BI-METALLISM.

Thames Advertiser, Volume XXVI, Issue 8088, 2 April 1895, Page 3

81-METALLISM.

[To the Editor.]

Sin.—lt is with very great diffidonca that Tenter upon a discussion on a subject of such vast importance, and one on which such opposito opinions aro held by the leading minds of. the age, For we find that even among tho front rank of English statesmen, sorno aro on one side and some tho other. _ But thero is only one right side. Which it is I do not presume to say, any further than that to me tho doctrine of one standard of value seems in accord .with the other laws of nature and of commerce. Mr Jones in his second article says, " Tho gist of tho matter seems to bo that gold is being hoarded in all countries moro' or less, so that it disappears from tho markots of tho world just as rapidly as it is being produced,' 1 The (jislol the matlor.is thai t»old is being hoarded; to prevent this bi-melallists would by the re-monotizi-tion of silver banish gold entirely or almost so from tho inn rivet s of the world. Universal cxpericnco I '' teaches I hat where two metals aro curront in I ho same country, the less valuable drives out tie more valuable, that which is over-rated drives out that which is under-rated. At a ratio of 1!) to 1 or oven 18 to 1 at present market rates, diver would consrqurntly drivo gold out of tho market Ah- Jones then goes to Hsypt for an illustration. Ho says, 41 Until then, 1870, silver conld bo exchanged for gold at the ra 0 of 15 to 1 iu Paris to any amount. The'process was jrolioablo load parties concorned, except lho>c who hungered for tho immenso wealth, which hns flowed to their colTers from tho enormous in- ' grease in Ite viJup of gold siuco tlioa

aclrovcd." In this EQntnco Mr Jones apparently b'ames " those who hungered for tho immonso wealth,'' for the appreciation which has taken place in tho value of gold; when in' reality the blamp, if blame there bo, really U longs to tlioso who, in Ampi ica and 1 . Australia, ha\o produced during tho p'ist 20 years such enormous quantities of the white motal, that its value has depreciated nearly ouo half. E ypt, owing to hor peculiar position, being practically under thotutelngo of the English and French Governments, financially, cannot profit by her improved position to socuro a reduction of interest on hor national debt," simply because France will not consent to conversion operations. Hence she continues to pay the same rate of interest; which sho paid ; twenty tears aeo, whereas could sho go into the English rnonov unrkots now she could borrow at 2h or 3 per cent, It will bo seen from this that tho case of Ejiypt dops not fairly represent the conditions which oltain at tho present time. Our own securities arc I think abetter illustration. Twenty years ago we paid from 4 to 5 p:t rent on our loans, some ns hi h as six; whereas no* wo'pay a considerable rolueii n, biought about owing to the appreciation'of gold. Another illustration is found in the prices now paid for articles of general consumption,, compared wiili'those paid twolit.y years, ago If wo take 100 as representiiiß tho price then, between 50 and CO would represent the .prices ruling now. Thus wo see that, though aro lower absolutely, relatively they are about the same, for 20s to-dny will purchase a greater quantity of commodities than they would twenty yours ago, perhaps 50 per cant moro. This is a fact which bi-motallists do not appears to tako any notice of, but I think that properly considered it shows tho fallacy of tho reasoning based on the moro price of cotton or wodl as it is now, and as it was twenty yaß ago. The Australasian wool tzrower may only get the samo gold price for two bales now which ho got for one then, but tho price of one measured in wheat or manufaolnrod articles, will be found us high now as it was then. A convention of tho powers of tho world has been culled to discuss tho subject, but unless I am very much mistaken, bimetnllists arc' not destined l o soo their pot hobby adopted as (lie solution of tho currency quostion this year nor for a number of years y'tit. 1 But we will see India and America before long both adopting the gold standard, and tlion they will bo on safo footing. : jINQUMER.