The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-13
BANKS AND BANKING.

French Report ON the Financial Situation In
Europe and the United States-M0ney Cri-
ses. National Banks and tho Supply OF
Specie.
Paris dec. 25) Correspondence Of London Tmea1
may be forgotten that towards the close Of last
year commission or council was appointed to inquire
into the pncples and general facts which govern the
monetary and 6ducary circulation"the circulation OF
the precious metals and Of bank paper. The object Of
those who mainly originated the inquiry to prove
the necessity Of change in tho administration OF the
Bank OF France with view to force Its adoption Of
low and uniform rate Of discount Some Of tho most
eminent economists. bankers and commercial men were
called upon to give evidence and to enlighen the
mission on the important subjects before II.
. The questions to which Il thus invited answers we're
forty-two, classed under these hoads:-1, monetary
crises; q paper money lmonnaie fdscniel; conditions
Of good paper money !. establishments which issue s
valuable evidence Of n woiowski, member Of the
mist rs for his consistent advocacy Of the sound prnc
pies which banking should be conducted. The blue
ns o o. s q a
ausre very little sas than folio. and contains "a
paGeA n u every conceivable question relating V
q msstnssioa. n6ch & which nesssH sssnsasssy
10 Ensiand, sven, aSwi BE- seen from he headings Of
ave Il D. lrs Sitting his idss on Ne nAars Of money
ns M q the precious mefa me fnau.acs EXERCISED
:, =. ..s q cspi,s hanks q s.
Bank Of England. ths bullion report Nj. Cobdens
opinions the Of 1874 tbs true mature q credit
Joint stock banks the currency prncipe and the bank
During the second sitting he treated the subject Of
q: U
transfers Of crsds (rrsss) the metallic syst:m; Mr.
McIeod's opinions; Scotch banks; Mr. Gladstcnes
cuation unity Of the hank note issue and discount;
purchase Of gold bank capita exchanges; interest
s% ao. .z D.n ns &
The third day .Oas dsvsd toe sanxsss the United Ssss
- has hosso~ h.
banks Of France and England legal and forced crcua-
ton the three signatures limitation Of issue, Augmsa
and minsmum Of the rais, paper money, opinious Of
Napoleon On the subject, and community o. interest
Of banks To the volume are S ,Oss
States, Switzerland and Hamburg.
Isatract the following passage q shsscoss Of We,
Australia yielded masses Of gold 70 the world many
tcpAtsd and feared glut Of the precious metals and BY
strange confusion Of sas Of n% to- .no .
a. certain 70 produce revolution In prices oO s.0e e
authorization Of paper ny mean. 70 g .sasSA Mey gge s
prodNtion coits and paper has hardly any intrinsic
raus Tho uses to which the metals are applied, and
spid extension Of production s = vol Is o. foreign
the imprudeni issue Of paper would endanger al:
It is not thai the liberty Of issue always greatly aug
mens in normal manner the circulation Of notes The
contrary haa occurred. In Switzerland, where divers
hanks the liberty OF issuing paper a. money the
reserves exceed the circulation OF notes.
Those who look upon this instrument Of exchange as
useless and dangerous demand the suppression OF
all guarantees the largest composition, the most COM
plee liberty they know perfectly well that tho security
attached to the circulation of paper maintains H. especi
ally where the principle OF unity To dis
signs Of exchange and the responsibility which
them mould be ceaIsn Mey action By he deccpfsovs and
iserstobk futsotions Of their uo1ae BY Ginning at ne
multiplication Of paper these smprudem persons ~oasa !"
N .rdsr ahas a. bank note should Be Of vatae, ID
spa H. sbsou.s eaas 1s the value q the note
and the value OF the metal must DO sOldy established
Money has nothing arbitrary, nothing cspricous u rs
be lost sight Of thai the bank note does the
duty OF money In order that should not make us pay
too dearly the advantages procures for US must
be free from eli suspicion Il must Lord Oversone
has observed be preserved not only from calamity out
Neither should We forget that money performs every
day and In the world he part untueTsdl IN
ferpret II Is the qsod semprr, qod nbfque gtod 40
omnibus In the sphere OF material interests Owing to
the rapid translation Of metal in the markets where
finds the best conditions the equilibrium OF value Is
everywhere kept up kfaI SAs psgea ana pymame v,
Of paper should not alter.
hs indeed Is the great feature OF the question: II s
II Is well understood that issue touches the public inter.
and that should not be subordinated 70 discount
which only concerns private interests u,,,,r ,,..
Affects the Issue or the bank note Affects the standard OF
value On this xity Of value depends not only commercial
that contracts should not be violated, ot scgs should
not be depressed se must be mdintdincd r0cvously IN
fact az IN Ld ne inhalation Of s dmossnt Of paper,
which, n delivered over 10 free competition, would
change tho meaning OF contrsc disturb the course OF
exchanges prices TO vary and nnict injury on
commercial problty.
The seventies which commerce fears are more pront-
able than hurtful TO IT, We now have rise IN dis-
counts We have dearness OF bread but no longer
witness those corn fsmincs which In other times 90 pro-
troubled society and which occasoned 70 osr
population 80 much privaton and suffering with
sound compression OF the elements Of civilization We
shall avoid the commercial teinposfs which Formerly
swept the world and caused ncalculabls iosA TO
commerce and industry
The President of the commission said:-The council,
returns you thanks air. for the excellent and complete
explanations which Won been good IS 70 give on
all the points Of the inquiry with which II 10 charged
the ROMAN QUESTION:.