From 1850 to 1860 there was an enormous increase in the production of
gold in Russia, California and Australia, and scarcely any increase
in that of silver. The market ratio declined to 15.46 in the year
1851, so, of course, gold could again circulate in France. The ratio
continued to decline till 1859, when it reached its lowest point,
viz., 15.19. It remained below 15½ till 1867. During this interval of
sixteen years France imported $600,000,000 of gold and exported about
half that amount of silver. Her circulation became saturated with the
yellow metal to the great delight of her people, who had become tired
of carrying sacks of five-franc pieces to and fro in cabs and handcarts.
The exportation of silver from France was so extensive at this time
that the country was almost denuded of small money. It became necessary
to coin gold pieces as small as five francs. In 1857 the scarcity of
silver became so great that the Government appointed a commission to
investigate the subject. This commission was bent upon maintaining the
silver standard. So, instead of following the example of the United
States and making silver coins of light weight and of limited legal
tender, it recommended that an export duty be put on silver, that
bullion brokers be prosecuted, and that assorting and trading in coins
be prohibited by law. In other words, this sapient commission went
back for inspiration to the times of Louis XIV. and of James I. and
Charles I. of England. Some attempts were actually made to carry out
these senseless recommendations, but they were soon abandoned. It was
about this time that Chevalier, the French economist, who was a stout
champion of the silver standard, proposed to solve the difficulty by
providing that French gold coins should have a fixed weight, but a
variable value, and that the value should be announced by legislative
decree at certain short intervals. M. Levasseur, another economist of
renown, but with a keener vision, expressed the opinion that gold had
made itself the standard in spite of the law, and he suggested that the
wisest thing for France to do was to make the law conform to the fact.