TRANSACTIONS OF SECTION ¥. 885 
and France. Law as to circulation of two metals as legal tender money ; cheaper 
remains, dearer goes, e¢g., America all silver 9234, all gold ’34~’73. Demand 
for gold outside nations agreeing on ratio for (a) hoarding ; (6) war treasure. 
Danger if not certainty of silver monometallism (Giffen), Danger of panic and 
hoarding if free coinage of silver as legal tender seriously entertained—United 
States in 93, and now. Permanent and unconditional agreement of all great 
nations impossible. What is the ratio approved. No agreement (Cernuschi in 
France). May not silver suit some and gold others? Danger of agreements in 
giving power over us to others. Danger of loss of position—what is a pound ? 
Is it honest to pay gold debt in silver? Desiderata—permanence and stability. 
No proof of probable gain—certainty of dangers if standard made uncertain, 
3. The Monetary Standard. By Major L. Darwin. 
In this paper the author discusses the law which it is desirable that a metallic 
standard of value should follow with reference to the price of commodities. 
Taking the case of stagnant trade, when the production of commodities is neither 
increasing nor diminishing, he shows that objectionable results will arise if the 
standard is one which either tends to raise or to depress prices. Taking the case 
of progressive trades, there are two standards to be considered, one which tends to 
keep the price of the output per man per day constant, and the other which tends 
to keep the price of the commodities produced constant. These standards are 
compared under certain hypothetical conditions (also assumed in the case of 
stagnant trade), and it is shown that both have merits, but that the standard of 
constant price of output is on the whole the best. But in considering the various 
facts of real life, omitted in such hypothetical discussions—such as the variations 
in prices due to causes other than curreucy causes, the effect of charges of the 
nature of mining royalties, and the influences which tend to revive trade in 
periods of depression—all these circumstances show the desirability of keeping up 
prices at a higher level than these theoretical discussions would indicate as ad- 
visable. ‘Thus in times of progressive trade it would seem best that the standard 
should tend to keep prices between the two extremes above mentioned—that it 
should make the price of commodities fall, and the price of the average output of 
human labour rise, the latter perhaps more than the former. 
