INTERNA TIONAL BIMET ALLISM

Dhananjayarao Gadgil Library 1111111 lila Ilia am Ilia Ilia 1111 liD GIPE-PUNE-069066

BY FRANCIS A. WALKER. PH D.• LL.D. pr'4;tl,., M •• n(ult"sdls /lulU"" 11/ Tu4 .. c,J(}o. A.tlt... ,. 6/ '" Po/iU("tll E"f1"f1"'~I" h TJu ""'':'" Q.,sl;Q ••" U Mg""," "MtI"'J, Tra,J, • • "iI b.J,.sI'~I" d(".

Uonbon MACMILLAN & CO.. LIMITED \896 Copyri,ht, 1896. BY HENRY HOLT .. CO. )\£ I/;1-' I . IY!.) (/6 G90GG PREFACE

By invitation of the President and Fellows of Har­ vard University, I delivered a course of lectures on Bimetallism in that institution during the academic term now drawing to a close. Of those lectures this book is the public outcome. The material thus brought together is now published, the lecture form being aban­ doned, while the order of topics and the style of treat­ ment are preserved. I am much indebted to Prof. Willard Fisher, of Wesleyan University, and to Pres­ ident Andrews, of Brown University, for their gener­ ous assistance. Prof. Fisher has kindly read, not only the manuscript, but the proofs of this work. While he cannot, under the conditions of a hurried revision and publication, be held responsible for any errors which may still remain, I gladly acknowledge many valuable suggestions and corrections from his pen. While I began to write on money for the newspapers as early as 1858, my published works on the subject began with the issue of my large treatise in 1878. The year following I delivered a course of lectures in the Lowell Institute, of Boston, which were brought out in book form under the title 1llonfY, Trade, and blduslry. I do not know that I have had occasion to change a single one of the opinions expressed in those volumes. The subject seems to me, as it has always seemed, a perfectly simple one if prejudice and passion are not allowed to obscure it. iii iv . PREFACE. While this littlet "'Ofk~ as the account or its origin shows, W<\S l1rep'V~d"without the slightest rcCerence to the impending political contest in the United States, I shall be glad if it proves to be in any degree in­ structive with rcCerence to the question which is des­ tined to underlie that great struggle. Though a bi­ metallist, of the international type, to the very center of my being, I have ever considered the efforts made by this country, for itself alone, to rehabilitate silver as prejudicial equally to our own national interests and to the cause of true international bimetallism. In my Money, Trade, and Industry, published after my return from the Paris Conference of 1878, I made use of the following language: .. For us to throw ourselves alone into the breach, simply because we think silver ought not to have been demonetized, and ought now to be restored, would be a piece of Quixotism unworthy the sound practical sense of our people. The remedy of the wrong must be sought in the concerted action of the civilized States, under an increasing conviction of the impolicyof basing the world's trade on a single money metal. The demonetization of silver was a work of ill advice. Let its restoration be a work of good advice. The subject is not likely to lose its hold on the public attention so long as gold continues to rise in value. Let us await the time to act with effect; and not forfeit our present remarkable success and imperil resumption by measures which can do no last­ ing good to the cause of silver and may do much hann to ourselves." BOSTON, June 19, 18g6. CONTENTS

