MORRISON ON THE METALLIC CURRENCY.

THE main object of this well-considered pamphlet is to advocate a double standard of gold and silver, or, if that should be objected to, a standard of silver only. In the latter case, silver instead of gold would be the legal tender. In the former, a debtor would be enabled to pay either gold or silver ; or a creditor, if he chose, might stipulate for payment in whichever metal he preferred. In hand to hand transactions, either metal, of course, would be used indifferently ; any difference between the market value and the relative proportions between the two metals as established by the mint, being made up by an agio,—a mode that would also obtain in practice, where a debtor had engaged to discharge a debt in one metal, but found it handier to pay in another.

The arguments for a double standard are, the examples of France, of England for very many years, and it would seem of Holland, (though the case of the Republic is somewhat doubtful to our minds,) besides a more plentiful supply of currency from its consisting of two metals, and a greater security to our monied sys- tem from the broader basis on which it would rest. To the popu- lar objection, that under the double standard a man who lent a sum when the Mint and market proportions were the same, might be repaid at a future time in the metal whose value had fallen, we do not attach much weight, because any person may secure himself by stipulating for payment in that standard which he considers the least variable; and because, with our present gold standard and currency system, a much greater fluctuation takes place in a few months in the value of money than any which could arise between that of gold and silver. The chief objection

appears to us to be, that unless the whole nation could be trans- formed into money-changers per saltum, the ignorant many would deal at disadvantage with the skilful few. The arguments drawn

from the practice of France and Holland are worthy of considera- tion; but, owing to the more extensive and complex system of our trading transactions, they cannotbe considered conclusive. The arguments against gold as a national standard, and, which is pretty nearly the same thing, in favour of silver, are much stronger. No nation but ourselves makes gold its measure of

value ; we have only done it since 1774; and during that period we have had more fluctuations in our currency, with more ruinous

panics, than could have occurred under a sound system, whether

the effects arose from this change or from many causes combined. Though the proportionate value of silver to gold is only as about 15 to 1, the numerical quantity is estimated in the ratio of about 50 to 1 ; whence, after allowing every deduction for its more ex- tensive use in the arts, it may be assumed that it is much easier to acquire a larger quantity of silver than of gold for internal circulation, and far easier to keep it; gold, from its possessing a

greater value in a less bulk, being always preferred to silver for

exportation, whether for trading or warlike purposes ; so that Na- ture seems to have pointed out the one for international and the other for internal currency. Besides this, though it is not a pure

currency argument, it is alleged that our merchants are subjected to disadvantage by excluding silver from the national currency— except as tokens having no value in themselves but only represent- ing value. The chief returns of South America, (especially as we will not take her colonial produce,) are in silver : the French merchant can take his to the mint, or sell it as bullion, according as he finds it most profitable ; the mint being closed to the Eng- lishman, and the English market for silver being in consequence narrowed, he has nothing left but to export it, with the loss of export charges, commission, &c. after he has disposed of what little may be wanted for the use of the arts.

In carrying his proposals into effect, Mr. Mortaisort suggestil that the present silver coinage should continue for the purposes of small currency. The silver coined for purposes of' tender might consist of five-shilling or ten-shilling pieces ; containing, of course, the full weight of metal according to the Mint price, less the actual cost of coinage. The changes (if any) in the gold coin would merely be for the sake of convenience. if it continued a legal tender, its proportion to silver must of course be fixed. If it were merely a conventional currency, the market-price would de. termine the value.

The obvious objection of the evil of change, to any alteration in the monetary system of a nation, we have not mentioned, because we are pretty certain that we cannot for many years remain as we are. Saying nothing of the monetary disasters of the war, two if not three panic-crashes have occurred during the last twenty years, effecting greater permutations in private property, and de- stroying more fortunes, than any revolution or civil war ever oc- casioned except the Roman proscriptions and the French Revolu- tion ; in addition to which, there have been frequent " pressures on the money-market," that have ruined some and injured many. To say that alternate plirensy and depression—over-issues, glutted money-markets, and wild speculations, to be followed by forcible contraction and wide-spread ruin—are triennial or quinquennial necessaries in the nature of things, seems monstrous and incre- dible. By adopting a dcuble or a silver standard, thus rest- ing our currency upon a somewhat broader basis, and giving the Bank a much more extensive market for bullion, the Directors in times of trouble might not practice their sauce qui peut system with so much of the recklessness of fear. But this, we suspect, would only mitigate the evil, as long as knots of unknown and irresponsible individuals in all parts of the country can—not usurp the sovereign power of coining money — but actually

send out mock representatives of money at their will and pleasure. Whether the true remedy i3 to be found in granting the monopoly

of paper issue to one establishment, or in a regulated freedom by which the privilege should be limited to establishments with an immense paid-up capital and probably a deposit of public securi-

ties equal to the amount of their issues, is a moot question, which he who solves will deserve well of his country. As a matter of opinion—rather, perhaps, of suspicion—we incline to the latter;

for if the notes of any establishment be actually or virtually the ultimate standard of paper money, that establishment may tamper with the currency in safety, if it confine its over-issues within the amount of its stock of bullion.

Although Mr. MORRISON calls his pamphlet only a compilation of the different arguments upon the subject he treats of, the

reader will find its it the condensation and completeness which arise from thorough knowledge and long consideration. In addi- tion to which, it contains a brief and rather interesting sketch of the history of English coins and coinage.