It is of paramount importance to bear in mind. that Germany alone has actually succeeded in effecting a real change, i. e., in acquiring gold and in disposing of a portion of its silver; and that it has had a payment of war indemnity of 200 millions sterling. But even in Germany the gold valuation is not yet complete; more gold is wanted, and silver remains to be sold.

The Scandinavian States have made but little progress in selling silver and obtaining gold.

The United States have no power to hold gold before they resume specie payments.

Holland and the Latin Union have been added to the gold-valuing list "in abeyance," the steps taken so far justifying this. Involved in the facts of the whole case, is the consideration: are these states compelled to follow the course of Germany? It will be found that (unless silver is re-monetized) they must do so

for the sake of self-preservation. And as soon as a final decision is arrived at, the matter can no longer remain in suspense, but must become a reality, not only with the states which have so far legally decided, but have done little as yet, but with those in abeyance and those which have not yet moved.

The equilibrium dependent until 1872, as by Table I, on the proportions of, in Europe only:

The change without reference to the states which have not yet moved, forms the basis or an estimate as to the re-distribution of gold, and the sales of silver required.

As regards the silver to be disposed of, it may be stated that, in 1871, Germany had a stock of £60,000,000 to spare, the Latin Union, £92,000,000, and Holland, £9,000,000 in hand. Since then, according to the Government Statement, Germany has returned or parted with £31,000,000 of French, Belgian and Dutch pieces. This partly accounts for the rapid reduction of the German stocks, but increases

those of France, Belgium and Holland.

Together

with the new coinages since made, the stock of fullvalued silver liable to demonetization in the Latin Union and Holland is between £130,000,000 to £140,000,000. Besides this, Germany has yet silver to sell, as well as Scandinavia, and that of other European states remains behind.

(E)

THE RIGHT TO COIN MONEY.

[Extract from the Federalist. James Madison.]

"The right of coining money, which is here taken from the States, was left in their hands by the Confederation, as a concurrent right with that of Congress, under an exception in favor of the exclusive right of Congress to regulate the alloy and value. In this instance, also, the new provision is an improvement on the old. Whilst the alloy and value. depended on the general authority, a right of coinage in the particular States could have no other effect than to multiply expensive mints, and diversify the forms and weights of the circulating pieces. The latter inconveniency defeats one purpose for which the power was originally submitted to the Federal Head; and as far as the former might prevent an inconvenient remittance of gold and silver to the central mint for re-coinage, the end can be as well attained by local mints established under the general authority.

The extension of the prohibition to bills of credit, must give pleasure to every citizen, in proportion to his love of justice, and his knowledge of the true springs of public prosperity. The loss which America has sustained, since the peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice of the power which has been the instrument of it. In addition to these persuasive considerations, it may be observed that the same reasons which show the necessity of denying to the States the power of regulating coin prove, with equal force, that they ought not to be at liberty to substitute a paper medium in the place of coin. Had every State a right to regulate the value of its coin, there might be as many different currencies as States; and thus the intercourse among them would be impeded; retrospective alterations in its value might be made, and thus the citizens of other States be injured, and animosities be kindled among the States themselves. The subjects of foreign pow