31 



Now, what would be the effect of Bi-metaUism — I mean of fixing 

 a ratio of 15^ to 1 in these three cases ? As to the annual pro- 

 duction, you wUl admit that the e£fect of giving an artificial 

 value to silver would be to stimulate the production of silver and 

 to discourage the production of gold. It would, in fact, be a 

 vast measure of protection to the producers of silver, and would 

 guarantee to them a market for their silver at 25 per cent, above 

 its present price. And just in proportion as it would encourage 

 the production of silver it would discourage the production of 

 gold. The gold miner can now sell his one ounce of gold for 20 

 ounces of silver, but the Bi-metalhsts propose to deprive him of 

 a part of the fruits of his labour, and by force of law to reduce 

 the price of gold fr'om 20 to 15^. I sometimes wonder whether 

 the Bi-metaUists ever ask themselves this question. Why do the 

 owners of silver mines continue to produce silver in increasing 

 quantities, and why do the owners of gold mines produce gold in 

 decreasing quantities ? Surely the answer must be, because even 

 at the present low price it is profitable to produce silver, and at 

 its present high price it is unprofitable to produce gold. The 

 competition between the producers of gold and silver will fix a 

 fair and equitable value between the two metals just as surely as 

 the competition between cotton and woollen manufacturers will 

 fix a fair value between cotton and woollen cloth. The present 

 holders of silver would be large gainers by a forced rise in its 

 value. Enormous quantities are held in America, France, and 

 other countries, ready to flow to any part of the world where it 

 can be disposed of at a profit. Yet the English people are asked 

 to join in artificially depreciating gold, of which they are large 

 holders, and in artificially raising silver of which they hold 

 hardly any at aU. The next cause I mentioned was the 

 diminished export of silver to India. I think it will be obvious 

 to all of you that the very worst way of encouraging India to 

 take silver is artificially to raise its price. It is an axiom, that 

 a cheap article will force its way into consumption, while a dear 

 one cannot do so. 



Nature of International Tbade. 



But what Bi-metallists appear to misapprehend is the nature 

 of international trade. Whatever confusion of ideas there may 

 be upon the many questions arising as to the nature of money, 

 or circulation, or of the value of gold or silver as money, or as 

 commodities, all must admit that when gold and silver are sent 

 from one country to another they lose any special attributes that 

 law may have conferred upon them, and become merely com- 

 modities. As such they exchange for other commodities at their 

 market value. This attribute of exchangeability they possess in 

 common with all commodities which men wish for and desire. 



