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Laveleye, in one of the able articles which he is contributing to the Independance Belge, as an advocate of Cernuschiism, points to a fall of 30 per cent, which he thinks has already been occasioned by the demand for gold currency. He excites our imagination as to what may be expected to happen should Italy and other countries need gold for coining. But he omits to observe that the fall of 30 per cent. is probably due for the most part to the collapse of credit and speculation, a periodic event of which we have had many prior instances. The period of 1833 to 1844, especially, was one when no great wars and monetary operations were in progress; it was a period of active industrial and commercial progress. Yet the tables of prices given by Tooke, in his "History of Prices," and reduced in my paper on the Variation of Prices, communicated to the Statistical Society in May, 1865 (vol. xxviii. pp. 294-320), show that the average prices rose by 22 per cent between 1833 and 1839, and fell 25 per cent between this last year and 1844. So far as I have been able to discover, this great oscillation was entirely due to the general expansion of trade and credit, and to its subsequent collapse. Like causes have certainly been in operation in the last ten or twelve years; and if, as seems probable, we are now getting round by the lapse of time to the period when trade naturally revives, experience would prevent us from imagining that the late fall of values will be continued or repeated without an intervening rise. I am far from denying that if the Italian Government decide to carry into effect M. Luzzatti's threat of buying gold at all hazards, and if the like course be taken by the United States and France, not to speak of Germany, then there might be a considerable disturbance of values for a time. But is it likely that such proceedings will be taken by rational statesmen and rational parliaments? It is really too absurd to suppose that any country will insist upon immediately having a gold currency at any cost, regardless of the fact that it will thereby injure its own trade and commerce in the getting. The position is simply this. We have had for fifty years or more an abundant currency of

gold. Italy and some other countries have a paper currency. Suddenly becoming disgusted with paper, they say that unless we consent immediately to abandon our gold to a great extent, and take silver instead, they will insist upon buying our gold from us at whatever price we like to ask for it. We have so good a currency that, unless we consent to give it up willingly, they will insist on borrowing it from us. But surely in this case possession is nine points of the law. The largest stock of gold in the world is to be found in England, and many of the great gold-producing districts are to be found in the English colonies or dependencies. If these foreign nations insist upon having gold currencies, they must pay our price for gold, and they must in raising the price benefit us and our colonies, comparatively speaking.

When we consider what are the difficulties put forward as the ground of this bimetallic crotchet, we find that they arise either out of the sudden issue and withdrawal of paper money, or else out of the efforts of certain governments to get rid of silver. If the Italians suddenly want fifteen or twenty millions of specie, it is because they allowed their specie to be replaced by paper in former years, and they now discover the evils of a variable paper currency. Germany wants gold, because Prince Bismarck and his economists recognized the soundness of the principles on which Lord Liverpool fashioned our metallic currency. But because Germany has met with a temporary check in striving after a gold standard, is there any reason that we, who have had a gold standard with little interruption since the time of Sir Isaac Newton, should throw it up at the demand of M. Cernuschi? The difficulties of France simply consist in the fact, that, having had the law of the double standard previously in operation, she suspended the action of the law as soon as it began to occasion a return of silver. If all civilized countries were to adopt the double standard, they would just be inviting the growth of a silver currency, which France, with full experience of the use of silver, has practically decided to avoid.

Much that has recently been published on this subject, including the official

text of the draft resolution to be submitted to the Conference in Paris, implies that the French law establishing the double standard was intended to act as a regulator of the values of the metals according to the ratio of 15 to 1. The fact, however, is that no such idea seems to have prompted the law. Gaudin, who in the ninth year of the Revolution proposed the ratio of 15 to 1, did so upon the ground that this ratio was sufficiently near to that of the market values to allow coins of gold and silver to circulate side by side indifferently. In case the market ratio should alter after a time, he thought that the gold pieces could be melted and reissued. Sir Isaac Newton, again, when in 1717 he fixed the guinea at 21s., did so upon the ground that this was the closest convenient approximation to market rates. Only four months ago I quoted in the Contemporary Review (January, 1881, vol. xxxix. p. 73) the remarks of Cantillon upon this decision of Newton. Cantillon says:

