The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-03-25
GOLD AND SILVER IN GERMANY
BEACONSFIELD'S TESTIMONY.
Earnest Seyd's Opinion as to the
Proper Remedy.
Questions Answered for the Benefit of an Un-
believing ex-M. CA Documentary Dis
cussion of the Facts and Evils Of
Demonstration in England
and Germany.


Mr.. T. F. Miller, Savannah, Mo-, asks
me to prove by official documents and
other good authority that Germany de-
monetized gold in 1857, or at some time
prior to 1870. He says that he has found
an ex-M. c., in his state who disputes
the statement that Germany ever demore-
tized gold; and that he refused 20 believe
the testimony of Prof Brice, Senator
Jones or any of the usual authorities
Well, a man who will doubt such testi-
rose from the dead" Yet, there is hope
full couplet which says:
''While the lamp of life holds out to burn,
The vilest sinner may return"
So in the spirit of faith which ought to
raise the dead l most cheerfully undertake
the task.
On page 1913, Vol. l., of the United
States Monetary Commission, 1876, is the
following:
Until the introduction of this reform
GS7Dsilver was the sole standard of value
throughout Germany, excepting Bremen,
according to the provisions of the Vienna
coin convention of 1851
On page 4, of the same document, it is
stated that:
Belgium adopted the single silver
standard in 1850, and the German states
in 1857. Belgium, however, returned to
the double standard in 1861"
On page II, Of the same official docu-
ment is the following:
"In 1871 when Germany decreed the
demonstration of silver the relative value
of gold and silver was steady and un-
changed, and no change was apprehended.
AS Germany then had the single standard
OF silver, changes in the relative value Of
gold and silver in the London market,
unless very large could have been of but
little Importance to the empire. 1t was
not fall in the value of gold relative to
silver which caused Germany to demone-
tize gold in 1857, neither was it fall in
the value of silver relative to gold which
induced that empire to demonetiZe silver
In II In both cases she was governed by
one and the same apprehension, that the
mass of money-as of the precious metals
combined, was undergoing depreciation,
and that the adoption of the single stand
ard was needed to redress the situation"
And it is apparent that it was quite in
different to Germany which metal was Sc
lected for the standard The change of
movement from demonetizing gold to de-
monetizing silver, resulted from two
causes. The first and principal one was
the discovery that the immobility and
tenacity of the English character made
European union upon single metal,
other than gold, impossible"
On page ia. Vol. II. of the same docu-
ment it is stated that:
Until 1871, before Germany Joined the
only civilized nation in Europe which had
an effective gold valuation was England"
In Baron Won ThielmanS report to the
Paris monetary conference in 1881 he
says:
1.-The introduction into Germany of the
single gold standard, in the place and
stead of the silver standard, which pre-
vailed up to 1871, in most of the German
states was enacted by the laws of 4th De-
cember, 1871, and 9th July. 1873"
Having quoted these documents pub
lished by the United States Government
/ now quote the testimony of that noted
financier and bullionist, Mr.. Ernest Seyd,
of England. In his work on 'The Decline
of Prosperity published in London, 1879.
Mr.. Seyd not only corroborates the fore
going testimony, but he also points out
the evils of the contraction of the money
volume, and the remedy. On page 7, Mr..
6eyd says:
in Germany up to 1870 silver only was
full legal tender. Besides home made
thalers and forms, many foreign silver
pieces, five francs, Dutch and Austrian
florins, ETC., circulated. Besides the gold
crown and older pieces, gold coins of vari-
Gus nations were used; but excepting
their own silver pieces, none of these coins
were legal tender, they were commercial
money and fluctuated in value and guam
t.ty. The average amount of these mis-
cellaneous gold coins was about 20 per
cent Of the amount of silver
On page II, OF the same book Mr.. Seyd
saws:
The "equalibrium was thus maintained
until, in 1872, Germany having received
100000. 900 ($1 900, 900 ,OoO) of war indem-
nifty from France. suddenly resolved to
sell and abandon her silver and take to
gold, thus utterly upsetting the previous
equilibrium. From the moment that Ger
many commenced to carry out the change
silver fell in value, and the depression of
trade set in
On page 16, of the same book, Mr.. Seyd
further says:
THE supply OF the precious metals las
at all times a marked influence en- the
commerce and prosperity of the world.
This is not only in accordance with
natural idea, but it is borne out by the sta
tistics available. Wars and other events
have interfered now and then with prog
ress, but the general advance was influ-
enced by the rate of increase or decrease
in the supply of gold and silver. Thus,
reconning from 1915. the prosperity of
the world and of England made uninter-
rupted progress until 1872. Occasional
commercial crisises occurred, but they
lasted only a few weeks or months. In
the year following them the amount of
trade increased again. From 1872. how
ever, the trade Of the world has steadily
decreased, and the contraction of the ne