MONEY

143

would  be  reduced.  Similarly  if  gold  became
relatively  more  plentiful  corresponding  effects
would  follow.  Either  process  would  continue ­
  until  the  resultant  alterations  in  the
outside  supplies  of  gold  and  silver  were
sufficient  to  bring  their  market  values  to  the
fixed  ratio.  Were  the  scheme  adopted  with
a  ratio  which  would  make  it  work  at  first,
it  would  only  break  down  if  the  supplies
of  one  of  the  metals  became  so  large  as
to  result  in  the  complete  ejection  of  the
other  metal  from  the  currencies  of  the  bimetallic ­
  countries.  Comparatively  successful
bimetallic  arrangements  were  made  by  certain
countries  many  years  ago  ;  but  it  was  realized
by  the  far-seeing  during  the  late  agitation
that  immense  practical  difficulties  lay  in  the
way  of  a  revival  of  the  system  on  the  basis
of  an  agreement  between  three  or  four  leading ­
  countries.
If  bimetallism  were  adopted,  and  the
exchange  ratio  between  gold  and  silver
were  made  such  that  some  silver  would  be
attracted  into  currencies,  prices  would  be
somewhat  elevated  because  the  bullion  basis
of  currencies  would  be  augmented  by  the
incorporation  of  the  silver.  Also  fluctuations
in  the  purchasing-power  of  money  might  be
lessened,  if  supplies  of  silver  did  not  fluctuate