tions in the price of silver were gradual in their character, and ranged within very narrow limits. The maximum variation in 1872 was d. and the average not quite d., while in 1886 the maximum was 21% d., and the average nearly 1d. It has not been, and indeed hardly could be, suggested that the difference can be accounted for by changes in the relative production or actual use of the two metals."

SEC. 193-" Nor does it appear to us a priori unreasonable to suppose that the existence in The Latin Union of a bimetallic system, with a ratio of 151 to 1 fixed between the two metals, should have been capable of keeping the market price of silver steady at approximately that ratio.

"The view that it could only affect the market price to the extent to which there was a demand for it for currency purposes in The Latin Union, or to which it was actually taken to the mints of those countries, is, we think, fallacious.

PART II. Signed by six Members of the Commission: Lord HERSCHELL, G.C.B.; Sir C. W. FREEMANTLE, K.C.B.; Rt. Hon. Sir JOHN LUBBOCK, Bart., M.P.; LORD FARRER; Mr. J. W. BIRCH; Rt. Hon. LEONARD H. COURTNEY, M.P.1

SEC. 99.-We may summarize our conclusions upon this part of the case as follows: We think that the fall in the price of commodities may be in part due to an appreciation of gold, but to what extent this has affected prices we think it impossible to determine, with any approach to accuracy.

We think, too, that the fall in the gold price of silver has had a tendency operating in the same direction upon prices; but whether this has been effective to any, and if so to what extent, we think equally incapable of determination.

We believe the fall to be mainly due, at all events, to circumstances independent of changes in the production of, or demand for, the precious metals, or the altered relation of silver to gold.

As regards the fall in the gold price of silver, we think that, though it may be

1 Mr. Courtney changed his opinion later on the question of the appreciation of gold, etc. See Appendix page 103.

due in part to the appreciation of gold, it is mainly due to the depreciation of silver.

SEC. III. We may point also to an advantage of a different character which might perhaps arise from the adoption of bimetallism.

There seems reason to believe that the production of gold has been diminishing, and it is uncertain whether this diminution has reached its lowest point.

On the other hand, there is some reason to suppose that the use of that metal in the arts is likely in the future to increase. There can be no doubt too that the population and commerce of nations having a gold standard may be expected to increase largely.

Under these circumstances it may be open to argument that the vast superstructure of credit, which rests upon the gold basis, would run the risk of being disturbed if the standard were found to be appreciating. If, on the other hand, credit were founded on a bimetallic instead of a gold standard, the base upon which

the fabric rests might be enlarged, and the danger to which we have alluded might be diminished.

SEC. 119. Apprehensions have been expressed that if the bimetallic system were adopted gold would gradually disappear from circulation. If, however, the arrangement included all the principal commercial nations, we do not think there would be any serious danger of such a result.

Such a danger, if it existed at all must be remote. It is said, indeed, by some that if it were to happen, and all nations. were to be driven to a system of silver monometallism, the result might be regarded without dissatisfaction.

We are not prepared to go this length, but, at the same time, we are fully sensible of the benefits which would accrue from the adoption of a common monetary standard by all the commercial nations of the world, and we are quite alive to the advantage of the adoption by these nations of an uniform bimetallic standard as a step in that direction.

Part III. Signed by the other six Members of the Commission: Rt. Hon. Sir LOUIS MALLET, C.B.; Rt. Hon. A. J. BALFOUR, M.P.; Rt. Hon. HENRY CHAPLIN, M.P.; Sir D. BARBOUR, K.C.S.I.; Sir W. H. HOULDESWORTH, Bart., M. P.; Mr. SAMUEL MONTAGU, M.P.'

SEC. II. In Sec. 47 of Part II., our colleagues express the view that "the greater part of the fall has resulted from causes touching the commodities rather than from an appreciation of the standard; and again in Section 99, "we believe the fall to be mainly due, at all events, to circumstances independent of changes in the production of or demand for the precious metals, or the altered relation of silver to gold."

From this view we feel bound to dissent. The importance of the question whether the incapacity of the existing stock of gold to meet the currency requirements. of the world arises from the fact that those currency requirements are increasing through the growth of commerce and of population, or through the monetary policy of particular nations, may easily be exaggerated. In our opinion it is almost impossible to distinguish between these two sets of causes. A great increase in