The herald., 1896-10-11

very few people interested more in the
value of money than in the rewards of
labor. In Europe, however, all the lead
ing writers on finance and industries
took part. In 1852 M. Leon Faucher
wrote Every one was frightened ten
years ago at the prospect of the depreci-
alton of silver; during the last eighteen
months it is the diminution in the price
of gold that has been alarming the
public" In England, the philosopher
DeQuincy wrote that California and
Australia might be relied upon to fur
nish the world $3.50, 100000 in gold per
year for many years, thus rendering the
metal practically worthless for none
tary purposes, and another English
man, as if resolved to go one better,
declared that gold would soon be fit only
for the dust pan. M. CheValier took UP
the task of convincing the nations that
gold should be demonetized as too cheap
for currency, and of course the in
terested classes soon organized for ac-
ton.
Holland had already begun the pro-
cess in 1S47, but had managed it SO awk-
wardly that her condition is not easily
understood or described as it was in
1857. The estimated amount to be
thrown out of use was only half the real
amount, and in the attempt to avoid a
small evil they produced a very great
one.
Austria was at that time involved
in trouble with her paper money system,
and thought the cheapening of gold Of
fered a fair opportunity to come to j
metallic basis. The reasoning of her
statesmen was singularly like that of
General Grant in 1874, when he pointed
to the great silver discoveries in Ne
vada as providential aid to the resto-
ration of specie payments, being at
the time in sublime ignorance that he
had long before signed an act demone-
tizing silver, and thereby depriving this
country of the benefit of such provi-
Dental aid. But the strength of the
creditor classes was entirely too mucn
for Austria and Prussia, and the Ger
man states allied with them almost
unanimously declared for throwing gold
out of circulation. A convention had
been held at Dresden in 1888, with the
view to unifying the coinage, but little
had been accomplished, and now con-
vention was called at Vienna, which
was attended by authorized representa-
tives of Prussia, Austria and the South
German states 1t was there stated
that, besides various minor coins there
were three great competing systems in
Germany, namely, those of Austria.
Prussia, and Bavaria. 1t is needless to
go into details of this once famous con-
vention, but suffice it to say that the fol-
lowing points were agreed upon: OD
The Prussian thaler was to be the
standard for Prussia and the South Ger
man states. and was to be a silver
standard exclusively. (2) The Austrian
silver standard was to prevail through
out that empire. (3) The contracting
powers could coin trade coins in gold,
but none others, except Austria. which
retained the right of coming ducats, and
these gold coins were to have their
value fixed entirely by the relation of
the supply to the demand. "They were
not therefore, to be considered as mo-
diums of payments in the same nature
as the legal silver currency, and nobody
was legally bound to receive them rs
such" in short, none of the gold coins
permitted by the convention were to he
legal tender, but all We're to be mere
trade coins precisely for the same pur-
pose as the trade dollar once so famous
in the United States. The result, of
course, was to make silver the standard
and gold the fiuctuating money or token
money The effects of this convention
remained with but little change till 1871
Of course. gold at once became dis
honest money" 1t was worth less than
silver, and regular gold panic set IN.
Holland had already demone tized most
of her gold coinage, that is, had de-
prived it of the legal tender quality,
and Portugal now practically prohib-
tied any gold from having current val
ue, except English sovereigns. Belgium
demonetized all it's gold at one sweep,
and Russia prohibited the export Of sill