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'It is the market price which decides the proportion of the value of gold to that of silver. On this is based the proportion which we give to pieces of gold and silver money. If the market price varies considerably, it is necessary to alter the proportion of the coins. If we neglect to do this the circulation is thrown into confusion and disorder,' etc. There is, in fact, no precedent for the views now pressed upon us. It is not even proposed to accept the prevailing ratio of the markets, but by an arbitrary convention to raise up silver to the place it held in the markets before, which involves bringing down gold so as to meet it about half-way. I do

not undertake to deny that if a convention were agreed upon, and carried into formal effect, it might possibly raise silver to its former price of 59d. per ounce. The measure is one of so novel a character that it is almost impossible to say what would or would not happen. The attempt to force silver dollars into use in the United States has entirely failed, and it might fail even under a convention. It is quite conceivable that in the United Kingdom and the colonies the scheme would be defeated by the tacit refusal of the people to accept silver legal tender. A bank or a trades

man might try to stand upon his legal rights, but the result would be a kind of commercial "Boycotting." Some formula would probably be discovered for contracting affairs out of the Double Legal Tender Law. At present there is no law to prevent people from making contracts in terms of gold or silver bullion, or tin or copper or corn, or whatever else they like, which is capable of precise definition. Even if the law were not thus circumvented, it might still be possible to make payments in gold a point of honor.

Then, again, the perpetual maintenance of this supposed convention is the only safeguard against the most serious inconvenience to some of the parties to it. The convention would resemble a chain, the breaking of each link of which would throw an increased strain upon the other links. There exist, indeed, a good many international conventions relating to postal intercourse, extradition of criminals, copyright, and so forth; but in none of these cases would the breaking or suspension of the convention result in any ruinous consequences. There would be suspension of benefits rather than occasion of evil. But should war break out among some of the countries involved in the monetary convention, the probable effect would be to throw the mass of silver coin upon neutral nations. This might be done without any express breach of the convention, simply by the issue of paper money, a measure which we cannot pretend to consider unlikely, seeing that the chief difficulties of the present monetary situation arise out of efforts for the withdrawal of recent paper-money is

sues.

It is true that the 8th Article of the proposed Convention enacts that "the fact of issuing or allowing to be issued paper money, convertible or otherwise, shall not relieve the State issuing it, or allowing it to be issued, from the above stipulated obligation of keeping its mints always open for the free mintage of the two metals at the ratio of 1 to 15.” But as far as I can understand this "keeping of the mints open, it seems probable that this article would be quite nugatory in time of war. If silver were depreciated 5 or 10 per cent, paper legal tender might easily be depreciated

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20 or 30 per cent, and nobody would think of coining silver to pay their debts, when they could pay them so much more cheaply with paper. issue of paper legal tender forms then, to the best of my belief, an indirect mode of abrogating the Convention without a distinct breach of faith. No government has ever yet resisted the temptation of resorting to paper under serious stress of war, and therefore, until a wiser and better state of things is brought about in the long course of time, it would seem impossible to fulfil the first condition of the bimetallic project the making of an indefeasible convention.

When a measure is so clearly undesirable, it is hardly needful to point out the many difficulties which would arise in its operation. But there is one which presents itself to my mind as almost insuperable-namely, the confusion which would be produced in the masses of national and other debts contracted in terms of gold money. Silver is now about 13 per cent below its old customary value, compared with gold. If, then, debts contracted formerly in gold could be paid in silver, by the option of the bimetallic system, the claims of all creditors would be endangered to this extent, and in all probability would be depreciated to half that extent. Nor would the matter be much improved by enacting that old debts should be paid in gold as contracted, because gold, being forced into a fixed par with silver, would be depreciated, say, six per cent. The adoption of the bimetallic régime would be a coup d'état affecting the value of all past monetary contracts in a degree incapable of estimation; and although such a coup, or almost any other coup, might be advisable under certain circumstances, according to the maxim, salus populi suprema lex, yet it would be clearly impossible to unsettle the whole monetary contracts of the British nation and the British race, to the extent of some six per cent or more, for the sake of the exceedingly problematic, if not visionary, advantages to be derived from this proposed convention.

