108 BULLETIN OP THE 



and doubtless extensively will be, made in gold, valued at the 

 market premium over silver from time to time prevailing. 



He read from a publication by Mr. Cernuschi, the well-known 

 and bold advocate of " bi-metallism," so called, claiming that, if 

 the leading commercial countries of the world can be induced to 

 unite in the establishment, by statute law, of any fixed ratio of 

 value, however extreme, between the two precious metals (gold 

 and silver) as the basis of payment, the metal selected to be 

 always at the option of the person or party making the payment, 

 whether this ratio be 10 to 1, 15^ to 1, 20 to 1, or in the extreme 

 case of 1 to 1, the market ratio must of necessity conform to 

 this conventional ratio ; and, in the extreme case mentioned, an 

 ounce of gold becomes the equal in market value of an ounce 

 of silver ; and, further, taking the ground that, if either of the 

 two metals should be demonetized — that is, should cease to be a 

 legal tender — such metal should become valueless. If "interna- 

 tional legislation" is substituted for the existing systems, " on it 

 alone," he says, "will depend the relative value of gold and sil- 

 ver. If the international legislation is mono-metallic, the metal 

 which is not money, will lose so much of its value as to be no 

 longer precious. If the international legislation be bi-metallic, 

 the relative value of gold and silver which it recognizes will re- 

 main always and everywhere invariable." 



Mr. Elliott, while duly appreciating the boldness of the writer 

 in following his principles to their legitimate and logical conclu- 

 sions, dissented from his views. 



It was his opinion that, after the proposed enactment of the 

 fixed ratio by all commercial nations, every debtor will choose to 

 pay his debt of one thousand dollars (for example) by the deliv- 

 ery of one tJioiisand ounces of silver, rather than by that of 

 one thousand ounces of gold. Silver would rale as the standard 

 of account and of payment ; and payments, when made in gold, 

 would be made at a premium determined by commerce upon the 

 relatively cheaper silver standard. 



The relative market value of the two metals, like the mai'ket 

 values of other commodities, will not conform to any fixed ratio 

 established by the breath of legislators, but will ever fluctuate, 

 obediently regardful of the ordinary laws of trade, involving the 

 familiar elements of supply, demand, and cost of reproduction, as 

 controlling factors. 