CHAPTER I PAG. THK EARLY PRODUCTION OF THE PRECIOUS METALS...... I

CHAPTER II

AUGUSTUS TO COLUMBUS...... 25

CHAPTER III

BIMETALLISM IN ENGLAND. 1666 TO 1816...... 53

CHAPTER IV

FRENCH AND AMBRICAN BIMETALLISM TO 1851... •••• ••••••• 85

CHAPTER V

FRENCH BIMBTALI.ISM TO 1873 ...... 118

CHAPTER VI

DEMONBTIZATION ...... 155

CHAPTER VII

THill GRBAT DBBATB ...... II}O

CHAPTER VIn

REVIEW AND SUMMARY ...... 233 T INDEX INDEX

Abraham, 2, 5 Austria, production of precious Abrasion of coin, 22 metals, 30; its monetary sys­ Africa, South, gold fields, 121, tem, 124, 171 n. 122, ISO, 151 Bacon, Francis, 4. Alexander the Great, conquest Bagehot, Walter. 96, 131, 132, of Persia,S, 6, 12, 13, 233 134, 35. 138, 167,178, 179,183, Allard, M., 139 n., 227 199, 202, 203 n., 240, 247, Allison, Wm. B., 227 248 Allison Bill, su .. Bland Bill." Balfour, Arthur James, 201, Alvensleben. Count, 229 214. 215, 225, 269 Amalgamation process of treat- Bamberger, Herr, 169 ing silver, 3 n., 46 .. Barbarian" Invasions of the America, production of precious Roman Empire, 21.22. 233. 234 metals, 45-47; South Ameri­ Barbour, Sir D., 201, 204, 246, can revolutions affect sup­ 247 plies, 90; Appalachian fields, Baring, Alexander, 89. 108. 20<} JI6. .!iu California. Baring. Sir Evelyn, 202 Andrews. E. Brown, 227; also Baring Failure, 215 preface Baxter, Mr., 179 Antwerp, acquires commercial Beaconsfield, Lord, 84 supremacy, 58 Beeneart, M., 278 Appreciation of gold, meaning Belgium, monetary system, 2 n •• of term, 254-6 124, 131, 132, 192 Arabia, ratio between gold and Berg. M. Van den, 227, 228 silver, 53. 54 Bimetallism passim; definitions Argentina, how affected by de­ of. I, 2; absence of a theory monetization, 216 of the subject. during early Arts, the, consumption of pre­ efforts at maintaining the two cious metals in, 91 metals in circulation together. Atkinson. Edward, 263, 281, 282 60; advantages of. 137-151 Augustus. Emperor. stock of Birch, 201. 204-6 precious metals in his reign, .. Bland Bill," I86-c) 18. 23, 29. 233, 234 Boissevain. M .• 227 Austen. Prof. Roberts. 202 Bosanquet, Mr., 39 Australia. gold from, 50, 51, 85, Boutwell, George S .• 186 122, 135. 137, 151. 182 n., 239; Bowen. Prof. Francis. 186 how affected by demonetiza- Bramwell, Lord, 202 tion, SIC! • Brazil, gold from. 78 INDEX.

Brussels Co,ference, ,,, COD­ 161; U. S, SilverCommi.slon ferences, International. 177, 185, 186: Commillio,j Bullion. Bimetallism - Sym­ OD Depre.sion ID Agricuhure, metallism, 206-8 130, 161, .3., 246, 158 D" Byzantium, gold coinage of, 32, .60 D., 165, 266: Select Com­ 234 mittee on the DepreciatioD of Cairnes, Prof. J. E., 48-51.59 n., Silver, 131, 13., 138 D., 177- 82, Q6, 134, 178, 240, 143, 244 183, lIDl, 102 D., 148. California, gold from, So, 51, Conduitt, John, 71 85, 122, 135, 137, lSI, 182 D., Conference., International, 239 1867, 155-167, 175; 1878, 71, Calonne, Minister, 86, 114, 126, 73, 145, 190-194: 1881', '94- 238 6, 128; 1889, 198; 189., 145, Cambyses, King, treasuru 224-231 taken from Egypt, II Contraction of currency,lnllu­ Capital as a daimant upon the OD trade and production, 30, product of industry, 285.286 31, 200, 201, 271-7 Cannon, H. W., 227 Convict., a. miners, 19"111 Carthaginians, early trade ID Cortca, Conquelt of Melllco, money, 12 45, 46, ", 136 Cave, Mr., 179 COlt of production, how re­ Cernuschi, Henri, 133, 195 lated to value, 15-29 Chaplin, Henry, 202,215,22:1 n., Counterfeiting, ,,, CoIn, cor· 225 ruption of. Chevalier, Michel, IS n., 22 D., Courtney, Leonard H., lIDl, I', 34 n., 35 n., 90,96. loS, 109,122, Credit al a .ubstltute for money, 123, 125-7, 130, 135,154,240 277, 278 China, loss in repayment of Cremnitz, mIne. of, 30 gold loan, 2JS; how affecteel Crusades, their Inlluence on the by demonetization, 247, 250, money-.upply nf Europe. 31, 251 32,134 Classical writer., reference. to Currie, Bertram. 102 Precious Metals, 5 Cyanide proces. of reducin, Cliffe Leslie, Prof., 48-50, 243 golel. ISO, 151 Coin, paIS;",; corruption of, Daniel, BoolI: of, 4 34-36,60-61,67-69,100,237 Debts, pressure of, bow related Coinage. free, relation to bi­ to contractioD or ellpanllon metallism, I, 2, 86, '32 n., 172- of the currency, 30, 31. ,I, 5., 5; gratuitous, 66, 86-88 n. 130, 151-4,116, 172, 173 Columbus eliscovers America, Delbruck, Herr, 169 45,236 Demand aDd lupply, In case of Commissions anel Inquest., precious metals, 10, II, 14: monetary; French Commis­ geDerally a relation to co.t sions, 164-6; German Silver of production, 25-29 Commission, 171 D.,232; Lord Demonetization of silver, 134, Iddesleigh's CommissioD,IW" 150 n.,Chapter VI: effect. of, 201. 249, 275, 287, 288; Lord Chapter. VII anel VIII, ,4" Herschell'. Commission, 50, Ii", 51, 127, 135, 142-5, 174 D., DeDmarll:, ill monetary IYltem, 177, 201-6, 214, 21S, 249, 250, 170 D., 179, 184~, 195 I.\'DEX.

