ÆäÀÌÁö À̹ÌÁö
PDF
ePub

the conditions of the problem have been altered since the first Conference in 1867 pronounced in favour of the single gold standard.

"The stock of gold in European countries, available for purposes of currency in the year 1871 has been estimated at £520,000,000,* distributed in the following proportions :

(a) State with a gold standard ...
(b) States with a silver standard
(c) States with a double standard

...

£138,000,000

...

[ocr errors]

...

77,000,000 305,000,000

"In 1871 the population of the States under the gold standard in Europe was about 36 millions, and the value of their foreign trade rather more than 625 millions sterling.

"Since that year, Germany and the three States forming the Scandinavian Union have formally adopted the single gold standard, and have demonetised their silver; while France, Belgium, and Switzerland, by closing their mints to the coinage of silver, have, for all practical purposes, done So far as international trade is concerned, silver is no more the same. available, for purposes of currency, than any other commodity held in those countries,

"In all the important States of Europe gold is, therefore, now the only standard of value. The total population of these States amounts to more than 140 millions; and the foreign trade, which is now conducted solely on a gold basis, is about £1,850,000,000 in other words, the population of goldusing States in Europe alone has been increased by more than 100 millions of people in the last ten years, and the value of their foreign trade is threefold what it was.

"Nor is this all. Since the resumption of specie payments in the United States, that country has become a most formidable competitor in the gold Its population now amounts to about 50 millions, markets of the world. and its foreign trade has grown from £172,000,000 in 1870 to £317,000,000 last year. Its stock of gold, which was estimated to be slightly over £29,000,000 in 1873, was, in November 1881, £117,000,000, and of this increase no less than £75,000,000 is due to the last four years alone.

The question then arises, what additional amount of gold will be required to meet the wants of a population and a trade, which have increased in these proportions, if a single gold standard is to be adopted and silver to be demonetised?

"Two pounds per head of population would probably be a very moderate This is almost the exact amount which has been coined in Gerestimate. many since the introduction of a gold standard. The amount actually in circulation in the United Kingdom is stated to be £4 per head. In France it has hitherto been rather more; while in the United States, where the metallic currency is economised to the last degree, it is about £2 10s. But putting it as low as 30s. per head, the addition required to the stock of the European States alone, in the last ten years, would be nearly £160,000,000. Now the total production of the gold mines of the world during that period was not much more than £200,000,000, and has of late years been decreasing; the annual average having fallen from about £20,016,000 in the first five years to about £18,980,000 in the second; while the amount consumed in the industrial arts and for purposes other than coinage cannot,

[ocr errors]

See Appendix to Report of the Select Committee on the Depreciation of

Silver in 1976, page 8.

on the lowest estimate, have fallen short of £10,000,000 per annum, and some authorities place it at £14,000,000 or even £16,000,000 per annum. "The total production during the ten years which remains available for currency is therefore reduced to £100,000,000.

"On the other hand, we have had the following demands upon this stock:"1. The requirements of the European States, which, as have been shown above, alone amounted to nearly £160,000,000.

2. The quantity actually absorbed in America, between 80 and 90 millions sterling.

"3. The amount required for the ordinary wear, tear and waste of existing stocks, for which £5,000,000 per annum, or 1 per cent, would probably not be an excessive estimate; and

"4. The requirements of other important countries, such as our Australasian Colonies and India, in which latter country alone the average annual consumption, even in the last ten years, has been £1,500,000 or £15,000,000 and in 1880-81, more than £3,500,000.

"After making every allowance for over-estimates under all these heads, it cannot be said that the account will present a very satisfactory appearance when the balance comes to be struck.

On the question of bi-metallism, in regard to which there is appended a "Statement of Bi-metallic Theory," by Sir Louis Mallet, the following remarks occur :-

"The function of a standard of value is that it shall serve as a common measure in the exchange of commodities and of services.

"To enable such standard to serve this function effectually, two qualities are requisite,-uniformity and stability.

