New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-10
INDUSTRIAL GERMANY.
V.
THE MONETARY M--BIMETALLIsM
DISCREDITED BY THE AMERICAN
REPUTATION MOVEMENT

Leipsic. July -.
Lepsic is the centre Of the German book trade.
and consequently the chief bureau of nforma-
ton respecting the Empire. Paper is not manu-
featured here. because water power is lacking.
md Strasburg and other river towns have super
Tor facilities for making It: but every other
branch Of the book business is carried on In this
stronghold Of literary activity There many
hundreds of booksellers shops and over a hun
dred large printing offices with a European trade.
Ieipsic has been since the Middle Ages natural
commercial exchange with annual fairs at New
Years. Easter and Mchaclmas for the sale OF
furs hides linens. woolens glass and leather
goods but enormous as is the aggregate of this
mercantile trade the chief distinction Of the town
Is its pre-ennencc as clearing -kouse for the ex-
change Of ideas and the creation Of current opin-
ION II is the seat of one Of the oldest and most
influential universities in Europe. the centre Of
German law ana jurisprudence and a residential
oi,v rivallins Frankfort. Dresden and Munich In
wealth. culture and refinement Its ascendancy
IN the book trade. maintained for $50 years. has
established its supremacy in the intellectual life
Of Germany Any question like the monetary
system, affecting the present policies and future
fortunes Of the Empire. may be studied advan-
tsreously in Leipsic.
BEFORE the establishment of the German En-
nire in 1871 there a diversity Of coinage sys-
,sros without a uniform monetary standard. Dur
inc the four years which interviewed between the
wars with Austria and France the trend of opin-
ton in the great commercial centres In the
dirAc,,on Of the establishment Of gold standard
cor,anv was confederation of silver States
NTH diverse coinage ratios and with a great vol
,,roa NJ naper currency, much Of which issued
hv small banks and inadequately secured. gold
ejaculation could not be maintained under these
conditions: silver useless for large CONNER
cial transactions. and paper imitation was an in
,olerahe evil Mercantile exchanges, chambers
~ commerce and practical hnancers agreed in
regarding the unification Of the currency as the
chief object Of monetary reform. and the estab-
Ishnent OF gold standard was generally recog-
nized as the most direct method Of accomplish
ing the result This movement was promoted by
the successful campaign with France. and after
the payment of the FIVE milliards 1t became TIRE
sistible At the close of 1871 an Imperial act was
proclaimed prohibiting the coinage of silver and
authorizing the coinage of gold 2O-mark and IT,
mark coins These were made legal-tender con-
Jointly with the thalers then in circulation. at
ratio Of 15l. TO l between the two metals. Two
years after ward a supplementary coinage meas
ure was enacted and this followed by the
Bank Act Provision was made for the gradual
purchase and withdrawal of the old silver issues
asgregating over 800 900 900 marks. and for
the coinage Of silver under new system. The
Imperial Bank was also authorized to purchase
go,S without restriction and to issue paper
against it In accordance with the procedure Of
the Bank Of England
The WITHDRAWAL OF SILVER.
The conversion of Germany from silver into
inv no with 6rau r.
cuatior Of an immense amount of silver. Govern
ment sales of silver began IN 1873, and continued
FOR six years and then indefinitely suspend
ed owing 10 the decline in the value of the white
metal caused by oVerproducton in the United
States and Mexico cessation Of demand from In
dia the discontinuance Of coinage by the states
Of the Latin Union and changes In the monetary
systems OF the various countries While the gold
standard has been established in Germany the
process CT disposing Of the stock Of old silver
thalers has never been completed. About 4oo,-
100000 marks of these silver thalers have been
saved from the melting pot, and one-haf OF them
are stored in the Imperial Bank the remainder
being In circulation. These thalers value IL
cents retain their legal-tender property. IRE
spective Of the system of subsidiary coinage;
and the Imperial Bank has the privilege Of re-
deeming its notes in these old coins but it does
not take advantage Of it. gold being invariably
paid for paper. The stock Of legal-tender silver
thalers in circulation outside the banks nconsd-
cradle in comparison with the gold. coined and
uncoined. constantly carried in the vaults 1t
does not exceed one-thirteenth Of the gold stock
and consequently the maintenance OF the gold
standard is not affected by it, II the price of sill
yer were to advance heavily there would be
200 1000 600 marks of these thalers in the bank to
and her ,orI,r
10 he called in and disposed Of and the operation
OF the monetary measures of 1871 and 1873 would
then he completed. Sc far the erson of
the old legal-tender issues of silver con-
cerned; but practically Germany is already
gold country and it's recent industrial progress
and It's commercial prosperity have been brought
about under the single standard. Its protective
system was borrowed from the United States un-
der the influence Of American prosperity Its
monetary and banking systems were adopted
from England. and have remained in successful
operation during the period of unexampled indus
trial and commercial development of the Empire.
A BIMETALLIsT MOVEMENT
During this transition period between silver
ronometallism and gold monometallism there
has been bimetallist movement Of varying infu-
snce and power When the monetary reform
measures of lsT1-13 were enacted their radical
character was not appreciated either by the econ
oinists occupying chairs In the universities or by
Imperial legislators and administrators 1t was
considered compromise system. since the legal
tender property Of the old silver thaler was not
withdrawn Germany had at the outset an I'M
rnense store Of silver and comparatively little
gold and the effect Of monetary reform apart
from the unifcation of the currency system was
70 diminish one stock and 10 increase the other
50 long as silver could be sold prohtably in ex-
change for gold there was no agitation IN favor
Of bimetallism 1t was not until the great break
in the price Of silver compelled the Government 10
suspend the sale Of the old halers that the aglta'
ton in favor Of bimetallism opened in earnest un-