Bimetallic Apartheid: British Imperialism and the Gold Standard

Abstract

ABSTRACT In 1920, Vladimir Lenin defined “imperialism” as national exploitation, which raises the question of how nations exploited other nations throughout history. This article will argue that answering this question requires introducing new concepts into Marxist discourse that can capture competition among multiple states and currencies, namely the “hegemon-rival” dialectic between the “currency hegemon” and the “mercantile rivals.” Focussing on the British empire, this article will show that British currency hegemony based on the gold standard functioned by a system that can be called “bimetallic apartheid,” which involved arbitraging the value of gold against silver in order to facilitate the plundering of India and China, however, as other states began to industrially “catch up” with Britain (i.e., the “mercantile rivals”), the credibility of the British gold standard was undermined.