Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1862-02-13
ON FINANCES.


ded with more favor, now that the subject Of
our National finances in our present anoma-
ious condition is more closely studied and
thoroughly considered. An inconvertible
paper currency is generally useless, and
probably pernicious in ordinary times,
but il has occurred in the experience OF Eu-
repean nations in times of crisis and peril,
that resort to this expedient was the only al
tentative for hopeless, irremediable bank
ruptcy.
1t is we'll known that France, for some time
after the Revolution Of 1S4S, was in state OF
almost hopeless monetary embarrassment
Nothing but the most consummate prudence,
and the wisest measures on the part of the
Bank of France, saved that people from
general public and private bankruptcy. To
show the magnitude of the difficulties against
which they had to make head, it rs sufficient
to state that in less than one year the Revo-
lutionary Government Of France had incur
red a floating debt of about $l00,0O0,0O0,
and the deficiency OF the year 1S49 wholly
unprovided for,-and which had to be made
good by Exchequer Bills or other temporary
exepdients, was not less than $4,000, 000.-
At the same time the Revolution had caused
the public revenue to fall nearly $4,000, 900.
The dreadful prostration of industry which
such state Of the public revenue implies,
would have been fatal to France, had it not
been rescued from the abyss by the surpass-
ing wisdom, with which, IN that crisis, the
measures of the Bank of Franc re con
ducted. Brit the conduct of thar establish
ment, at that trying crisis, proved that they
had taken lesson from the archives Of his
tory, and happy will IT belfor us, if we also
shall heed it. Carefully stunning the pro-
fuse and exhorbitant issue OF paper which,
under the name of assignats, effected so
dreadful a destruction of property IN France,
in the first Revolution, they initiated the eau
tious and prudent policy by which Mr.. Pit,
surmounted the crisis of 1897, and brought
the English nation triumphant through the
dangers of the continental wars. They OBJ
tanned an act from the Legislature authoriz
ing the issue, not of 600,0oo,000 pounds ster-
linq of notes, as in 1898 and 1894, but Of
about $75,000,o00 Tin our currency moi
convertible into gold and silver. This limit
ed the amount TO as low sum as was posi-
BILE. This, and this alone, it was thought
brought France through the crisis Of the
Revolution. Specie, before this aid was OBJ
tanned, was fast disappearing from circula
ton; the Bank of France had suspended
cash payments three of the principal bank
in Paris had become bankrupt the paymen
of all bills was suspended by act of govern
mentor this plain reason, that no debto
could find cash to discharge his engagements
But this wise measure gave the French PEG
pie that most inestmable of all blessings ii
political and monetary crisis-a currency
which, ,oithom being redundant, Ga precauto
which Congress may not have sufficiently re
garded,) and, being not convertible into tn
precious metals, neither augmented the strait
upon them, nor we're they liable to be swep
away by foreign export. In consequence @
this seasonable advance the crisis was SUI
mounted, though not without most acute gen
eral suffering and industry revived to su,
prising degree throughout France.
Now if we can avoid the mistake Of .
excessive issue Of inconvertible paper, an
will take immediate measures to establish tn
credit of the Government upon firm basi
by system Of taxation, sufficient to pay tt
interest of the public debt, and to put it i
the process of ultimate liquidation, we prol
ably shall see no occasion to condemn Ii
issue of the Treasury notes with the leg
tender clause, as temporary means of relle
What other nations have successfully accom-
plished, We may do. by the exercise of du
foresight and prudence and economy.