"If the supply of one metal were sufficient to satisfy the requirements of the world for currency, these two elements would co-exist in a monometallic standard of value; and there cannot be a doubt that, as a matter of history, it was the impression produced by the gold discoveries of California and Australia which led to the adoption of the recent policy of gold monometallism.

"But the production of the precious metals during recent years, and the prospect of their future production, point to the improbability of any supply of gold which can be adequate to the demands which may be made upon it, if it is to serve as the sole metallic currency of the world. And, independently of this consideration, while the production of either gold or silver, taken separately, is subject to much fluctuation, that of the two metals together is comparatively steady.

"Opinions may differ as to the comparative evils of an appreciating and depreciating currency, but it cannot be denied that both defeat the object of a standard of value, and impair its efficiency.

"It is essential to stability that the supply of the metal, which serves as the basis of its currency, should keep pace with the demands upon it; but if one metal is insufficient or otherwise unsuitable for this purpose, it cannot efficiently serve as a standard of value, for it must be wanting in one or both of its two indispensable attributes.

"If, therefore, to ensure stability, both metals must be retained as part of the metallic currency of the world, how can this be done without losing in uniformity what is gained in stability, and thus equally defeating the object of a standard of value? It is thus, that while uniformity had been the chief preoccupation of the first, and stability of the second Conference,

[ocr errors][ocr errors]

an international standard of value possessing both requisites was still
unattained,

"The Governments of the United States and of France seem, therefore, to have thought that, if any system of concerted action could be devised which would on the one hand establish uniformity of standard, and on the other obviate the evils of a contracting currency, by maintaining the monetary functions of both metals, the objects of the two Conferences might be reconciled.

"Such concerted action could, however, only take one of two forms: the one, an agreement by which a repartition of the standards should be made between the nations, or between certain groups of nations, which might restore and sustain some possible equilibrium; the other, an agreement to make one money of the two metals-in other words, to adopt 'bi-metallism.'*

"Placed between these two alternatives, the Governments of France and of the United States decided on the second, as offering in their opinion more hope of success, and a very much more complete solution of the problem.

Referring to the effects of the present system on India, it is said,— "Great differences of opinion have prevailed as to the effects upon India of the recent disturbance in the ratio of gold to silver.

"It is not surprising that when this disturbance first became apparent in the early part of 1875, its causes were not fully understood, nor its consequences foreseen. Among other things it was confidently predicted that there would be a large additional exportation of silver to the East, and especially to India, where the mints were freely open to its coinage.

"This anticipation rested on the assumption that the disturbance was duc mainly to a depreciation of silver, in relation not only to gold but to com modities; on which assumption it was natural to suppose, as the disturbance had taken place out of India, that the new level of value between silver and commodities would be reached both by increased exportation of goods from India, and also by an increased export of silver to India.

"But the experience of the last six years proves, we think, that this assumption did not rest on sufficient grounds.

"The importation of silver into India, and what is even more significant, the coinage of silver in India during those years, have no doubt been much larger than in the five years which preceded them, but latterly they have In 1880-81 the net imports of silver were only again fallen off.† £3,892,574, and the amount coined £4,153,174, and in the first eight months of 1881-82 only £1,781,180 and £651,931 respectively, and taking a longer period for the comparison, it will be found that in the last decade both

A Note by Sir L. Mallet is appended to this report on the Theory of

1851-60

1861-70

1871-80

Bi-metallism.

† See Appendix B. Net Imports of Silver.

£ 62,300,000 97,000,000 50,500,000

Coinage of Silver.

£

66,518,000 79,970,000 57,119,000

the imports and the coinage have been considerably less than in that which preceded it, having been arrested by the large growth of Council bills.* "It is difficult to suppose in the face of these figures that there can have been any general rise in prices in India due to a fall in the value of silver. "The inference appears to be irresistible, that the disturbance in the relative value of gold and silver must be sought rather in the appreciation of gold than in the depreciation of silver as a standard of value.

"With an appreciation of the gold standard and a consequent fall in gold prices, any profit which would be derived from sending silver to India to be coined, when the gold price of the rupee is 1s. 8d., would disappear in a corresponding loss on the gold price of the goods sent to Europe in return. "Accordingly, we find that over a series of years no sustained impulse has been given either to the exportation of silver to India or to the expor tation of goods from India, and that the course of trade has been rather in the opposite direction."

