Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1895-10-20

1t may be said, such a result could only
have been obtained in an age when the
natural and commercial conditions OF
supply and demand remained nearly the
same for the two metals. | answer, that
during the seventy years referred to, the
conditions of production of the two met
ais underwent the most marvellous
changes, of a nature widely to sever their
market values. When the French law
was passed, So worth of silver was beng
produced for 81 worth of gold. Near the
middle of the century 20 cents worth of
silver only was being produced for 81
worth of gold. Such an overwhelming
change in the conditions of production
must necessarily, had it not been for the
bimetallic system, have produced ire
mendous down fall of gold, but the vir-
tue of the French law was such that the
legal ratio was but small fraction de-
parted from even in the height of the tor
rent, and the permanent ratio wes very
slightly affected. 1t was not until after
the tide had turned. and silver was agaih
being produced more freely than gold,
that the bimetallic system was aban-
doned, as the result of the hostile action
of Germany in 1873.
Now, not only was this result reached,
but 1t is admitted by all candid mono
metallists that it was due to the cause
indicated. Chevaller. the greatest
French economist of his generation; Lex
Is, the best econimic statistician of Ger
many; Cairnes, Bagehot and Jevons the
leading monetary English writers of
their time-these and scores of econom-
lists and statisticians have confessed that
1t was the French law which held gold
and silver thus steadily together, in
spite of powerful causes tending to pro-
duce divergence between them. The re-
cent English gold and silver commission,
under the Craftsmanship of Lord Her.
schell composed of six bimetallists and
six monometllists. unanimously agreed
In signing q statement that it was es-
sentialy the French law which did this
work. IT, then, the bmetallist asks,
France could produce such an effect in
the direction indicated, what might not
monetary league composed of England,
France. Germany. Italy and the United
States. with the nations which would
naturally fall in with them. accomplish
in the way of holding gold and silver to-
gether, at some ratio having reasonabl
reference to existing conditions of supply
and demand?
But it may be said, as has often been
said, that during this time gold and sill
yer money did not circulate side by side
to any great extent in France. There
fore the mono-metallists allege bimetal-
lism did not exist. Who cares whether
gold and silver did, at any given time,
circulate together in France while this
great beneficent function was being per-
formed for mankind win all the six CONT
nents of the globe? An approximate par
of exchange was what the world wanted;
and this was created and maintained,
with enormous benefits to trade and pro-
duction. Nobody but the French GER
tatnly had any concern in the question
whether gold and silver were actually
In concurrent circulation in any given
place In France at any given moment.
But 1t may be said, as 1t has been said.
that France suffered by the benevolent
efforts in behalf of mankind If this was
So It IS odd that The French fliems MISE YES
one of the shrewdest fnafciaf peoples in
the world and one of the most PROSPER
Gus, never found it out; that they sought
to the last to maintain the bimetallic
system in force, and have ever since been
ready to re-establish it, with reasonable
cooperation from other countries. In
the monetary conference in 1881 NJ De
Normandie, one of the French delegates,
presented statistics to show that during
the successive panics and crises which
between 1887 and 1881 affected the none
tary systems of France and of England.
in every case the shock was less severe
and less protracted in France than in
England. He found that in individual
cases the Bank of France raised discount
to only one-haf the rate to which 1t was
carried up by the Bank of England
Through all those forty-fve years he
found that the Bank of France had been
obliged to modify it's rate of discount
only 100 times, while the Bank Of Eng
land did this 292 times; and he reached
the emphatic conclusion that France de-
rived an almost inexpresSble advantage
from the bmetallic system. But even if
we admitted that France alone, unaided,
doing this service through so long a time
for the whole of mankind, sustained an
undue loss thereby, 1T would still be rea-
sonable to assert that England. France,
Germany. the United States and Italy,
joining themselves together for this work
land CORRESPONDENCE weakening the
forces opposing the bimetallic SYSTEM,
might achieve an even more complete
success than France did, while individ-
ually sustaining loss or expense which
would be inconsiderable in comparison
with the enormous benefits they would
as commercial and producing nations,
derive from such an arrangement In
deed 1t is the most probable result that
If these nations should join in a league
Tor THIS purpose, ah-the other important
commercial countries of the world would
at once, and gladly, come into 1t.
l have thus far stated the two great
standing arguments for bimetailism.
say standing arguments. because,
whether the two precious metals to-
gether were increasing or decreasing in
quality, and whichever metal might at
any time be increasing or diminishing in
proportion to the other, the two advant-
ages would equally be secured The ar
SuHent lot DlmeldlIlSm was Just as per-
feet at the time when silver was more
valuable than gold. at the French ra-
ito, as 1t was after the tide turned and
silver continued to fall, relatively to the
yellow metal. We now come to an argu-
ment for bimetallism which has been
given great, possibly undue prominence
during the past twenty years. 1t is the
argument drawn from the situation since
1873. The bimetallists assert that. in
view of the debts, public and private.
existing at the time when Germany de-
monetized silver and the French mints
were closed to the coinage of that metal;
In view of the enormous and increasing
use of gold in the arts; in view of the
vast expansion of the worlds production
of wealth. in consequence of improve
ments in arts and discoveries in ma
tnre; and in view of the change in the
habits of all peoples in respect to the
use of money, the effect of the progress
sive demonstration of silver, following
the act OF Germany referred to, has been
to diminish the worlds supply of money
in proportion to the demand for it, and
thus to cause a fall of prices, which has
resulted often in great stagnaton of in
dustry: which has prolonged, If it has not