BIMETALLISM. 567 



the empire of China and Eastern Asia still with their silver 

 standard, but of uncertain exchange value; so that all over 

 I he world the metal is now like the mercury in the baro- 

 meter, amenable to the influence of every financial breeze. When 

 this state of confusion in the world's currencies will come 

 to an end it is impossible to determine ; nor is it possible to 

 j^auge the extent to which depreciation of silver as well as of 

 every other commodity will proceed. Each new adoption of the 

 gold standard occasions a new demand for the metal, raises its 

 value, and gives a fresh incentive to hoarding. Already, if ir, be 

 true, as Soetbeer says, that £12,000,000 annually is absorbed in 

 the mechanical arts, the remaining supply is ins\ifEcient to recoup 

 the old currencies, independent of what is required tor the new ; 

 how can Ave then avoid the fear of a scramble tor gold such as 

 has never before been witnessed ? All the time the Parliament of 

 England, engrossed in its Home Rule conflict, is overlooking a 

 tyranny greater than ever oppressed Ireland — the tyranny of gold, 

 upheld by the plutocratic minority, which is destroying the 

 energies and sapping the life's blood of the nation, and bids fair 

 »o precipitate a catastrophe which it will require all her power to 

 avert. 



COMMERCIAL CRISES. 



The depression now affecting all cla^^ses of the industrial com- 

 munity we attribute to a deficient currency. It is not, however, to 

 be placed in the same category as the occasional financial panics 

 which have swept over Europe, bringing in their train financial 

 disaster and a temporary paralysis of trade and commerce. These are 

 not the effect of a contraction of the currency, but a result of the 

 misuse of our highly-organised credit system, which in ordinary 

 times is conducive to the economic working of the vast industrial 

 machinery. By means of notes, bills of exchange, and the other 

 numerous instruments of credit the metallic base of our financial 

 system is so conserA-ed that actual cash transactions are rare, and 

 the use of coin is principally confined to retail trading, with 

 occasional transfers of large sums to settle the balances of exchange. 

 The Bank of England has a coin reserve of about £25,000,000, 

 and the other city and provincial banks an additional £20,000,00(', 

 while it is estimated that not more than £100,000,000 of gold 

 exists in the country, and on this amount is based transactions to 

 the enormous total of over £l0().0n0,00ti weekly ; such is the con- 

 fidence inspired by our credit system and the belief that coin, if 

 required for any of the daily transactions, would be forthcoming. 

 There are occasions when the demand for gold becomes abnormal ; 

 these follow in the rear of speculation, and might arise when the 

 currency for ordinary purposes is unusually abundant. For instance, 

 during the great inflow of gold from California and Australia two 

 very seA-ere panics occurred. 1 he prices of commodities nnder the 

 stimulus of good trade had adA-anced considerably; periods of 