Diorarli. Renjamin.lu Beacons­ Fractional money, 34.62-64 field. Lord. France. monetary system,2 ft., listribution. geographical. of 35. 6), 75. Chapt"'s I V and the precious metals. ", Geo­ V. 1q6. 197,220. 228. 229. 130. grapbical distribution. 238, 239, 141, 267 Double Standard. inadequacy Fremanlle, Sir Cbarles, 194, of the term to represent bi­ 201 metallism. 165 II. FuJiartoa, Jobn, 37 East. the, contrast"d with Eu­ Galt, Sir Alell., 194 rope as to tbe precious metals, Gaudin, Minister. 87. 88 31, 32, 59: dtects of demone­ Geograpbical distribulion of the tization upon lTade witb,143- precious met.als by lbe agency 254 of prices, 11-13, 42, 43 Ecbatana, treasure of, 5 •• Germany. monetary .ystem of, E,,,,,,,,,,;sl, Tlu L"II4t> ... 242,256 134. ISS. 167-173, 190, 194, 210. Edgewortb, Prof. F. Y., ISO, 211,229. 130, 232, 267 198. 207, 208 -- France's war witb, indu­ Employment, irregularity of. ence on monelary system of 280, 281 tbe world. 167-<). 241 En!:land, its monetary system, Gibbs, Mr. H. H. (Lord Alden­ Chap. III. p. 91: 166. 190, ham), 173. 174, 190, 191, 200, 191, 196. 197, 125-7, 130, 132, lOa 237, 238 Gibson, Gen. Randall, 186 Europe. contrasted with the Gillen. Sir Robert, 40, 41 a., 96. East as to tbe use of the pre­ IOC). 127, 130. 131,161,174,179. cious metals, 31, 32, 59 195,202.103 n •• 214.116 n., 140. Evarts, Wm. M., 194 246,256,258,260,263.265.269. Ellchange, Par of, su Par of ElI­ 281 change. Gladstone, 216, 226 Ellport of precious metals, in Godkin, E. 1..,4 violation of law, ,2, 34, 37-39 Gold and silver, fass;"" dif­ Failures, commercial, aggra­ ference ia modes of occur­ vated by demonetizatioa of rence, 2, 3; as treasure, Dot silver. 175 money, 10, II; comparative •. Farming" of mines. 19. 21 production, 4S. 46, 56, 57.79- Farrer, Lord (Sir T. H.), 77-79, 80, 89. 90, 122, 13S-7, 139 a., 96.201,114,140 ISo, 181, 204, lOS, 239. 240 F;o.ucher. Uon, 123, 12. Gold to silver, ratio, 5. 33. 53, F;o.wcett, Prof. H., 179 54, S6-60, 6S, 7S-80. 86-88, 92, Feer.Herzog, M., 192 123. 135-7, 139 n., 162-4, 170, Feudalism, decline of, hastened 175. 176,204, lOS, 231 D., 236, by ellects of American silver, 238,240 51. 52. IS) Gold and Silver Commission, Fisher. Prof. Irving, 150 ", Commissions and Inquests. Fisher. Prof. Willard, 10<). 120, Lord HerscbeU's Commission. 128; also preface Goschen, George J., 83. 1,,6.179. FloN!nce, gold coinage, 32, 33 lqo, 225. 266, 267. ::69. 2S1 FOllwell. Prof. H. S., 71, 105. Greece, monetary system of. 2 n. 106. 156. 198, 19'), 205, 209. Greed. tbe eaemy of true self· Z16. 217, 2~S a. inlerest, I.., IS INDEX.

