Year: 1877

tion OF specie payments, matured after much
study and investigation by French econo-
mist of note and distinction who has been
spending several months in this country.
Although Mr. Cernuschi's reputation rests
chiefly on his contributions to the litera-
ture of political economy he is not
mere theorists He has been largely
engaged in negotiating important Euro
pean loans, and is reputed to be
skilful man of business as we'll as master
of monetary science. He has devoted his
time in this country mainly to the study OF
our currency, aided by wide intercourse
with our most skilful fnanciers. With so
many claims on attention this plan Of
his, of which he permits us to pub
lish the outlines in advance OF more
formal promulgation, will attract wide
notice both in this country and in
Europe. American financiers will, doubt
lcss find many points for dissent, but there
is, nevertheless, an advantage in surveying
great subject on all sides and weighing
the conclusions of able minds who are more
conversant with other countries than with
ours We have, doubtless, great deal to
learn from the financial experience Of
Europe, and it is always well to rectify our
own ideas by wide range of comparison.


Mr. Cernuschi does not, however, repre-
sent the prevailing tendency of European
thought on monetary questions. He is an
ardent and even an enthusiastic bi-metal-
list, whereas the leading commercial coun-
tries of Europe have adopted gold as the
sole standard of their currency, retaining
silver coins merely for small transactions
The devotee of theory is usually little
blind to the force of opposing arguments
but the question between double and
single standard is by no means settled. The
unique and expectant monetary condition OF
this country makes it important that we de-
eide this question for ourselves, and decide
it wisely, before we resume specie payments.
1t seems almost too plain for argument that
the restoration of the double standard, by
making silver and gold equally legal
tender, would greatly facilitate resumption.
1t might, perhaps, be attended with evils
which would more than counterbalance this
advantage but, laying those possible
drawbacks out of view, it can hardly
be questioned that we could resume
more easily with both metals as
legal tender than with gold alone.
One Of the great preparatory requisites is
the accumulation of a sufficient stock Of
bullion, and it stands to reason that there
would be less difficulty in accommodating
such stock with two great sources Of supply
to draw on instead Of one. If we attempt to
resume on a gold standard alone all the
money markets of the world will be dis
turbed by our preparations, and all the
great financial centres of Europe will have
strong motives for obstructing our policy
But if we readopt the double standard all
the silver markets of the world, as we'll as
our own rich mines, will be open to us
without competition, and we can acquire
the necessary specie reserves in less than
half the time and at greatly diminished
expense.


An adoption of the double standard
should, of course, be accompanied with
readiustment of the relative values of gold
and silver in our coinage. The amount of
metal in the coins should be in exact relation
to the value Of gold and silver bullion. Mr..
Cernuschi would so increase the amount Of
silver in our coins that hundred gold dol
lars and hundred silver dollars would be
of equal value in the melting pot. If this
equality, when once fixed, could be pre-
served, there would be no substan-
tial objection to double standard.
But it is alleged, and alleged truly,
that the value OF both metals is subject to
constant fuctuation, and that as soon as
they differ in value coins in the cheaper
metal will alone be used and the other ex-
ported. But these fluctuations would be
comparatively slight The reconciliation
of silver in great country like the United
States would impart greater steadiness
to it's value than it has had dur
ing the last two or three years, while
| Germany has been disturbing the market
by her great experiment of discarding
silver and substituting gold. Silver would
probably be as steady as it was in former
times, when we had the double standard.
At any rate, our currency would not fuctu-
ate beyond the fluctuations in the value of
silver, which would be bagatelle in CON-
parison with those to which an irredeem-
able paper currency is exposed. The SUBJ
stitution of silver for paper would be a
great and indisputable gain in monetary
stability.


The really formidable objection to restor.
alton of the double standard is one which has
quite escaped most American reasoners,
but which Mr. Cernuschi has seized with
the sure sagacity OF clear-sighted man
conversant with great national loans,
While the double standard would work well
enough in our merely commercial transac


tions it would be fatal to the vast fiscal
operations of the national Treasury il