The History of Currency, 1252 to 1896Shaw, William Arthur
History
The History of Currency, 1252 to 1896
Shaw, William Arthur
Money -- History
From the latter date, however, the testimony of the figures is as
explicit as it is forceful. From 1830 to 1850, while the ratio remained
continually below the legal 15-1/2, there was a profit on the import of
silver, and a persistent and heavy import took place. In 1830 the
(balance of the) silver imported amounted to a matter of 6 millions
sterling, in 1831 to 7-1/4 millions, in 1834 to 4 millions, in 1837 to
over 5-1/2 millions, in 1838 to nearly 5 millions, in 1841 to nearly 5
millions, in 1843 over 4 millions, in 1848 to over 8-1/2 millions, and
in 1849 to nearly 10 millions. There was not a single year that was not
accompanied by this import, and over the whole twenty-two years the
total of importations reached the enormous figure of, approximately, 92
millions sterling. It must be clearly understood that this sum
represents not the gross but the net importation or balance of imports
over exports, and that the money passed into the currency of the
country, taking its place as such and displacing gold _pari passu_. The
movement of gold in the same time is represented by the red line in the
accompanying diagram. Within the limits of very considerable exceptions,
the correspondence of its fluctuations with those of gold is clearly
perceptible. The silver, on whose coinage a profit or premium was
offered by the existing French law to individuals, could only be bought
or paid for by the export of gold or services and goods. During these
years, 1830-50, it was quite apparently by the latter method, namely, by
remittance of goods, as on the whole period there is a slight gain of
gold, nearly 3 millions, contrary to what bimetallic law would have led
to expect. The correspondence, however--a simultaneity--of the two
movements, of import of silver and export of gold, is strongly marked in
the years 1834-39 and 1841-48, and the failure of correspondence of the
totals is to be explained by the statistics of French foreign trade
balances during the years named.
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