The New York herald., 1871-12-24
President THEIRS Review.

FrcSlOcuC IuleTH EeCeut message 10 tue Fre0Cn
legislative body gives as Will be remembered. par
tculars with regard 70 French exchange operations
and the purchase OF foreign bills 1t alludes to the
monetary crisis, and states that the Bank OF France
"will be authorized to increase its circulation BY
400 OeO 500 900 6OO 900 francs, and to
issue small notes." The message concludes by say
ing that the financial situation IS as satisfactory as
can be desired under the circum stances"
NJ MICHEL CaEvALIER ON THE ECONOMIC POSITION
OF THE NATION.
On the 10th Of october last NJ. Michel Chevalier
published article on the subject Of the economic
condition OF France and It's monetary bearings and
influence, in which he said:-
It Is not an inopportune moment to consider the
question to which 1t has been thought necessary to
give q new name-that OF monetary crisis''-
times as the depreciation OF the bank note. some
weeks ago persons VINO had watched carefully the
ss1 ,ne % ysas pnR
In circulation together , with the forced
lead TO depreciation in value, and the danger
was pointed out to the government This unlavor-
able prognostic Is now becoming fact Gold and
the contrary OF the statement made not long ago In
the Chamber, that bank notes enjoyed the ad-
vantage Of Happily the
phenomenon which the most clear-slghted financiers
deplored wnen only prooable, and which mas now
become perceptble to all. be only to u limited ex-
tent at present the less urgent take pre-
cautions that 1t may become aggravated shall
have TO negotiate other enormous loans and it VIII
conditions unless present process Of ceDrec,a,
bank note and the full weight coin are not equally
at par The government has not yet thought ut to
spect One or the means for restoring the value or
the bank note, at present reduced IN comparison
with gold Is TO act upon the course OF exchange
that It shall be favorable 70 US while 1t really
against US. We are forced to give In bank notes
nearly 26f to obtain In the London market f1 ster.
successful effort we make to convert foreign
ers no our ~ GeoSfs WIN Now od @ the Of
French goods would evidently have mat effect;
therefore Is interest to iacltate the develop
ment, which has protecuonist sympathies, does not
require to be reminded OF the advantage accruing
Of protectionlsts exports are positive blessings,
while imports are species OF plague. There Is an
intimate Sonnex0n &c s between the sodty Of The ma
In circulation and the perfect equivalent OF such
notes with the metallic currency OF which
llbrium Is however, almost certainly al
fected by forced currency OF notes, and
one OF the most serious inoonveniences arising
from q disturbance OF such equ,llbrium-that IS
when paper money Is deprecated In value-is that
the state losing It's credit can only contract fresh
loans upon very hard conditions. 10 Obviate that
necessity as mucn as possible governments which
have been driven 10 the extremity OF paper cur
rency have had resource 10 the expedient OF paying
tile interest upon these loans specially IN cash.
This expedient was successfully adopted by the
government Of the United States during she war OF
secession, when greenbacKs were deprecated to
the extent OF threef0urtns Of their nominal value
Why has not tins privilege been granted since tue
peace TO the no ders OF our consolidated
fundsP and why was It not expressly stipu-
lated in the law authorizing the loans The
government OF the United States, Also upon
the same occasion, gave the example OF method
for procuring, with out expense, at least portion OF
the nard cash necessary for meeting the interest
upon the national debt by requiring payment OF Gus
toms dues In ccln. None OF the countries with which
France is bound by commercial treaties would have
ground for complaint OF such course, for It Is IN
conformity with the spirit OF the treaties that Gus
toms duties shall be paid In good and lawful money!
The discredit with which our bank notes are
threatened is one Of the different forms IN which
financial dlhlcutles are presenting themselves.
Now Is the time 10 repeat the well known saying OF
Baron Louis, OF whom M. Thiers acknowledges him.
self disciple, "Adopt sound policy and you will
have healthy fnances.u The sound policy at the
present time is 10 restore public order which, since
the Attn OF September, 1870, has been 30 violently
disturbed.