price quotations, would have to be altered, while the new unit of the farthing would not be assimilated to any other unit. This plan has therefore no chance of acceptance. Another proposal starts from the present pound as unit. It is to be divided into 10 florins (2s.), which would contain 100 mils (or farthings reduced 4per cent.). A new coin, 10 mils (2s. 4d.), would probably have to be introduced. The advantages of this plan are: (1)the pound would be preserved as unit, (2)the florin and shilling would also be retained—the latter being 50 mils, (3)accounts for large amounts need not be altered. The objections are such as follow—(1)the copper coins, which are those most used by the poor, would all be changed, thus causing great confusion, (2)all charges expressed in pence would be altered to the loss of one of the parties. Still, this scheme is much to be preferred to the one first mentioned. A third plan is based on the fact that 8s. in English money is only d. more than 10 francs. Having regard to this link between the English and French systems, it is proposed to coin a 10-franc piece in gold to serve as a token for 8s. If the penny were then reduced by 4per cent. this piece would contain 100 pence, and, by coining a franc or tenpenny piece in silver, a perfect decimal currency would be obtained. This arrangement would involve the abolition of the pound as well as of most of the present English coins. In fact, it is as yet premature to expect a system which will be international as well as decimal, and the most that can be hoped for is some progress towards that ultimate end. All that can be said at present is that all schemes for the introduction of the decimal system should be considered with regard to their tendency to help towards the assimilation of the English system to other currencies. The problem of international money has during the last twenty years acquired much prominence. In previous historic periods the idea was partially realized. Thus the drachme was an international Hellenic coin, though it had three different values.[1] Under the Roman hegemony and the succeeding empire the denarius became the coin of the west, the drachme that of the east.[2] The next currency which can be called international was the frequently-mentioned Carlovingian system. The growth of the different European nationalities, and their frequent wars, prevented any common coinage system being adopted by them. Each state debased its own coin at different times, so that any original resemblances disappeared. The question of unification of the various monetary systems was thus left open for the present century, when increased facilities for intercourse have led to more complex international relations. An association for promoting unity in weights, measures, and coins was founded in Paris in 1855, and actively advocated its principles. In pursuance of this object a series of conferences and congresses were held on the subject, the first of them in 1860. The congress of 1863 was held at Berlin, and adopted a series of important resolutions. Its report advocates the superior convenience of a gold system with a subsidiary coinage of silver; the millesimal scale of 900 as to fineness of the higher coins was also approved of, as well as the definition of the weights of coins on the metric system. The first practical outcome of the movement was in the monetary convention of 1865, which founded the so-called Latin Union, by which France, Belgium, Italy, and Switzerland became a single monetary region, with the franc or lira as unit. The subsequent accessions to the Union are given in the note to the French coinage system (Table II.). In 1867 a monetary conference was held at the same time as the Exhibition of that year, when the idea of a universal coinage was advocated, and three leading principles were laid down as necessary to that result, viz.—(1)the universal adoption of a single gold standard, (2)the general use of the decimal scale for this coinage, (3)that all coinages should be co-ordinated with the French system.[3] Owing to the accidents of historical development, certain points of connexion existed between the leading European systems. Thus, the franc being regarded as a unit, the Austrian florin was as 2·47, the American gold dollar as 5·18, and the English pound as 25·22. Very slight changes would bring these coins into a series of 1 : 2 : 5 : 25, and it was proposed by the congress of 1863 that, when thus modified, they should have international currency in all countries where any of the four units prevailed. All outside nations were recommended to select whichever of these units they preferred. The subsequent monetary changes in the various European systems have, however, ended rather in the formation of international systems without any tendency towards the establishment of a universal one. Thus, of the three principles laid down by the conference of 1867, two only have been adopted in recent currency reforms. On the creation of a united Germany after the Franco-German war of 1870–1871, it was the aim of the rulers of that country to develop as much as possible all outward expressions of that unity, and, in accordance with that conception, a German currency was devised which was monometallic and decimal (see Table II.), but which was not easy to assimilate to the French system, thus rejecting the third principle laid down by the Paris conference, and rendering future progress more difficult. The Scandinavian Union proceeded on very much the same lines as the German reform, and was, in fact, mainly caused by it. The Dutch Government, under the pressure of circumstances, have abandoned the silver standard and coined some gold, but their position is still undecided. The Austrian Government have made a slight step by issuing as gold coins 8- and 4-gulden pieces, which are the same as the 20- and 10-franc coins. In one part of the Russian dominions, Finland, the French system has been introduced, the new mark being equivalent to the franc. The main Russian system has not been changed, nor have any alterations been made by England, Turkey, or Portugal.