The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-01-05

determination OF the foregoing table win show
that the 81 @ ae
duced adverse exchanges and the consequent loss OF
bullion which compelled contraction OF the circu-
suspended, having In the meantime contracted It's
circulation from fl4Ol 600 10 f961oOOO, ana re-
duced ls bullion irom sSo1 oSo 10 20 nS ,o
lowed by rapid increase OF circulation until 1915
when the inal defeat Of Napoleon re-estabshed the
notes more than kept pace with the Increased ISSUE
being no doubt, augmented at times by the threat
ening aspects Of the war; But Immediately after the
peace the belief In an early return to specie pay
ments was SO general that without any contraction
OF the currency the larger share OF the gold pre-
surrender OF Lee. Encouraged by this rapid appre-
citation OF its paper ana the accumulation Of bull
lion by purchase and otherwise, the Bank attempted
to resume specie payments without taking the nee
essary precauti0n Of first contracting its circulation.
The effort as may be readily inferred, proved abor-
England, in recording this occurrence, says in sub.
stance that the Bank gave notice that after the "a
Of May, 1917 1t would pay coin for all Its one and
uary i, 1915; that few Of these notes com
ing in for redemption, for the reason that they
were IN active circulation a iv. among the poor
after the day OF october OF the same year. would
be ready to pay gold for al its notes issued prior
by the purchase and collection OF large amount OF
bullion which, however, proved OF no avail; for
the Isl o. tine @
sent more than f5 900 900 to the Continent Headds
ION the report Of Mr. Peel the House passed bill
In two nights restraining the Bank from paying the
This, be it remembered was after the large accu-
mutation OF bullion In Great Britain had effaced the
gold premium; and yet, from the redundancy OF her
paper money, which Alison estimates for that period
at forty Eight million pounds the Bank Golfers would
week but for the prompt interp0siton Of Parliament
1t was not until three years later, when the Bank
had contracted It's issues BY the , wtndrawaI rom
the country banks probably in like proportion,
that the Bank found 1t feasible to resume and main
required, during the three intervening years. de-
gree Of contraction 80 rigorous that II produced
yet repeat the currency OF Great Britain, at its
highest degree OF expansion, during the Bank g
ad sS wne ours
sently. What could more clearly demonstrate The
impossibility OF an early resumption heref
word to the circulating medium OF France.
That nation is less commercial than either the
United States or Great Britain. Hence she needs
less currency Her mone,ary statistics within my
find, however, that the average circulation OF the
Bank OF France from 1s4s to 1885, when it issued no
notes OF a less denomination than 1907, was but
575 900 0OOf, equal to $116000,0o0 Since then the
manufacturing and commercial interests OF France
have been much developed: The bank, during the
lion ana has received authority to issue fifty franc
notes. These causes combined have expanded
the banks circulation to 1,200, 000, 0oOf., equal
to S2loO O,oo0. But even this, combined with the
most liberal estimate for her circulating coin does
not bring her total circulating medium up to the
level Of before suspension nor to that Of Great
Britain, though have no doubt that the large In
crease in her circulating paper win give activity to
natural laws that win sooner or later enforce Its
contraction.
Trusting tnat l have now sunicienily demon.
strated the existence Of principles which eectually
coufine the volume OF q convertible currency within
the limits Of about $40 per capita, VIII next pro-
coed to show the present v0iume Of our own cur
First, Of rreenbacks ...... $3.50, 600 900
Second OF national bank notes. ....... 300,OO000O
Third, OF fractional currency. ......... 33,000000
Total Of paper .................... sSo,ooo,0oo
The circulation Of coin has been In
great measure arrested by the depre-
citation OF our paper money, but not
altogether 1t still constitutes the en-
tire circulating medium Of the Pacific
States and or Texas. The amount thus