New-York tribune., 1876-06-27

The uafipp WAS fairly drunken witt paper money.
But ~ the crafts of paper money came faster tie
periods of sn ceedinQ goo, feeling grew st'rtrr'
Many bal signs began to make their appearance
som after the last depreciation OF e'gh' 10
ten per cent. took place. But people were -iw 70
discern the true IL WIS a@crbo'i to fhr wan
of knowledge IN the rural districts An address to
The people voted slowing The exeeliencr oi tue
currency. and its superiority coin. Another
fact had "a mrn icing aspect Specie began 10 oisap-
pear rapidly This was explained by the Influence
of tue brokers. IL was al+o ascrbed To EnghsD
enssaries vino .t t. raise the value Of gold and
depress PAPER Even 1alleyraDd the shrewd Insisted
that the cause was simply thai the imports were TOO
great al,i the exports tao little Marat maintained
that every person who boarded gold should bc pun
lshed with DEATH In order t. supply sp'c'e church
bells melted down. bnt without efet
Another disagrecable fat now brought to
noticy. With the increase of paper money there was
decrease of prosperity. liz spite "f all the is"ties
business grew more and more spasIno'lic. Eitr-
prise was chilled. and stagnaiion followed. NTH
beau had eOnten'led that the new rinssl"p ~ paper
money would benefit the manufacturers tho'gh
bankers might srfrr. The manufacturers were '"f
a time d,ludcd. bnt we're al Last rudrly awakened
from their delusion. The pionty of currency had al
first stimulated production, hat the markets were
IL wax not long before collapse in manufactures
and commerce. took place. Tais male serious III
roa.!s OH the Larger fortunes, hut upon the little ac-
| cnmuated properties of the working masses IL
| PRESSED with trightfu severity.
Nor WIS thare aIy certainty ~ TO the inture. IN
| fhc spriug of I7Jl, M MIA knew the value "i HIS
| money. II was impossi le To predict whether
| piece of paper money representing hnh"reu francs
| would Il month Later. have purchasing power oi
hnlrcd francs nnrty francs. or eighty, "f Sixty
| rl,e CONSEQUENCE was that capitalists were unwilling
! 70 venture their i'll business. Enterprise fe-
| ceivcd a mortal blow. The business of france
dwindled into "A living from haud 70 inout''
| rlus sat- of th,nps while il bore heavily on the
noneyc classes. WAS still more rnous Z" l"is"hs VI
,no,lerate circumstances With the masses OF t.e
peo,e, every purchase of supplies oecame sprcnia-
tion in which the professional specuator had an
| immense advantage over the buyer. "Conmeice
| ,ays Lous Blanc was dead, and betting took its
| nace.'
| The rninous effect of the initiation policy on the
| working CLASSES was now visi"le While the hnlh-
| ,ial schcners became bloaied with sudden wealth.
| he producing classes Of the country, th' ugh ~hh
| more carroncy than before. were Impoverished
uutitudes of small fortunes absorbed III Stock
| tobbirg speculations although few swollen i0r-
| Lunes were rap dly piled up IN the city ceniers
The III. Ii isSlie OF paper Hoiicf ="
800 700 OOO to1k place in April, 1892. and al the
sme time people begaD to sDor at public creditors
,s rich people, old inlaciers, id bankers" Pay
nent was so,n suspended on dues to pubic crett"Is
~ a an, ninrs excee Ii ~ 10000 francs From tiat
Inn. cupitaI wa, taA Ell from labor and locked up hy
very method of financial IgYnni1y. All that saw
thousands Of lalorers III France from starvatIo
yas that they were drafted into the army, and sent
| % lie killed foreign battle-tields.
la February 1892. ass gIl,ts hal fallen t. thirty
,r cen, b,low par Is,n. after Issue followed ~
intervals of a few months until Dee. II, of that
ear 3iOJ, 100, 0OJ Ia id beeu sent out, ot which
100 900 900 had beel bnr ed, leaving III CIR, uia-
ION 2S0p 900 900. As t.ie mania for paper moi'ry
ALI its course. the hel-mctal sous. obtained hS
,slting down the churc l-,els, driven out "i
| .irculation. aud plrrhnent money from twenty
nus to i've was issned, and at List blls Of one "on
nd even h If sou. circu aical The wash T.
somen o Paris, hnling sap ~ dear tiat the,
,u'd scarcely ptrcit-e it, els npred for the d"ath
f the merchants who refused to sell tneir good for
| ne worthless currency. The women of the markets
| allied loudly Tor law to make paper money equal
~ value To silver coin At length Laws were paSs'"
| ,akng the s.es of goods compulsory aad liking
the.r pr &c m paper money. Mouth alter month
year after year. measures of "A similar character
,doptrd. Everything was done to keep up the value
# pa,e.. But all III vain. The assgna!s depre-
lated III q constant ratio.
| In February. I796, the copper plates of the as
iguats were broken w. and it was d d'creed that II"
more of them shond be issuel. new pap r money,
alr.I ssaaoLILs, " fully secured Ahl good gold
vas ordere, ~ their place. lhseniou. devices wer"
.dopted u secure their credit. but without effect
Even before they eonl he issu d from the press the,
ell to 30 PER cent. Of their nominal valne soo'
.fter to IL per cent; and then to tive. Stringent
| avs were PASSED to compel the reception of th'
niIdats at their par value Bat the attenpt proved
futiIe. ~ it had always proved heretofore No en-
,ct,cnts could stop the dowu ward tendency of thi
>oft paper "a good g'IL.' for the laws t'a'
inally govern finance are not male in conventions
d congresses.
| Tie great crash came in July. 1896. II war de-
| ,.recd that all paper money maDdats and asSgrIats
,Io,ld e taken AT its real valie AMI that bar giiis
| night be made by tie people IN whatever currency
they chose. TIE reign of paper was thus Brought
an end in FraIce. The 2 90 million mandat'
went into the same heap OF refuse As t;e previous
rhlrty--ix billion assIg Iats. The VII 'le vast iS-l''
oi rag money rrpu iia,ed. When ali was over
With the paper currency, specie began to reappeaT,
II lrst in small for the amount of busine ,
tl at remained after the collapse TheI business
Increased q sufficient alnonDt of sperie flowed III
from the worI at l.rge and the nation gradually
recoyere, fr',n her long inancial debau b.
Frou the imperfect outline which We have thus
iven of Pr .silcnt Whites essay. our readers will
erceive that u work of rare historical interest.
md rich u argument and suggestion appropriate I"
he present financial rOn,liii If this COnnLy. J.
reproduceB az III spolless mirror, the issues oi h"
| experiment which caused 81 much misery and criInf
ia France and which certain popular leaders are lii
rent in Intervening with American politics. Every
,ltizcn who would thoroughly comprehend the imam
ci, qnestions before the public should st d. their