New-York tribune., 1870-08-15


Intelligence for supplying tho enemy with succor In
money. is punished with death" The words employ
| ed maneuvcrs" and "maintained intelligence
| have no sort OF meaning, but IT was considered
| that fhey might be interpreted 70 mean anything
convenient TO the Government against any individual 1t
might ohoose 20 prosecute at any momek Hs DeheVed
that the announcement was intended to terrify some
German bankers who had been selling securities for
clients in Germany, and remtting the proco eds IN gold
slver-the only mode OF transmission they could en-
ploy at the moment
The subject Of suspendng specie payments considerably
engaged the attention of the French press In the Doos
NJ Leon Say, wel-known for his writings on political
economy, said the question Of establishing forced
currency:
1t unfortunately happens that there are many people
and who would an G the most fatal injury he done TO their
country II one could conrye TO give such acts the iae
ruptcy is the avOwal OF impotence and weakness, and
we not struck ny either the the other; such n
honor and it is true Unlike Prussia, We have
commerce which the pTelimnaries Of war have not
people who would have lose the advantage OF that
admirable sltuatonl To DO so would be simply mad
ness. The Bank of France has 1900 millions III CON 70
meet the 400 millions in notes. and they would have II
publicly fail 70 meet ts engagements! We can only re-
peat that this would be folly; they may hope for in
Prussia, but it will not occur in France"
He proceeds argue that Prussia could not withdraw
gold from France without giving equivalent which
hosies renders IL impossible for her to do, but he E
the fact that the Bank would have to contend with
the demand for coin which military reverses would
arouse among French note-holders and depositors.
Evidence OF this is in the last Friday and
saturday when persons had 60 wait five hours for
their turn and 100000 francs in coin paid out He
concludes by remarking that of the securities held IN
Prussia there is but kind negotiable abroad, that is
American bonds but II these he exported it will not he to
France bf to America. which has been for some time
absorbing her public funds, and continually offers
vendors better prices than they procure in Europe
The Pariement and other journals took the opposite
view and recommended every possible to prevent
French gold from reaching Prussia The sensveness OF
money market to that of London renders the follow
ing statement by The London Ec9nomiSt July 80 Of
special interest at present:
THE extraordinary mode peculiar 10 France hy which
money market may he affected Il suspension of
specie payments by the Bank ot France As far as the
face or the account goes there IS certainly mo reason ior
Of banking but OF politics TheIe has been reduction OF
s457D0O larger amount than any other bank has ever
held and considering all the circumstances amply
enough for its Liabilities. But unhappily il IL no new
thing 70 have the management of the Bank OF
France impaired for the political. convenience Of
the Emperor. A little more than ten years since
the Bank of France compelled 10 change silver Tor
gold With the Bank of England and before that for years
II bought gold az loss because the Emperor would nave
it II. therefore, the Emperor thinks II polite 10 Keep
this enormous heap OF specie for military purposes he
has only 10 sign decree suspcnding cash pay rts ana
the thing viii be done The effect OF the measure on the
market here will be twofod. First, it will relieve us
from tho competition 0i france Inc BANK el france
will not continually raise the rate ana bd against u Tor
gold when she is already secure Of her specie reserve
and this will tend TO relieve market But secondly.
this step will send every one who wants GOld to
this market Now there are two great stores or tEe
precOu, metals accessible for exchange ana other pu
pOses-PaTs and London; but IL Paris Il shut up tefe
vii bc only London. Two cl''la
therefore auagOnistic-One tends To lessen the demands
on This money market, and the other to augment them
And there is experience TO guide Us as 10 tcIf ita
tive power any positive conclusion to their compound
effect would be unreasonable But probably the Ufa
erect of a suspension of specie payments would be u
augment the demand on London great humbtf OF
persons in many countries have made chGaechcIst 10
nay spcce. and specie they must have. Accordingly
they win come 10 our market, where alone for the
moment they can ind it,
The Paris correspondent Of the same journal Observed
speusion would be acknowledgment that the bank
j.. also unable withstand the difficulties the war will
crcatc-that in fact IL II not the solid establishment al
EurOuc think, il, but a huge sham. But there Il no
reason whatever for making such an Hckn0Wled dglnrn
and If II made there would be nightfW c0nNul-
from end of France 10 the Otncf-a CONFUSION
which would react on all nations
The history and organization Of the Bank Of France
may be briefly stated. In 17l6 bank was founded in
Paris under that name, which was two years suhse-
oucny changed TO the Royal Bank Under this oreani-
cation il remained until ls03 when having been unsuc-
cessu was placed upon its present basis as the Bank
Of France. with capital OF 7OO0O00 OF francs, which
was in 1896 increased to 900t000 OF francs. II is as
shown already, a bank of deposit, discount aud
circuation; issuing its own. notes payable ON
demand and having exclusive monopoly Of that privi-
lege for the entire country It's public institution. the
Government appointing governor and two deputy
governors all OF whom must be stockholders In tie bank
The affairs of the institution are managed by council
general of 20 members who are elected by 200 Of the
principal Stockholders II has branches at Rouc Nantes,
st. Etennc, Rheims, and other towns.