The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1875-04-01
The Payment of the Five MilIiards,

When we look back upon the SuDJecl as
a whole, three great facts strike us in lG.
The first, that France is very rich; the
second. that the trade of Europe has "a
tanned such magnitude that figures are
ceasing to convey its measures the third,
that the aggregate commercial action OF
nations is a lever which can lift any tinan-
cial load whatever. AS we see the trans
action now, with these explanations OF ITS
composition before us, we cannot but fail
to recognize that it has been rather Euro
pean than purely French. All
purses helped to provide funds for
1t; all trades supplied bills for it.
In every previous state OF the
worlds commerce such an operation
woald have been impossible; fifty, thirty,
twenty wears ago, it would have ruined
France and have disOrdered Europe; in
our time it has come and gone without
seriously disturbing any of the economic
conditions under which we live. France,
out of her stores, has quietly transported
to Berlin a quantity of bullion larger than
the whole ordinary stock of the Bank of
England and yet she shows no sign of
having lost a sovereign. She has paid, in
her bank notes, for Gl70, 100000 of trans
mission paper. and vet the quantity of her
bank notes in circulation is not steadily
diminishing. Such realities as these would
be altogether incOnceivable if we did not
see their cause behind them that cause Is
simple, natural, ildisputable f; its name is
the present situation of the worlds trade.
The vastness of that trade explains the
mystery. But yet, with these advantages
to help it, the operation had, in addition
to its enormous size, certain special diff
culties to contend with. As one example,
it may be mentioned that among the ele-
mentS of perturbation ana OF consequent
impediments to remittance, the French
Government had to keep III view the fact
that, at the very moment when it needed
all the monetary facilities it could obtain,
the German Government was locking up
gold in lis cellars, in order to provide metal
for the new coinage it was preparing.
This was most unlucky coincidence;
but it existed, and it had to be met. The
German plan was TO hold back the issue
of the new money until e30,0000O0 of it
were ready to be exchanged for the old sill
yer currency; consequently, no silver could
be expected to leave Germany until some
months after the date at which the gold had
been brought in there; and, duringthe in
teryal, France knew that she must suffer
from the withdrawal of so much bullion
from the general Market. But she found
assistance in an unexpected way; silver
did flow back to her from Germany, with
out waiting for the issue of the new gold
currency. France paid Germany e9,512,-
900 in French silver; but this was of no
use to the latter; on the contrary, it was
an embarrassment TO her, for she was on
the point of exporting a quantity of her
own silver, which would become super
tiuous as soon as the new gold got into
circulation. So, for this reason, Il cOnsid-
cradle portion of the French tive-tranc
pieces came back Immediately to France,
and helped to recOnstiUute her store. And
all the other difficulties were, more or less,
like this one. AT first sight they looked
grave and durable, but they diminished or
disappeared as soon as they were serious
w attacked the whole thing turned out
to be an astonishing example OF obstacles
overrated. The unsupported wealth of
France, assisted by an extent OF general
commercial dealings which was less sus-
pected still managed to get the better OF
all the stumbling blocks and impossibilities
which seemed to bar the road Fran ce
has lost e4OO. 900. 900, one-half of which she
has delivered 10 her cGemy, and yet she Is
going on prospecting as if nothing at all
had happened. But it is now quite clear
that she never could have managed all this
alone: she could have founl the money,
but never could, single-handed, have car
ried it to Germany. 1t is there, far more
than in subscriptions to her loans, that the
world has really helped her; she has
bought back the stock that foreigners sub
scribed for her, but she could not do so
without the bills they sold her. If she had
noon left 70 her own resources for the
transport of the indemnity to Berlin, she
would probably have been forced to send
two-thirds of it in bullion. and to empty
her peoples pockets for the purpose; the
vastness of the worlds trade and the unity
of interests which commerce has produced,
permitted her to use other nations means
of action instead of her own. Viewed in
this light, the payment of the five mil
lizards becomes an enormous piece of adj
rsirably well arranged international bank
inc, in which nearly all the counting
houses Of Northern Europe took share
RL1rk,1oOd's MGCdzine.