PHYSICAL ARITHMETIC. CHAPTER FIRST. FINANCIAL. SECTION I.-VALUE. ART. 1.-Standard of Value. Every currency is based upon a standard of value, that is, a definite quantity of some precious substance. Gold and silver are very suitable substances for the purpose, consequently they have been adopted in almost all parts of the world. Gold may be adopted as the sole standard, or silver as the sole standard, or both may be adopted, forming what is called a double standard. A double standard is made possible by fixing by law the value of silver in terms of gold; but as the commercial value of silver relatively to gold is subject to fluctuation, it may be necessary to change the legal value from time to time, to prevent the metal which is undervalued from being exported to other countries. Formerly the standard of this country was double, but since 1816 gold has been the sole standard. Silver is at present the standard in India. Until recently the standard was double in France, the relative value of gold to silver being fixed at 15 to 1; but the adoption by Germany in 1871 of a single gold standard has caused France to adopt a single gold standard also. A |