Grenfell. Henry R .• 101 Inllatlon. metallic. 51. 51. 130. Groesbeck. W. S .• 186. 191 151-4 , Haggard. Mr.• 109 Ingli .. Palgrave. R. H •• 50.5'. Hallam. H •• 54 aoo. 101. asllI. Hamburg Tables of Prices. 156 Interest charge. how afreeted b, Hamiltun. Alexander. 114. 115. contraction of the currenc,. 219 100. 101, 17:1. 173; as a ahare Harcourt. Sir William. 83. 126 of tbe product of indu"ry. II arrison. President. 123 18~ Harrison. F. C .• 146 n. International. conlrasl,ed wilb Hartl Mining District. 19 national. bimetallism. I. 1.33. Hay. Sir Hector. 179. 101 34. 64. 65. 99-10:1 . Hebrew Scriptures. reference to Italy. monetar, .ystem. In.• precious metals. 1-5 131.13:1, 155.195; its mining Henry VHf .• of England. cor­ Industr, under the Republic. ruption of the coin. 35. 66 18. 19. Herschell. Lord. 135. 101 Jackson. C. C •• 167"9 Herschel! Commis5ion.I~,Com- Jacob. William. II. 18. 19. 1:1, missions and Inquests. 13. 19. 46• 54 Hertzka. Theodor. cited. In. Japan, ratio between gold and Hoffman. Prof •• 91 lilver. 54 n.; trade and pro­ Holland. its monetary Iystem. duction. how all'eCled b, de­ 75. 124. 170 n •• 195. :127. 1:18 monetization. ISO Horton. S. Dana. 67. 7~7S.176. Jevonl. Prof. W. S .. 71.96. 97. 193. 194 lOS. 133. 134. 149. 154, 178. Houldsworth.Sir Wm •• loo. 101. 199. 103 n ••40. 171 226 Jews. the. 54. 55. 136 Howe. T. 0 .• 194 Job. Book of. "4 Hulibard. Mr•• 179 obn. King. of France. 35,61 Hume. David. 151-4 oint Metallism •• Humboldt. Alexander von. 46 ~nox. John )a,. IU, 113 Hungary. production of pre- Labor. relauon to value. a6 cious metals. 30 Laborer, tbe. hi' relation 10 the Huskisson. Wm •• 13. 109 product of industry. IS]-6; Hydraulic mining. 3 n. how afrected b, tbe demone­ Iddesleigh. Lord. 200; the com- tization of Iilver, 17cr88 mission of which he wal Latin Union. I. 121. 131. 13:1. chairman. I~I Commissionl 135. 174. 176, IBo. 18S. 19:1, and Inquests 141 Idealistic. the term applicable Laughlin. Prof. J. L., 56. IO?­ to monometallism. not to bi­ III. 113. 115 n •• 117. 148. 186. metallism. 160. 161 263 Index Numbers. 256-260 Lavel~ye. Prof. Emile de. UOII •• India. appetency for Iilver. S9 uS. 19:1 (S'" The East). 179. 180. 146. Law. power to inftuence eaport 247 and melting of precioUi meC­ --Closing of fndia Mintl to all. 33. 34. 37-39; inlluence on silver. 231; trade and pro­ the ratio between tbe metall. duction. how inftuenced by 93-98.133-7, 183.104. 2OS. I)S. ~c;monetizati!,n, 24?-25" :I~? INDEX.

