858 EEPOBT— 1893. 



As tlie standard of value in a portion of the world is in silver, and in the other 

 part in gold, commerce require3 a stable par of exchange hetween gold and silver 

 moneys ; and, as the exigencies of business necessitate contracts for prolonged 

 periods, the industrial and commercial world requires a stable standard of value 

 for the equitable settlement of such contracts. 



It is also most important to industrial and commercial Britain that foreign 

 debtor nations shall not suffer by having to send to their foreign bondholders — 

 English or otherwise — on account of an alteration in the standard, an unfair and 

 unexpected increased amount of produce in discharge of external debts, to tlie 

 impoverishment of such debtor countries, and their consequent and corresponding 

 inability to purchase our goods. 



Gold alone does not furnish a stable measure of value ; silver is much more 

 stable. Having regard to the existing standards and currencies of the world, a 

 joint standard of the two metals, as of old, but on a broader international basis, 

 would afford the best promise of stability. It is a fallacy to suppose that if prices 

 of commodities fall producers or manufacturers get an immediate pro rata reduction 

 of their costs of production. Many adjustments are only slowly eSected ; some 

 elements of cost cannot be adjusted. 



The industrial capitalist therefore suffers, and labour must sooner or later share 

 the loss. 



A silver-standard country with products or manufactures competing with those 

 of gold-standard Britain has an unfair advantage over the producers or manufac- 

 turers of this country. 



The increasing scramble for gold throughout the world must, imless relieved 

 by a broadening of the monetary metallic base, increase and intensify and prolong 

 financial tension and panic. Great Britain, being practically the only country 

 whose monetary laws afford no means of protecting its gold, except the clumsy and 

 ofttimes slowly efficacious procedure of raising the Bank rate, must experience to 

 the fullest extent the evils of such financial disturbance. This affects credit, 

 checks trading facilities and trade and enterprise, and puts a tax upon productive 

 industry. 



The only remedy which it is even suggested would give a stable par of exchange 

 between the various peoples on earth ; which would give a steady and permanent 

 measure of value between buyers and sellers who make prolonged contracts, and 

 between debtors and creditors, individual and national ; and the only remedy to 

 relieve the ' scramble for gold ' and provide a suitable expansion of ' international 

 legal tender ' from time to time is international bimetallism. Monetary history 

 proves that this would provide all these desiderata, and also proves that it is 

 practicable. 



3. On some Objections to Bimetallism viewed in connection with the Beport 

 of the Indian Currency Committee. By L. L. Price. 



The publication of the Report of the Indian Currency Committee marks a 

 stage of great importance in the progress of the monetary crisis, and the report is 

 not devoid of instruction for the student of monetary affairs. The aim of the 

 present paper is to examine a few of the points on which such instruction may be 

 obtained. Bimetallism is frequently charged with being artificial, and the objection is 

 undeniably plausible. But the student will not dismiss the proposal on that ground 

 alone, for he is aware of the abuse which often attaches to the distinction between 

 what is natural and what is artificial. The layman, however, may be prejudicially 

 influenced by the charge ; but the review of foreign systems of currency contained 

 in the Report of the Indian Currency Committee should suffice to convince him 

 that, compared with these complicated systems, which are in many cases the con- 

 sequence of the abandonment of bimetallism, or of the refusal to return to it, the 

 bimetallic scheme appears simple and natural. Another consideration raised by the 

 report is the fact that a currency change has now been sanctioned, which is 

 distinctly designed to meet e-vils occasioned by currency changes. The particular 

 phase of the malady with which the Indian Committee deal is that connected 



