No. 269.
Mr. White
to Mr. Evarts.
Berlin, April 12, 1880. (Received April 30.)
Sir: I have the honor to inform you that by a bill, modifying Article IV of the coinage law of July 9, 1873, which Prince Bismarck, as chancellor of the empire, has just laid before the federal council, and which will doubtless soon become law, the total amount of silver coinage in Germany is to be increased from 10 marks per head of the population to 12 marks.
In the introduction to the bill, it is stated that the provisions of the article referred to were meant to be but temporary, and that it has now become apparent that the silver coined under the act of 1873 is insufficient for the needs of the people. It is further stated that, on December 31, 1878, and December 31, 1879, the amount of silver coin circulating in the German Empire was as follows:
| 1878. | 1879. | |
| Marks. | Marks. | |
| Prussia | 226,017,302.10 | 230,200,060.10 |
| Saxony | 21,247,093.40 | 22,554,093.40 |
| Bavaria, Wurttemberg, Baden, Hesse, Elsass-Lothringen | 148,536,310.00 | 141,493,552.00 |
| Total | 395,800,705.50 | 394,247,705.50 |
Statistics are then given to show that the amount of silver coin now in circulation in Germany is not adequate to the demand, and England, where the silver in circulation amounts to 12s. per head, is referred to as a proof that Germany must add to her silver currency. The bill then calls attention to the safeguards against too large a supply of silver coinage, and adds that the proposed increase in the currency would give the washed-for opportunity to recoin the silver which has accumulated in the hands of the government since the suspension of the silver sales in May last, and which now amounts to 339,000 pounds (fine), and is valued at 31,000,000 marks.
In conclusion, it is remarked that as the 5-mark notes do not seem to be appreciated by the public, it is proposed to reduce their circulation from 46,122,210 marks, at which amount it stood in the middle of last February, to 40,000,000 marks.
From all this it appears that the German Government is gradually reverting to an extensive use of the silver which in 1873 it was supposed to have permanently discarded.
I have, &c.,