i8o Mr. Faraday on 



rose from 5s. to 5s. 3d. per ounce, and that gold fell about 

 3 per cent. That was a most severe trial, and there is no 

 epoch in history, not even in the i6th century — when such 

 remarkable changes were produced by the discovery of 

 America — when so vast and enormous an addition had been 

 made, almost at a moment's notice, to the monetary trans- 

 actions of the world, and to the necessity thereby created for 

 an enlargement of the circulating medium. Yet gold has 

 stood, and has not varied more than about 3 per cent. I 

 should say that is a very respectable case to make out for 

 gold as a circulating medium. If, under such pressure and 

 such an agony of trial, the fluctuation of gold amounted to 

 only a trifle, the position of gold as a standard of value is 

 splendidly demonstrated. It is now proposed that silver 

 shall be used as a circulating medium, but what has been 

 the case with regard to silver ? The supply of silver appears 

 to be subjected to more extraordinary variations than any 

 ever known in the case of gold. The variation in the value 

 of silver within the last 20 or 30 years is not less than 40 



per cent Am I right in contending that fixity 



is the proper requirement of a standard of value ? If it is, I 

 want to know how you can improve that standard of value 

 which, under the severest circumstances, has never varied 

 more in this country than 3 per cent, or 4 per cent., by 

 associating with it a commodity which has actually varied 

 to the extent of 40 per cent." 



It is necessary to point out, for the sake of clearness, 

 that Mr. Gladstone was wrong in fixing the period of the 

 alarm respecting the depreciation of gold as "40 to 45 

 years " ago, as the longer period would take us back to a 

 time antecedent to the gold discoveries, and the shorter to 

 a time when their effect on prices had not become apparent. 

 The actual period of alarm was from 23 to 35 years ago, 

 when Chevalier, Cobdcn, and Jevons were inquiring into 

 the subject. Mr. Cobden's translation of Chevalier's book 