fevre, J. Shaw, 244, 245 Nevada, silver production of, . ~vi, Montefiore, 145. 146, 228 148, 171, 179 ~xis, Prof., 96, Itll, 240. 847, Newmarcb, William, 129. 130 252-4 Newton, Sir Isaac, b6, 70, 71, Lidderdale, Mr., 215 74-77, 85 Liverpool, Lord, 80, 1138 Nicbolson, Prof. J. Shield, 198, Locke, John, 66, 70-76 202, 238, 278 Lombardi, the, 55, 236 Normandie, M. de. 1<1>-8,241 Lowndes, William, 69 Norway, it. monetary system. Luhbock, Sir John. 201, 204~ 170 n., 179, 192 , 195 Macaulay, Lord, 68-70 Nuggets of gold, 3, 4 n. Maclaren, James, 125 Orban. M. Frere, 192 MacLeod, H. D., 119, 120,202, Papal States, monetary system McCreary, Mr., 227 of, 2 n. McCulloch, J. R., 154 Paper mone}', French Revolu­ Magnin, M., 194 tionary, 87, 93; American Mallet, Sir Louis, 145, 194, 202, .. Continental." 93. 94; Eng­ 204 lish, during Restriction, 79, Marshall, Prof. Alfred, 2, 181, 80, 113 n.; American passion 182 n.,195.201 n.,202, 206-210, lor, 62, 112, 113, 218, 219; 261, 274 n., 277, 278 n. Italian, 132 Martin, John Biddulph, 258 n. Par of Exchange, between gold Medina, discover. amalgama­ countries and silver coun­ tioll process, 46 Iries, 102-106, 137-147, 120- Mees, M., 157 222, 242 Melting of coin, in violation of Parieu, E. de, 126 n. law, 33, 34, 37-39 Peitsch, 179 Mercantile theory regarding Persepolis, treasure of, 5, 8, money, 34, 60, 61, 100 11,12 Mexico, Conquest of, 45, 46, 55, Persia, accumulations of treas­ 236 ures, 5,6, 11,233 Mill, John Stuart, 28, 37 Peru, conquest of, 45-47, 55, Mining of precious metals, 236 technicalities, 3; in early Phelps, Anson Siokes, Joint ages, non-economic, 13. 14; Metallism, 2 special liabilities to injury, Philip of Macedon, scarcity of 14-18 gold, II, 12 .. Modesty of Nature," the, lSI, Pierson, N., 209 IS2 Pixley, Mr., 179, 202 Money, itl general laws, 9, 10, Pizarro, conquest of Peru, 45- 25-29 47, 236 Montagu, Sir Samuel, 202 Placers, placer-mining, 3 n .. IS Moors in Europe, In Saracens. Play fair, Lord, III, 112, 114, Napoleon Ihe Greal, 87, 239 117 Napoleon Ill., 155 Ponugal, its monetary system, National, contrasted .. ith in­ 124 lernalional, bimetallism, I, Pust, N. Y. E ..t'fIi_.f', 4,99 2, 33, 34. 64. 65, 235 Potosi, mines of. 46, 47. 55.148 Nel~on, Henry L .• 179 n. Precious metals. passim, ", Neo-l>ime~alliHs, 99 Gold an4 Silver, INDEX.

