It is unnecessary to go into details concerning the other members of
the Latin Union, but one fact as regards Belgium deserves notice. This
country was an integral part of France when the law of 1803 was passed.
Her monetary system was accordingly identical with that of France
until 1832, when she adopted the single silver standard retaining the
franc as the monetary unit. In 1861, when the great influx of gold
from California and Australia had made such a change in the monetary
conditions of France, the people of Belgium began to taste the luxury
of gold in the form of French coins. There was straightway a popular
demand that French gold should be made legal tender in Belgium. The
Finance Minister, Frère Orban, resisted it. He was impressed with the
views of Chevalier in favor of silver, to which allusion has already
been made. The popular demand grew apace, and Frère Orban, rather than
yield to it, resigned his office. Then the bill was passed, and Belgium
obtained what her people wanted, that is, the gold standard.
The experience of Holland is no less instructive. Prior to 1847 this
country had the double standard at the ratio of 15.60 to 1. She had
become convinced, however, that a double standard was merely an
alternate standard, first one thing and then the other. So she decided
to have a single standard, and adopted that of silver in 1847.
When Germany adopted the gold standard a commission was appointed
by the King of the Netherlands to examine the monetary question. It
recommended that the coinage of silver be suspended for six months, and
a bill to that effect was passed in May, 1873. This law was renewed
twice for periods of six months each. A second report of the Commission
was made, recommending a bill for the adoption of the single gold
standard, but this bill was rejected by the second Chamber in March,
1874. When the law suspending the coinage of silver expired in May,
1874, immense quantities of silver began to flow to the mint. Silver
florins passed in trade at the old ratio of 15.60 because they were
limited in quantity, but it was obvious that they would soon fall to
the bullion value of silver. So in December, 1874, a new six-months’
suspension of coinage was ordered by the legislative body--the same one
that had refused to adopt the single gold standard. Before this period
had elapsed the Minister of Finance proposed that the silver coinage be
discontinued indefinitely and that gold coinage be allowed. This bill
was passed in June, 1875. Here again the gold standard made its way
over the heads of the wise men of the time.