BIMETALLISM.

Feilding Star, Volume XVII, Issue 279, 1 June 1896, Page 2

BIMETALLISM.

TO THE EDITOB. Sib, —Your issue of the 27th inst. contained an article on bi-metallism, in reply to which I beg to be allowed ' a word. Now, sir, as bi-metallism is , a question of great importance, I think that you ought to put its purport hefore your readers as clear as possible. I dare say a good many people do not yet understand its meaning. Bimetallism is a system of currency proposed to be adopted by international agreement between,the ,_, principal countries of the world. Its chief features include a mint ready to coin any quantity of gold and silver which may be brought to it, the right to, on the part of the debtor, to discbarge his liabilities at option in either ot% tbe two metals at a ratio fixed by law instead of as now at a value fixed by the rise and fall in the * price of silver merely as merchandise.,^ A crown piece is only a token, and is not intrinsically worth the fourth of a pound sterling. The use of a double standard coinage would make it worth : that sum beside removing the enactment of 1816 through which gold coins only are legal tender in all payment of more than 40s. These restrictions are, no doubt, responsible for the non-development of business, any amount of which is ready to be done. The prevailing low prices and consequent activity oil the Bankruptcy Courts, and tbe diversion of trade from goldusiog to silverusing countries, and the difficulties arising from uncertainty as to exchange are the causes of low prices. As an illustration: —Suppose the Government pass a law forbidding the people to wear hats on their heads. They might allow them to manufacture hats, to buy and sell hats, to do anything they liked with them but carry them on their beads. Then suppose a deputation of hatters complain that their trade is ruined, the Government might reply: We are hot interfering with the price of hats, we leave that to the natural law of supply and demand. The hatters would say: The natural use of a hat is. to be worn on the head If you forbid people to make the natural use of hats they will not buy them, and the price naturally goes down, and our trade is ruined. - Depreciation of prices proportionally increases the burdens of debt. Borrowing manufacturers, leaseholding farmers, and shopkeepers, have to find every yeara fixed amount •in costly L gold, while their incomes depend upon constantly decreasing prices. Sup-Im-posing the price of East Indian wheat - : to have fallen the cost of production is ; payable in silver, and therefore Lthe * grower is in- the same position as. be- i: fore. The English farmer who TBr-y ceives a correspondingly lower price is in a worse position because his rent, < taxes, and wages, must be paid in L sovereigns. Then the workman and his strikes may look out for squalls. ■ The Indian cotton spinners have an .; immense advantage over the English in dealing with the silver-using countries in China and the East. Their gold standard refuses payment in y. silver which is convenient to them, and makes them pay in gold which is L inconvenient to thera. Therefore,; I;; am not surprised to hear that trade is bad in Eng'and. Thanking you in anticipation. .« f A lam, etc., Patrick Toohby. Cheltenham, May 28tb, 1896.