THE NOTION OF MONEY 167
whose exchange ratio was strictly defined by law and guaranteed
 by the inscription on the coins themselves. The indirect
result in monometallist countries was that individuals
could have metal coined externally which was not
admitted to free coinage in their own country and in
exchange take out of the circulation of neighbouring
countries the metal which could be transformed into legal
currency in their own country—z the extent at least to
which this circulation was sufficient to meet the demand.
It must, however, be recognised that the working of the
bimetallist system which cannot be explained on the supposition
 that precious metals, freely coined, have independent
exchange values determined like those of any other two
commodities can only be understood if it be recognised that
the system of free coinage as applied to two metals both of
which are convertible into monetary units at a constant
rate has created for these two metals a very special market
so that they are exempt from the laws which govern exchange
value in ordinary markets.
But in order to grasp the fundamental importance of
this piece of monetary experience it is not enough merely
to lay down the possibility of maintaining an approximately
stable exchange ratio between gold and silver. For, in
making this observation, writers generally confine themselves
 to admitting that the possibility of converting one
metal into the other establishes a connection between the
rates of the two metals, but continue to state that the rate
of one of the metals is determined “naturally” and independently
 of any legal prescription. We must still inquire
whether this experience has not shown, contrary to
opinions based on a rather superficial observation of
previous currencies and adopted by the authors of bimetallist
 legislation, that the law may have a decisive
influence, not only on the ratio of value between the two
precious metals, but also in determining the -alue of
any monetary metal. Although contemporary thinkers,
chiefly in Germany and in France! are inclined to
1 See Gide, “Principles d’Economie Politique,” 11th edition, p. 261.
“We now have numerous proofs of the influence exercised by legislation