Upon the motion of Mr. FENTON, who called the Conference to order, Mr. LÉON SAY, the French Minister of Finance, was chosen President. Upon taking the chair, and after he had cordially welcomed the Delegates from the other nations in the name of the French Government, Mr. SAY thanked his colleagues for the honor which they had conferred upon him in choosing him to preside over their deliberations. The studies upon which the Conference was about to enter from a practical standpoint, relating as they did to difficult and much-debated problems, would certainly not fail, he said, to contribute to the advancement of economic science, and he was proud, for his own part, to be called to take part in them among gentlemen so distinguished for their experience and their intelligence.

Upon motion of Mr. Léon Say, Mr. FENTON, Chairman of the United States Commission, was made the Vice-President of the Conference.

Mr. ERNEST CRAMPON, a Consul of France of the first class, and Mr. HENRI JAGERSCHMIDT, Auditeur at the Council of State and Secretary of the Minister of Finance, were appointed Secretaries of the Conference.

The Conference being thus organized for the transaction of business, the PRESIDENT, Mr. Léon Say, spoke as follows:

You are aware, Gentlemen, for what reason this Conference is convened, and what object the United States of America proposed to the Conference in taking the initiative of calling it together. You are also aware under what circumstances the five states which compose the Latin Union, and which have the Double Standard, have thought best, while preserving to Silver its Legal Tender quality, to restrict its Coinage within narrow limits, and, within the past year, to suspend it entirely.

The adoption by Germany of the Single Standard of Gold, coinciding with a superabundant production of the American Silver mines, was a cause of inconvenience, and a source of possibly serious embarassment to the Latin Union, against which they felt that they ought to take measures to protect themselves.

Germany found herself in possession of a large mass of Silver to sell, the disposal of which she was able to effect with greater or less rapidity. In what measure is this operation already accomplished, and how much influence has it exercised in the depreciation of that metal? This is a question which it was not easy to understand in advance, and which cannot be answered with accuracy even to-day.

Mr. VROLIK, detained by illness, took part only in authorizing the presentation of an exhibit at the seventh session.

To avoid repetition, the statement given in the French at the commencement of the Journals of the official position of members of the Conference is relegated to a List of Members of the Conference which follows the Journal, in compliance with an announcement made in the Report of the Commission.

England, whose Monetary System in Europe rests upon the Gold Standard, and in Asia upon the Silver Standard, had herself become sensible of the difficulties which threatened to affect, or which had already affected, the Money Market, and at the close of an investigation made under the direction of the eminent Mr. Goschen, this conclusion was reached that the causes of the depreciation of Silver could not be clearly understood until Germany should have completed to the full measure of her intention the sale of her stock of Silver. It is in the presence

of such doubts and of such contingencies that the Latin Union, as a measure of prudence, has remained in an expectant attitude.

In the meantime the United States of America have adopted the policy of returning to the system of the Double Standard, adopting also as in the past their ratio of 1 to 16, instead of 1 to 151⁄2, which is the relation of the two Money Metals in the Latin Union; they have recommenced the Coinage of Silver dollars, but in limited quantity, and have decided in Congress that the Cabinet at Washington should be invited to come to an understanding with the other Governments to devise means of establishing internationally a fixed ratio, the same in all the countries, between the value of Gold and Silver Coins.

These, Gentlemen, are the causes of our meeting.

Such being the origin of the Conference, it seems to me that we might ask the gentlemen from the United States to have the goodness to make known to us the intentions and views of their government; we shall thus gain from their communication a programme, or, if it seems best, a series of questions, upon which the order of our further discussions may be based.

THE PRESIDENT, Mr. Say, then called upon the Chairman of the United States Commission, Mr. FENTON, who spoke as follows:

MR. PRESIDENT AND GENTLEMEN: As the representatives of some of the countries which have accepted an invitation to this Conference have not yet arrived, we wish to say very little more at this first meeting than to thank you, Mr. President, for your words of welcome.

The Government of the United States, however, having asked the Governments of Europe to join in conference, its representatives desire, at the outset, to express the acknowledgments of their country to the nations which have so cordially responded to its invitation. We not only recognize the courtesy and the regard for the common interests of the great family of nations which have inspired your assembling, but we also appreciate the hopefulness imparted to this gracious response by the selection of so distinguished a body of gentlemen to consider the important subject intrusted to our deliberations.

It is a happy circumstance that, in the liberal spirit of our age, governments and peoples can unite, not merely to preserve peace, but to cultivate its arts and promote its industries. We meet while Europe is yet celebrating there cent victories of peace, and while this stately

capital witnesses the noble display of the world's progress. It is with real pleasure that the representatives of the United States congratulate you upon the assembling of the Conference, amid these auspicious surroundings, to undertake a work so closely affecting the common interests of the nations.

