Bimetallism-Reconsidered in the light of recent developments

Interest in bimetallism was renewed during the depression. Legislation favorable to silver was passed, notably the Inflation bill of 1933 and the Silver Purchase act of 1934. The principal advantage claimed for bimetallism results from the "compensatory action" of the two metals. "Compensatory action" assumes a mint and a market ratio between two metals which are different. It is difficult to see how there can be a mint and a market ratio within a country at the same time which are different so long as the government agrees to buy and sell these metals freely and at a fixed ratio. Examination of the periods when this country was operating on a bimetallic standard fails to bring forth convincing proof one way or another because of our incomplete records. The experience of most countries on a bi- metallic standard has been that one of the metals has disappeared. This "disappearance," however, may have resulted chiefly, if not wholly, from exportation. In light of this, the case for international bimetallism becomes much stronger and it would seem to be the only workable form of the dual metallic standard. The chances of international bimetallism, however, seem far removed.