Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1873-08-20
Cash and

France has nearly paid the largest
war indemnity imposed on a nation
in modern times. Germany exacted
of her seven times more than the
Allies required after Waterloo. 1t
seemed as though the nation, already
crushed by defeat and impoverished
by war, would be utterly unable to
meet such an enormous demand o II
her resources. But the debt has been
paid, and the most remarkable thing
about it is the promptness with which
the demand has been met, the alacrity
and enthusiasm with which tho mon
cy was subscribed and the fact that
the nation seems to be richer to-day
than she was three years ago. Ac-
cording to carefully collected statis-
ties OF NJ. Bonnet, the value of coined
precious metals before the war was
two hundred millions sterling. and it
ls the am to-day. And willie her
business is brisk and prosperous,
and her credit is perfectly sound,
Germany has been agiiated by a
severe financial crisis. These facts
show the reserved financial strength
her thrifty people in her ability and
determination to pay her indebted
ness. Frenchmen believe i'll France,
if in nothing else. and their patriotic
confidence makes her rich.
The paper Issue of the Bank of
FRANCE was about four hundred mil
lion dollars before the war, while it
has only a hundred and fifty millions
of specie in its vaults. Yet, there
has not been III depreciation in the
value of currency. This is partly
owing to the fact that the extra issue
was for a great national purpose and
not to stimulate speculation. and also
to the perfect confidence of the peo-
pie in the II and integrity of
the government. France has always
required Il larger specie basis for fif
iialcial operations than England, and
yet i'll England the currency is at par.
while in this country, with from.
twenty TO sixty millions of specie in
the Treasury all the time, gold COM
mands Il premium of from fifteen to
twenty per cent. How is it that in
France. in the midst of her de>olation
and in the throes of a revolution, with
Il certain war staring her full in the
face, currency is at par, while in this
country, the richest in the world and
ut peace with all mankind, currency
is from fifteen to twenty per cent.
below par? flis question is impor-
tant, and deserves the attention of
economists and tinanciers. Perhaps
one reason of this depreciation OF
currency is the fact that we import
more than VIC export. and hence are
u nation ofdebtors, while France sells
more, than she buys. But this fails TO
account for a discrepancy so marked
as exists between gold and greell-
backs. One reason undoubtedly is
that we borrow SO largely in foreign
markets to build railroads and make
other public improvements. We are
IL nation of borrowers. Stocks aud
bonds of almost every railroad and
caual in this country are held abroad,
aud the gold Of the country is contin-
nally drained off to pay dividends.
This goes far to account for the dis
! cfepancy, but leaves a large margin
still 10 be explained. And it would
be well for Secretary Richardson to
set himself to solve the problem.
There would seem TO be no good rea-
son why our currency should not be
the equivalent OF gold, and pass for
its nominal value in the markets OF
the world.