Bimetallism

Monetary system in which both gold and silver, at a fixed ratio of value, are full legal tender, and are both coined on equal terms at the national mints. Its theory is that if the legal valuation does not always correspond with that of the market the tendency will be to make payments in the cheaper metal, thereby increasing its use and value and diminishing those of the other. The two metals circulated at a relation of 15, 154, or 16 to 1, in the leading commercial countries of the world for a long period. In 1870 the German government determined to adopt a gold standard, as England had done in 1816. A large amount of silver was thrown on the market, and at the same time silver mines of extraordinary richne were discovered in the U. S. The effect of the action of Germany and of the largely increased supply from mines was to le en greatly the market value of silver. At once a fresh agitation began for demonetizing the use of silver. One reason for this was that the world po e ed gold enough for the money of the world, and therefore silver could be discarded without any detriment to busine . The market value continued to decline, but the bimetallists believed that as the value of gold and silver depended largely on their use for monetary purposes, if the leading nations of the world could be per to continue to use the two metals at a fixed relation, the value of silver could thereby be preserved. Several conferences, held for this purpose, were failures.