The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-30


Foreign Opinions on Oar Finances.
In cable despatch printed few days
since we were ted that the London Times says
editorially that "to British eyes the appar-
emily intermiuable imitation Of the currency
is a hazardous proceeding, fraught with peril
to the prosperity and even to the unity of the
American commonwealth which strikes US
as the sound judgment OF an enlightened OBJ
server. But the Times proceeded to say, as if
in abatement or by way of apology: -"But it
cannot be denied that no other country in the
world could do what the United States have
hitherto done with their finances. It is law
of American nature to expand and develop in
every possible direction
This last seems to us q specimen Of hasty,
inconsiderate writing. We can only ascribe
it to stretch Of courtesy and the willingness
Of foreign journal to speak kindly of our
national credit and resources We believe
that no country in the world could have done
worse with our great advantages. The Times
seems to forget the splendid. the almost mi
raculous financial achievements OF France.
Never in recent times has q country been SO
crippled, shattered and burdened by relent-
less, desolating war as France. But though
her government still founders in an uncertain
political sen, how nobly, how proudly she has
recovered in her finances!
True, France has not yet resumed specie
payments. but she is nearly ready for resump-
ton. Her paper currency to-day is substan-
TALLY as good as gold From the money
reports in the Journal DIES Debats Of April IL
and - we learn that the premium on gold
bullion in Paris on those days was only from
two-tfths to threc-ffths of one per cent.
Twenty-franc gold pieces were at par. The
slight difference between the price of coined
and uncoined gold is to be explained by the
fact that coined money which has been in cir
culation loses small portion of its value
selling in Paris, April II, at twenty-five
francs and seventy-fve confines, their par
value, as fixed by the United States Mint,
being, in the money of France, twenty-five
francs and about eighty-seven confines when
the coins of both countries are new and IN
worn. The slight discount is merely the ex-
pense of recoinage. It will be seen from these
statements, taken from the ordinary daily re-
ports of q respectable Paris newspaper, that
the premium on uncoined gold in that city is
only equivalent to four or six mills on dollar
estimated in American money. France, then,
within q period Of two years after the ter
mination Of her great war, is on the eve of
resuming specie payments great contrast
to the condition Of our currency.
We will also repeat from the Journal des
Dfbats statement of the circulation and the
specie Of the Bank Of France. On the 18th
Of April it held gold and silver to the amount
of 1852, 00O,00 francs, and its circulation
was but barely double the value of the pre-
cious metals in its vaults-namely
1926, 1000 francs. At the same period in
1873 its metallic reserve was only 808, 900, 600
francs and its circulation was 2,769, OOO, 900
francs. Since the beginning Of the pres
emit year the Bank of France has
been making vigorous preparations for
early resumption. Between the LIST of
january and the LIST of April it in
creased its stock of coin and bullion more
than 1900, 900 francs. The London Econo-
MIST of March %, made these remarks: =
''The Bank of France, with its usual excellent
Judgment, is evidently DESTROYS of returning
to specie payments, and is steadily preparing
to do so. French coin is steadily taken from
here for that purpose, and the bullion SO alb
sorbed by the Bank of France is so much ia
ken out of the general money market" If
the Bank Of England had . store of
gold SO large in proportion it would
freely discount commercial paper at low rates
and make money cheap but the Bank of
France, being differently circumstanced, pur-
sues with resolute wisdom It's policy Of re-
turning to specie payments, and slowly con-
tracts its circulation as it increases its stock
OF gold instead of expanding it. 1t will reach
resumption by sure, gradual process, without
any sudden tilt or disturbance in the money
market
Now, really, in view of what France has
done, this country does not deserve the COM
pliment with which the London Times softens
its condemnation Of our misguided policy of
imitation. The financial managers ought to
take shame to themselves that country SO
broken as France was has so speedily out
stripped us and is on the point Of resumption
after short interval of two years, while we
are only beginning serious fight against the
infationists at the end Of eight years from
the close Of our war. AS compared with France,
every advantage has been on the side of the
United States, with the single exception of
foresight and financial knowledge. We have
had stable settled government. Our national
resources have not been taxed like those of
France. We have suffered no loss Of territory.
Neither our political nor our commercial
capital has been in possession Of our enemy
We have no powerful menacing neighbors
compelling us to support great standing
army in time Of peace We maintain 80, 900