The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-12-28


community in knrope agog 10 initiate the cxampi
and sharr in the profits Of the huge Paris assooa
tion Of ncaey brokers. Capital after capita
caught tI~ Infection. la Hamburg, IN Berlin
drid schemes were laid for the formstion o.
JOINT stock bsnks upon various principles. and
under the hilyhea commercial and o4iciaf auspices
Within the hst few days the letters from Spain
have announced the prospective establishment OF q
new bank Of is,e ut Seville, the joint stock sys
tenn. with cSpital OF eighteen million reals, or
tlsO 900, in 1850 shares Of 900 reals tf20) each
The maDaeer Of this bank is to bear the title OF
Royal C0mmissioncr, and the coEcern is promised
extensive privileges from the crown for period OF
twenty-five years after commencing business.
In many quarters. however, this banking mania
has already suffered collapse. The excitoment
was too violent to last. and il is doubtful w1eshe&
the actual fulfment Of many projects Of this sort
which are really wanted and likely to prove sue
ceesful, may not have been frustrated through the
effects Of the sudden and abnormal popularity At
taiued by the schemes when first promulgated. AT
first. the prospectus Of every new enterprise was
received with eager delight, and q rush made for
shares in the inch0ate concern. A period Of reac-
ton has now set in and the plans Of the sound
eat and most promising undertakings are viewed
with cold 0istrust.
In Hamburg, during the course Of September last,
two separate companies were started under the in
fuenCe OF rival capitalists, for the purpose Of
forming banks OF discount and deposit. The rcquir
ed capitals comprised an amount of twenty million
marks, or about FL 100000 sterling When first
launched the vogue which the schemes attained
with the Hamburg public gave rice To very sim
gular scenes. The immediate demand for shares
was tremendous. Applications flowed in from
competing subscribers with unprecedented rapidity,
and, what was more surprising, the " rush" seemed
rather stimulated than checked by the condition that
every applicant should deposit the first instalment
on the shares he demanded Within a few hours the
subscription lists for both banks we're completely
cd period had elapsed for receiving applications
the throng Of candidates for the privilege Of hold
ing shares had become enormous, end the subscrp-
tiOns altogether reached to the enormous amount of
the capital required. The allotments were, Of
course. pr0epectvely sold at large premiums 10 and
Is per cent equal to more than cent per cent profit
on the depositmoney, were eagerly prodered, and
but few shares were attainable, even by favor, at
But what has been the issue? The mania has
now given place to heavy distrust and depreciation
The general scarcity of bullion. and disturbance In
disastrous consequences to the newly projected
banks In Hamburg. According to later advices, the
shares were seling-when saleable at all--at q
serious discount. Many holders Of al0tments were
indeed inclined to decline taking up their shares.
preferrng the sacrifice Of their deposits TO the risks
which must be encountered if they consented to
render themselves responsible for future calls and
liabilities on account OF the banks. Depreciation of
nearly similar extent has been suffered by all the
new banking establishments, actual or projected,
throughout Germany-partly in consequence Of the
scarcity of metallic currency, and partly from the
enormous and imprudent issues Of paper money.
ing the present depressed state Of credit and
tefprise In the States Of Central Europe
"The excess Of the circulation Of bank notes over
the bullion deposits that are to serve az their guar
antee, has risen in the space OF 1886 TO 1854 from
243 499 573f to 0e6 1856 9e0f. This represents an
increase in eight years of than s23 Millions
Of 339 per cent, whilst the credit circulation has
only increased In the same space Of time
In anA lx .xxt1ts I'm Er0ur hu
ISL millions; in Russia by 800 millions; and
the United States BY 367 millions. Unfortunate
Iy the isolated efforts made by some German States
and BY the Monetary Conference 2 remedy this ss
the bank mania which now desoates Germany
arose, and mmeasuraby increased the difficulties Of
the situation
The New Monetsry systsns sf the States OF
Germany.
Translated from Michel Chevansr In the Journal des
Desbsss, Nov IN, 1885,
A convention Of the several German States met
time since al Vienna in order TO make arrange
ments Tor q Uniform system OF currency on the ex-
tensive continent Of Germany, where TO the present
dav most inconvenent diversity of coins prevails.
After several sessions the conference has at last
come to solut n Of the difficulty. Let US take
rapid survey Of the new system proposed. the de
tails OF which. translated from the German docu-
ment, have been published in the Nonifear.
The convention began with laying down the prin-
ciple that there shall exist but standard OF value,
represented by one metal, VIZ, silver. Other me.
tails TO be subordinate to the standard metal and
the value they may be used to represent shall be
measured BY the standard metal. The same principle
prevails in the French monetary system. Silver is
the standard metal. The gold which is coined and
put in circulation represents, not the vaue OF the
gold, nor does II pass according to the value of
gold but II represents many pieces OF silver that
N, many francs the franc being the unity, and all
coin, Of whatever metal representing 80 many francs
parts Of francs. This system was created by law
in France. in the year IL OF the republic. The law
then passed fixed the value OF the franc, and the
quantity Of silver OF which IL should be composed viz.
five grammes Of silver OF nine-tenths Of fneness
The French system 10 attended by certain degree
of confusion and ambiguity Of expression which will
be avoided in the Germsn system- Thus; for
example, pieces OF gold coin are called 30
Thsy confused wss Of speaking sss many peOps y
70 suppose that gold constitutes the standard OF
value in French money much As silver does. But
10 in not 50. The name or title Of all gold coin Ia
and q piece Of gold Is considered in the name II
bears many silver francs- Thus gold h subor-
dinate TO silver in the French currency. The pur-
poee contemplated by making silver the standard
metal 10 to bring TO one fixed point or demo .ninatou
ali the different variations Of valae which may exist
or arise among the different metals issued money.
The one fixed point Is the determinate quantity OF
6ne grammes OF silver Of nine teuths 6nenese. This
In the unit Of our money; and any quantity Of
money, OF whatever metal may consist, Is
measured by this unit, and IA said 30 be 40
many fnncs-that Is, II consists Of 70 many units,
each unit being the detenninste quantity and value
Of silver, as aforesaid.
Article g, Of the law creating this Fsssh currcn-
cy says: There shall be coined pieces sf gold Of 10
france, and 40 francs etc. M GondHn, then Min
ster OF Finance, afterwards Duke Of Gsse, insisted
in his report upon the necessity Of insc1bng its value
or amount on each piece Of gold, 9 20 francs, 40
francs, etc. His object In this, solely was, AZ he
himself explains in his report in order that these
gold pieces might circulate more easily He also
admits and requires that they should be melted mp
again il il happened at any time that the gold
should ree or fll in value, 70 be above or be-
low the value Of the silver whch II represented In
such case the quantity Of gold 10 piece Of 20 francs
would no longer be eauivilsnt to the quantity OF sill
yer contained In twenty franc pieces Of one frsna
each.
From this view Of the subject II Is placed beyoad
dispute that French Legislation on the matter Of the
currency only recognises metal the standard.
asd that metal is silver The franc In IN nvariAble
unit the value Of which h ixed once for all, wheeas
gold Ia treated ~ y coin sahject TO variation.
Notwithstanding these fActs, the common people
think dinerently, and believe thAt there are two
standards, both gold ar1 silver. ! am acquainted
nth apvcral perpOuq. In nkhar rNgDecta nRoOle Of