gold or silver is obtained varies with the productiveness of the poorest mine in working. Thus by directing consumption, states are controlling production, and therefore—within limits—fixing the relative value of the two metals. This power has been shown in the stability of the ratio during the continuance of the French double standard (1803–1873). The possibility of maintaining a given ratio being thus established, the argument proceeds to show the advantages of the system. (i.) It secures the concurrent use of the precious metals and avoids throwing all the money work on gold. (ii.) Greater stability in value may be expected, since the fluctuations of either metal will be compensated by those of the other. At the worst the variation can only be as great. (iii.) The larger stock of money tends to keep up prices to the benefit of trade; for falling prices hamper production. (iv.) The fixed ratio provides a stable par of exchange between silver-using and gold-using countries; though universal bimetallism would remove this distinction. (v.) The establishment of a world-currency would be facilitated by allowing both metals a well-defined relation. This enumeration of the heads of the “bimetallic” case shows that its working depends on the area of its operation. It must be “international” and the states composing the union must be “great powers” in the monetary sense. Otherwise, their action would be comparatively ineffective. The crucial difficulty has been the determination of the common ratio. The risk of failure in carrying out the policy has proved a deterrent to such great powers as England and Germany, who are in possession of the gold standard. On the theoretic side the chief weakness of bimetallism has been its failure to supply any clear account of the limits within which states can regulate the ratio of gold to silver. If the ratio 15.5:1 can be set up why should not the ratio 100:1, or that of equality? Its practical failure has resulted partly from political conditions, partly from the removal of most of the difficulties which it was