the only thing necessary to make it sue
coed was to prepare the way for it by
legislative measures
Further, there is another thing to
add on the subject of the applications
which have hitherto been made of this
system; namely, that the enormous dew
elopment of it, which has taken place
in England. has only been possible be-
cause 1T Is an isolated case. England,
no doubt, transacts its business with
minimum of cash, both for active cir
culation and for the metallic reserve of
her banks, and this serves her purpose,
although the consequence is that from
time to time it Is necessary for her IN
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