Gold, Silver and the Coinage of the Silver Dollar. 



purpose of the total change to gold alone, it was a menace to that 

 system which she could hardly expect its aid in carrying into effect. 

 The result is what we have seen — the mints of all nations of the 

 western world — Europe and America — indeed of the whole world, 

 except those solely on the silver standard, are closed to silver, for free 

 coinage. 



Some of the European writers upon finance have exhibited an ardor 

 in support of the French system of coinage amounting almost to in- 

 fatuation. M. Gamier, some forty years since, constructed a historical 

 theory, in which he maintains that silver and gold have, during all 

 time, maintained about the ratio of fifteen, or fifteen and one-half to 

 one, and that the French valuation has consequently a law of nature 

 in its support. Most of the French economists adhere with great 

 tenacity to the exact French ratio of fifteen and one-half to one, and 

 exhibit apprehension that the financial universe would be unbalanced, 

 and chaos imminent by a change to any other ratio. At the two late 

 international conferences — 1878 and 1881 — the representatives of 

 France clung to the idea that silver could be rehabilitated as interna- 

 tional money, only upon the basis of fifteen and one-half to one. I 

 understand her most trusted financiers still adhere to that view, not- 

 withstanding the commercial ratio of value has widened to over twenty 



Meantime a crisis is reached in the world's medium of exchange and 

 measure of value. Commerce and industry hesitate in the doubt as to 

 the future. While the problem is unsolved as to the continued health- 

 ful circulation of an equal half of the life-blood of commerce, trade 

 must move feebly, and enterprise halt. The world's traffic must have 

 stability to prosper, and instability in any thing else can be easier 

 endured than in money. Instability in that spreads uncertainty and 

 apprehension into every transaction throughout the intercourse of 

 mankind. 



I am profoundly impressed by the study of this subject, that the 

 principle involved in the French bi-metallic policy offers the true solu- 

 tion of the difficulty. Unless the world is prepared to face the risk of 

 the ultimate subsidence of silver from the commerce of the nations, 

 with all which that involves, it seems indispensable that a convention 

 of the commercial nations should agree upon establishing free coinage 

 of both metals at a uniform ratio of value. England has so far 

 declined to enter such an agreement; but England is learning by 

 present experience, what her pride thus far hesitates to acknowledge, 