It marks the beneficent advance of civilization that the commercial relations of different countries grow nearer and firmer year by year Thus we come to see more clearly the community of interests among nations, and are wisely prompted to cultivate more and more friendly intercourse. Among the measures to this end, we cannot be insensible to the benefits which would flow from a uniform basis as to international coin-metal exchanges.

The experience of mankind has confirmed the employment of the two precious metals as the Money of the world, and in the long records of time both have played honorable parts in the grand economy of material development. They have been faithful servants. It seems to us, speaking for our government, better to try and hold them both, despite the fact that they do not always pull evenly together. In this respect, the lessons of history point equally to the importance and success of general co-operation, for we find that in the long run the equilibrium has been well kept. Whatever the ebb and flow of the varying metal currents, and however widely policies may now and then have differed, there will be no dissent from the statement that the two Money Metals must remain associated, as far as we can see, in greater or less proportions in the financial systems of civilization.

We are here to consider, and we respectfully invoke your wisdom to the end, that their relative values may become practically fixed and stable, and that both may receive the free use which comes from international acceptance upon a common basis.

Without anticipating your discussion, it is but an expression of the distinct object of the Conference, as indicated by the law under which the representatives of the United States are commissioned to meet you, that we will be able to agree upon "a common ratio between Gold and Silver, for the purpose of establishing, internationally, the use of Bimetallic Money, and securing fixity of relative value between those two met als." The specific means of attaining this object, we trust, will soon be developed in the discussion and comparison of views which is to follow. We congratulate ourselves upon your co-operation to this end, feeling that no problem of economic science, and especially none looking to the common weal of nations, is too great for practical statesmanship.

THE PRESIDENT (Mr. Say) was of the opinion that before entering into the discussion of the measures proposed by the American Government concerning the international establishment of an identical and fixed ratio between the value of the two metals, which would immediately give rise in the midst of the Conference to absolute contradictions among

the various systems, and would perhaps tend to delay the discussion before all the members had been heard, it would be of advantage if the Conference should occupy itself primarily to ascertain the facts which are considered as having an influence on such a ratio, and that they should, first of all, obtain a knowledge as exact and thorough as possible of all matters pertaining to the general monetary situation. It would naturally be necessary to that end that the Delegates should, by placing them upon the table, communicate to each other such official documents or statistics as they possessed concerning the subject under discussion. A body of information would thus be formed with which each one might familiarize himself, and those of the documents which, in small compass, offered most points of interest, could, according to the usual custom, be printed as Exhibits of the Journal.

COUNT RUSCONI asked whether it would not be more logical to first decide whether such a fixed ratio was possible, before studying the documents and discussing the facts concerning its establishment.

THE PRESIDENT (Mr. Say) observed that monetary questions were, without exception, practical questions, and should, in his opinion, not only not be decided, but not even approached and discussed, except after the study of the facts and of their relations. The question of the possible existence of a fixed and permanent international ratio, although a question of principle, implied also a knowledge of the facts which might either maintain or change such ratio. The arguments on both sides of the question would possess more value if they accorded with correct and well-established facts, than if presented in the beginning in a form purely academic and in accordance with a preconceived opinion.

MR. LARDY thought it would be impossible to enter into discussion upon any point before the arrival of the English delegates, who represented the Single Gold Standard. For his part, he thought it better to pause for a time, until the official documents upon the monetary situation had been received-some representing the English, some the Belgian, some the Austrian investigation of the subject; also the record of the discussions on the question in the American Congress, &c.

As the result of these various observations, the Conference adopted the plan proposed by the President, and adjourned until Friday for the second session, and it was understood that, in the mean time, the Delegates from the various states would provide themselves with documents and statistics relating to the monetary condition of their respective states, and, as far as possible, with statements concerning the monetary affairs of states not represented, and would furnish the same to the Conference.

MR. BROCH, entering at once into the views and wishes of the Confer ence, asked permission to place upon the table a statement concerningI. The variations in the ratio of Gold and Silver since the Middle Ages.

II. A comparison of Gold Coins.

III. A schedule of various Coins which have already been proposed to serve as a universal Money.

THE PRESIDENT (Mr. Say) thanked Dr. Broch for his interesting communication, and the Conference decided upon its insertion in the Journal. (Exhibit A.)

MR. RUAU placed upon the table a diagram showing the monthly variations in the quotations of Silver in the London market from 1873 to 1878.

(Exhibit B.)

MR. LARDY expressed the regret of Mr. Feer-Herzog, who was detained at Bern by urgent duties in the National Council, that he was unable to be present and participate in the first session.

Upon the suggestion of Mr. GROESBECK, it was understood that the Journals of the Conference being as usual in French, the Conference should so proceed in its discussions, that any declaration or observation made in the course of the session might be immediately translated, either viva voce or in writing, for whoever should demand it; and that these translations should be made at once by some person of confidence, whom the Delegates of the different States should have the right to introduce, each on its own account, in the Hall of the Conference.

The session closed at 32 o'clock.

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