The Genesis of the Latin Monetary Union (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1901 Excerpt: ... CHAPTER I. MONETARY HISTORY OF FRANCE. 1803-1860. In studying the monetary history of France during the present century, it is convenient to recognize two main periods. The first covers the years from the passage of the law of 1803 to the limitation of the coinage of silver in 1873, and the abrogation, in 1876, of the right of free coinage. The second extends from 1876 to the present time. It is further to be noted that the first period consists of two epochs, one lasting from 1803 to 1848 and characterized by the almost exclusive use of silver as a circulating medium, the other presenting an abrupt transition from silver to gold, during the decade 1848-1858, and, subsequent to 1858, a comparative disuse of silver up to the last years of the period. This complete revolution in the monetary habits of France, effected in the short space of ten years, was due directly to the new gold which was enabled to effect an entrance into the circulation through the operation of the law of 1803. The ratio of 15 to 1, established by the law of 1803, was, at the time of the passage of the law, nearly in accord with the relative market value of the two metals. From 1801-1804 (inclusive) the ratio was constantly below 15 to 1, from 1805-1813 it was nearly always above that figure, and from 1814-1819 it was again continually below. After 1820, the ratio rose above to 1 and continued so, up to the time of the gold discoveries.1 No study of the changes in output, or supply, of the precious metals can here be undertaken. But, even if no account of such variations be made, it will still appear that alterations in demand must have been influential. From the demand side of the equation, the change in the relative value of gold and silver subsequent to 1820 may be traced to three co...