The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1876-07-30

| tn0 plontl1uIneeS OF money. oucn Act1Vs
| ity creates wealth, and wealth 10 that gar
anty or security which gives the holders
of paper money confidence in its value
and redeemability. Well, France has pros
pered and accumulated wealth beyond all
parallel since this money was issued. To-
| day 1t 10 more than twice as plentiful there
| as here, and the people take 1t in preference
to gold, it being more convenient and fully
| as valuable. France owes no foreign nation
| single franc, its statesman hsYing saved it
by the instrumentaiity of paper money
from having to borrow at high rates of in
terest from the English, the Dutch and the
Germans. Never was it more prosperous
| than now. All the people are employed,
all the industries are active, all the fields
are loaded down with bountiful harvests,
the war material surrendered and lost in
1870 has been duplicated, the army is
stronger than ever before, science is maxi
ing new and important discoveries daily,
schools are established in all quarters, beg
CARS are rarely or never seen. It is now
the most prosperous nation In the world.
And at the same time Germany, which took
the French gold, and cliDgs 30 tenaciously
to hard money, is in comparatively strait
ened circumstances Rents are high, thou
sands of farms have fallen into the hands of
the rich and are not cultivated, working
people crowd the larger cities, not half of
the number have work enough to support
thems thousands are in restitution and fly
to America or France whenever possible in
the hope of finding remunerstive employ
ment, dissatisfaction is very common, pam
les are not unusual, and riots for cheap beer
and bread have occasionally occurred. Hard
money Germany, which received Ave mil
liards of francs as indemnity, sustains but a
lamentable comparison with soft money
France. The following extract from an es-
cay by Victor Bonnet, q French financial
writer who was Taught in the hard money
school shows in lucid manner the great
W sph nm MAJ hao 60
France. We shall be foolish indeed If we
refuse to be taught by its experience: +" It
apparently reverses the economical and A.
nancial principles which the best authori-
ties on the subject have hitherto labored to
establish. They have cautioned us against
quality of legal tender, holding that the
volumn of such paper should be very
carefully limited, lest confidence in it
should become impaired and depreciation
follow.
"Now it SO happened that almost at
single step, in the midst of disasters we
issued more than 1900, DOC, 600 francs
of new notes and that this legal paper has
kept itself at par, the only time when
it fell below par being upon the first in
stallment of the indemnity to Germany.
At that time gold commanded two and
half per cent, and, strange as it may
seem, the price fell as soon as authority
was given to issue bank notes in excess of
the previeus limit of 2, 400, 600 600 francs.
In November, 1871, the note issue of the
Bank of France had reached only 2, 300, 00O,-
UUo, and the gold premium was two and q
half per cent, by the end of January, 1872,
they exceeded 2, $50 ,OoO, 600, and gold had
fallen to one per cent. short time after
ward the limit of circulation was extended
to 8, 200 ,000, 900, and no further attention
was paid to it. The premium on gold had be-
come insignifcant, and lift had been thought
necessary to go further, az was at one time
expected, when on October 3Ist, 1872, the
circulation reached 8, zoo, DOC, 900 francs, no
opposition would probably have been made
to it, and whatever the Government asked
for would have been granted.
" To add to the singularity of the facts,
we should also say that these extraordinary
emissions were made under the exigencies
of the gravest character, at the time when
we were paying our enormous indemnity
to Germany, and trying to obtain specie
from all quarters for that purpose.
"Moreover the paper Issues were appa-
rentiy intended TO fill q void created in the
metallic circulation. Such q phenomenon
had never before been witnessed in the
financial world. What has happened to
produce 30 great a change in the course of
thingsf Ia financial science assuming
new aspect, and proving that we have been
all wrong in fearing irredeemsble paper
money! Are we to learn chat ideas have
made progress, and that we are on the eve
of realizing paper circulation without
metallic base7
"There is another serious phenomenon to
be considered in connection with the pay
ment of the Prussian indemnity, 1t is
the effect which it has produced upon
Germany itself. 1t would seem that If
we, the debtors, have been able to &C
quit ourselves of the debt thus easily,
the creditor, who has received our money
ought TO be profited by it largely and
at once. But in fact, exactly the con-
trary has happened. We have paid our
{, 1000, 600 900 francs to Germany, and at the
same moment, that country and encoun-
tered q most formidable crieis. Money has
never been more scarce or dear and never
has there been witnessed SO many failures
in that country"
The great cotton interests Of the South have
been materially advanced In many respects by recent
improvements in bAling comprossing, etc. In this
connection single thing has proved of greater benefit
than the iron ties, Of which the Arrow Tie is by
far the best and most popular The old and nuental
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