The Hawaiian gazette., 1875-03-31
AProsperous Nation.

tlldb tiit bulllOu llt Dduk OF
ed to over 27O,OOO,OOO dollars, drained fror
almost every country into the vaults of tina
institution. Among the late news items, w
find that the subscription to the Paris city LOAF
for fifty millions of dollars, amounted t.
S2,lOO, 100000. In other words, two thousand
one hundred millions of dollars were Offered
to take up loan of fifty millions This in.
dictates degree of wealth never shown be.
fore by any people, and is certainly most re.
markable phenomenon in finance.
The explanation is given by French writer
Bonnet, in two articles published in the Revu
des Detrr Mondes, which have been translated
and published in America. Among other
facts, it states that the indemnity demanded
by Germany, at the close of the war in 1871,
was 5,OOO,OOO,OOO francs, or nearly I,OOO,-
100000. Bonnet says, within two years and a
half from May, 1871, this indemnity was fully
paid in specie of its equivalent, and that, too,
without disturbing home industry and the
commercial relations of the country, or serious
ly impairing its stock of the precious metals"
There had been suspension of specie pay
ments since August, 1870. The volume of
paper money was increased from that date to
the close of 1873, from S25l 900, 900, with
specie reserve of 80 per cent, to more than
$500, 100000, with only "a per cent of specie
on hand. And yet all this time paper money
was at par with gold, save an interval in the
Autumn of 1871, when the highest premium
on gold was but 81 per cent
The author goes on to state that before
the war France had in the country specie to
the amount of 81 200, OOO,O 900. The indemnity,
with the interest thereon, the expenses of the
army of occupation, the contributions levied
by the Prussans during the war, and the ran
SONS exacted from certain cities, amounted to
fully as much as all this specie" All these
obligations were promptly met in gold or its
equivalent, and yet in the beginning of the
fourth year after the close of the war. "the
supply of specie in France is very nearly what
it was in 1870" By what magic was this
thing done? Simply by the practice of in
dustry and economy by all the people, and of
wisdom by the Government "The annual
savings of the country" says Bonnet, care
5000, 100000 a year" Foreign trade is al
ways in favor of people so inventive and
frugal. The average French laborer, in fac
tory, or on farm, will live better on a franc
day than the average American or English
laborer will on five francs The gain of |
France from the close of 1871 to the close of |
1873, in her exchanges with foreign nations, |
was S4OO,OOO,OOO in gold. GA second source
Of gain was the demands which France had |
upon other countries, in the form of interest in
foreign loans and in the shares and obligations
of industrial enterprises abroad. From the
selling out of these interests and drawing
home the investments, another 5000, OOO, 900
was realized" The other 500, 900 600 need
I'd to pay the indemnity was easily raised by
'oreign loans, because the country's credit is
good everywhere This $500, 900, 900 was all
the had to ask in the way of credit from
strangers
An American paper, commenting on this
says: "Those who argue in haste
hat because France has been able to do this
marvel in finance, and place herself in posi-
ion so soon to resume specie payment, there
ore the United States has only to resolUe upon
to realize it, make great mistake.
t is not the work of the French Minister, but
f the French people, that they now, Just after
aging out 81 ,2OO,OOO,O 900, have as much specie
n the country as at the beginning of the war.
he French people sell, the Americans 5uy. /
he balance of trade is in favor of the French,
lways against the Americans. We have
took on hand not over Sl65, 1000, 900, all told I
hey have 100000, 900. We have more pa
er money than France by Sl25, ZOO, 900, and
My an eighth as much specie. We have eaten
ur cake, the French have saved theirs. 1t is !
IMPOSSIBLE to eat and save it too. French cap I
al has bought up and reabsorbed all the bonds c
isued to cover the 81 ,OOO, 100000 indemnity. S
o that the interest," payable in specie, is paid t
nd used in France. The frugality Of herr eo-
lie enabled them to do this enabled them !.
$50, the other day, when the city Of Paris q
slSed for a loan of s5O,OOO,OOO, to subscribe
the amount of s2,lOO,OOO, OOo-nearly as c
uch in day as the whole volume Of the re- q
aiming debt Of the United States" Il