Price, L. L., 177 Rothschild, Baron Alpbonlo, Price, Prof. Bonamy. 100 165. 166, 199; Alfred de, 12(1, Prices, bow affected by cbange. 241 ,- in tbe currency, 254, 255 Rouland, M., Governor of nank Prices, Fall of, ISO, 200. 254-61; of France, 165, 166, 1.41 economic effects, su Contrac­ Roumania, monetary Iyatem tion of Currency. Is tbe term of, 1 n. equivalent to appreciation of Ruslia, monetary Iyatem of, gold? 254-6 267 Prices, Rise of, ,,, Inflation, St. Hilaire, Barth~leDlY, 195 Metallic. Salisbury, Lord. 225, 226 Production, current, al related Saracen invasion of Europe, ef. to value. 25-29 fect on production of precious Profits, bow affected by cur­ metals, 29; gold coinage, 32, rency cbanges, 152-4, 273-7: 234 as a sbare of tbe product of Sauerbeck'. Table., loa, 156, industry, 283-5 258-260 Prussia's war-c:hest, 110, III Say, Leon. 145, 146, 190, 1.41 Ptolemy Pbiladelpbus, trealure Scblater Bootb, Mr., 200 of,6 . Seccombe, Sir T" 190, 191 Pyramids, compared witb an­ Sedgwick, Prof. Henry, 134 cient accumulations of treas­ Seigniorage, 87, 88 D., 109. 176 ure, 7, 8 Serfs, a. miDers, 20, II Ratio, market, between gold Seyd, Ernest. 179. 199 and silver, see Gold to Silver, Sbaw, William A., 32,68, 79,9'), Ratio. 107, u8 D., 146, 147, 169 Ratio, the, reasons wby it I. In­ .. Sberman Act" of 1890, 188, expedient todiscU8S the ratio 223, 1124, 149 of a restored bimetallism at SbermaD, Jobn, 183, 184 tbe present time, 211-213 Siberia, auriferoul landl of, 90 Readjustment, economic, 48, Silver aDd gold, ,u Gold aDd 49, 191, 192, 143-154 lilver. Reay, Lord, 194 Silver, Select Committee on tbe Recoinage, in England, 67, 6<), Depreciation of, #1 Commis­ 70,237, 238 sionl aDd IDquest •• Remonetization of silver, ef­ Slaves, a. miDer., 8,9, 16, 17 forts towards, ,ee Cbapter. Smitb, Adam, 40 D. VII and VIII; bow It may Smitb, Samuel, _ be accomplisbed. 230, 231 Smuggling, bow far controllable Rents, influence of cbangea in by law, 37-39 tbe currency upon, 244 Soetbeer, Dr., 53 D., 59, 60 n., Residual sbare of tbe product 114, 129, 161, 169, 199 D., 256, of industry, 28]-5 258 Ricardo, David, 37,42,109,283 Solomon, King, bie trealure, Rogers, J. E, Tborold, 35, 40 D. 4. 5 Rome, its COD quest of miDing Somerset, Protector, corrap. countries and of countries tion of tbe coin, 35, 66 having large accumulations Spain, production of silver, n, of treasure, 233; its wasteful I 29; discovery of America. 45; PliDin, administration, 133 use of tbe new .ilver, 45-48 INDEX. 297

Statlstkl of the precious met­ Tyrians. early trade in money. als, current production and n Itock, :102, :lIOJ Unification of coinage. 155-158 --of wages, 279-81 United States. monetary sys­ Steuart, Sir Jamu, bimetallist, tem. I. 63. 110-117, 183-9. :I, :1(1) 217-220. 222-4, 238 Stock of precioul metala, 202, Ural Mountains. gold-mines. 20 3 IS n., 90, 122, 240 Suess, Dr. E., 83, 182 n. Venice, its gain by the Cru­ Sumner, Prof. W. G., 113 sades, 32, 234: comlllercial Supply and demand, JU De- 8U premacy passes to Ant­ mand and lupply. werp,S8 Susa, treasure of,S, 8, II Wages, how affected by demon­ Sweating tbe coin, JU Coin, etization. 279-88; as a sbare corruption of. of the product of Industry. Sweden, Its monetary system, 283--0 170 n., 179, 192, 195 Walker, F. A .• 191.192 Switzerland, itl monetary sys- War. influence on mining indus­ tem, 2 n., 131. 132,156 n .• 192 try, 17, 20; between France Symmetallism, 2. 206-209 and Germany, as Influencing Thurman, A. G., I<}J the demonetization of silver, 7";m". 1'Iu London, aSI 167-9 .. Tinkering the currency." the War-chest, 210, 211 term applicable to the mono­ Wells, D. A. 26Z-4, 271, 283 metallists. not to tbe bimet­ White. President A. D .• 87 allists. 162 Wilson. Sir Rivers, 226. 227 Tooke. Newmarcb, 139, 130 Wolowskl. Louis, 133. 199