The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-11-30

themselves more OF less embarrassed from like
causes, and the banks OF England and France have
been forced 70 add rgors 70 the restrictions of
last year. In 1858 IL was calculated that the public
wealth Of France about twenty millards, repre-
sented by sixteen milards tsix hundred millions) In
various securities, and three millards In specie.
From table published in recent work by NJ. Te-
desco. ii will be seen that an increase of nineteen
and ahalf milards has since taken place in the se
curites alluded TO. These paper securities, then.
must row amount to more than twenty-five millards
that ~ TO say, seven times the amount OF the me-
tac currency. II may he said that all these seen
rites are not made payable TO the bearer, and that
they do not represent floating but funded debt,
consequently the disproportion between them and
the metallic circulation " not OF the importance it
would be were they Immediately convertible.
We would reply to this remark. that what
constitutes q portion Of their value il their
convertblhy. If their realisation is difficult,
they instantly fall in value, 30 that their pro.
portion to the metallic currency can in no case
be immaterial. Let "a refer, however. to strictly
convertible securitesto bank notes, FOR instan ,e
According to Mr.. Hubner. the note cir .uIaton not
covered bad increased in Europe from 1916 20 1854
by l,15359l 545 francs, &. 9. nearly 81 Der cent.
Who would prove that dnring the same period, in
spite OF our Australian aud Californian remitances
the increese Of specie had followed the same pro-
grt ssion 7 Let vi see what has passed in France
Our metallic circulation was in ls4S abou. three
millsrds nearly oil IN silver Since this epoch, the
silver, on account Of the premium IL has borne has
been in part replaced Nv gold. and. moreover orr
metallic circulation has increased, according to re-
cent calculations. about $50 mill ons. The new re.
sources in specie furnished nv the mines are in the
proportion. then Of to ~. bot the demand for ca
pital by the increased deveIopement OF affairs hss in
The same period more than doubled IL is credit that
has TO fll this void. and hence the increase In the
paper circulation. while specie has diminished A
climax 20 the difficulty, at the same time that the
equilibrium between specie and paper Is disturbed
in all parts of Europe. revolution has taken
place in the monetary system ~ the western ma
tons by the disappearance OF silver, and its snbs
tuition by rod. This does not take place without
giving 70 serious per'urbstions. Lett be called
to mind what passed three centuries ago AZ the
epoch Of the discovery OF the mines II Potosi. A
scarcity Is produced in the metallic circulation at
the moment when most of toe western nations were
endeavoring to reconstruct their monetary avste n
shaken by the efilux Of silver and the invasion of
gold. The several difficulties which are b,rn of an
exclusive employment Of the precious metals in ex
changes manifest themselves al nj once. Hence
the duration and intensity of toe crisis The crisis
IN word, In the competition OF ali the States of
Europe for the precious metals. All have entered
into industrial undertakings all demand credit and
resources, and at the decisive moment the mechan-
ism Of system Of circulation nails us and proves
its insuffciercv. y IL found that gold IL not the
last term OF civilization. and that nations in pro,
eres must discover some other instrument Of crcu-
lation and exchange, at the peril Of retrogrsdinr
rom crisis 70 Crisis 70 their poipt of departure,