National Republican. (Washington City (D.C.)) 1872-1888, 1873-04-22
THE FINANCES OF AMERICA, GER
MANY AND FRANCE

The following article on finances, translated
from the Washington Journal, OF which DR.. Carl
Roeser Is the editor gives q very lucid compari-
son Of the finances OF America, Germany and
France:
"A comparison OF the financial policy Of these
three countries gives US an insight into the con-
dition Of their finances, the advantages and de.
fects they respectively contain.
"As strange as II may appear, Germany IL
present suffers from plethora OF specie in con.
sequence OF the four thousand millions received
as war indemnity from France. depreciation
OF the money, as well as an increase In the price
Of living and especially an excessive stock.
gambling, has been the result OF deluging this
country with these French milliards. The dep
uty, Bambcrger. points out In his speech that
these wild specilatlons In stocks are a conse-
quence OF an excess OF specie; and further, that
these speculations have assumed such vast pro-
portions that an early collapse In impending
10 prevent such a catastrophe he advises an eS.
portatlon Of specie TO be effected by the purchase
| OF foreign bonds and obligations, IL Is correct
| q surplus OF money must either be employed or
exported. and when this Is not obtained will re-
| suit In an lmmoderate stock speculation. Here
| would be an opportunity for American nnanciers
Of other countries 70 negotiate with the German
Government for the purchase Of the new Amer.
lean loan.
"Prance excites general admiration In conse-
quenoe OF the healthy condition Of Its finances.
| The last war has inflicted terrible wounds upon
this country. The contributions TO the German
| army and TO Its own government were exceed
|
waste, and, nevertheless, IL has paid over 10
Germany four thousand millions OF francs, and
will pay the NTH thousand by next September.
Besides, France had TO incur heavy expenses In
armies. Nevertheless Its financial condition IL
sound, Its credit unlmpalred nor suffering from
a want Of specie. The French Government, with
great skill, has negotiated loans at home and
abroad; and though It sold the same below par
u deemed the prompt payment OF It's debt, III
foreign credit and a ready supply OF specie Of
greater Importance than the loss Of q few pei
cent.
America ia the very opposite OF Germany.
America suffers from n scarcity OF specie, Ger
many from supernuity OF specie; In both casei
excessive stock apeculations have been the re-
suit; there speculation ayAils Itself OF the super
nuity, here OF the want Of specie In promoting
stock operations. II Is natural law OF polltica
economy that where superiority Of speci,
exists II should be Immediately diminished By
: introducing loans with advantageous rates o
/, interest, under security Of repayment, but tina
where there Is q scarcity Of specie q supply mus
be procured. In order TO supply this dencienc!
Of specie the American Government has ISSUED
national bank notes, but has committed tina
great mistake In not declaring them redeemable
4 natural consequence Of this Is that they stan,
far below par, and that the more notes we issu
these notes a true substitute for specie whei
, they are Of an equal value when the face OF tn
note is equal to the same amount in specie.
"our financial policy suffers In consequence 0
these two errors, VIZ, the scarcity Of specie an
! an irredeemable currency. Instead Of payin
, too much attention 10 the liquidation of our deb
u would be q far greater blessing TO the countr
should the above two financial errors be col
rected For the difiicultles Of the negotiation 4
I our new loan has given US ample proof that III
: liquidation Of our national debt alone does nc
4 secure us foreign credit. Our credit at HON
4 ing our notes redeemable. What can other cour
tries think OF credit when our notes have a yalu
OF but eighty-four cents per dolar7"