[4] The question of universal coinage has become implicated with the question of the proper standard, and the strong ground taken up in 1867 has certainly to some extent been abandoned. It may, however, be considered that the present systems of coinage are capable of being assimilated. A comparison of the amount of pure metal in English, French, German, United States, and even Japanese coin shows how small is the difference.[5] An ingenious proposal was made in 1868 to the English commission on the question, by which the sovereign would be made identical with the French 25-franc piece (if that were coined). It was based on the fact that the sovereign contained only about 1 grain more of gold than the amount in 25 francs. It was proposed to deduct this small amount from the bullion brought for coinage as seigniorage, so that no change need be made. The advocates of this scheme contended that prices would not be affected by the alteration. This reasoning did not commend itself to the commission. They accepted the view put forward by Newmarch, who argued that all contracts would have to be altered to allow for the depreciation caused by the change, and this position seems impregnable, so long as metallic currency alone is considered. Another ingenious plan was that of Bagehot to assimilate the English and American systems, as a step towards a wider change.[6] At the present moment the great monetary systems of (1)France and her allies, (2)England and the larger part of her colonies, and (3)the United States are so firmly established in their several countries, and the advantages of each system are so equal, that it is hard to see which is to give way. The wide area of the Latin Union, and the perfect decimal division of its coinage, are arguments in favour of the franc; the greater value of the pound, and the immense extent of the English colonies and English trade, are in favour of the British unit of value; while the dollar, from its convenient size and the prospect of the future growth of the United States, has claims to be considered in the discussion. The most probable conclusion, however, seems to be that the future unit will not be any of these coins, but the result of a compromise, which will lead to a new system being established. The difficulties which arise when universal coinage schemes are brought forward ought not to conceal from us the solid advantages which such an institution would confer on the world. The arguments urged in its favour are various, and are regarded as being of different relative importance by their advocates. They may, however, all be stated as follows. (1)Increased facility of travelling. Though there is a tendency to under-estimate this element of the question, it seems impossible to doubt that the saving of trouble to travellers by any universal coinage system would be very great. The abolition even of the local currencies of Germany and Italy, and their replacement by uniform national systems, has been a great boon to tourists, but an arrangement which would obviate the necessity for procuring any different money whatever would be a still greater advance. In the interests of peace, which is greatly promoted by extended international communication, it is very desirable to remove any obstacle which retards increased intercourse among persons of different countries. (2)Greater ease in adjusting the foreign exchanges. This argument has been sometimes pushed too far. It has been apparently held that, were a universal currency adopted, the problems of the foreign exchanges would no longer exist. There are, however, other factors in the question, namely, those of time and place, which could not be eliminated by the adoption of a single coinage system.[7] Still, the removal of even one complicating element would simplify exchange dealings. The question of mint pars would no longer arise, and the specie points would be stated more simply. The friction which sometimes arises from the necessity of recoining the exported gold would also be removed, and the profits of those dealers who gain by
↑As Austria, Russia, and Turkey possess inconvertible paper currencies, and various foreign coins circulate in the last-named country, the question does not possess much importance for them. Portugal is closely connected with England, and will probably follow her example. It may also be noticed that the gold coins of all these countries have a fineness of ths.
↑See his pamphlet reprinted from the Economist. It is nearly the same as the first proposal mentioned above, but it differs in contemplating the assimilation of American money, the 5-dollar piece being equivalent to the new pound.
↑See, for this, Goschen, Foreign Exchanges, p.5, and the article Exchange (vol. viii. p.784 sq.). A practical illustration is the case of Australia, where, though the currency is identical with that of England, bills on England are at a premium.
