The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-16
OF SILVER AND GOLD.
WHY A DOUBLE STANDARD HAS
NEVER BEEN MAINTAINED.
The Attempt to Restore Bfmetaitis" ."
Epdeavsr 70 Revive an Idea that the
Govsrnmsnt Can Fix valacs.

In the Nineteenth Century Review fo'
November there Is an able and conclu-
awe article upon the attempt 20 revive
bi-metalism. by Mr.. Henry Dunning Mac
Lcod. from which the following ex-
tracts are given:
This vast and intricate controversy
may all be reduced to single. simple and
definite issue.
"sa,pposing that gold and silver are
coined In unlimited quantities.. and a
nxed legal ratio enacted between them
4. Ia II the fixed legal ratio enacted
h..tween the coins which governs the reln-
tive value OF he metals In buiiion! =
OR is IL the relative value OF the metals
In bullion which governs the relative
value of the coins? 3. And II no single
and separate States can maintain fixed
legal ratio between the metals when coin
ed in unlimited quantities can an inter-
national agreement among the principal
mercantile countries In the world do so?
This is the whole gist OF the contro-
yersy, and all facts and arguments ad-
duced must be directed TO establish one
OF these issues.
"Charlemagne established the system OF
currency which was adopted throughout
Western Europe. He made the pound
weight OF silver the standard. and d.
vided 81 into 2i0 pieces. called pennies.
For some centuries these silver pennies
were the only coins in circulation.
For a considerable period the kings OF
France coined these pennies at their iuil
weight and fineness. But about the pc
ginning of the twelfth century thty
began not only to diminish their weight,
but 10 debase their purity. They con-
adhered IL part OF their inalienabie. divine
tight 10 declare that their subjects should
accept the diminished and dcbasod coins
at the same value as the good coins or
full weight.
They further complicated matters by
issuing gold coins, and they considered IL
part OF their divine right to change the
rating Of these coins with respect to each
other as often as they pleased
oRYsNEs PBISclPLrs
"These constant tamperings with the
coinage produced connections and dis
turbances and drove away foreign trade
from the country. At length that great
sovereign, Charles the Fifth justly sur
named the Wise. perceived that the only
way TO restore prosperity 10 the country
was TO reform the coinage. He referred
the matter TO one of his wisest and
most trusted counsellors Nicolas Oresme,
who in answer to the appeal Of his SOW
erelgn, drew up his now famous "Traictie
de la premiere invention des Monnoies,
I'm twenty-six chapters, which has only
recently been brought to the attention of
economists.
After explaining the true nature and
uses Of money, he laid down the following
principles:
l. That the sovereign has no right TO
diminish the weight. debase the purity,
or change the denomination of the coin
age. To do so is robbery.
. That the sovereign can in no case
fix the value or the purchasing power OF
the coins. II he could do so he could fix
the value of all other commodities. which
was. indeed. the idea OF medieval SOW
ereigns.
3. That the legal ratio of the coins
must strictly conform TO the relative mar
ket value of the metals.
4. That " the fiXel legal ratio Of the
Coins differs from the natural or market
value of the metals, the coin, which is
moderated entirely disappears from
circulation. and the coin which is over
rated alone remains current
5. That II degraded and debas ID coin Is
allowed TO circulate along with good and
full. weighted coin. all the good coin dis
appears from circulation. and the base
coin alone remains current. TO the ruin
OF commerce.
This great treatise. which may be said
to stand at the head of modern economic
al literature. contains the fundamental
principles of money, which are now ac-
cepted by all sound economists, and ii
was out of these principles that the sys-
TEN OF monometalism was developed at
the close Of the seventeenth century -
THE CONCLUSIONS OF CoPrRNICUs.
"CopcrnlCus had NJ knowledge Of the
treatise of Oresme. written l6 years be
fore his time. but he came TO exactly the
same conclusions. They We're:
| That IL & impOSSiblp for the priuCp to
regulate the value OF the coins, or od
any other commodity.
.. That all the prince or the law can do
is to maintain the coins at their full
legal weight, purity and denomination.
g. That IL is robbery for the prince to
change the denomination, diminish the
weight or debase the purity of his coins
L. That II is impossible for good. full
weighted coin and base and degraded
coin TO circulate together; that all the good
coin is boarded, melted down or exported.
and the degraded and debased coin alone
remains in circulation.
g. That the coins of gold and silver must
bear the same ratio TO each other as the
metals do in the market. Oresme and
Copernicus quite agreed that II is i'm
possible TO keep gold and silver coins In
circulation together in unlimited quanti-
ties at fixed legal ratio differing from
the market value of the metals.
s. That when good coins are issued from
the mint all the base and degraded coins
must be withdrawn from circulation, or
else all the good coins will disappear, TO
the ruin of commerce.
THE FUNDAMENTAL LAW or COINAGE.
THE great fundamental law of the
coinage soon became common knowledge.
II Is thus stated In a pamphlet in 1896:
When two sorts of coin are current in
the same nation OF like value by denomi-
nation, but not intrinsicaly Il. e., the
market value), that which has the least
value will be current, and the other az
much as possible will be hoarded--or
melted down, or exported. we may add.
This great fundamental law of the
coinage has been found to be universally
true In all ages and countries. and was
henceforth recognized and acknowledged
in all subsequent discussions on the coin
age.
1T applies in the following casts:
/. II the coins consist Of one metal
only. and clipped. degraded and debased
coins are allowed TO circulate together
with good coins. all the coed coins dis
appear; they are either boarded, or melt
ed down. or exported. and the bad coin
alone remains in circulation.
? II coins of two metals. such as gold
and silver, are allowed to circulate to-
gether in unlimited quantities at a fixed
legal ratio. which differs from the market
ratio OF the metals. the coin which is
moderated disappears from circulation.
and tho coip "a IL alopa