Can You Define The Cases Against Bi-metallism?

The economists who oppose the adoption of bimetallism base their case upon the following arguments:It is very difficult to maintain the unit ratio between gold and silver in the face of over-fluctuating market ratio of exchange. Suppose, silver and gold are both unlimited trader money in a country and their mint and market ratio of exchange is fixed at 16:1. This means that 16silver coins are equal to the one gold coin.

Let us suppose further that a large discovery of gold is found in that country and the bullion market ratio falls from 15 to 1. The mint ratio of exchange between these two metals legally fixed is 16:1. upper such conditions it will be to the advantages of a person to buy gold billion and get it converted into silver because when one gold coin is presented at the mint, it gets 16 silver coins while the market ratio is 15:1. A man gains one silver coin in the process.

It is not normally possible to adopt bi-metallism in a single country because the mint ratio and the market ratio of exchange between gold and silver is sure to create confusion in the bullion market. Sometimes gold currency will be over valued and at another silver. So the country will thus have either gold or silver as its standard alternatively.