"3d. That the value of Money is independent of the will of the legis lator.

"4th. That the determination of values being by its nature outside of the domain of the law, the legislator ought to limit himself to taking all possible precautions to render the appreciation of values more easy and

sure.

"If the precious metals generally perform the office of Money it is not because of an agreement to assign this function to them, it is because they are fitter for it than any other commodity.

"If one metal has been employed rather than another metal, or than various metals at the same time, still it was the need (of commerce) and custom which determined legislation, and they have pronounced against it when legislation has neglected to conform itself to them.

[See page 299.]

"It is, therefore, neither by order, nor by agreement, nor by chance that Gold and Silver are Money, but by fitness, because no other commodity is as favorable to the multiplication of exchanges as are the precious metals. In a word they are Money by the force of events, which always and necessarily controls all efforts opposing it. Of all the qualities which assure to Gold and to Silver the character of Money, fixity of value is the most essential; and hence the first monetary laws had for their object to assure the value of Money."

[It is interesting to recall in the presence of the august half-truths concerning the relation of legislation to Money which are so worthily presented by this distinguished monetary legislator, that contemporary history of his own country presented to seeing eyes that complement of truth contained in facts, for want of which his doctrinaire statement of principles is one-sided.

Legislation had, in 1785, induced a transshipment of the valuations of France from Gold and Silver at 14g, at which legislation had held them for half a century, to Gold and Silver at 15 to 1.

The influence of demand for the two metals for Coinage in France, to the limited extent to which it was active in the period which intervened between 1785 and 1802, was exerted in favor of a general rise in the value of Gold up to but not beyond 15. The monetary legislators of France had in the mean time partially succeeded for a time in transshipping the valuations of France from Gold and Silver to a commodity of stamped paper easily counterfeited, and unprovided with any firm attachment to other existing Instruments of Valuation.

The partial success of this legislative movement having worked great disaster, Gold and Silver, which had always remained Money concur

rently with paper, again became, at various ratios between the metals, candidates before the French Legislator for adoption as the basis of French valuations. Berenger desired legislation in favor of one of those metals, and the very zeal with which he took part in discussing monetary legislation was a satire upon the doctrines with which he proclaimed the impotence of legislation to affect the value of Money.]

THE GERMAN COMMERCIAL CONVENTION.

BERLIN, 1868.

[Extract from the Report of the Proceedings of the Fourth German Commercial Convention (Handelstag) held at Berlin between the 20th and 23d October, 1868. 4to., 147 pp. Berlin, 1868.]

[One hundred and nineteen German cities were represented in this Convention. The organization of the earlier Handelstag has been kept up by a Permanent Committee of fifteen, of which Dr. Adolf Soetbeer, of Hamburg, whose literary activity in monetary matters began in 1846, was a prominent member. The following resolution was presented by him as Official Reporter on the question of the Standard at the first session, and was debated at length and adopted at the following session. It will be apparent upon consideration of the resolutions, that that basis of public favor which made it possible for the German Parliament in 1871 and 1873 (see page 759) to establish the Gold Standard, was the artificial product of an ably-directed, perseveringly-pursued, literary agitation which disseminated among the business men throughout Germany an enthusiasm for the principles identified with the name of Dr. Soetbeer and with the Conference of 1867.]

Inasmuch as the measures recommended by the First German Commercial Convention, in Heidelberg, May, 1861, and by the Third Com mercial Convention, in Frankfort-on-the-Main, September, 1865, for the purpose of securing monetary unity in Germany, have not met with earnest attention or practical acceptance at the hands of the German Governments, and as there are no signs that such attention or acceptancewill be accorded to them; and inasmuch as a plan of a Universal Inter

national Monetary Union on the basis of the Gold Standard has been elsewhere adopted with zeal, and is being pursued with perseverance; and especially inasmuch as the proceedings of the International Monetary Conference which met in Paris in the year 1867, in which also the Plenipotentiaries of Prussia and of other German States took part, have now been made known, the German Commercial Convention in its present fourth assembly pronounces itself to the following effect:

1. The speedy attainment of a practicable monetary unity in all German States is now, as formerly, regarded as exceedingly important and desirable.

2. As far as the special scheme of the future unified German monetary system is concerned, the propositions for a unified reckoning by marks (thirds of a thaler), the Silver Standard being retained, which was abandoned by the Conventions of 1861 and 1865, are withdrawn, and, on the contrary, the following recommendations are made:

3. Monetary unity, and at the same time such a general monetary reform as befits the age, can be brought about by the adoption, at the same time, by all the German States of the Single Standard with full application of the Decimal System, in pursuance of the principles recommended by the International Monetary Conference of Paris in its report of the 6th July, 1867.

4. As far as relates to the future German monetary system after the adoption of the Gold Standard, special notice is directed to the proposi tion to introduce unit of value and of account equivalent to the Gold fivefranc piece with its decimal multiples and its division into 100 shillings, or to adopt for a unit of account the gulden as the tenth part of a principal Gold Coin identical with the 25-franc piece, and divided into 100 kreuzers.

The Commercial Convention, in presenting a collection of written opinions concerning the transition to the Gold Standard, and the proceedings of the present meeting, petitions the August Presidency of the North German Confederation, as well as the August Governments of Bavaria, Württemberg, Baden, and Hessen, without delay to take appropriate measures in order that a uniform monetary system of the kind before mentioned may be agreed upon, and as soon as possible be laid before the North German Diet and before the Legislatures of the South German States for their acceptance in constitutional form, in order that, if by any means it be practicable, the monetary reform may take effect, at the latest, on January 1, 1872, at the same time with the new System of Weights and Measures, which already has been published as law in the States of the North German Confederation, the early adoption of which in the South German States is also strongly to be desired.

The Permanent Committee is herewith authorized to adopt such measures as may be necessary to further the object of the pending resolution.

THE SALE OF SILVER AND THE STOCK ON HAND IN

GERMANY.

I am indebted to the courtesy of Professor ADOLF SOETBEER, of Göttingen, for the following statement:

I. GOLD COINS.

Total Coinage, up to the end of 1871, in the States of the German Empire, of Gold Coins, which are of sufficient importance to be considered

Called in by the various Governments...

Remaining....

Called in by the Imperial Government since 1871......

Evidence is lacking concerning.....

which in the course of time have been melted or exported by private persons.

Between 1871 and November 2, 1878, there have been coined of Imperial Gold Coins, 1,656,822,165 marks.

Of these greater or smaller amounts have been carried abroad whenever the state of exchange made it profitable, but in fact these amounts have returned to Germany. From the nature of the case it is impracticable to ascertain, with any certainty, how great the figure is by which the stock of Gold Coin in Germany has been diminished in this way. One would, however, not be making an estimate remote from the actual facts if one were to assume that this stock is, in no event, below. 1,500,000,000 marks, and, indeed, in all probability it is greater, and could be put at 1,600,000,000.