Europe and in the United States of America. On the contrary, the assembly believe that it is desirable that the unrestricted Coinage of Silver, and its use as Money of unlimited Legal Tender, should be retained where they exist, and, as far as practicable, restored where they have ceased to exist.

"II. The use of both Gold and Silver as unlimited LegalTender Money may be safely adopted; first, by equalizing them at a relation to be fixed by international agreement; and, secondly, by granting to each metal at the relation fixed equal terms of Coinage, making no discrimination between them."

The European delegates replied that they recognized: "I. That it is necessary to maintain in the world the monetary functions of Silver as well as those of Gold, but that the selection for use of one or the other of the two metals, or of both simultaneously, should be governed by the special position of each State or group of States.

"II. That the question of the restriction of the Coinage of Silver should equally be left to the discretion of each State or group of States, according to the particular circumstances in which they may find themselves placed; and the more so, in that the disturbance produced during the recent years in the Silver market has variously affected the monetary situation of the several countries.

"III. That the differences of opinion which have appeared, and the fact that even some of the States, which have the Double Standard find it impossible to enter into a mutual engagement with regard to the free Coinage of Silver, exclude the discussion of the adoption of a common ratio between the two metals."

"1

France, which had been expected to lead in support of the bimetallic proposition, while favoring it in theory, felt it impracticable to agree at the time, and certainly could not at any ratio other than her own, 15 to 1; Great Britain had sent delegates without power to commit the government, and these delegates (having had

1 International Monetary Conference, 1878, Senate Ex. Doc., No. 58, 45th Congress, 3d Sess.

Reply of

European

delegates.

Conference ineffective.

Bimetallists.

the benefit of the report of a British silver commission in 1876-1877), while believing a general gold standard utopian, and while desiring the continued use of silver as money on account of India, could not favor the double standard; Germany had refused to send delegates, being satisfied with her newly adopted gold standard; Russia and Austria, silver standard countries with actually depreciated paper currencies, might be favorable at some time; Belgium and the Scandinavian states, as also Switzerland, favored gold; Italy alone, also suffering from depreciated paper, favored immediate adoption of the American proposal.

Consequent upon the publication of the deliberations of the conference there arose in the United States a distinct body of conservative silver advocates, logically favoring bimetallism, but insisting that the policy was proper only in the event of international action embracing practically all of the commercial nations. They cultivated relations with similar bodies abroad, and were sufficient in number when acting with the gold standard advocates in the two leading parties to thwart the efforts of those who agitated for free coinage by the United States alone. These bimetallists naturally labored for and fully expected another conference, basing the expectation upon the constantly diminishing gold product, which they concluded would not suffice for the world's needs.

1 Coinage of dollars prior to 1878 amounted to 3,900,000, of which 2,500,000 were coined from 1871 to 1873.

CHAPTER XIII

1879 TO 1890

tion con

THE silver men in Congress were by no means satis- Silver agitafied with the Bland-Allison law, and during the summer tinues. of 1878 the subject was agitated in the political field. The Republican platforms favored "both gold and silver," but Western Democrats declared persistently for free coinage, as did the "Greenbackers." The congressional elections resulted rather favorably to the silver advocates, but they were unable to count fully on their forces.

opposes

report, 1878.

When Hayes sent in his second message (December, Hayes 1878), resumption was practically at hand. He said free silver. that, with views unchanged, he had had the silver law of 1878 carried out faithfully, to afford it a fair trial. He recommended therefore that Congress abstain from disturbing business by legislation or attempts thereat, letting the people have an opportunity to bring about an enduring prosperity. Sherman's report, however, Sherman's recommended legislation limiting the coinage of silver or altering the ratio to make the silver dollar worth more. He assumed that Congress had not intended by the act of 1878 to adopt the silver standard, but as far as practicable a bimetallic system, with limited coinage. When the volume of dollars more than supplied the needs for such coin, he thought they would depreciate. The facts shown by the market quotations warranted a change in the ratio. To ignore this would mean the absorption of the surplus silver of Europe. He believed in fixing a ratio that would secure the largest