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Excerpt from The Proceedings of the Bimetallic Conference Held at Manchester, 4th and 5th April, 1888Until the year 1873 the ratio at which Gold and Silver were interchangeable was steady, because the Mints of France and other European countries were open to all the world for the unlimited coinage of both metals on the fixed basis of 15 1/2 Silver to 1 of Gold.Owing to this, the par of exchange between Gold and Silver Standard countries kept practically uniform, and Silver, as fully as Gold, performed the functions of money throughout the world.The action of England in 1816, in adopting the single Gold Standard, did not disturb the steadiness of the ratio between the two metals, so long as the Continental Mints remained open to Silver; but when Germany in 1873 decided to adopt the Single Gold Standard the old equilibrium was destroyed, because France and the other bimetallic countries, in view of the heavy sales of Silver made by Germany, suspended their free coinage.This action caused the price of Silver, as quoted in Gold, to fall, and it has since fluctuated violently, affecting all international exchanges between Silver Standard and Gold Standard countries. In the case of India the Rupee, formerly worth about 2s., has gradually dropped to 1s. 5 d. in English money, with increasing uncertainty as to its prospective exchangeable value as against Gold.The substitution of Gold for Silver, and the greater amount of exchange work that is in consequence thrown upon Gold, has led...


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