Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-12-06

Henry Dunning Macleod in November Nine
teenth Century.
In the September number of this re-
view Mr.. j. P. Heseltine makes an APP
peal to monometallists to give state
ment of the reasons for the faith which
is in them. | propose in the following
remarks to give very brief and concise
account of the facts and arguments on
which our present system of mono
metallism is founded.
This vast and intricate controversy
NAV all be reduced to single simple
and definite issue.
Surprising that gold and silver are
coined in unlimited quantities, and a
fixed legal ratio enacted between them.
~ Is it the fixed legal ratio enacted
between the coins which governs the
relative value of the metals in bullion
t2.) Or is it the relative value of the
metals in bullion which governs the
relative value of the coins2 49, And
If no single and separate States can
maintain fixed legal ratio between the
metals when coined in unlimited guam
titles, can an International agreement
among the principal mercantile coun-
tries in the world do SO? This is the
whole gist of the controversy, and all
facts and arguments adduced must be
directed to establish one of these issues.
Charlemagne established the system
of coinage which was adopted through
out Western Europe. He made the
pound weight of silver the standard,
and divided it into 240 pieces called
pennies For some centuries these
silver pennies were the only coins in
circulation. For considerable period
the kings of France coined these pennies
at their full weight and tineness. But
about the beginning Of the twelfth CEN
fury they began not only to diminish
their weight, but to debase their purity
They considered it part of their inalien-
able divine right TO declare that their
subjects should accept the diminished
and debased coins at the same value as
the good coins of full weight
They further complicated matters by
issuing gold coins, and they considered
4 it as part of their divine right to change
the rating of these coins with respect to
each other as often as they pleased.
These constant tarnperings with the
coinage produced connections and dis
turbauces, and drove away foreign trade
from the country. At length that great
sovereign Charles ", justly surnamed
the Wise, perceived that the only way
to restore prosperity to the country was
TO reform the coinage. He referred the
matter to one of his wisest and mos
trusted councillors, Nicolas Oresme
who, in answer to the appeal of his SOW
ereign, drew up his now famous Traicti'
de la premiere invention DIES Monnoies
in 80 chapters, which has only recently
been brought to the notice of economists
After explaining the true nature anC
uses of money, he laid down the follow
ing principles;
az That the sovereign has no right t.
diminish the weight, debase the purity
or change the denomination of the coin
age. To do so is robbery.
(2) That the sovereign can in no cas-
fix the value or the purchasing powe
of the coins. 1.-The could do so, he coul
fix the value of all other commodities
which was indeed the idea of medi@vs
sovereigns.
(3.) That the legal ratio of the coin
must strictly conform to the relatiy
market value of the metals.
az That if the fixed legal ratio of th
coins differs from the natural or marlSt
value of the metals, the coin which
moderated entirely disappears from ci
culation, and the coin which is owe
rated alone remains current.
(5.) That if degraded and debast
coin is allowed to circulate along wit
with good and full-weighted coin, q
the good coin disappears from Giro
lation, and the base coin alone renal
current, to the ruin of commerce.
This great treatise, which may
M said to stand at the head of mode
~ economical literature, contains t
iif fundamental principles of money viii
8ff are nov accepted by all sound econol
yI5F lists; and it was out of these principl
5fl that the system of monometallism W
\. developed at the close of the seve
INA teenth century.
WI The same ideas and evils existed
~ through Europe,and were called morb
IA numerous.
N Poland, which then comprehend
the modern Prussia, was afflicted wi
these evils. Sigismund the First, XII
of Poland, sought the advice of Cop
nicus, who was member of the Pr
sian Diet. At the instance of Sis
mund, Copernicds drew up maste
treatise on money, which he EMIT
"Ratio monete cudende," which
only been discovered within the pres
century, and is included in the magn
cent edition of his works printed
Warsaw in 1854.
Copernicus had no knowledge of
treatise Of Oresme, written 100 ye
before his time, but he came TO exac
the same conclusions. They were:
~ That it is impossible for the Pri
to regulate the value of the coins, oil
any other commodity.
(2.) That all the Prince or the law
do is to maintain the coins at their
legal weight, purity and denominati
49, That it is robbery for the Primo
change the denomination, diminish
weight, or debase the purity of
coins.
a. That tits impossible for good t
weighted coin and base and degra
coin to circulate together; that ali
good coin is boarded, melted down
exported, and the degraded and debs
coin alone remains in circulation.
% (5.J That the coins OF gold and 81
must bear the same ratio to each o.
as the metals do in the market. Ore
and Copernieus quite agreed that
impossible to keep gold and silver C
in circulation together in unlim
quantities at fixed legal ratio diffe
from the market value Of the metals
(6) That when good coins are iss
from the mint, all the base and degrs
coins must be withdrawn from Giro
ton; or else all the good coins will
appear, to the ruin of commerce
The early English sovereigns did
debase their coinage. out immense q,
titles of base and degraded coins we
circulation, and consequently all
good coin disappeared as soon as it
issued from the mint. Edward the
..,o, tl,n -