The herald., 1896-05-24
GOLD OR SILVER MONOMET
ALLISM, WHICH?

ALLISM, WHICH?
| A majority of the advocates of the
free coinage of silver hug the delusion
of bimetallism, so-called, and pretend
to be as earnestly opposed to silver
monometallism as to the gold monome-
tallic measure of values. 1t is appar-
ent, therefore, that if it can be dem
| onstrated that so-called bimetallism Is
an impossibility. under any and all con-
| ditions, the mask will be torn from
! the free-silver proposition. and the pro-
tagonists in the fight for free coinage
be compelled to either abandon their
cause or be ready to defend silver mon
ometallism against gold recommendation.
! The soundness or unsoundness of the
bimetallic theory is, therefore, ques-
ton of primary Importance, and if BIZ
metallism is an impossibility in prac-
tice the theory upon which it is founded
| must be false Is bimetallism, if desir-
able, possible? The utter impossibility
of a bimetallio standard. or double
measure of values, is demonstrated both
by the practical experience embraced
in tine teachings of history, and by the
| logical deductions deducible from
statement of the doctrine of binetallism
as enumerated by its expounders, de-
auctions which demonstrate that. in
stead of having a bimetallic standard,
we would really have two alternating
standards, that is, if the theory of the
bimetallists is correct.
A bimetallic standard, if it means any
thing, means that two metals, as silver
and gold ayan1r,1a coined fha
minis of a country at certain fixed
coinage ratio, will circulate convenient
ly, and will together, at one and the
same time, and in the same place. meas
ure all values in exchange. The bimet-
allist bases the alleged desirability of
his bimetallic standard upon the asser
ton that such standard Is more stable
and less liable to fluctuations than a
single monometallic standard. One of
his favorite analogues is the compen-
sation pendulum of a gridiron clock, in
which any tendency in one of the metals
of the pendulum to expand or contract
with thermometrical changes is coun-
teracted by an opposing and compensat-
ing tendency in the other metal of the
pendulum. In proof of his beautiful
theory of exact and delicate automatic
adjustment of the two metals. which to-
gether constitute the bimetallic stand
ard, the bimetallist argues that If, from
over-production of one of the metals, or
other cause, there be any appreciation
in the relative value of either metal so as
to cause the bullion or market value of
that metal to exceed its coinage value
relatively to the other, the demand for
debtors, instead of paying their debts
In the metal that has thus appreciated
in value, will pay in the other metal;
that this falling off in the demand for the
metal that has thus appreciated will
check its tendency to rise in value, and,
on the other hand, the resulting in
creased demand for the other metal
will tend to bring 1t up to the value of
its fellow, at the ratio fixed by law for
coinage, and that thus they will proceed
constantly alternating in value and
oscillatng about one common point A
beautiful theory! Lovely mirage! How
different from the cold facts of expe-
rience. -.-----.
1t will be seen from the above state
ment of the theory Of bimetallism that
double or bimetallic standard of value
but instead constitute two separate aud
distinct alternating standards of value,
so that from statement of the doctrine
OF bimetallism we find bmetallism to
be, not bimetallism, but altern-met-
alliSm. And experience teaches that the
two metals thus theoretically consti-
tuting a double-yoked standard of value
in practice will not alternate in the
manner supposed; that, on the contrary,
one of these metals viii become and
permanently remain the sole standard
Of value, driving it's fellow out
of circulation, and, in reality
causing a contraction of the cur
rency.. Under the operation of a we'll
understood law of monetary science
Gresham's law-when it is attempted
to make two metals circulate together
as full legal tender at a fixed legal ratio
the cheaper, or over-valued metal, thar
is, the metal whose coinage value is
greater than it's bullion value, will drive
the dearer and undervalued metal out
of circulation, and out of the country,
and experience teaches that the slightest
departure of the artificial coinage ratio
from the bullion or market ratio of val
ue. even so slight a value as one per
cent, will suffice to put this law into op-
Grafton, and to continue the Punishment
of the metal whose bullion value is
greater than its coin value, so long as
such slight difference shall continue to
exist, and experience has also shown
that when once such slight difference
between bullion value and coin value
exists, it generally remains as a perma
nent condition, and is not overcome by
any such automatic action of the two
metals as is fondly believed by the adj
vocates of the bimetallic theory.
The impossibility of maintaining
bimetallic standard, or more properly
speaking, two altern metallic standards
is abundantly proved by experience.
Limitations of space viii not permit anv
extended drafts upon history but one
or two sample bricks will suffice France
tried the experiment and failed For
several centuries she tried to circulate
gold and silver together, and during that
time she changed the coinage ratio of
value 397 times, and Notwithstanding the