560 PROCEEDINGS OF SECTION G. 



ties. The scarcity of gold prevents it taking the place of silver in 

 the internal exchanges of European countries, but silver has now 

 become a mere token, having no relation to its actual value: and its 

 volume, because of fluctuation in price, cannot be used as a store 

 -of value. I think, therefore, that the diminution in the volume of 

 the currency is thus sufficiently proved. On the other hand, the 

 annual augmentation of the world's store of gold has been more 

 than absorbed by the nations which have recently adopted the gold 

 standard. Germany, Holland, America, Italj-, Austria, Scandinavia, 

 have between them absorbed something like £250,000,000, so that 

 the stocks in the other gold-using nations have actually diminished, 

 while the recent adoption of the gold standard in India will further 

 increase the drain. The law of supply and demand thus manifests 

 its power in regard to the currency. While silver and gold were 

 united the artificial demand for currency purposes, owing to those 

 metals being the sole legal tender, raised their value beyond their 

 economic worth, gave them a monopoly, and hence assisted their 

 accumulation. The rupture of the ratio and demonetisation of 

 silver have conferred the entire currency monopoly on gold. The 

 currency supply is decreased, and the demand for it increased; 

 hence its appreciation. 



The every-day aspect of this appreciation of gold is the reduced 

 price of all commodities, as well as of silver ; and we are led to 

 ihe belief that an increase of the currency by the rehabilitation of 

 silver under some fixed ratio will have the effect of restoring, to a 

 large extent, the equilibrium Avhich previously existed ; and for 

 this reason, believing not only in the possibility, but also in the 

 safety of the proposed expedient, bimetallists seek to urge on the 

 English Government a reconsideration of the entire question. 



HISTORIC PARALLEL. 



To satisfy ourselves that an expansion or contraction of the 

 currency have always been accompanied by similar results we 

 have only to recall various periods in past history, marked either 

 on the one hand by unwonted development and prosperity, or on 

 the other by depression, want of employment, and poverty, and Ave 

 shall see how these conditions coincide with, and apparently result 

 from, an increase or diminution in the supply of the precious 

 metals. 



In the 16th century, after the discovery of America had laid 

 open to the Spaniard the riches of the Western Continent, the 

 large influx of silver into Europe gave an impetiis to trade and 

 commerce, which reacted on the value of all commodities, raised 

 the wages of the laborer and artizan 300 per cent., and increased 

 the price of land fourfold. Again, in the period between 1780 and 

 1810, the production of silver underwent a marked increase, and 

 prosperous times followed in its wake. Following these good 

 times came the change to the single gold standard in England in 



