New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1847-04-02
Political Economy,

Political Economy,
rArss crssxScy-cosriSkNrAL PAPER OF THE Ah'''
LUTON
In our last article on Seaman's new work, "Ihe
proeress of Nations" it was stated that the ciron'
lsting medium Of the commercial world was scarcely
increased at ell by Bank notes, or paper money In
any shape, (by tho operations OF the Bank oil Eng
land. which was established 10 the year 1894, prior
10 the commencement Of the seventeenth century
and that the whole amount Of coin and bullion IN
sse in the year 100 was about three hundred MIL
lions Of pounds sterling.
The eighteenth as well az tho nineteenth centu'
ries have been fruitful in oil sorts oil schemes OF
financial character, TO make credit-and too often
The credit of bankrupts, spendthrifts, knaves and
v;sienary spsculators-a substitute Tor COIN One
~ ths first, greatest and most ruinous, was the
great Mississippi scheme, got up at Paris by John
Law, In the early part Of the eighteenth century
After this great bubble burst, France confined her
self to specie currency until the issue Of the Gov
eminent assisnats. during the French Revolution :
and no Bank for issuing notes was established In
France until the Bank Of France, in 1903, 10 which
was granted the exclusive privilege Of issuing notes
as currency, for period Of forty years. Mr. Jacob
es.mstes the circulation OF the Bank Of France in
1910 at bat two millions sterling, equal to $4,000
ooo and in 1890 at nine millions sterling for s43,
600. oool This Bank was slow in acquiring the
publc confidence, so as TO obtain much circulation
for its own notes.
The Netherlands tHolland) had no money but
coin until the establishment Of the Bank OF the
Netherlands in the year 1914, with capital OF five
million forms, Tor two million dollars,) and the ex
eusive privilege of issuing notes as currency for
twenty. Eve years. Mr. Jacob says its circulating
notes, In 1890, were not supposed TO exceed one
million sterling.
Banks have also been established at st. Peters
burg, Vienna, Berlin and Copenhagen, beside nu-
merous other Banks in the British domnions and
in the United States ofAmerica-
Mr.. Jacob remarks that Russia was in 1880, the
only country Of Europe which had not returned to
specie payments. He says when Bank notes wero
first issued In Russia and the quantity small, the
rouble was worth about three shillings and four
pence sterling, or seventy-ave cents, and was OF
the same value as the Russian silver coin Of that
name. Tho increased quantity issued gradually
deprecated the value Of the paper, till one silver
rouble was worth four Of paper. 1t had nearly at
tanned this low value in 1910, when the paper rou
bles In circulation amounted to 81 millions. II was
nearly the same, but of somewhat greater value, in
1890, though the amount Of issues had increased to
$50 million roublos. Jacob estimates the exchange
able value Of the above amount Of issues in 1910, as
equal 10 to twenty three million pounds sterling,
and in 1880 TO f25 900.
The same writer states that the paper money of
Austria had increased prior to 1910, to LOGO mil
lion Of forms, and had at ono time SO deprecated
that a silver form would purchase ten or twelve
paper forms, md that these were worth in 1910
only about one-ffth part Of their nominal Value
And calling their nominal value about twoehillings
sterling per form, and their real exchangeable
value in 1910, one-ffth part as much, Jacob esti-
mates their total exchangeable value in 1910 at 81
million pounds sterling. About the year 1895 they
were redeemed at twoffths their nominal value,
and specie payments resumed, and he estimates
the amount Of paper in circulation in 1890 at ono
hundred million forms, equal to forty eight million
Of dollars--or ten millions pounds sterling.
Two operations in France, upon a stupeudous
scale. possess perfect resemblance to the Cont
mental money, issued by the United States Govern
mcnt during the Revolutionary War, both for the
good they effected and for their subsequent exter
mnaton without being redeemed The first was
an emission by the Constituent Assembly of France
In 100. Of paper money called assignats which
although based in general terms on the proceeds o.
the sale Of the confscatcd property Of the Church
were 90 lavishly issued as to increase to the
incredible sum Of forty thoasond millions Of lirres
tor $500 millions Of doars,) when they deprecated
70 nothing. Then followed second kind of papel
money called mandate, which even the guillotine o
Robespierc could not sustain. They were found
ed, like the assignats, on con6scated property, an'
two thousand four hundred millions were issued
which AFTER defraying the expenses Of one cam
paigu, lost Ill their value.
The Spaniards have in their history, another ex
ample Of q repudiated debt. Philip v. the frs
Bourbon prince who reigned in Spain, LEFT a deb
Of forty6ve millions piastres, which his successor
Ferdinand VI (called the wise. liberal and benefi
cont who assembled the throne in l7i5 refused L
acknowledge and the debt was LEFT unpaid
During the American Revolution, our Continen
tai Congress resorted to the expedient, which hat
become very prevalent in Europe, of issuing Gov
ment Notes. called. as is well known, Continental
Money. to aid them in their emergency Accord
ing sothe American Almanac for 1880. p lss the sd
vanoes made at the Treasury of the United States
in Continental money. are stated as follows:
Old E~issioa
Ia l77g..... $40 Sa 667lln l77o IaQ s6s ss-
l7To.,. 1896. 200 i1sl .. N a0s 0oi
Nee Enissioa.