The New Student's Reference Work/Bimetallism

Bimet′allism. The system of money which admits both gold and silver to coinage at a fixed relative value, and which regards them as having the same legal-tender value is called Bimetallism. Up to the time of the Civil War, the bimetallic system was the legal system in the United States. In 1873 the gold standard was recognized by law. Silver coins are used, but are not coined upon the same terms as gold, and not all of them have the same legal-tender value as gold, hence the system is not bimetallic. It is claimed by the adherents of bimetallism that if a definite ratio of value were established by law between gold and silver that (1) the exchanges between nations would be simplified, and (2) that the price of commodities would fluctuate less, since the fluctuations in the prices of the latter are, so it is claimed, associated with the fluctuations in the value of silver. The question of bimetallism was the great issue in the presidential campaign of 1896, and the candidate who advocated that theory was defeated. Since that time discoveries of gold in great quantities have relieved the financial situation to such an extent that a change in the money standard is not urged with the same earnestness as formerly.