142 
POLITICAL ECONOMY 
between the gold-using and silver-using coun 
tries ; and by yet others with the object of 
enhancing the value of property in silver, or 
at least of stopping its depreciation. 
Bimetallism means making the standard of 
value an alternative consisting in a given 
quantity of gold or a given quantity of silver 
of a larger amount, so that for currency pur 
poses silver and gold are interchangeable at a 
fixed ratio. The proposal was that three or 
four leading countries should combine and fix 
a ratio to be observed in the currency laws 
of the countries concerned. It was argued that 
in this event the ratio all over the world 
between the values of gold and silver would 
be drawn to the fixed ratio decided upon. 
Theoretically, the argument was flawless, at 
any rate for moderate variations in the 
supplies of either gold or silver, on the 
assumption that a substantial proportion of 
the supplies of these metals in existence 
was devoted to monetary uses. If silver 
became very plentiful, so that it tended 
to fall in value with reference to gold, 
masses of silver would displace gold in the 
currencies and reserves of the bimetallic 
countries, and outside these currencies and 
reserves supplies of gold would be con 
sequently augmented while supplies of silver