The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-25
France . Her Financial Dimculties an
Dangers.


has arrived in France. 1t is not wonderful
that 1t should be SO. What nation or people
could have passed through the ordeal to which
France has been subjected without suffering
shipwreck2 In spite Of her accumulated and
rapidly recurring misfortunes, France has
revealed q spring and elasticity in matters
financial which has surprised and astonished
the world. When days were darkest, with
how little difficulty did Gambetta get the
money he needed! Later, how France, which
was supposed to be exhausted, rushed to the
rescue when money was wanted to pay the
| first indemnity! The farseeiug, however, were
not deceived by these signs of strength. In
| the emergency In which France found herself
| it was not unnatural for the nations to make
some show Of sympathy; it was as little
unnatural for the French people to give some
proof of patriotism. In spite of outside Gym
patty, however, and in spite of patriotism, it
was manifest that a financial crash sooner or
later must come.
That it has come we dare not yet affirm.
| But it is no longer to be denied that the
enthusiasm is waning and that the actual
situation Is being revealed. 1t is now said
that there is great scarcity of money in Paris,
and that the crisis is daily increasing in inten-
sity. On Monday the Bank of France, in order
to relieve the public distress, commenced to
issue thrty-fve millions OF francs in currency
| of small denominations. There is no mis-
taking the meaning of this movement on the
part Of the government. In this country we
know what paper currency means. In our
case it has worked well, and we have reason
to be proud of it, but we have no reason to
conclude that what we could do in our ex-
tremity France dare do in hers. Our enormous
territory, our rapidly increasing resources,
the industry and enterprise of our people-all
these made the experiment safe with US. To
find q suitable example of the possible,
new experiment, France had better look
back and reflect on her own sad experience
in the years that followed her first great Revo-
luton. The France of to-day Is not the
France which the republicans formed in 1889
and subsequent years. Then the national do
mains were large, the real estate of the Church
was enormous, and the property of the heredi-
tary landlords amounted to one-hslf of the
entire property of the kingdom. 1t was easy
to seize on the estates Of the Church it was
simple way Of raising money to confscate
the property of the large land owners; nor was
it an inconvenient mode of obtaining currency
to issue assignats without limit on the security
Of the national domains. The Frenchmen of
this generation have not forgotten the suffer
ings Of their fathers and the complete failure
OF the schemes of finance introduced by the
revoutionists. 1t is still remembered in
France that in 1894 the merchant was COM
PEELED to sell his wares and the farmer his
produce for assignats which were positively
worth nothing. 1t is a noteworthy fact that in
| 1897 the assignats had fallen to a two hun
| dred and fiftieth part Of their nominal value.
The national bankruptcy had in fact existed
for several years before it was formally
declared by the Directory. All this,
too, in spite of the enormous re-
sources of the government, including
the property Of the Church, the estates of the
great mobiles, and what once were Crown
lands, and in spite Of the severe laws which
were enacted and enforced to sustain the value
Of the government money. As we have said,
the France Of to-day is very different from the
France Of ninety years ago. There are no
Church lands to seize. There are no great
land owners to dispossess. France is not by
any means without great resources; but the
enormous advantages resulting to the govern
ments Of the first revolutionary period from
seizure and con6scation are totally wanting
to the government of to-day.
Let US look at the actual condition Of France
II is not to be forgotten that, in addition to
the demoralizing and weakening influences of
a great and humiliating defeat, France has
lost considerable portion of her territory and
some millions Of the most Industrious and
enterprising Of her population. Then, again,
who can calculate how much loss France has
sustained in consequence of the war, from the
cessation of all neutrality-suspicious. COM
mercial and manufacturing? All this is bad
to begin with; but when we begin to look at
| the actual figures we are filed with alarm.
Before the late war the debt Of France was
more than sufficiently burdensome. Year
by year IL was found that not less
than fourteen millions and half sterling
or seventy-one and a half millions of olars
were required to pay the interest on the public
debt Since then there have been three
loans-that contracted by the empire in the
last days Of its existence, that contracted by
Gambetta, and the more recent loan for the
payment Of the first portion Of the German
indemnity. 1t is calculated that the annual
interest on these loans cannot be under forty
| millions Of dollars. II is also calculated that
the remainder Of the indemnity, if borrowed
on the same terms, will involve an annual
charge Of forty million dollars more. Eighty