The Sun.
London, England, 1847-02-22 00:00:00

THE BANK OF FRANCE.

The report of the operations of the Bank of France
during the year 1846, read by Count d'Argout, the
Regent, at the late annual meeting of the shareholders,
has just been published. The extreme importance con-
nected at the present moment with all that relates to this
establishment, induces us to give textually the principal
portions of the document. We commence with the
statement of the circumstances which led to the loan
incurred in England, and the advance in the rate of
discount :
" Two principal facts first of all attract attention.
Never did the discounts attain the same amount ; and
next, an extraordinary diminution in the reserve has
taken place during the last months of the past year.
In 1839, 1840, and 1845, the operations of the
Bank and its branch establishments reached the
vast sum of 1,500,000,000 f. ; but in 1846 this
milliard and a half were again exceeded by 226 millions.
The mass of business was more considerable at the be-
ginning of the year than at the end. In fact the dis-
counts of the first half year of 1846 reached the sum of
818,000,000 f., whilst during the last six months they
amounted only to 800,000,000 f. During the first half
year the reserves of the Bank and the branch establish-
ments increased from 208,000,0001'. to 252,000,000 E,
whilst a contrary movement took place from the month
of July. Each year, during the summer and autumn,
from 50,000,000 f. to 60,000.0001. in specie are drawn
from the Bank and dispersed in the provinces, to pay
for large purchases of silk, woollens, wines, and other
produce.
About the end of November and the begin-
ning of December they return to Paris, and again find
their way to our cellars. For a great number of years
this movement has taken place with the greatest regu-
larity. In 1846, the withdrawal of money commenced
as usual, and continued, with more or less rapidity, and
and without interruption, up to January 15, 1847. The
following is an account of the sums drawn out from the
month of July, 1846:
July 17,538,000f.
August 2,901,000
September
October
November
December
January 14 10,604,000
The causes of this movement are numerous and various,
and it would be impossible for us to assign to each its
just share of influence. The most active of all is, with-
out contradiction, the scarcity of food. This cause has
acted in a double way on us ; for specie has been ex-
ported to the countries which sold us the surplus of their
harvest, and to the countries which, being deficient
alike in corn and money, are provided with funds at
Paris, either by the aid of credit, or by the with-
drawal of investments previously effected in France.
The arrival of the precious metals, sent by Mexico
to England, and thence dispersed over the Conti-
nent, has diminished in importance. From that circum-
stance it has been inferred, on the one hand, that the
metallic circulation, exposed besides to permanent causes
of reduction, had fallen off in a considerable por-
tion of Europe. On the other hand, it has been
maintained that this circulation, without falling off,
had ceased to be sufficient fir the greater amount of
transactions and new calls on it. However this may be,
the increased demands for money is a fact which cannot
be contested. What then has taken place ? From all
quarters applications were made to the Bank, the great
storehouse of specie, considered inexhaustible, and not
long since deemed excessive in its magnitude. The
interest rose in several places, and as the Bank continued
to discount on the same conditions as before, the demands
were redoubled. Thus, for four consecutive months, we
beheld day by day millions issuing from our cellars, and
either in the shape of ingots or sf. pieces, proceeding to
Russia, Germany, Holland, Belgium, Switzerland, and
even Spain. As to the specie thus removed from Paris,
and retejeed in the departments, they could not return
to the Sank, as, when provisions become dear a larger
areojelit of money is required to pay for the daily pur-
cheses. This situation called for restrictive measures
on the part of the Bank. In a neighbouring country,
no hesitation is ever felt in such a case. A more severe
legislation than ours imposes this painful duty on most
institutions of credit. The Bank of France made it a
point of honour to postpone for the time every decision
of this kind until the end of the year—the period when
accounts are settled, and when, in consequence, money
is much required. In acting sow e think that it rendered
a great service to business. The bank had even indulged
in the hope of being able to pe,s through that difficult
period without changing its rate of discount. It neglected
no means, spared no sacrifice to arrest the diminution of
its reserves It purchased from the Bank, and had ex-
tracted the silver contained in 5,000,000 of pieces that had
been called in. It procured in Paris, and- in the pro-
vinces, four or five millions' worth of gold and silver
articles, and it borrowed from the English capitalists
25,000,000 of francs. The produce of that loan
it employed in purchasing in London gold bullion
and piastres, which are being at present coined in Paris.
At last, the moment arrived when it was no longer
allowable to put off taking a decisive step ; and on the
14th of January a decision of the Council raised the
rate of discount I,n bills and advances to five per cent.
Of all the measures that the Bank could adopt it was
the least prejudicial which it had constantly supported
with all its might. Will this measure suffi:m ? We
hope so, but we dare not affirm it. Time will decide.
Since the 15th the reserves have ceased diminishing ;
the securities in our portfolio remain at the same
amount ; the average of the length of the hills dis-
counted does not exceed 53 days. This is all that we
can announce at present."
The following shows the amount of discount operations
during the past year :
"The increase in the discount of commercial paper
has been 187,000,000 E, which divi 'es itself into two
very unequil pert=; that of the first six months, amount-
ing to 72,000,000 E; aed that of the second to only
15,000,000 f. It is the same for the branch Lmke; their
discounts in 1845 show an increase of 34,000,0001,
which Has almost entirely for the first six months, being
for that period 31,148 0001.; whilst for the second six
months it was nay 2,928,000'. The discounts of the Bank
and the branches amounted together to 1,618,000,000 E;
exceeding those of the ptece,ling year by 221,000,000 E
The average of the amount of securities in the Central
Bank rose also from 124,389,000 E to 151,747,000 E, being
an increase of upwards of 27.000,000 E The Bank has
discounted at Paris 868 922 bills in 1845, and 926,390 in
1846. The increase was 57,408, end their average value
had risen from 1,155 f. to 1,2851. The period they hal
to run varied only from 47 days 7-10:13s to 45 days
9-10ths."
The part referring to the running accounts and circu-
lation of notes is thus conceived:—
" The different running accounts offered in 1845 a
maximum of 121,000,0001., and a minimum of
42.000,000 E ; in 1846 the maximum was 108 000,0001;
and the minimum 45,000,000 f. In 1845 the running ac-
count of the Treasury varied from a minimum Of
90,000,0001. to a maximum of 164,000,000 E; in 1846 the
maximum was 138,000,000 f. at the date of the 18th of
March, and the minimum 34,000,000 f. on the sth of
December. This running account was at present
46,000,000 f. The whole amount of running accounts of
every nature can be d for at any time. The
minimum of the circulation of the central bank's notes
had nrykrgone lit' le change in the let two years. From
247,000 000 E the minimum had fallen to 243,000,000 f.
The maximum, on the contrary, had risen from
289,000,000 E to 311,000,000'. It was to be remarked
that the discounts, which are effected the last
day but one of every month, temporarily aug-
ment the circulation by about 20,000,000 f. The notes
that form that excess re-enter the bank the day
after by the lodgments of the 30th and 31st. The best
way to estimate the real importance of a circulation is by
its annual average, nut by a maximum indicating only
an accidental state. The average (41845 was 259,000,0001.,
and that of 1846, 261,000,000 E The difference of the
two averages was only 1,500,0001."
The following refers to the general business of the
bank:—

