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Source: p 273 Top, Introducing Philosophy for Canadians: A Text with Integrated Readings (2011 1 ed).
Primary Source: 'Could Truth Be Coherence with a System of Beliefs?' by Uni. of Victoria Prof. James O. Young

  Finally the coherentism described can be accused of leading to relativism about truth. [1.] A coherence theory that identifies truth with coherence with an ideal set of beliefs does not lead to relativism. There is only one ideal set of beliefs, and so only one set of true propositions. [2.] The set of beliefs that a community of speakers actually holds is, however, constantly changing. Consequently, the propositions that cohere with a community's set of beliefs will also be constantly changing. This is just to say that propositions are we relative to the beliefs of a community of speakers. [End of 2.]
  The coherence theory sketched here appears to have no response to this objection. The coherentist can only grasp the thistle and accept relativism. For some readers this may be too much to accept. Perhaps they were walling to embrace an epistemic conception of truth Perhaps they were willing to revise classical logic Perhaps they were willing to reject the link between truth and reality. Relativism may, however, be the last straw. At any rate. readers should now have some idea about what would lead someone to adopt a coherence theory of truth. and some Idea about the consequences of accepting such a theory.

Does the first paragraph cited above contradict itself? 1 states that a coherence theory should NOT cause relativism. But then everything after 2 proves that it does?

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You're not reading carefully. Let's break it down:

First part:

A coherence theory that identifies truth with coherence with an ideal set of beliefs does not lead to relativism. There is only one ideal set of beliefs, and so only one set of true proposition.

This argues that a certain type of coherentism, namely, one that identifies truth with coherence with a single non-changing set of beliefs, does not lead to relativism.

Second part: (note the contrasting 'however')

The set of beliefs that a community of speakers actually holds is, however, constantly changing. Consequently, the propositions that cohere with a community's set of beliefs will also be constantly changing. This is just to say that propositions are we relative to the beliefs of a community of speakers.

This argues that a different type of coherentism, namely, one that identifies truth with coherence with a relative-to-community set of beliefs, does lead to relativism.

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