The Sun.
London, England, 1856-02-12 00:00:00

THE BANK OF FRANCE.

The annual general meeting of the shareholders of the
Bank of France took place on Thursday the 31st ult.,
when the report of the proceedings of the establishment
for 1855 was laid before them. The report begins by
explaining the difficulties which the Bank had to con-
tend with during the last year, and particularly in the
last six months of it. The expenses of the war in the
East, and the coincidence of an insufficient harvest, had
necessarily led to large exports of bullion. It was ne•
cessary to procure earn from abroad at a very high
price, and furnish gold for the pay of the army. The
Bank bad co-operated in these payments, by which a
very sensible reduction in its metallic reserve took
place, while at the same time the facilities granted by
the Bank to meet the increasing demand of commerce
and manufactures contributed to tha same temlt.
In order to contend against this accumulation of un-
toward circumstances, the Bank had recourse to two
kinds of measures. It procured, at considerable ex-
pense, from different countries of Europe, from two to
three hundred millions of the precious metals, and pet
in practice come restrictions which it had on previous
occasions adopted with success. These restrictions did
not prevent the Bank from extending to discouws more
than ever, and it constantly furnished the Treasury with
all the cash it asked for. The report then goes on with
a recapitulation of the different operation; of the prin.
cipalesteblishmentand of the branch banks. It states that
during the last three years the mass of operations bad
acquired unusual development. In 1853 the total amount
of its transactions was 3,961,000,000 f. ; in 1854,
3,188,000,000 f. ; and in 1855, 4,863,000,000 f., this last
being an increase over the previous year of nearly a
In 'Hard. The discounts of commerdal bills, which
constitutes the principal operatiou of the Bank and
the branch establislnuebtQ, amounted in 1854 to
2,944,000,000 E, and in 1855 to 3,762,000 f., being an
increase in favour of the latter of 818,000,0001.
These operations were most extensive in the last Fix
months of 1855. in July they reached the sum of
383,000,000 f., and in the four following months they
varied frorx 341,000,000 f. to 354,000,000 f. ; and in De-
cember, to 513,000,000 f.
The restrictive measures alluded to in the commence.
ment of the report began in October. The rate of dna
count was raised from 4 per cent. to 5 per cent., end
afterwards to 6 per cent., and the date of bills admis-
sible was reduced from 90 to 75 days. The advances
on railway and other securities were also temporarily
restricted, but, as the time approached for the last loan,
those advances were considerably increased, and the
Bank afforded every facility in order to assist those per.
sons who wished to subscribe for it. Ater the close of the
subscriptions these advances amounted to 185,000,000 f.;
but as this sum was too large to remain permanent,
the Bank succeeded, by degrees, in reducing it ; aed,
between the lit August and the 31st January, the
amount was brought down from 185,000,000 f. to
93,000,000 f. With regard to the transactions of the
Bank with the Treasury, the report states that on
the Ist July last the Treasury repaid to the bank a third
instalmentofs,ooo,ooofr., sothatits debt of 76,000, 000 fr.
is now reduced to 60,000,000 fr. Since that period the
Bank advanced to the State 40,000,000 fr. for three
month a on the Transfer of Treasury bonds, and that
operation has been renewed twice. On the 29th March,
1855, the metallic reserve of the Bank and the branch
establishments amounted to 451,000,000 fr. ; on the 11th
July following it was 310,000,000 fr., and the bills in cir-
' culation was 670,000,0001 r. It was at that period that
the Bank began to get gold and silver from abroad, and
at the end of the year those arrivals had reached the
sum of 260,000,000 fr., the expenses attendant on which
were as much as 3,920,000 fr. At the end of January
the import of bullion amounted to 298,000,000 fr.
The amount of cash sent from the Bank to the
branch establishments, and from one branch lank to
the other was, during 1555, 452,000,000 fr., this carriage
amounting to more than 700,000 fr. The general move-
ment of the Bank in 1854 amounted to 25,090,060,000 f.;
in 1855 to 30,359,000,000 fr. ; being an increase in b 1555
of 5,269,000,000 fr. The amount of bills drawn y the
e
central bank on the branch establishments and lice
versa was, in 1E54, 313,000,000 fr., and in 1355,
376,000,04 fr., being an increase in thelatter yearbili
ofb
63,000,0001 r. The payments of the commercial
been throughout the year
discounted by the Bink.tuhaaivietyb,
effected with great punt. although the sums were
at times very great. On the 31st Oct. the Bank had to
receive in Paris a sum of 65,417,0001 r. divided into
54,692 bills; and in the branch banks the debtorg have
been equally exact. During 1855 the Bank did not
meet with any loss from bankruptcy, but, on the con-
trary, recovered the sum of 342,000 fr. from former
failures. With regard to branch banks, they ara going on
every year increasing in number and importance, and since
the junction of the departmental banks to the Bank of
France, the united operations of the branch establ;sh-
tnents have constantly exceeded . those of the central
establishment. In 1854 the whole of their operations
together amounted to 2,161,000,0001 r., and in 1855 to
2,745, 000,00011 e, being an ineream'in favour of the latter
year of 584,000,000 fr. Lyons and.Mareeilles alone show
an increase together of 201,000,000 fr. The expenses of
the central bank and the branch establishments amounted
in 1354 io 5,007,000 fr., and in 1855 to 9,813,0001 r.,
being an increase of 4,806,000 fr. It would not, how-
ever, be logical, nays the report, to draw any compari-
son, as the former are only composed of ordinary ex-
penses, and the latter extraordinary ones, induced by
circumstances, and, moreover, the shareholders are well
aware that they have been well compensated for these
expenses, as they have for the first time received for the
same year two dividends, amounting together to 200 fr.
on 01,250 sharei, the profits during the year amounting
to 1.52200, ?1