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archive access 2.10.02, inventory number 2901, page 22

xviii
aaponr rnou rux sutxer connirrax
expected totat of 8000, 0001. 10 9, 000. 0001. in the year 1876. It is true that
Silver mines have otten, atter a tew years, disappointed expectation, vut the officiat
evidence as to the richness of the Comstock Lode is exceedinsly strons.
GrnMaNy.
lour Committee now turn to the question of the surplus supplies which
have veen thronn, or may still be expected to ve thrown, on the Silver market by
the measures taken in Cermany with reterence to the Silver coiase.
1 may, in the tirst instance. be expedient 10 State, in the brietest possible
torm, what these measures have actually veen, and to what point the transition
trom a Silver to a Cola currency nas thus tar been carried. At the same time,
attention must ve called to the taet that, simultaneously with the enactments
attectins the Coinaze, important operations with reterence to the contraction
of the Paper Curreney of Cermany have veen taken in hand. A Cola Coinase
is not only in course ot substitution tor a Silver Coinase, vut the withdrawal of
all vank notes of lower denomination than 100 marts (31.) nas also veen
carried throught
The vant notes used in Cermany were not continea to notes ot large amounts,
such as alone can ve issued in Ainsland. One thater notes sequivatent to
three sillinss) entered on an extendea scate into the ordinary payments of
daily lite in Germany. The inconvenience of the neavy weight of Silver Coin
tor the parment ot even moderate amounts nad veen met by the issue of these
vant notes of small denominations.
The existence of these vant notes was considered an evil and a danger,
and amons the motives assigned tor the change trom Silver to Cold the expe
diency of attainins a position under ivich the issue of vant notes coula be vetter
regulated was officially mentioned. The Notives submitted to the Imperial
Diet, when the tirst Coinase Bill was introdueed in 1872. contained the fo1low
ins passase: The inconvenience of the Silver Coin led ot necessity to a very
considerable circulation of paper means of payment, which, in ordinary times,
are willinsly taken as a welcome tacility, but in critical times of awakenins
mistrust, contain the serms ot serions dangers. The artificial demand tor paper
means of payment created by the exclusive circulation of Silver, made it neces
sary in tramins lans tor Bants to have regard to considerations wich placed
impediments difficult to surmount in the way of a thorough and rassonat
regulation of the vankins system through bankins lexislation common to all
Cermang.
The withdrawal of the vant notes of small denomination is an important
etement in determinins the provable amount of subsidiary Silver Currency
wich will be touna necessary.
The first of the recent series of Lans dealins with the Cerman Currency
was dated the 42. December 1871.
1. It authorised the manufacture of an Imperial coin Reichs-Minze, of
which 1385 pieces were to ve coined ont of one pound of fine 5018.
2. The tenth part of this Cold Coin was to ve called a Mark Cabout
2 Shillins.
3. Besides the Imperial Co1d Coin of 10 marts, coins of 20 marts were
a150 to be issued. Clhese pieces correspond very nearly with English
sovereigns and halt sovereigns.
4. These Cold Coins were made lexal tender, and the 10 mark piece
was to ve taken as equal 10 33 thaters in Prussian currency, or 1o s Horins,
50 kreutzers, in the South German ort Gulden curreney: In this con-
version the relative value of Cold t0 Silver was taken as 135 101.
5. Silver
44 distinction is made in tne series of lais recentls passed in Cermans betweent paper money,
1. e. notes issued by the varions Covernments, aud vant notes issued by the vantes. The paper
money issued by the varions States nas been recalled under the recent texislation, and new paper
money issued in its place, distributea accordins to population amons the various States, and made
payable in Imperial curreney, 1. e. in marks. The total amount tor the tmpire was tixed at 40
mission thaters (120, 000, 000 marks, or 6,000, 0001.) This amount contains a certain portion of
notes of emall denominations. The tigures in the text of the Report apply onsy to vank notes.
ou peraxciarior ox Sttvxn.
5. Silver coins were not demonetised by this Law, vut the transition to
a Cold standard was contemplatea in the devates precedins its exactment
and an indirect expression was siven to this intention by the tollowins
words in Clause 6: Till the passins of a law dealins with the with
drawal of the Silver Coins, &c.
xix
6. It was turther exacted by Clause 10 (not in the bill as originally
presented, vut introduced subsequently as an Amendment) thate tor the
it present, and until turther notice, there will be no coinage of any other
1 Cold Coins than those introduced by this Act, nor of large Silver Coins,
with the exception of memorial coins.
7. A turther Clause empoiered the Chancellor of the Empire to ordain
sanordnen) the withdrawal of the existins Silver coins ot the States of
the Contederation, and to tate the necessary means tor that purpose trom
the Imperial Treasury.
lhe Law of the Ah of December accordinsly decreed a series of prelimi
nary measures. A supply of Cola coins was to be manutactured. They were
to be lexal tender, vut side by side with existins Silver coins. lovers were
siven tor witharawins Silver coins, and the coinins of Silver was stopped. The
privilese, theretore, enjoyed by the holders of Silver vullion to have that bullion
turned into coin was witharaun, a 1ons step towards demonecisation. But
Silver coins remained a lexal tender as nitherto, and no new subsidiary Silver
coinage was at ihis time introdueed.
The scope of this tirst law is 50 tar important to the present inquiry,
as it vears on the state of the Silver market between December 1871. ana the
middte of July 1873. wten the next great step was taken.
On the Sth July 1873 another Coinaze Law 1t. Minz gesetz) was passed.
Phis Law introduced the Cold standard.
it commenced with the words, The Imperial Cold Currenoy tates the place
ot the varions Currencies which are now lexal in Cermany, belongins to the
separate States.
the moment at which the Imperial currency was to come into torce in the
whote Empire was to ve tixed by Imperial decree atter a three months notice.
piexes.
tive mark Cola pieces were to ve coined as well as the 20 and 10. mark
the Act then proceeds to declare that, besides the Imperial 6o1d coins,
Imperial Silver coins were to ve issued 13 mark. 2 mart, 1 mark, ana Smaller
pieces. A hundred t mark pieces were to be coined out of one pound of fine
Silrer, Accordins to the standard taken when the 10 mark Cold piece was
made equal 10 3t thaters which were tull weighted Silver coin, not 100 marks,
vut on1y 90 marts of an equal tineness coula hare been coined out of one pound
offine Silver. hirty thaters used to ve coined ont ot one pound ot pure Silver.
The Silver mark is accordinsiy a subsidiary coin, issued a1 115 per cent. below
its nominal value. Lo that extent it is a depreciated coin.
The total amount to ve issued of the new Imperial Silver coins was, till
turther notice (vis aut weiteres), not to exceed 10 marts per head of the popu
lation of the Empire: this population amountins to about 43, 000, 000. the pro-
visional maximum tor the new subsidiary coinage was about 430, 000, 000 marks,
o2 21, 500, 000.
Phese new Silver coins were not to ve lexal tender beyond the limit of
20 marts Cabout 11.1. vut the Imperial and State Treasuries were to accept
them up to any amount.
Such veins the regulations wich were made tor the introduction of the
subsidiary coinage, poiers were siven to the Bundesrath to demonetise the
coins ot the various States.
Demonetisation was not to tolloir as a matter of course immediately, vut
pouvers were given to effect it. It will be seen hereatter what progress nas
veen made up till now. 1t may, nowever, be stated at once that the Thaler,
wlich was by tar the largest element ot the old Silver curreney, nas not yet veen
demonetised.
The
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338.
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