Alexander Del Mar, Critic of Metallism

Abstract

ed from the ore, combine to reject the hypothesis of rapid change in the value of silver.-On the Probable Fall in the Value of Gold, London, I853, p. Iz8. 37 Del Mar wrote much about the ratio. He denied that the relative costs of production of gold and silver fixed the ratio, hut rather that it was the result of the accumulated stocks of both metals and the laws of important states. The ratio, he said, was fixed by the emperors of Rome at I2 to i, and remained at that figure throughout the Middle Ages. The argument has much truth, for just as it is true that the values of economic goods determine their costs of production rather than vice versa, so it must be true that the legal ratio of gold to silver determines to what point miners find it profitable to operate. 38 A History of Money in Ancient Countries, p. 9. 39 Ibid. 3z8 This content downloaded from 207.46.13.184 on Wed, 19 Oct 2016 04:33:36 UTC All use subject to http://about.jstor.org/terms ALEXANDER DEL MAR, CRITIC OF METALLISM to provide stable money, and no deductive argument can be drawn from it. To one phase of his argument in particular we must tip our hats, for it is refreshing to realize that at least one writer of the nineteenth century had the courage to challenge the significance of the remark of Thomas Gresham, which, exalted by the appellation law, exercised totally undeserved tyranny over the whole of nineteenth century monetary literature. Gresham's law he characterized as a feeble generalization-which applies no more to money than it does to cabbages, and sheds no light whatever on monetary questions.40 Indeed, he took exceptional pleasure in casting aspersions upon both the character and the reputation of Gresham, whom he accused of being coward, plagiarist, and traitor to the real interests of his country.41 Before we leave the subject of silver, it would be well to state that Del Mar's interest in the subject of silver was purely pragmatic. The rationality of his position cannot be better stated than in these words: would not have it inferred. . that I prefer silver to gold for general measure of Value. . . . No metal, as such, can measure value with precision or equity. This is what Money alone can effect; and if there were no question of policy in the matter, I should advocate monetary system independent of metals.42