The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-07-03

A Puzzle for Congressman.

From the end of October to the end of
May is a period Of seven months only.
During that time the Bank Of France
withdrew from circulation one hundred
million dollars of its circulating notes, and
accumulated eighty million dollars in spc-
Gle. That is to say, the sum of one hun
dred and eighty million dollars in bank
notes and coin which seven months before
circulated in Francc and Europe, clrcu-
lates no longer. In other words, there
has been in seven months a contraction
of the currency to the amount stated.
That fact we should like to have explained
by those who MAINTAIN that this country Is
powcrleSs to take any active measures t.
restore its paper money to the gold stan
dard except at the cost of widespread
commercial distress. There has been no
such distress in France. The rate of dis
count at the Bank of France has, on the
contrary. been diminished by successive
steps from seven per cent to tour-and.a
half. Yet here is the fact of this cnor-
nous contraction endured without sign
Of distress by nation less pOpulous, less
productive, and more heavily taxed than
our own nation, moreover, which with
in four years has been 'over-run by invad
ing armies, and, in addition to all the ex-
penses of a great war, paid to the con-
querors Il 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
obevs tne same laws that govern it in Eu-
rome. What is possible in France is, un,
der similar circumstances, 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 the end of
May. The stock in the Prussian bank is
undiminlshed, 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 20 in
sist that the balance oftrade has had moth
ing to do with this accumulation of specie
w e have before us an abstract of the Off
cial returns OF French commerce for the
nrst four months OF the current year. The
Imports for that time, exclusive of specie.
were valued ut S243, 900, 0OO against S2O4,
100000 Tor the same period of 1873. being
an increase OF S39.OOO,UOO. The exports
were 40,UoD,uJD against $2G2 900. 900 for
the same period in 1873, being decrease
of So, 000,0UU. Hence. whila the impnrts
exceed the exports by S3,OtuuOu- the loss
on balance, as compared with the preccd /
ing year, l. no less than Sol uul.o Dur /
ing the same four months the imports of
specie have been SSi, 100000, and the ex
ports only 81 l,UO1,UJO, giving an excess of
imports of SI3,00O,OO1. This .coincides
very nearly with the $4,000. 900 in specie
gained by the Bank. II is perhaps an ad
missable 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 in
formation whatever. To Judge from polit-
zeal events, there is no reason why those
Frenchmen who have boarded the pre-
cious metals as a resOrce in times of trou-
bic should not continue to do so. Indeed,
il is said that the main reason Nhy the
Bank of France does not immediately an
nOunce a restoration of specie payments is
the threatening condition of political al
fairs.
Notwithstanding this great contraction
Of the circulating medium Of the nations
OF Western Europe, the prospect of ex-
ueme abundance in the money markets
was never more certain, In fact, we find
IN the last number of the EconYnlist the
anticipation expressed that the extreme
ease may induce the German government
TO absorb part OF the excessive sup |,
for their new coinage, their drafts on the
money market for gold hsving for some
time been suspended: Comparing the
condition of affairs in Europe aud Aueri-
ca we End it identical in two important
respects-the dullDess of trade and the su- |
perabu1dance of idle money. Here, as
there, the banks have more money than
they can employNith due regard to sscur- I
ity.. Unfortunately, the resemblance ex-
lends DO further. We are bundIing off
'ur gold to Europe anti it has become al