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Ought we to Establish Bi-metallism ? 



The proposal of the Bi-metallists to enter into treaties with 

 other countries by which our own standard of vahie would be 

 altered, and which would subject it to serious injury by the action 

 of any one of the several countries who are parties to the treaty, 

 is, to say the least of it, a very questionable and dangerous pro- 

 position. It is a new departure in policy. Hitherto we have had 

 a simple standard made of one metal which has worked well, 

 and under which England has become the financial centre of the 

 world. Other countries have fixed upon standards for them- 

 selves, and doubtless have chosen those which are most suitable 

 for their particular circumstances. These arrangements are 

 natural, and are more likely to be permanent than any based 

 upon treaty. How long are treaties observed ? In the light of 

 the experience of even the last few years he would be credulous 

 indeed who imagined that a treaty with another nation would be 

 kept for a single day beyond the time it appeared to be beneficial. 

 Why should we then so seriously derange our currency in pursuit 

 of a theory which could be wholly upset by any one of the 

 countries party to the arrangement ? The less kings and govern- 

 ments meddle with the arrangements of trade the better it is for 

 the people who Uve by it. You have all heard of the story of 

 the king who asked a merchant whether he could do anything to 

 benefit trade. " Sire," replied the merchant, " if you want to 

 help trade, pray leave it alone." 



I pointed out at the beginning of my paper that most of the 

 evils of the fall in silver arose through the fluctuations or dis- 

 turbances in the exchanges. It would be folly to attempt to 

 deny the existence of this grievance. It is one that our mer- 

 chants feel most acutely and which has caused immense loss. 

 The Bi-metallists promise us stability. They point to the period 

 anterior to the fall of silver, and offer us a return to that happy 

 state of things. But if the rate of exchange rose from Is. 6d. 

 to 2s. it would be as great a convulsion and might cause even 

 greater loss and suffering than was caused by the fall from 2s. to 

 Is. 6d. The fall, as I have shown, arose to a great extent fi'om 

 natural causes, but a rise caused by bi-metallism would be entirely 

 artificial, and would be subject to all the uncertainties of legis- 

 lation in a large number of countries. 



The conclusion I have come to is that bi-metallism would do 

 us much harm and little good. If it were attempted we should 

 find the dearer metal, gold, leaving us, and the cheaper, silver, 

 would stay with us. You cannot make an international arrange- 

 ment with the whole world. It is only possible to do so with 

 highly-civilised countries and well-organised governments. The 

 population of the world is over 1,400 millions, and the countries 

 proposed to be embraced in the Bi-metallic Union, excluding 