Amount of Bills drawn on the several Governments in India.

[blocks in formation]

Bill of Exchange-Accepted but not signed by Drawer-Death of Acceptor.

A bill of exchange accepted for valuable consideration with the drawer's name left blank may be completed by the drawer's name being added after the death of the acceptor.

THIS action was brought by the trustee in bankruptcy of Noble, who, according to the admission in the statement of defence, had on the 19th of November, 1874, deposited with the defendant, Sir Thomas White, the certificates of £505 stock in the Chigwell Gas Company as collateral security for a debt of £500 due to Sir Thomas White from James Edwin Randle. This deposit was made in consideration of the renewal by the defendant of two acceptances of Randle, one for £250, part of such debt, dated the 18th of November, 1874, payable three months after date, and another for the remainder of the debt, dated the 15th of October, 1874, payable two months after date.

Both these bills of exchange, after being accepted by Randle, were delivered to Sir Thomas White duly filled up, except only that the name of the drawer was not added.

Randle died on the 6th of January, 1875, leaving his widow his

executrix. On the 23rd of July, 1879, Noble became bankrupt, and on the 16th of March, 1880, his trustee in bankruptcy commenced this action, claiming to be relieved from his suretyship. Higgins, Q.C., and Bradford, for the plaintiff:

We submit that the surety is discharged from his suretyship by reason of the laches of the defendant in keeping the bills of exchange uncompleted in his hands until after the death of the acceptor. A bill of exchange without a drawer's name is worthless. It was held in Stoessiger v. South Eastern Railway Company (1) that such a bill was merely a writing of no value. Lord Campbell there said (2) "It empowered a particular individual to claim to that amount by putting his name to it; but that had not been in fact done by the individual, Goold. I cannot agree that the executors of Goold could have made it valuable by putting to it his name, or their own, or any name whatever." McCall v. Taylor (3) was decided on the same principle. Any one deriving authority from the acceptor may make a bill complete by adding his name: Schultz v. Astley (4); but that is on the ground of agency, and the power of an agent ceases on the death of the principal. A power of attorney is instantly revoked by the death of the grantor: Watson v. King (5). The drawer is agent for the acceptor in this way: The bill is delivered in blank, and no one has a right to complete it except with the consent of all parties to the transaction. The name of the drawer can only be added after the transaction takes place, by implication of agency, and that can only be shown to have taken place during the life of the principal. It tends to a fraudulent use of a bill of exchange by issuing an imperfect instrument. A surety is entitled to the benefit of the securities in the hands of the creditor; Strange v. Fooks (6); and a surety will be discharged to the amount of the security lost or not perfected by the creditor: Capel v. Butler (7); Bonser v. Cox (8). We have lost the securities by the negligence of the creditor in not having the bills perfected. The bill must be a completed bill of exchange at the time the question arises. The right of a surety is to have the security in exactly the same plight and condition in which it stood in the creditor's hands: Pledge v. Buss (9); Watts v. Shuttleworth (10). Rigby, Q.C., and Shebbeare, for the defendant :

There is abundant authority to show that a bill of exchange may be filled in after the death of the acceptor.

In Dutch v. O'Leary (11) it was held that a bill of exchange accepted in blank in the hands of any bona fide owner may be signed by the drawer at any time. Montague v. Perkins (12),

(1) 3 E. & B. 549.
(2) 3 E. & B. 557.
(3) 19 C. B. (N.S.) 301.

(4) 2 Bing. N. C. 544,
(5) 4 Camp. 272.
(6) 4 Giff. 508.

(7) 2 S. & S. 457.

(8) 4 Beav. 379; 6 Beav. 110.
(9) Joh. 663.

(10) 5 H. & N. 235; 7 H. & N. 353.
(11) 5 Ir. L. Rep. (Eq.) 92.

(12) 22 L. J. (C.P.) 187.

« ÀÌÀü°è¼Ó »