British Parliament

March 24th, 2014

Before the decade of 1870, the majority of the countries dealt the goods through something called ” bimetalismo”. They had a double standard in the gold currencies or silver. In Great Britain, the bimetallism stayed all along that they fought against Napolen. Then, when the Napoleonic wars finished in 1816, the British Parliament approved a law doing that the gold currencies were the unique legal currency in the country. They removed the currencies from silver outside the system. In the United States, the bimetallism began with the Law of the Currency of 1792 and was the law of the majority of the youth of the nation. Before each state had different notes from different banks, the EE.UU gold currencies circulated freely with doblones Spanish (for that reason the actions used to deal themselves in eighth). This was a disaster because there were many forms different from money.

Soon in 1873, the Congress removed the dollar from silver of the list of currencies that were coined. The price of the silver collapsed the year following. France, on the other hand, clung to bimetallism from the French Revolution to the 1878. Some other countries, like China, India, Germany and Holland were with the silver standard. The Monetary system the International at global level before the decade of 1870 was ” bimetalismo” because as much the gold as the silver was used for the international payments of import and export.

The rates of change between currencies determined solely by the content of gold or the silver. Around the 1870, the rate of change between the pound sterling – gold standard – and the French franc, – bimetallic landlord – were established by the gold content of the two currencies. On the other hand, the rate of change between the French franc and the German mark (that was in a silver landlord) was determined by the content of silver of the currencies.

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