The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1876-01-25
The Ho,rdipx Of eo,d ;, m. n..,o..

The Hoarding or Gold By tho Ratios
At the close of last year the Bank o
France owned q total Of 1926, 600, 900 in
specie. This Is Q larger sum than wa
ever before owned by any banking Of
private institution in the world, At the
same time the Bank OF England possess
ed about $4,000, 900. The amount Of
coin held by the continental Govern.
ments can not BIZ definitely stated. Ger.
many is now changing the coinage Of
the country, and the amount held by pri.
vate parties and banks is larger than il
generally supposed. Austria is also en-
gagged in the same process, though no. 50
far advanced. The silver thaler has been
recently declared part of the legal cur
rency in the latter country. The other
Governments and banking institutions OF
Europe have also largely increased their
specie reserves, though to what extent Is
not important to inquire, in view of the
enormous accumulations of the Bank of
France and England, and ultimately that
OF Germany, which hold by law Specie
of about $2OO,OO0,OOO. Including the
specie held by the United States Govern.
ment an estimate of $500, 1000, 900 in spe-
Gle as the amount of gold held by the ex-
isting banks and Governments would be
more likely to be under than over the
mark.
1t is by no means the least curious or
unImportant feature of the situation that
the specie accumulations of the Bank Of
France almost equals ne-half the total
amount owned by all the banks and Gov
ernments in the rest of the world. The
policy that has led to this vast accumula-
ton Of capital is due, perhaps, to natur-
al causes rather than to any e1traordina-
ry efforts on the part of the bank. In
the first place, great confidence was re-.
posed in the commercial laws OF the Re-
public. The officers OF the Bank of
France have always been distinguished
for their courtesy and consideration OF
the mercantile classes. The suspension
of specie payments was practically dead
letter. If a merchant had coin obliga-
ton to meet at home or abroad he could
always obtain the specie on application
TO the bank officers, and without any
drawback for discount.
But from whatever causes the with
drawal of so much specie during the past
year must have exercised an important
influence on business. That it affected
values and goes far to account for the
shrinkage of prices can not be doubted.
Then there were political alarms. No
confidence is felt in the future Of Europe,
and persons who owned money, in place
of investing it in business, deposited it
with the banks for safe keeping. The
misfortune of such movement is that it
must be general to be effective. This ten
dency to boarding and want of conf dence
seems to extend over the world.
There seem TO be no scarcity in the
supply of gold. Last year the worlds
production of gold and silver amounted
to $4,000 600. This year it is set down
at $9O,OO0,OOO. MIR. Rossiter Raymond
estimates that from lS48 to 1875 the UNI.
ted States added $l,582,000,0O0 to the
specie of the world. Of this about $685.
100000 was probable silver. 1t is sup
posed that tendency to introduce silver
coinage is one cause Of the accumulation
of gold. But this can not be proved.
Wo mold if the Government of this coun-
try at least would adopt laws by which
persons lending or investing money shall
be absolutely assured that they will re-
ceive back on demand the precise amount
and value that they disbursed, and the
money-bsgs would relax; capital would
flow into its old channels, and there
would be no boarding of coin, without
interest, in receptacles to comparison
with which it might as well have remain
ed in the bowels OF the earth forever for
all the good it renders humanity.-[ Uni
tea States Economist, 18TH.