The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-01
The Bank of Fra nee.

From tho Money Market Review, Jan. IS
The Withdrawals of bullion not the only adverse el
ture presented by the Bank of France returns Notwh
standing the rapid rise in the of discount the amount
OF bills discounted by the Bank has increased 81 OOO
and the treasury deposits have the same time been
drawn down to the extent Of than CO 900 lowing
partly to the payment of the dividends the three per
cent Tontes there is Ivy the return before
OF II 30 900 in the notes in circulation Now 1t moods
demonstration that this increase in the liabilities
is being so heavily trenched upon, is unsound
and even unsafe. The Bank appears TO have dis
restrictions it would have kept its n,tc cir
cuation better under control This consideration is the
more important because 1t Is beyond question that the
large discount facilities granted have contributed directly
to the eux OF gold Bills sent in for discount by tho
very firms which are engaged in transmitting bullion to
foreign countries The Bank of France thus to some ex
tent, provides weapon to be used against itself We
are qne aware that ii France balance foreign
countries she must discharge it. and if need be- in hard
CASH but there Is no necessity for her absolutely to faci
ate the drain upon her. In permitting increase Of
f1,270 600 in the note circulation simultaneously with
decrease Of f32S5 900 in the coin and bullion the Bank
OF France IS burning the candle at both ends" Tho
total note circulation which the 18th December
te has now reached the unprecedented amount
OF f31 150 000 whilst the coin and bullion which the
18th December eli ,272 600 are now "a above
stated only f13 9S 00O The disproporton Is serious
Let US contrast the position OF the Bank OF France this
respect with that of the Bank Of England The Bank of
England, by last nights return holds f12 5 1856 of
bullion as against 600 500 Of notes In circulation
We are justified in concluding therefore, that the excess
in the note issues Of the Bank of France constitutes
great aggravaton Of the existing difficulty. 1t is symp
believe that political exgences-perhaps the very finger
Of The goverDment-are at the root Of the
The -Nonetr publishes the following financial state
mept which is understood TO be the work of the
Minister b. FORBADE de la Roquette who presented
port TO the Emperor at the last council
We lately attributed the recent decline in the public
funds to causes completely unconnected with the nan
cal situation Of the country and particularly to the
American crisis. Nothing could better justify that APP
probation and testify to the of the country and
the confidence Of the people than the following state
mentl IS well known that the Treasury gets executed
IQuT2e
which transmitted 10 II by the Receiver General on
account Of the inhabitants Of the departments
sales and purchases which always effected for cash.
60 constantly increasing. The purchases which in
ls4l were only for nifty millions, amounted in 1851 to
seventy three millions, and in 1860 had increased to
hundred and sixty three millions The sales, which in
the first part OF those three years scarcely reached fifteen
millions amounted to forty eight millions in $780, the
excess Of purchases last sales being therefore
one hundred and fifteen millions During the irst twelve
day Of the present month the orders for purchases
ceived by the Treasury amounted to 900 and
for GALES TO $50 coo francs leaving of pur
chases OF $50 0C0 francs nearly equal TO the average
OF each OF the anterior months of 1850.