Though it thus appears to be altogether out of the question that the English Government should contemplate

the abandonment of the gold standard, there are two or three minor measures of a temporary nature which might perhaps be adopted to relieve the disturbed relations of the precious metals. There would probably be little or no inconvenience in raising the limit of legal currency of silver coin in the United Kingdom to five pounds instead of two pounds as at present. This change would probably prove to be a merely nominal one, unless bankers and others could be induced to pay out silver coin more largely than at present. The Mint gains so handsome a profit upon the coinage of silver money at present that the opportunity might well be taken to throw as much silver into circulation as possible; but unless the habits of the people be changed it would not stop in circulation. There is, in fact, at present a very clear disinclination on the part of the public' to take any larger amount of silver money than is necessary. It is an almost unknown thing in England for any tradesman to give as much as two pounds in silver change. No customer is expected to take more than ten, or at the most twenty shillings in silver, and any surplus of silver receipts is paid into the banking account, and the general balance of the district. is eventually returned to the Bank of England. It is very doubtful whether Mr. Seyd's scheme of a four-shilling piece or any other scheme would overcome this fixed habit, which is moreover a reasonable habit.

It will easily be seen that in this article I do not pretend to enter into the complexities of the subject, nor to answer the numerous arguments adduced in favor of the bimetallic project. The literature and statistics of the subject are of an almost interminable extent. If any reader wants to learn what he has to read before he can be considered to have mastered this subject, let him refer to "A Partial List of Modern Publications on the Subject of Money," prepared by Mr. Horton, and printed among the Appendices to the Official American Report on the International Monetary Conference, held in Paris, in August, 1878. This volume is replete with information on the subject. But my contention is that to wade through

the interminable discussions on bimetal- result of which is usually to find yourlism is about as useful as to wander self back again at the point you started through a forest in a mist, the happiest from.-Contemporary Review.

THE SUNBEAM IN A STORM.

AN EXTRACT FROM MRS. BRASSEY'S DIARY.

AT the beginning of October last year, we left the Sunbeam at Birkenhead, in order that sundry repairs. might be executed by Messrs. Laird, and that she might be reclassed at Lloyd's. By the end of the month the work was nearly completed, and the surveyor had just examined and passed her, when one day a carpenter, engaged in caulking, lost his auger through a hole he had made. In searching for it, his fingers encountered a mass of crumbling dust, and a suspicion of dry rot immediately arose. A careful examination was made, and upon stripping off the copper it was discovered that for a depth of about six feet and a length of seventy on each side of the engine many planks were entirely and all partially rotten. It seems that these planks were all of elm instead of teak; for at the time the Sunbeam was built it had not been discovered in private establishments, though it was known in the Government dockyards, that elm is a wood that will not stand in a dry, hot atmosphere. Oddly enough, it will last long if always wet, or alternately wet and dry, but it is very liable to rot if entirely protected from moisture. The defective planks were at once replaced with teak, and the dear old Sunbeam is now as strong and as seaworthy as she

ever was.

A few days before Christmas, Tom went down to Birkenhead to bring her round to Portsmouth; and a very rough time he had of it. After leaving the Mersey, he was obliged to put into Holyhead for shelter from a terrible gale, which prevented the mail steamers from crossing, and did great damage. From the foreyard of the Sunbeam one small ship was seen to founder in Holyhead Bay with all hands, while a large clipper homeward bound weathered the Skerries with the greatest difficulty. Many were the clever feats of seamanship performed by those in charge of the numerous

sailing vessels seeking to gain the shelter of the breakwater.

The next morning the Sunbeam left, the harbor under sail and steam, and had just rounded the lighthouse, when a heavy sea struck her and carried away her jibboom and fore-topmast. The next day she was hove to in the British Channel, in the face of another heavy gale, and finally reached Portsmouth on Wednesday, December 29th.

Our departure for the Mediterranean had been fixed for 1.30 P.M. on Thursday, January 20th.

