The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-28

hundred and 6ty Millions Of dollars saturated all parts
Of France with specie. and made gold and silver the
every day currency OF every man, woman. and child IN
the empire These great results wee the work Of SIX
years. and accomplished by the simple process OF
gradually requiring hard money payments gradually
calling ia the the branch nnts 10
fourteen and limiting the Bank Of France issue OF
large notes--6ve hundred francs and upwards This
simple process produced these results and thus siands
the French currency this day for the nation has had
the wisdom TO leave untouched the financial system Of
BonBparte."
In these paragraphs. Mr. D. speaks OF the French
finances from 1900 TO 1907, period full Of instruction;
but he can only seize two vewsthe beginning and the
end" The most instructive part Of the " untouched
financial system Of Bonaparte" Mr.. has left untouched
by himself For il was within this period that the French
Republic was subverted, and the liberties Of the people
overturned. la December, 1893. under sort Of new
Constitution, the whole direction OF public affairs
delivered Bonapare and his power was unrestrained
and lllimtabe." This new power under ihe name OF
" first Consul" enabled him TO carry vigorous
upon the neighborng nations, and under the plea Of
necessity, he kept army OF reserve IN France, suf
cient maintain his authority home. The
OF his measures shed lustre upon his name and
heightened the glory Of the nation, so that he took adj
vantage Of the general enihusiams OF France, gallant
France and overturned the liberties OF his country
After the treaty Of Lunevilc, in 1901 and that Of
Amiens. in 1902 which promised some repose TO Eu-
rope Bonapar.e accepted from five hundred Csalpne
deputies surrender Of the liberties Of their constitu
enis, and became Emperor Of the Csalplne Republic,
He procured himself to be proclaimed Consul for
life, with the power Of nominating his successor" These
extraordinary did not fail to arouse great
indignation in the ranks Of the republican citizens, and
many conspracies and plots soon found TO exist
against him. Men Of distinction were engaged ia them
as for example, General MORGAN. Pchegru, and the
Duke Of Enghein. The former was banshed and the
latter arrested and executed without trial. Judge, or jury
The chief Consul having, by banishment imprison-
menf, and execution rid the Republic Of insurgents,
and rendered his life and government secure in May,
1904 he procured decree +" That the governments OF
the Republic should be ntrusted to Emperor, and
that the Office should be hereditary in the family Of
Napoleon Bonaparte;" and The ceremony Of his
coronation splendid beyond all conception" This
truly perod full OF instruction the subject
of Government: and now let us see what instruction
we shall derive from il on banking.
The following extract from article published in
1924, compiled from NJ Moubriens Considerations, &c
on Banking, 1905, and letter from NJ. Jean Baptist
Say, author Of Political Economy &c, the subject
Of the Bank Of France, 1916 will show, that the resto
ration of the finances and currency" "at the end OF
three years before the rupture Of the peace OF Amens
resulted probably from the consolidation of the banks Of
Paris into National Bank with capital Of 5,O0OOOO
Of francs, backed by the credit Of Government and that
the "chsnge in SIX years." spoken Of by Mr.. D., was
further wrought. BY the Emperor usurpng all power
over the Bank afterw embarrassing its capital to
80, 600 900 francs-making it great Government en-
gine-and giving it the credit Of the empire. This
gave the highest credit its circulation but SO far as
relates to the diffusion of specie, by excluding small
notes. that could have been done well by restraints
the Provincial banks, the National Bank and
it could be in the United States But, the National
Bank Of France instituted aid in overurning the
Republic, and sustaining the Imperial Government.
do not that the SubTreasuy principle, or the SER
vices Of Receivers General had any influence in the
reformation admitted by Mr. b. How far these officers
Of Imperial derivation aided in subvertng the Republic
] shall not stop 70 inquire.
I'm France the progress Of banking Of every other
domestic Improvement retarded by the commissions
OF the Revolution. But in the year 1903, when the
peace Of the Continent appeared to be secured, and
tranquility prevailed at home, the different banks in
Paris consolidated into great National Bank
called the Bank Of France, by an Of the imperial
government The act establishing this bank fixed its
capital at As 900 900 francs equal FL S75 900 ster
ling, be divided into $4,000 shares Of 1000 francs
Zach 1t was vested with the exclusive privilege OF
issuing promissory notes, payable on demand, IN con-
sderaton Of which, made large advances to govern
ment. Its business to discount bills OF exchange,
notes. or bonds but prohibited from carrying
any commerce except in cash or bullion. The admins
tration Of the Bank Of France committed to fifteen
directors and three censors, and these added
council Of discount consisting Of twelve OF the principal
merchants in Paris, who TO have the privilege OF
in all matters relative to the discountng Of bills
The great body Of the proetors represented by
two hundred delegates, chosen from among those pos
sessed OF the greatest number OF shares who were to
meet annually, or otener, if they were required To
this assembly the affairs OF the Bank TO be
nually submitted, and the members Of the council Of
discount were 10 state, whether in granting DISCOUNTS
the directors had conomed to the rules established to
regulate their proceedings These 200 representatives
were also to elect the directors Of whom three, and the
censors, Of whom one, to be annually changed 1t
provided, that the dividend for the year (lS04)
should not exceed eight per ecn be paid half yearly,
and that whatever profit remained should be invested in
the public funds, and allowed to accumulate fund
OF reserve against contingencies The exclusive prvi-
leges Of the Bank were granted for fifteen years. COM
mencing from the year 1904
"Under these regulations the Bank Of France com
menced its operations and during the first year Of its
establishment its profits amounted to 4,s5, 1897 francs
(flH,4l4,) being rather than IL per cent upon
its original capital OF this sum- per cent was divd
ed among the proprietors the remainder invested
in per cent stock, fund Of reserve and in the
following year, the nett profit amounted to 1862 1893
francs (fl93S5o) In the latter part of the year 1905,
the Bank Of France considerably embarrassed by
the drain Of its specie which, in 1906 continued TO in
crease with such rapidy that the bank obliged
suspend its cash payments. Various causes are as
signed for this catastrophe, which to have chiefly
originated in the necessity Of making large remittances
OF specie to the armies then engaged in the Austrian
WARM the great advances Of the bank the Govern
ment-in the overssue Of its notes-and finally, in
vague and unounded alarms which generally prevailed
respecting its solvency Its notes fell from their stand
ard value and were exchanged discount for specie.
The exchange with the country Of France became the
same time unfavorabe TO Paris, to the amount or IL
per cent and the bank having restricted its discounts
several important bankruptcies took place, which tended
greatly to increase the general alarm After the peace
Of the Continent was reesabished by the treaty Of
Prcsburg the advances made by the bank to the Co
vernment were punctualy repaid, and payments in cash
were resumed about the commencement OF the year
1906 In the course Of this year, also, consequence
Of decree Of the imperial government, change took
place in the administration Of the bank In place Of
fifteen directors, its affairs were committed to Go
vernon and two Deputy Governors who were 10 be
appointed by the Emperor At the same time, its
capital, consisting Of $4,000 Of 1000 francs each was