bimetallist

A bimetallist is an advocate of bimetallism, a monetary system in which the government legally recognizes both gold and silver as the basis of the currency. Under a bimetallic standard, both gold and silver coins are minted, and their value is fixed by a legal ratio, such as 15.5 ounces of silver to 1 ounce of gold. This means that a unit of currency would be defined as a specific weight of either gold or silver, and the value of one metal relative to the other would be fixed by law.

The primary goal of bimetallism was to increase the money supply and stabilize prices. Proponents argued that by allowing both metals to be legal tender, the availability of currency would be greater than under a monometallic standard (gold or silver alone). This, they believed, would prevent deflation and stimulate economic activity. Bimetallists also contended that a fixed ratio between gold and silver would create a more stable exchange rate between countries that adopted bimetallic systems.

However, bimetallism faced significant challenges. The market value of gold and silver could fluctuate independently, leading to the "Gresham's Law" phenomenon, where the cheaper metal would drive the more expensive one out of circulation. For example, if silver became less valuable in the market than the legally fixed ratio suggested, people would hoard gold and spend silver, effectively demonetizing gold. Conversely, if gold became cheaper, silver would disappear from circulation. Debates over the appropriate ratio and the practical implementation of bimetallism were common throughout the 19th century, particularly in the United States, where it was a major political issue. Eventually, most nations adopted a gold standard, and bimetallism largely fell out of favor.