, 1876-04-08
HparaipE Of Cold by 3a,Iamz, ,


Z. the clsss OF las. ycar :hc Bank Of
Trance owned -stal Of Ss2S 10000 IN
epIc:o. Tul 10 bigger sum than WIS ever
o-a-l i? au7 barking o. private institution
n .he world. A. the same tirrc the Bank
e England possessed ahou: $ilQ,0oo,0oo.
Tie amauut OF coiz held by the Continental
governments canno, be definitely stated.
Germany 10 now changing the coinage Of the
conutry, and the amour. held by private
parties and banks !slargCr ,hgn is generally
Supposed. Austria is also engaged in the
same process though not so far advanced
The silver thaler has been recently declared
q par, Of the legal currency IN the latter
country The other governments and bank.
ing institutions Of Europe have also largely
increased thoir specie reserves, though TO
what extent is not important TO enquire, in
view of The enormous accumula;inrs Of the
Banks OF France and England, and ultimately
tha. Of Germany, which will hold by law a
specie of ahmt S20000 900 Including the
specie held ly the United States Govern
ment, an estimate OF SSO0,OD0,00O in specie
as the amount of gold held by the existing
banks and governments would be more like.
-. ..s.--..,e rinder than over the mark.
II is by no means the least curious or un.
important feature OF the situation that the
specie accumlations Of the Bank Of France
almost equals the one.half the amount own.
ed ty all the banks and governments in the
rest OF the world. The policy that has led
10 this vast accumulation Of capital is due
perhaps to natural causes rather than 10 amy
,cI Itraordinary efforts on the part ofthe Bank
In the first place great confidence was reposcd
in the commercial laws of the Republic
The officers of the Bank of France have al.
ways been distinguished for their courtesy
and consideration of the mercantile classes
The suspension of specie payments was
practically dead letter. II merchant had
4 coin obligation to meet at home or abroad
he would always obtain the specie on appli.
cation to the Bank officers, and without any
drawback for discount.
But from whatever causes the Withdrawal
Oft much specie during the past year must
have exercised an important intiuuace on
business That it affected values and goes
far to account for the shrinkage OF prices
cannot he doubted. Then there were po-
litical alarms. No confidence is felt in the
future Of Europe, and persons who owned
money in place of investing it in business,
deposited ii with the Banks for safe keeping.
The misfortune of such movement is that
1t must be general to be effective. This ten.
dency to boarding and want Of confidence
seems to extend all over the world. "a,
There seems to be no scarcity in the sup
ply Of gold. Last year the worlds prodac.
tion of gold and silver amounted to $sQ
100000. This year it is set down at $780,,
100000. Mr.. Rossiter Raymond estimates
chat from 1s4s to 1876 the United States
added ,$1,2S2OOOOOO to the specie Of the
world. OF this about $asS,OO0,O0o vas
probably silver. 1t ia supposed that ten
-dency to introduce silver coinage is one
cause of the accumulation Of gold. But
this cannot be proved. We hold that If the
government of this country at least, would
adopt laws by which persons lending or in
vesting money shall be absolutely assured
that they will receive back on demand the
precise amount and value that they dis.
bursed, that the money bags would relax;
capital would flow into its old channels, and
there would be no boarding of coin, without
interest, in receptaclcs in comparison with
which it might as well hay remained in the
bowels of the earth fcrever-for all the good
it renders humanity.-U S. Economist.