The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
Here I am forced to notice another hasty and mischievous analogy. Some
devices for composite measures of length have been adopted to avoid
contraction and expansion, and it is urged that bimetallic money is
a step in the same direction. I by no means assert that science can
do nothing to reach a better standard of value than gold is. What
progress in that direction may lie in the future no one can tell, and
he would be rash who should ever presume to deny that progress can be
made; but when any proposition is presented it will have to show what
composite measures of length show, _viz._, that its action is founded
on natural laws. Heat and cold act oppositely on the components of
the composite measures of length, or the arrangement is such that the
action of the natural forces neutralizes. No such scientific principle
underlies bimetallic money. The forces determining the value of gold
and silver act independently of each other and are not subject to
common influences. They are complex, moreover, and their effects are
not uniform in their different degrees. Therefore this analogy also
fails.
The opinion that a concurrent circulation is not possible has led
several of the leading nations of Europe (and, at the time of writing
such is still the system of the United States) to adopt the plan of a
permanently false rating of gold and silver, so as to use silver as a
subsidiary coinage. Silver is permanently overrated, so that it obtains
currency above its bullion value. If the civilized nations want to use
silver for money, so that the total amount of metallic money in the
Western world shall be greater than the amount of gold, and if they
are not satisfied with the use of it as subsidiary, then there is only
one way left, and that is for some nations to use gold and some to use
silver. This was the solution of the bimetallic difficulty which China
was forced to adopt a thousand years ago. Some provinces used iron and
some copper. The question then arises as to who will take silver. This
brings me to the last point of which I have to speak.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account