The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-02-11
From the Paris Journal des Debats, Jan. I6l
Ia Ban AZ haa nAs

The Financial Crisis In France-The Cond,.
ton OF the Bank or France-The Scarcity
Of Food.
From the Paris Journal des Debats, jan 1911
The Bank OF France has adopted two important deter
mina;ons By ono II procured through the means of
loan negotiated in London certain quantity OF specie
by the other II has raised its rate of discount per CT
which had been 50 long fixed per cent The English
agreed to advance 20 900 900 raucs for three months
which Is guaranteed by bills the property OF the bank
IL known that the bank possesses in government secu
rites capital producing OF 1857 SIS francs
The Bank Of England cooperates in this Transaction
by supplying the capital the abundance Of cash the
London market rendering such an accommodation unne-
cessary but by delivering to the Bank OF France
10 the amount Of 30 900 600 The Bank of England A..
monstratsd its friendly feeling this occasion by the
moderate terms on which the ingots delivered We
are happy 10 see the capital SITS and the financial establish
ments Of these two great countries lend each other u
tual assistance according to circumstances Asto the
rise OF the rate oil interest, the directors of bank
supposed that It would have the effect oil limiting the
demand for discounts, and consequently, diminish the
amount OF bank notes in circulation The Bank Of france
has been induced to adopt those two bv tie
further reduction OF its In specie This
which is generally above 200 600 ooof and which had
ALLEN to 100 900 0O0 six weeks had again declined
TO IL U0Ot and including the cash the Golfers OF
the branch banks to 30 700 OO0f consdeabiy
less, but the derived from London maintain
above 100000 000 may be considered reduced TO
one half OF the usual amount; but every 10 aware
tnst one Of the reproaches constantly TO he
Bank was on account OF the overaoundant amount If
bullion la lis cellars which equaled nearly the value OF
the bank notes in circulation. Under existing chcum.
stances reserve of than 100000 QUO of specie
against circulation Of bang notes amounting 40 600
0Oo perfectly ccnsolatory, and even further
ZION shVu not create any alarn considerable uncs
san'y prevails as to cur future pros &c Dssmuch
person knows accurately what of specie Gem
cial men may require auIiug the next few month
rne necessity under which the great western OF
europe find themselves To import wheat In large quan
ties renders more than ordinary quantity OF specie
sary, tor two reasons FIRST the exports eQuva
lent 10 the imports and, secondly the restrictive sys
ten adopted by amo all states limits the exchange Of
produce between nations, and forces them to export
II therefore the deficiency OF the last crop be sup
piled by wheat already Imported we expect 10
ind the amount Of the precious metals the the
bankers further diminished The Bank OF England will
be exposed to see its gold withdrawn in the
ner as silver has been Withdrawn IRON the Bank OF
France Unfortunately, person tell, approx
imately, whether France is sufficiently supplied with
corn until next harvest Any ejaculation the point is
difficult, because the question IL complicated IL is no
the wheat crop alone which has failed Were that the
fact the supply already imported would perhaps be suE
hcient; but have to replace other descriptions Of
gram which have likewise iailed by foreign Wheat and
this respect We cannot calculate the extent OF
wants IL we found 1t necessary to import several mil
lions Of hecoltres OF wheat independently the A0OO
900 already received from abroad, should find them
without difficulty, there is sufficient wheat in the
world Tor sale II is not therefore, the scarcity OF wheat
which Is meDacing, but We mast pay for II with bullion
because through an unfortunate inspiration the differ
nations exchange their produce with each
other In that the Bank Of France would be further
embarrassed We shall hasten to add that by 6aancsl
measures, analogous to those already adopted by the
Bank Of France these difficulties may be easily removed
by the assistance Of the Government Blu,
tor every emergency, comprising that OF the Bank
of England becoming shsrt OF the precious metals.
The government, by raising the interest Treasury
bonus, might exercise an eicacious preventative effect
the crisis, should become imminent tor by this
measure, would attract much specie ss might
quire On its part the Bank Of France, amongst the
measures TO be discussed might consider the
OF Issuing bank oil the amount OF $50 francs and
even OF 100 francs Bank notes OF 100 francs would be
a most convenient medium OF exchange. The result
would be increased circulation OF bank notes. with
much less quantity Of specie. This measure might
be effective future il singular
bullion, for 1t is certainly the country where It is
most abundant. According to the most accredited
calculation, the proportion OF silver coin Ia
France IL three fold that which IL sufficient fer all
transactions In the united kingdom Of
Great Britain and Ireland II is equal 10 six times what
fonnd necessary the u. States of America twelve
years since when the country was most Hourshng that
before the attack Of General Jackson the banks
Unfortunately the habits with which the genius Of com.
msrce has inspired the Ango-saxon population OF |
the two hemsphercs are unknown amongst us
coin for his own private Moreover, quantity Of
silver coin is buried In tho earth, which OF all
modes of investment is the most sterile. II thus happens
that with real supersbundance Of silver coin, we have
the appearance OF wanting H. In England and IN the
United States every ribs himself OF his specie by de
posting II In public or private commercial establish
nents, who turn IL to advantage and all savings
poyed In productive manner The passing difficulties
which France will experience may perhaps to
tighten aud TO us TO contract HABITS
ducive TO the aggraDdsoment Of public wealth and OF
private fortunes The utility Of banks consists in ssrv
ing receptacle Tor all capital for which mmed
employ cannot be- found Let us, at least endeavor
10 derive much instruct from the embarrassment
which at present prevails. This fitting opportunity
to remark that the last law the saving banks
lsined defect which wss not perceived at the moment
wben It VISA voted This law intended 10 prevent
tie danger too great accumulation OF funds In the
hands OF ooverpmsnt subject to an immediate demand