New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-22
THE FINANCES OF FRANOE.
SECOND LETTER FROM EX-SECRETARY
MCCULLOCH.

SECRET OF THE RHCbPyRATfvE POWER OF GgRay
NATfON-TnH FRENCH NOrONLY AN ECONOMICAL
AND BOARDING PEOPLE BUT AN EXCEPTIONALLY
INDUSTRIOUS NATIOE--AGRICULTrRAL REsous.
CEs AND SKILL IN MANUFACTURING SUPPLE.
MPSTgD BY ABLE MANAGEMENT OH FINANCES AM
REyEsUgs-THE MAINTENANCE OF TIE NATIONAL
FAITH TIN MAIN ELEMENT or HER suCCEsa
TO the RdttOr Of The TrfbnWe.
SIR: In concluding my former letter suggested
the inquiry, BY what means has France been aba
TO recover from the misfortunes Of tho FrancoIss.
man war; what is tho explanation Of her recupes.
alive powerf
In considering this question. IL must be concsdsd
that France was not at the conclusion Of hor confess
With Germany poor country. She was only osten-
sibly 3d. Notwithstanding tho immense drain Of men
and money 10 which she has been for centuries sub
looted, by the exhaustiDg wars in which sbe has
been engaged she has always been the richest Of the
continental nations. 1t will be recollected that in
the old wars between France and England French
gold was frequently moro potent than French arm,
and that, in many instances, money accomplished
what valor and diplomacy had failed To shieva
Within tho last 30 or 40 years Great Britain by he
extensive commerce. her colonial trade. and her
manufactures, may have taken the lead iii wealth;
but even this is mOOted question. france has beea
frequently impoverished by war and bad govern
ment. but she never could have been considered
benkrupt, except ut the time she substituted paper
for gold, and attempted to make tho inconvertibis
assigpat the equivalent OF coin. All exper'ment 20
disastrous in its results that 1t il not likely TO bc 10
peated on this side the Atlantic. Many causes may
be assigned for the wealth which France has been
found to possess in all great emergencies, among
which arc the following:
The French people are an eminently economical
L., Iva al
live we'll on less than would be considered snihciens
to save from starvation an American family OF the
same numbers. An intelligent Bostonian. who had
spent some years in France, said to me last SuInm
in speaking of tho economical habits and skill In
cookery of the French people. that French village
of a thousand inhabitants could BIO supported lux.
uro,lsy on the waste of one of our large American
hotels.r The remark was not far from tire truth. IL
the art Of cookery understood and practced IN
the United States as it is in France If our people
knew as well how to make the most OF their pro-
visions as the French do the cost OF hv,ny' a. Tar
"a food ia regarded in most Of the States would DO
reduced moro than 90 per cent. Domestic economy.
"A q rule. is neither practiced nor understood by
Americans as it is in France. 1t may not be too
much to say that the entire population OF France
could be supported on food which Is literally wasted
in the United States. The number OF people who
live beyond their incomes is less, aud the NUMBER OK
those whose incomes exceed their expenditures 10
greater in France in proportion to population than
in any other country.
Tbcn. again. the French are beyond all Others 3
boarding people. There are few aItissns in the
cities or peasants in the agricultural districts who
do not keep reserve Of coin in their own custody
There las always been gold boarded in France
than in all other European countries combined. ls
il true that the nation according to the recognized
principles Of political economy, has been the loser
by having so much money lying idle, instead OF per-
forming its proper Office MS circulating medium;
but the common people of France have political
economy of their own. They hoard their earnings
parting with them only under pressing necessities
or in exchange for their own public securities. IN
which, and in which only, the masses have conf
dence, 50 that there has always been in France an
enormous amount of gold and silver which the Gov
eminent could reachin recent years by the offer OF
attractive loans to popular subscriptions 10 former
years by measures, the justice of which il is not
now worth while to consider. THIS habit Of hoard
ing is of course not to be commended but il is by no
means certain that France, in the circumstances IN
which she has been placed, has not, on the whole
been the gamer BY it..
1t is very clcar-and the foregoing remarks are to
some extent explanation OF the fact-tbat France
was not so destitute ~ she appeared TO be. when
Great Britain aud the United States SO promptly and
generously responded to the call for help which came
up from her devastated provinces. Many thousands.
not Millions of francs have gone from these very
Provinces since that time, as subscriptions to Gov
ernment and municipal loans, and II the truth could
be revealed it would be discovered that not few to
whom relief was extended kept back part at least.
of their little reserves against still more pressing
emergencies. But although France, at tho close Of
H. Nt w IA
was supposed to be in by those who were unac-
auainted with the habits and character Of her people.
her condition was in fact, most critical one. and
one that required in the management Of her finances
tho greatest prudence and practical skill. FOrtu.
natel for the welfare Of the nation, tho wisdom and
skill which the emergency required were not want
ing SO wisely aud skillfIly have her finances been
managed, and so rapidly has the country recovered
from its recent prosraton that not only has the IN
dem,iity been paid without disturbing the money
markets of other nations, aud the exchanges become
so favorable as to supply the Bank OF France with
the coin necessary to enable 1t to specie pay
ments which is speedily to take pace:-not only has
this been accomplished, but French capitalists, IN
the absence from the markets of French sccurifes
are seeking for investment the securities of other
nations. Paris has for some time been liberal
BUYER in the London market Of foreign bonds end rs
ORDER atter oruet IS Iltu, one cOustdnly hcir io"
the dealers tho expression Of amazement that coun.
try which. loss than four years ago. seemed to 10
upon the high road to bankruptcy. should be oShb-
iting such practical evidences Of wealth The eSps-
nation has partially been given. Let us lock d little
further.
/. The French are not only an economical end
boarding people. but they are exceptionally indus
trous. In the manufacturing rs we'll ~ in tho
agricultural districts, all the members of the fami'
lies of tho industrial classes. young and old have
some employment BY which money is earned. IheIe