43 
continue to be the principal measure of property and instrument 
of commerce.” 
Lord Liverpool’s advice w^as followed, and in 1816 the gold 
standard was formally adopted, with silver and copper coins as 
tokens passing current for definite fractions of the new gold pound 
sterling. The new standard coin, the sovereign, was first coined 
and issued in 1817. 
I"rom that time onwards the currency troubles of the British 
Isles ceased, and it is hard in these days to realise the conditions of 
chaos which reigned in this matter only one hundred years ago. 
Britain was the leader in the matter of the adoption of the 
single gold standard, but nearly every other nation has by this time 
followed. The "Latin Monetery Luiion” first formed in 1865 
(France, Belgium, Greece, Italy and Switzerland) endeavoured to 
maintain the dual standard. In 1878. however, the coinage of 
silver standard five-franc pieces was “suspended.” and a virtual 
adoption of the gold standard thus introduced. Other countries 
adopted the gold standard in the years shown below : — 
1868, Spain. 
1871, Germany. Norway and Japan. 
1875, Holland. 
1899, Russia. 
19U0, United States. 
In 1899, the sovereign was made legal tender in India. In 
1906 however, it was fixed at a rating of 15 silver rupees. 
Experience therefore appears to show that the only sound 
principle of currency is to have one commodity as the standard of 
value, and to express all values in terms of that standard. All 
other instruments of exchange, whether of metal or paper to be 
subsidiary to that standard. Token coins to circulate at so much 
more than their metallic value that profit cannot be made by melting 
them into bullion. 
In adopting this principle it is not necessary for the actual 
standard of value to be represented by a coin. In the United 
States there is no gold dollar, nor in Germany is there a gold mark. 
The gold coins represent multiples of the standard. 
It is not necessary in busines to make constant use of the 
standard coin (as is commonly done in England and Australia) so 
long as a sufficient store exists for the exchange of tokens on 
demand. 
In view of the simplicity of the principles laid down by Lord 
Liverpool, and of the complete success which followed their adop- 
tion. it is remarkable that about twenty years ago there should 
have arisen quite a powerful movement to reintroduce the old 
system, or something indeed, a little worse. The bi-metallists 
of the ninetys wanted to fix the ratio between silver and gold by 
