THE PERSISTENCE OF BIMETALLISM IN 19TH-CENTURY FRANCE

The traditional explanation for the emergence of the gold standard emphasizes the fall in the price of silver in the I870s and the desire of various European countries to emulate Britain's economic success. The argument here is that the ability to issue token coins was a necessary prerequisite for the gold standard. France chose a bimetallic standard in the reform of I803 because, in the absence of token coins, bimetallism provided a superior medium of exchange. Innovations in minting technology permitted France to introduce a token silver coinage and a de facto gold standard in the I850s.