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.