The Hawaiian gazette., 1875-08-04
verge Of political and financial ruin.


Such was France as she appeared before
the world some four years ago; and what
is her condition to-day7 allude, not to
her political condition, although in the or
ganization of Government on republi-
can basis, she has surprised the world by
her wisdom and prudence, but what is
her financial condition7 1t is in most re-
spects better than that of any nation in the
world. Her waste places have been re-
stored; her industries have been stimula-
ted into unprecedented activity; her ex-
ports, largely exceeding her imports, have
made her a great creditor nation, so that
gold has been steadily drawn to her from
England, from the United States, and
even from Germany, until the Bank of
France holds in its strong rooms the enor-
nous sum of three hundred millions of
coin and bullion, and its notes, although
not absolutely convertible, are only the
tenth of one per cent discount. If her
prostration was astonishing by its sudden
ness and completeness, her recuperative
power seems still more wonderful. 1t is
undeniable that no country in Europe has
been so prosperous as France has been
during the two past years. In no other
country has labor been so well rewarded.
In none has there been so little monetary or
commercial disturbance 1t is an anomaly
in the financial history of nations that the
conquering nation, to which an enormous
indemnity has been paid, has been, from
the beginning of the payment of the in
stalments, subject to the greater financial
disorder and embarrassment than the ma
ton from which the indemnity was ex-
acted. 1t is true that this indemnity was
paid with borrowed money, but it is also
true that the French people were chiefly
the lenders, and that the securities which
were subscribed for by the citizens of
other States have been steadily going
back to France, so that the French debt,
the largest in the world, more than twice
as large as that of the United States, is
literally home debt. Here let me re-
mark, that this enormous indemnity of a
thousand millions of dollars was paid by
France to Germany in less than two years,
with scarcely any disturbance to the
money markets of other nations, contrary
to the predictions of some of the most en-
inent of European fnanciers. 1t did not
seem possible that SO great displace-
ment of capital could take place without
considerable disturbance of international
exchanges. That this transfer was ef-
fected within so short period without
producing the anticipated trouble is an
evidence not only of the wisdom of the
French fnanciers, by whom this great
feat was accomplished, but also of the
prodigious capital now in active employ
ment among commercial nations. If Ger
many had not at the same time under
taken to substitute gold circulating me-
dunn for silver and paper, the transfer
would have been effected without produc-
ing ripple in the current of international
exchanges. Now the question arises, and
it is question of especial interest to the
people of the United States, by what
means has France been able to retrieve
her credit and recover from her misfor-
tunes ? What is the secret of her recu-
perative power? This question will be
briefly considered in my next letter. Very
truly yours, HUGH MoCULLooH.
-Neao York Tribune.