be gradually introduced, and may economize to a great extent the use of the metallic currency. The current supply of gold from the mines is still very large, and we cannot be sure that it will not be increased by fresh discoveries in New Guinea, South Africa, North and South America, and elsewhere.

In short, then, the amount of supply and amount of demand of both the precious metals depend upon a a number of accidents, changes, or legislative decisions, which cannot be in any way predicted. The price of silver has fallen in consequence of the German currency reforms, but it is by no means certain that it will fall further than it has already done. That any great rise will really happen in the purchasing power of gold is wholly a matter of speculation. We cannot do more than make random guesses on the subject, and, as a mere guess, I should say that it is not likely to rise. Gold has since 1851 been falling in value, and an increased demand for gold is not likely to do more than slacken, or at the most arrest, the progress of depreciation.

Disadvantages of the Double Standard.

While the need for maintaining the system of the double standard is a matter of speculation, the inconveniences of the system are beyond doubt. So long, indeed, as its operation resulted in substituting a beautiful coinage of napoleons, half-napoleons, and five-franc pieces in gold for the old heavy silver écus,

there was no complaint, and the French people admired the action of their compensatory system. But when, a year or two ago, it became evident that the heavy silver currency was coming back again, and that the gold coin was likely to form the circulating medium of other nations, the matter assumed a different aspect. The French, in short, have been educated to the use of gold, and they are not likely to wish for the return of a currency 15 times as heavy and cumbrous. Moreover, the change involves a loss to the community in general, who receive their debts in a metal of lessened value; and a part of the benefit is reaped by bullion-brokers, money-changers, and bankers, for whom a factitious trade in gold and silver money is created by the law of the 7th Germinal, an XI. The statesmen of the countries still maintaining the double standard must have reflected that other nations showed no tendency whatever to adopt the same system. Thus, if France were to continue to act as a great compensatory currency pendulum, she would bear the cost and inconvenience, while other nations would reap equally with herself the advantage of the increased steadiness of value of the precious metals. The founders of the Monetary Convention and the advocates of International Currency never intended to sacrifice themselves to this extent for the benefit of the world. Accordingly they have in effect abandoned the double standard.

When the renewed tendency to coin silver five-franc pieces in large quantities first became apparent, the French government at once suspended the coinage.

Subsequently an agreement has been made from year to year between France, Switzerland, Belgium, and Italy, that each country shall coin only a fixed quantity of silver écus proportional to its population. An agreement to the same effect had before existed as regards the silver token currency of two-franc and smaller pieces; but the coinage of écus, which were in theory standard coins and legal tender for unlimited amounts, had been left unrestricted. The result of the limitation of coinage now imposed is to destroy the action of the double standard system. Silver being coined only in limited quantities cannot replace and drive out the gold, and the five-franc pieces, although worth more than five single franc pieces, are worth less than the fourth part of a napoleon or twenty-franc piece in gold. Although, so far as I understand, they remain a legal tender for unlimited amounts, they cannot be had in unlimited quantities, and are thus practically reduced to the rank of token coins. By the least possible legislative change, the French and other governments of the Monetary Convention have thus practically abandoned the double standard, and have adopted one which is hardly distinguishable from the composite legal tender of England and Germany. Ever since 1810 copper or bronze money had only been legal tender in France to the amount of 4 francs 99 centimes, and since the fineness of the smaller silver currency was lowered, this money also was restricted as a legal tender to the amount of 50 francs for any one payment between individuals, or to the amount of 100 francs for any payment to the public treasuries. The silver écu forms the

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single link by which France holds to the double standard, and this link is half severed.

It is remarkable that the changes thus effected in the money of Western Europe are almost the same as those by which the United States had previously abandoned the double standard. Until the year 1853 the silver dollar of the United States mint was a standard coin of unrestricted legal tender, concurrently with the gold coinage of eagles and their fractions. The legal ratio of silver to gold in weight indeed, was 16 to 1, instead of 15 to 1 as in France. More silver being thus required to make a legal payment in America than elsewhere, gold was naturally preferred for this purpose, and the silver was sent abroad. To remedy this state of things the government of Washington, in 1853, reduced the halfdollar and smaller silver pieces to the condition of token coins, and though the single silver dollar pieces remained of standard weight, they were coined in very small quantities and were practically suppressed. The predominance of an inconvertible paper currency suspended the question of metallic money for a time. The Coinage Act of the United States Congress came into operation on 1st April, 1873, and constituted the gold one-dollar piece the sole unit of value, whilst it restricted the legal tender of the new silver trade dollar, and of the halfdollar and its subdivisions, to an amount not exceeding five dollars in any one payment. Thus the double. standard previously existing in theory was finally abolished, and the United States was added to the list of nations adopting the single gold standard.

The Monetary Systems of the World.

On reviewing the changes which have recently taken place in the currencies of the principal nations, we notice an unmistakable tendency to the adoption of gold as the measure of value, and the sole principal medium of exchange. This system is now adopted throughout Great Britain and Ireland, the Australian colonies, and New Zealand, the African colonies, and many of the minor possessions of the British empire. It has existed for some time in Portugal, Turkey, Egypt, and in several of the South American States, such as Chili and Brazil. It has been established by recent legislation in the German empire, and also in the Scandinavian kingdoms of Denmark, Norway, and Sweden, where a gold currency, and principal legal tender, of twenty-kroner pieces, is now being issued. Even Japan has imitated European nations, and introduced a gold coinage of twenty, ten, five, two, and one-yen pieces, the yen being only three per mille less in value than the American gold dollar. The new fractional money of Japan is to consist of fifty, twenty, ten, and five-sen pieces in silver, the sen corresponding to a cent, and forming a token money at the fineness of eight parts in ten.

The double standard is still theoretically maintained in France, Italy, Belgium, Switzerland. Spain, Greece, and Roumania have also in recent years reformed their currencies in imitation of the French system, and must, I suppose, be considered as having a double standard.