New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-16
ing to work themselves, and yet unwilling to
let other people take the work they refuse
A PUZZLE FOB CONGRESSMEN.

circulation one hundred million dollars of its
circulating notes, and accumulated eighty mil
lion dollars in specie. That is to say, the sum
of one hundred and eighty million dollars in
bank notes and coin which seven months
before circulated in France and Europe, cir
culates no longer. In other words, there
has been In seven months contraction of the
currency to the amount stated. That fact we
should like to have explained by those who
maintain that this country is pOwerless to
take any active measures to restore Its paper
money to the gold standard, except at the
cost of widespread commercial distress.
There has been no such distress in France
The rate of discount at the Bank OF France
has, on the contrary. been diminished by
successive steps from seven per cent to
four-and -a-half. Yet here is the fact of
this enormous contraction endured without
sign of distress by nation less
popuous. less productive, and more heavily
taxed than our own; O nation, more
over, which within four years has been over
run by invading armies, and, in addition to
all the expenses of great war, paid to the
cOnquerOrs ransom of one thousand million
dollars. or nearly one-half the present amount
of our National Debt. Now, this is not the
age of miracles. Money here Obeys the same
laws that govern it in Europe. What is pos
sibe in France is, under similar circum-
stances, possible here.
We first remark that the gold and silver
which have been gathered into the vaults of
the Bank of France have not been taken from
the boarded stocks of other banks. AT the end
of October the coin and bullion in the Bank of
England stood at more than ten million dollars
less than at tho end of May. The stock in
the Prussian bank is undiminished. and the
same is true of the Austrian bank. The specie,
except that portion which may have been
drawn from the production of the mines, has
therefore been taken from the circulation, and
the whole amount of notes must likewise have
been taken from those in active use.
In the second place we beg leave to insist
that the balance of trade has had nothing to
do with this accumulation of specie. We have
before us an abstract of the official returns OF
French commerce for the first four months of
the current year. The imports for that time,
exclusive of specie, were valued at S243,OOO,OOO.
against $2O4,OO0,0O0 for the Same period
of 1878, being an increase of $780,
100000 The exports were $24O,0OO,OO0,
against $262,OOO.OOO for the same period
in 1873, being decrease OF sS:.vy;,yyv.
Hence, while the imports exceed the exports
by $3,OOO,0O0, the loss on balance, as compared
with the preceding year, is no less than
$61 100000. During the same four months the
imports of specie have been $S4.0OO,0OO, and
the exports only Sl1 100000, giving an excess
of imports of $73.0OO,OOO. This comedies very
nearly with the $SO,OOOOOO in specie gained by
the Bank. Itisperhapsan admissible suppOsitiOn
that some gold and silver has been drawn
from private boards and thus contributed to
supply the void created by the withdrawal of
bank notes, but in regard to this point we
have no information whatever. To judge
from political events, there is no reason why
those Frenchmen who have boarded the precious
metals as a resource i'm times of trouble should
not continue to do so. Indeed, it is said that
the main reason why the Bank of France does
not Immediately announce restoration OF
specie payments is the threatening condition
of political affairs.
Notwithstanding this great contraction of
the circulating medium of the nations of
Western Europe, the prospect of extreme
abundance in the money markets was never
more certain. In fact, we find in the last
number Of The Economist the anticipation ex-
pressed that the extreme ease may induce the
German Government to absorb part of the
excessive supply for their new coinage,
their drafts on the London money market for
gold having for some time been suspended.
Comparing tho condition of affairs in Europe
and America, we find it identical in two i'm
e l.
superabundance of idle money. Here, as there,
the banks have more money than they can
employ with due regard to security. Unfortu-
nately, the resemblance extends no further
We are bundling off our gold to Europe until
it has become a drug in London. Our
Congressman have worked hard for nearly
seven months to smother tho country with
some hundreds of millions more greenbacks
and bank notes. although there is not suffi-
cient employment for the millions We have.
The late Secretary of the Treasury, in tho
four months after the crisis had passed, sue
ceeded in getting into circulation twenty-six mil
lions in legal-tender notes, and to remove even
this unlawful and superfiuOus excrescence APP
pears to be considered most delicate and
perilous operation. not to be entered upon
without mature deliberatiOn, and then to be
proceeded with slowly, like some great public
building. We take the liberty to invite Sec
rotary BristOw's attention to what is going
on in France. 1t seems reasonable to
suppose that if France, or even En-
gland, France and Germany combined, can
stand a contraction of one hundred and
eighty millions in the circulating medium in
seven months, the United States can endure
the withdrawal of twenty-six millions in the
present easy condition of the money markets.
We hope the new Secretary will not consider
- M a,nonD tba dutias of ha Offica 70 0l,oo..