National Republican. (Washington City (D.C.)) 1872-1888, 1875-02-02

the Tribune's proposition, where, before
the war, real and active redemption,
through the Suffolk Bank system, was con-
stantly maintained, with coin reserve
seldom aggregating more than ten per cent.
of circulation and deposits.
But to return to the history of French
finances. the cAef Gupre of the Tri5uns's
argument. The French yeomsn and peas
ant have ample grounds for their more
than ordinary repugnance to paper money.
| The occasional mention of the name of
Lord, and the not unfrequent sight of
rooms papered with the assignats of the
revolutionary government, keep green
the memory Of losses sustained by other
generations through the deluslYe schemes
of their day, and are enough to perpctulte
the conviction that nothing IL safe but the
glittering yellow gold bearing the impress
and arms Of the realm. These considera-
tons are enough 10 account for the limited
circulation in ordinary times of paper
money in the country selected by the
Tribune as a criterion for the most pro.
gressive nation of this enlightened age,
but there are other influences still more
potent. The Bank of France enjoys a
complete monopoly of the issue of paper
money. No other institution is allowed to
put notes in circulation. Moreover, the
Bank of France has no incentive to ia
fate its issues of paper money as soon
as they attain a certain maximum the profit
derived therefrom cannot, except in the
most indirect manner, benefit her stock
holders. Such profits are added to the
capital stock until certain limit is reached,
when they accrue to the Government
There are many other reasons, which we
have but space to indicate, which show the
utter absurdity of attempting to gauge the
finances of our own country with those of
France. Compared with France, banks in
the United States are numerous; the boards
of the frugal readily find their way into the
channels of trade and commerce; but in the
former country they are retained out of cir
culation until safe and inviting investments
are offered. Owing to the vast extent of
our territory, and the sparseness of its popu-
lation, and the time consumed in communi-
eating between distant points, a much
larger amount Of currency is required than
in a small and thickly-populated country
like France. Were it possible to convince
the ignorant population of that country of
the safety of bank notes, and were the
charter of the Bank of France amended so
as to induce three-fold increase of her
paper issues, there would be no occasion
for six or eight hundred millions Of cOin &C
a circulating medium; but the paper, tax
ing the place of and being readily converted
into coin, no initiation of prices would ensue,
nor any inconvenience be suffered by the
change.
But the Tribune is most unhappy be-
cause the plan proposed by the President
of a gradually declining rate for gold by
regular stages until par be reached "smacks
"more of Reputation than any proposition
'tyet made" How sad, that the Govern
ment, which for thirteen years has neglected
to make any provision for its demand prom
ises to pay, and now, as far as the Execu-
tive is concerned, is willing to exchange
its notes for gold at ninety-one cents on the
dollar, at the option Of the holder, should
be met with such plea! How much bet
ter would it be to do nothing and let the
friends of the Tribune control thu gold
market, without such frightful Damoclean
blade forever swinging over their heads