Weekly national intelligencer., 1851-05-03


monthly publication by the journals Of the number Of none
ay unies put into circulation, and ofevey in whic
the money is concerned.
As the practical Of substituting. without jarng
the money OF paper for the metallic money NJ Chit believes
Of use in order not to shock popular opinion and customs
preserve the denomination to the monetary unit ant
10 regulate the issues to besow upon 1t the value
In this end he grants at first different periods of me
order to arrive at the definite conversion Of the metallic money
into money Of paper and gives afterwards the committee
money the business Of augmenng and Of diminishing the
number Of monetary units in circulation 10 proportion he
value rises falls in respect to the value OF gold silver
And in this view the committee shall have charge of pur
chasing ngo when their value for example, below 222 %
francs for each kogramme of pure silver A francs
for each kogamme of pure god and Of selling them again
when above. BY this the equilibrium be
established at the instant that it broken, and the
Notary value Of the paper maintained constantly the level
the value Of the precious metals This equality Of value
necessity in the paper monetary ystem but is useful
not changing the customs of the country in respect
neary value, and maintaining, at nvaabe price, the
par Of the money Of paper compared with the metallic money
Of other States We shall finish this long article by pointing
out accessory advantage which the country shall derive,
where money of paper would be introduced Th advan-
tage consists In having disposal the amount of gold and
silver coined into money which longer would be needed
for the purpose Of exchange This would be verabe gift
which the couny would receive without the smallest
any one gift moreover, Of considerable Importance, since
the metallic money in circulation in Belgium is estimated
300 000 900 francs that In France the sum
06O and that which England employs the third
of that sum, account Of the abundance Of paper.
And in conclusion will say, that the work of M. Chiti
written with profound conviction, with method with clear
ness and simplicity of style, merits to be medsted by ser-
minds which occupied with objects of general inter-
and above all by the statesmen who have the lofty and
noble mission of realizing the social ameoraons which pro-
discovers and points public attention
After our compterendu of the work which has formed the
sahect OF the three preceding paragraphs believe that
readers will be desrous Of making the application of the
doctrines therein developed the financial
which England this time experiencing and to that which,
1885, has been affecting the United States and threatens
to become vetable crisis in all the of the word
The Bank OF England from the importance Of its capital
and from it's privileged position, exercises moderang power
the Of credit by the other banks which, like it. issue
paper edeemable at sight and in coin. Enlightened by the
catastrophe Of 1925 and 1885, she the issues
with sustained attention, prevent by indirect MEANS
not being able to employ Others too great quantity
being thrown into circulation, and bringing about the
calamity.
The symptom by which the bank recognises the existence
OF an excess OF paper in the circulation is the dmnuton of its
reserve OF coin and Of Dgos The OF this s
1t true, always inferior to the of its issues but there
is limit beyond which the difference between these two
quantities that there of currency in
circulation. What does the Bank Of England do when 1t
perceves that coin is going out of its Golfers abundanly
1t raises the price of the interest of its discount in order d.
mnish the amount Of bank in circulation and to bring
in the metal In fact if on the side it has portefeu
for example twenty millions Of pounds sterling to collect in
the current month; and the other in consequence The
increase Of interest," there be presented for discount during
the same month but fifteen millions Of drafts and notes. will
withdraw from the circulation five millions of pounds steng
either in bills in metal and thus by degrees brings again
to its normal condition the relation of its issued bills to its me-
talIic reserve
This means has succeeded for time but the other
banks OF Great Britain do not think themselves always obliged
to keep the same reserve and continue to issue largely their
paper the Bank OF England takes meaure that of
fusng the discount of every note and draft bearing the sigma
ture Of bank Of ISSUE order force these banks
strict their operations.
We cannot foresee the efficacy of this arrangement but
TINS Is certain, that all these measures taken with the aim of
preventing the crisis which would be the inevitable conse
quence of increasing ssus Of paper become themselves the
cause OF very grave evil that OF alarming the mind of
Tightening capital Of bringing trouble into all industrial and
commercial affairs word, Of parayzng the action Of the
productive forces of the country.
And why all this disorder, all these alarms Is it that
England has fallen from her power Are there at
the capital that the nations with which she holds
commercial relations have longer any thing give her in
exchange for her products No nothing Of this has hap
Pened Things where they before the alarm of the
Bank Of England, before the adoption Of which
have spread through all the country From whence, then
comes the evil II comes from ths, that considerable
Der Of banks and bankers stamp by issuing bank notes
decouu provoke DISCOUNTS excite the spir, Of enterprise
swell and the food of currency in circulation and
then it svey necessary that the moderaing bank should
raise dkes to prevent the inundation.
IT. the contrary there but kind of money in
circulation, the legal money that issued by Government in
IL
convenient bank notes, that there would be longer
preex for issuing monetary signs, then the Of the
ency, not being able to undergo great variations there would
exist longer any motives to trouble the economy of the
country, in the aim Of preventing danger with which it
should no more be threatened.
Then, the means Of putting stop to the circulation of
notes is the adoption Of paper it s evident that long
England shall preserve her metallic money, there will be
issues Of notes. danger Of crises and necessity in
consequence Of preventive measures, although injurious TO
the regular advance Of production She will be obliged to
live in continual state of alarm, restrain the soaring of its
productive forces from the fear Of strong excaon o
needed the of the currency eevaes prices and simu
aes foolish enterprises she resign herself undergo
periodical crises less sad than that of 1885, but
always destructive Of part Of her riches and Of her pros
peri,y.
See the vicious circle in which Great Britain is forced 10
il she obsnaey maintains her system of metallic cur
rency and let be believed that she change this
condition of things by forbddng issues Of paper Such
prohibition impossible. Paper Of credit is for Eogaad
social necessity long her money Of metal Seeing
that this money, being unsuitable for ectng the
amount Of payments to which its aud important
pecuniary transactions give rse is indispensable to have
recourse to the Intervention Of paper of credit
is thus that, by the doctrines developed in the work of
NJ Chtti crises and financial REFORM arrive the real
Of the financial difficulty whrh aicts Great Britain,
aod boldly predict that this Of suffering should
1t cease, will necessarily be reproduced epochs and
tege,her If England does employ the only
for causing to forever that Of the adoption of
money Of paper
All that precedes is applicable the United States There
the of financial perturbation powerful than in
England In the United States bank s invested with the
modera,ng power of credit the Bank of England There
of n