The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-03-21

NJ Michel Chevalier-In that case, IL is mea-
Bures for its own interest which the bank takes.
Presdent-For the interest Of the country.
Baron de Rothschild-The bank cannot forbid
the export of specie; bat by the measures htakes
IL may render the export difficult. II 1t mad not
the liberty to raise the rate OF its discount ali us
specie would be taken away for export. That
does not mean that / demand that the export OF
specie should be interdIcted. | desire only that
It may be checked by an elevation of discount;
that is oil.
M. Michel Chevalier-If, at given moment t,
there 10 tendency among traders TO export
gold and silver, why should the bank oppose 1t
by any measures whatever? 1t does not trouble
the export Of wheat and wine; why should II
trouble the export Of gold! The principle has
been proclaimed, and 1t has even been writton
in law, that the Government itself viii never
take measures to prevent the export OF wheat;
why should the bank take measures to prevent
the sending away of gold and silVerl
Baron de Rothschlld--I do not believe and
will not permit myself to say that the bank
ought to prevent the export OF gold and silver.
No; that ought not to be prevented SO long as
it cannot place the bank in a dangerous situ-
ation But everybody has the right to defend
himself, and il the bank finds that too much
gold and silver is being exported and may con-
sequently fear that in case the reimbursement
OF lie notes should be demanded it could not
make II, IL is its duty to say, 81 will reduce my
discounts and augment the interest OF money,
so as to be always in O situation to reimburse
my notes."
preadent-To respect the laws of converti-
bilty?
Baron de Rothschild-Yes.
III. Michel Chevalier-Do you believe that there
are no other means than raising the discount TO
prevent the precious metals from being exportedl
Do you believe that when they tend with GER
tain force to 60 away, that prevents them?
Baron de Rothsehld-Yes, certainly and
will tell you why. The raising of interest makes
the rarity of money. Leave the interest of
money at its ordinary rate, at moderate rate,
nobody is disquisted, nobody takes precautions;
WlGTppg the TaieiuO of interest plwaVs
something unpleasant to be feared. l, for exam
pie, am seated at my desk; receive letter from
Alexandria, 'Send me million in Of. pieces"
The discount is AT per cent; | see no danger.
can send the money. But if the discount Of
the bank be raised / say to myself 81 must
take precautions and do not send the money.
Knowing chat shall have payments TO make at
such and such an epoch, and not knowing that
money will not be still rarer at that moment, /
keep my funds, and l renounce profit OF 3 or
per cent. rather than send my money.
NJ. Michel Chevalier-But If the sum be due,
you cannot avoid paying it; even il the discount
should be at twelve or fifteen per centum, the
money must be sent
Baron de Rothschild-No doubt; but pat the
hypothesis that | owe nothing. A certain profit
is proposed to me to send million to Egypt or
the Indies; money being rare, l do not perform
the operation.
NJ. Michel Cheyaler-But in case you owed
the sum, you must send it?
baron de 0thschild-Certainly
President--Tken you consider the raising of
the discount as not being able to paralyze forced
and obligatory operations, but as rendering peo-
pie more circumspect in new operations they
may wish TO undertake? II that does not pre-
vent the export OF money which is to pay debt,
it will prevent supplementary expectations,
which would be the consequence either of too
great security, or of too great facility in under
taking new operations?
Baron ee Rothschild-The raising of the dis
count Is the best manner to warn commerce, to
request it TO be attentive not to go too far, and
not to get rid OF its money. Thus in the exam
pie which just cited, though there is profit Of
three to four per cent, abstain from making
the operation proposed to me.