"The average of the reserve of the Central Bank in
1845 was 236,000,000 f. ; in 1846 the average fell to
171,000,000 f., being v, reduction of 65,000,000 f. This
is explained by the extensive exportation of specie pre-
viously referred to, which took place at the end of the
year. The general movement of specie, of notes, and
of transfers has been reduced from 15,096,000,000 f. to
14,868,000,0001'. ; the diminution being 228,000,000 f.
The movement of notes and specie has increased the
former by 259,000.000 f, the latter by 44,000,000 f.; but
the mass of transfers has declined by 532,000,000 f, Tho
amount of bills not met was 94,000 E, compensated for,
however, to the amount of 47,0001. by different sums
afterwards recovered. The credit balance, which at the
commencement of 1846 amounted to 37,576 E, was now
50,635 f."
The operations of the branch banks are thus re-
ferred to :

" The branch banks together discounted, in 1846,
229,806 bills, of an average value of 1,862 E, and at;
average period to run of twenty-six days. The amount
of the bills from branch bank on branch bank had in-
creased from 8.800,000 E to 12,600,000 f., an augmenta-
tion equal to 40 per cent. We see with pleasure the
progress of these discounts, as they rendered easier the
commercial relations between town and town, and de-
partment and department. The general average of the
values held by the branch banks have risen from
54,000,000 f. to 68,000,000 f. The sums in hand showed
on an average the sum of 42,600,000 f. The amount had
varied from 59,000,0001. to 23,000.000 f. - The reserves
of the branch bank are always very inferior to the sums
that have to be paid on demand."
Tie document concludes as follows :
" Such, gentlemen, have been the principal events of
the last year. The bank has had to struggle agaiast
events of an extraordinary character, which it was im-
possible to withstand, and which hare not occurred for
the last twenty-eight years. It has made numerous
efforts to resist the consequences of the insufficiency of
the harvest, and of the exportation of specie. It has
spared no pains to supply all wants, and it will always
seek to conciliate the interests of commerce with the
prudence commanded by the rules of its institution.

EAT!! IN THE SNOW.—Tbe snow-storm which
has affected the whole country nearly, has been most severely
felt in the vicinity of Bath and Bristol, which is composed of
of a hilly country, and in which neighbourhoods the snow-
drifts have in many places been very deep and extensive. In
many parts the drifts have been more than five or six feet in
depth. Oa Thursday, as some persons were passing up
Brentree hill, in the neighbourhood of Westbury-on-Trym,
and within two miles of the city of Bristol, they discovered
the body of an aged man, an agricultural labourer residing
in the neighbourhood, nearly buried in the snow. The body
have -i ch
been
was quite cold and stiff, and he had evidently been dead for
some hours. A loaf of bread was found under his arm, from
conjectured that on the nrevums night lie mils':
yoverzamkeinwgithhisizy ueiatnlade hill,lost andhis way,hayntgoebueennfoprtruo:
nate man sank ..Best.ogN:
babe
WrignhtthweaCsofiunretd osfl. Eerchinin g
, and perished from the inclemency
of the weather.
t paper. -
on Thursday, Miss Emma
sold spirituous liquors
out a licensa in the saloon of the W ' ' with-
alhalla, in Leicester-
sq uare.