The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-10-04
ANOTHER KIND OF BI-nETALLIS7


We hear a great deal of the kind of
bimetallism which calls for two kinds OF
metallic money, each OF which is TO be
made receivable by law in the payment
of debts. This theory, of course, involves
the establishment by the government. of
a ratio at which the two metals used for
money shall be at a parity.
1t is obvious that the establishment of
ratio is one ching and the maintenance
of it quite another. The legal ratio, TO
be an honest one, must conform to the
commercial ratio of the two metals, or
public credit is certain to be disturbed
and ultimately somebody cheated. Yet
it is plain that the ratio between any two
articles that are the products of labor.
like gold and silver. is mpossible of
permanency, for production or the pro-
oesses en- pIoyed in production are bound
to change it.
1t was this view that suggested an
other kind of BIN etalisn to many pro-
found thinkers on finance. Its most dis
tinguished advocate was the late Duke
of Noailles, a French economist. lie
strongly opposed what is ordinarily
meant BIZ ''bimetallism," but believed in
what he called parallel and independent
bimetsllism."
He considered the attempt to maintai
any given ratio simply absurd, and argued
that we might as well attempt to main
tain legal ratio between wheat and bar
ley, which would sesm about as sensible.
He held that the value Of coin. as
regards tho bullion in it, can only be
guessed at, as it changes With the rise or
fall of the market, VIII lie fixed rate is
permanent, whether it be gold or silver.
Hence he urged governments Ito put
aside all idea or notion of com parative
| value and let it be one absolute market
value of so much weight OF metal"
Thus two metals, gold and silver, could
bs used in oins and circulated indepen-
IDENTIFY of each other, and without any gov
ornamental discrimination for or against
either. tie explains the practical opera
ton of his theory thus: The parallel
existence of two kinds of indepen dent
metal COINS would enable business men
to choose one or the other according to
the varied needs of international ex
changes. Gold for England or Germ any,
silver for Mexico or China, just as the
buyer and seller choose to arrange. Every
/ y
in use within its borders. The wei ht
of the money exchanged would be the
true and universal monetary unit, and
civilized states could agree upon unit
of weight
OF course. with this plan all kinds of
financial obligations would have to be in
Cured with an express stipulation as to
the kind of money meant, parallel and
independent bimetallism" as set FORTH
simply amounting to ths maintenance of
two non-interohangeable systems of
money, the choice of them beng a mat
ter of express or implied contract.
This monetary theory has, as far as
known, but small following. but among
it's CHI smpions are some admittedly able
men, who have gwen financial subjec
deep and candid study, with view of
ascertaining not what is expedient, pop
ular or polite, but what is sensible an d
, right. Ex-senator Farwell, one OF the
most prominent and successful financiers
of Illinois. and James G. Mcguire, con-
gresham from this state, su ntially
accept the theory, and in the last con-
gress Mr.. Mcguire introduced bill for
the coinage of gold and silver that pro-
vided for the issuance of coins which
should bear the stamp attesting their
weight and fineness, in order that people
might take them for what they were
( really worth, instead of what the gov
eminent affirmed them to be worth
The fact that this kind of bimetallism
has comparatively little following Mt
, present should not initiate against it in
the minds of those who are seeking
| financial truth. At one time the doc
trine of free government was equally
, barren of support. The character of so m e
of the men who have endorsed it be-
: speaks for it fair consideration.
There is one fundamental and there
5 fore Important truth that it recognizes,
, ana that is that government cannot con-
| fer value. Only the demand that follow:
use can do that. This basic truth is by
many entirely lost sight of, especially
by the contemporary advocate of free
coinage at l6 to l.
Now then, the reason for intrinsic
t money like silver and gold lies IN the
contention tnat when men part with
+ property it should be for other property
= that they should only give something
5 for something else of equal value. Thus
no man could be cheated. This belief i.
| the oasis OF an intrinsic money system.
Therefore it follows that the money o
such a system is good in the degree that
it conforms to the requirements of this
theory. Hence the money of an intrinsic
. system to be perfectly honest, must bt
worth as property the amount that j.
. stamped on its face. Otherwise, in thu
end someone will be cheated, and 1t vii
: invariably he the man who can least en-
dure the dishonesty.
So it is plain that if we would adhere
logically and consistently to the none.
tary theory that We have adopted-the
. intrinsic-we must have no dollars tha
u are not worth as much without the gov
eminent stamp of value as with it.
t The Durrant trial is developing the fac
t that sometimes men creep into the pull
!. pit who Go no. quite fit the requirement.