The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-05-19

OF later years the deepest depression In the affairs Of tho
ness of the Bank the shape Of advances of every de
tcrp'on reduced to CAS- 600 In l847 the year
preceding the revolution, II amounted to f7t 10000
From tha time the increase Of the transactions OF the Bank
has been steady and rapid and remarkable in amount In
1852 The amount OF the business represented by sd
FL $50 0ooo In lsb5to 6Oo and in the last year
to the enormous of G223 b76 In the latter year
The amount Of bills discounted in Paris fO, o0o
sl1e, 1s6so2
Notony however have the transactions of tho Bank of
France risen TO this unparalleled amount, but the gains
have increased in even greater proportion caused,
doubt by the high rates Of interest which have been
the last In 1854 the gross profits amounted
to f746 in 1855 they reached COG and last year
they roe to the extraordinary of 81 35O,5l2 or
course there ums are subject 10 certain deduction for
the expere of management The entire capital repre.
ed by the shares OF the Bank OF France 0OO
that dividend Of between 20 and % per has been
paid with little difficulty upon the original value of the
shares II is under these circumstances that it s now
proposed TO double The amount Of tho existing capital
suggested by the obvious desrabencs of having
broader basis OF security for transactions Of such mag
nude. That the operations Of the bank will continue
increase there can be little doubt; not hwever, as
consequence Of the increase Of the capital but
quence of thu further development Of the trade Of the
country. Taking however, the condition Of the bank
Il stands what will be the immediate effect Of
this increase Of capital? II Is proposed that CO 600 900
shall be subscribed and invested in French rentes,
which may be done al a rate which will give about
4per cent interest The only increase Of profit which will
be derived therefore, from doubling the capia will be
sum Of be added to the gross PROFITS made In
and the amount which the net profits will be devisi
bic will be doubedthat IS will be raised from
Of f3 600 900 10 Of CT 100000 The effect will there
fore be TO reduce the dividend upon the shares of the Bank
Of France TO little than half Of the present
which reduced rate may still, however, be computed at
about IL per The original amount Of the shares OF
the Bank Vi France was 000f or ft0 tho new shares
to be ssued at loof, GA, which will still give
nearly ii per sent dividend nasmuch however, as the
shares be issued the existing shareholders
In proportion the namber of old shares which they
hold, no injustice will be done by the low rate al which
they are fixed
The operation on the part OF the government assumes
the form Of Ioan The new capital Is 70 be invested in
Three per Cent Renes ut the price Of tho time TO be
created and added the prese amount Of the national
debt Of Fapoe The direct effect viii therefore be 10 take
out Of the money market f3 GOO 900 OF floating capital to-
the ordinary expenditure OF the country In addition
10 the taxation Of the year. s In fact, raising loan In
the time OF peace In order To pay tho expenditure
Of the year The investment, therefore, Of this sum in
Rentes will not has been supposed DO to improve tho
veao Ct pubic securities, but TO diminish them by the
alton Of so much stock and 10 increase the
ry Of the pressure for money by Withdrawing tha.
amount from the capital now applicable 70 business
appears, therefore, that inasmoch as tho charter
the st of December 1867 full ten years hence the chief
reason which has induced the government 70 anticipate
the ofrasing loan Of money, which would DO
garded Objectionable in the ordinary form, but
which IN point Of facs s the same thing In tho arrange
ment, however, which Is now made the government sti
pilates for condition. the effect Of which will be that tho
Bank o. France win allow interest upon The government
the following manner-Tbe bank Is 10 make advance
10 the government upon treasury bonds to the amount OF
000 without any charge for interest," excepting for
such portion of the amount shall be In Of the
public balances from time to time; far the government
has made good bargain for the public
To the Bank Of France, however, the arrangement Is
most favorable The charter Is TO be extended by thirty
years that is, until the end Of 1897 II Is quite obvious
from this proceeding thai the has decided 10
follow cut the policy which has been acted upon so mucn
during the last years. and to extend the branches
Of the Bank Of France 10 embrace the banking OF
the whole Of France In that there be qlcs
ton that its operations must go extending in
few years 10 give large q dividend upon the
amount Of capital has recently done upon the prcsoni
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