Tuesday, January 18th, will long be remembered by every one in England as one of the most awful days that have been known for many years. Heavy snow, driven before a fierce gale from the northeast, impeded all traffic in the streets, broke telegraph wires, stopped trains, snowed up mail-carts, and made communication everywhere difficult and in many places impossible. First of all I received a telegram from the servants, who with all our luggage had started from Normanhurst for the yacht at 5 A.M., to say that they were snowed up at Brighton. Then came one from Portsmouth, to say that the yacht had been blown from her moorings and had lost two anchors. Then one to say that the children were snowed up there, on their way from London to Brighton. Then innumerable telegrams as to things I had ordered for the yacht, which could not possibly be sent off; a message from Kindred, the sailing master, to say that he was snowed up on his way from London, and another from the children to the effect that they had got back to Park Lane safely, none the worse for their adventures, thanks to the kindness of a friend.

In the face of all these mishaps I began to despair of making a start on Thursday, though it was most important that we should do so if possible, on account of Tom's leave. Telegrams were de

spatched to urge everybody to use their utmost efforts to get on board, and I determined to make a start myself the next day for Brighton, en route to Portsmouth. A way was cleared by gardeners and laborers through the deep drifts of snow near our farm gate; and, by starting an hour and a half sooner than we should have had to do in the ordinary state of things, we managed to get to Hastings station in time for the train, at the imminent risk of being upset into one or other of the deep drifts on the road. At the station we parted from our friends, and proceeded to Brighton.

Arrived at Brighton station, our difficulties began again. The streets were nearly impassable, only a narrow path being cleared in the middle of each of the principal thoroughfares; so that, besides having to crawl along at a very slow расе, it was necessary to wait every now and then at the top of some of the side streets for vehicles coming in the other direction to pass us.

Thursday, January 20th, we all proceeded straight on board, where the troubles and inconvenience caused by the snowstorm still pursued us. The decks were covered with frozen snow, and innumerable packages that had arrived at the last moment; to say nothing of a large wherry alongside, full of boxes, baskets, and barrels and tubs of salt beef and pork for the crew, all of which added to the general confusion. By three o'clock, however, the last anchor was weighed, and we were slowly gliding down the harbor. Opposite the railway pier we said farewell to our friends, and an hour later we were clear of the Spit buoy-not so very unpunctual after all, considering the numerous and unexpected difficulties we had had to contend with. Nothing but the determination to start, with or without our bag and baggage, enabled us to get off. There was a thick fog, and the air was very cold; but fortunately the fires burnt pretty well, and we were able to keep ourselves tolerably warm below.

Friday was a lovely day, with a light fair wind and a hot sun. The gentlemen walked and sat on deck without extra coats, the birds sung cheerfully, and everybody enjoyed the bright sunshine, though the wind was still some

The sea

what cold. What a change within twenty-four hours or less! was as nearly smooth as possible; and as we neared Ushant, toward evening, every one remarked what a splendid night we should have for entering the Bay-not the least sign of more wind, and the barometer rising fast. The result proved the truth of the old adage that appearances are sometimes deceptive.

At

By seven o'clock the breeze had freshened considerably, and we were rolling and tumbling about. The wind increased, and before dinner was over it had become impossible to sit at the table, which was flying about in the most uncomfortable manner. "Early to bed" was therefore the general order. midnight we were all awoke by a great shock, the vessel being apparently thrown on her beam ends. A tremendous smashing and tearing noise was heard on deck, while the water poured below in torrents through the skylights and down the hatches. It was evident that there was a great deal of water on deck, and that they were far too busy there to pay much attention to us. The stewards came and did what they could to help us; but the waves seemed to break continually over the deck, and the water poured down below in such quantities that I became quite alarmed for the safety of the vessel. The nursery presented a most dismal appearance, being full of water to a considerable depth. The children were fortunately high and dry in the upper berths, and were as good as gold; while the maids did their best under very trying circumstances. So much water came through the skylight in my own cabin, in spite of covers, tarpaulins, and lashings, that I was nearly washed out of bed; and the noise it made, as it rushed from one side of the cabin to the other with the rolling of the vessel, was anything but reassuring.

Toward morning Tom came down for a few minutes, the engineers went to the pumps, and steps were taken to batten us down securely and stop the leaks. Then it was that we discovered that the clamps of the skylights-which, for the convenience of stowing sails away in the winter time, are made to lift completely on and off as well as merely to open

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