The Yale expositor., 1895-11-15
No Opponent of Free Silver Coinage
Can Call Himself a Bimetallist and
Tell the Truth at the Same
Time.

AS the aVOWeu purpose OF THIS pun
LEGATION is to aid in the complete resto-
ration of "bimetallism" in the United
States, it is deemed proper that the pre-
else nature of "bimetallism," or the
"bimetallic system" should be clearly
and accurately stated. In the present
stage of the controversy in this coun-
try it seems to be in the highest degree
essential that such an explanation
should be made. A large majority OF
the opponents of free silver coinage
proclaim themselves "bimetallists.
The idea of person being opposed TO
the free coinage of silver and at the
same time being "bimetallist," is alb
surd. There are certainly some who
are sufficiently familiar with the sci
,ence of money to know that they are
giving themselves false designation;
but the most of those who thus apply
the term are no doubt innocently mis-
taken.
\ There can be no true "bimetallism
with free coinage of one metal ana
limited coinage of the other. The WORD
"bimetallism" as used by monetary
WIlltIS UuGduS tAdCllg lhO 49,
,,"double standard" That is to say, IL
means a money standard consisting OF
two metals, used at a certain ratio 10
each other, both freely coined and each
full legal tender after it is coined.
! In his testimony before the Royal
Commission of England, given on the
fourth day of March, 1887, II. II. GIBBS
then a director and ex-governor of the
Bank of England, defined bimetalllsm
as follows:
4, /. An open mint, to which every
man may bring either gold or silver
to be coined.
2. A fixed ratio which the gold and
silver coins are to bear to each other.
3. The enactment that the money so
coined shall be legal tender to any
amount of the option of the payer.
Any limitation upon the coinage OF
either or upon its legal tender, de-
stroys one of the fundamental princl-
Piles upon which bimetallism rests. The
other at once becomes the standard,
while the one subjected to restric-
ton is dropped into a secondary or sub
ordinate position. The theory of BIZ
metallism is that the free coinage and
full legal tender of the two metals af-
ter they are coined will keep them at
a substantial parity. If, for example,
the value of one should rise little, by
reason of a stronger foreign demand,
the home demand for that one would
Immediately decrease and fall upon the
other, and cheaper, metal, thus act
ing as a compensation. But, If one has
free access to the mint and the other
has not, then they meet upon unequal
terms and this principle cannot act.
The one which can be freely coined will
always be in stronger demand than the
other, and, consequently, of greater
value.
Nor is this merely a theory. 1t is a
principle as we'll established as the law
of supply and demand" In fact, it is
one of the most perfect Illustrations
of the working of that law, and its cor
rectness has been proved by seventy
years of European monetary history.
In 1903 France threw open her minis
to the free coinage of both metals at
the ratio of 1914 OF. of silver to l OF. of
gold, and this mint ratio controlled the
relative market values, not only in
France, but everywhere, up to the year
1873
In 1916 England adopted the gold
standard, and at once put forth an un-
usual demand for gold. Had there been
no bimetallism in France, gold would
Immediately have risen greatly in
value. AS it was, though, large part
of the gold required by England was
furnished by France, but the demand
of the latter for silver to take the place
of the gold withdrawn by England OPP
Grated as a compensation, and prevent
ed the silver from falling or the gold
from rising, except to a very limited
extent.
Again, when the American civil war
broke out, England was forced to turn
to India for cotton. She had no silver,
and the East Indians had no use for
gold. So England exchanged large
amounts of gold for French silver.
This, combined with the immense
gold production of California and Aus
tralia, drained France Of a large por-
ton of her silver. The conditions OF
1916 were now reversed, and England's
extraordinary demand for silver was
Offset by the French demand for gold
to take its place, and again the parity
was preserved.
These are facts recognized by all
monetary writer's of sufficient standing
to be remembered fifteen minutes after
they are dead. Wolowski on the BIZ
metallic side, Jevons on the gold mono
metallic side, the Royal Gold and Silver
Commission of England, consisting of
six bimetallists and six monometallists,
all concede the correctness of the prin-
ciple here stated. But without consult
ing the authorities at all, 1t ought to
be manifest to any person of ordinary
intelligence who stops to think. When
a rich and powerful country like France
said to every man who had gold bull
lion, Bring it to the French mint and
1t shall be coined at the rate Of ounce