The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-10-25
lRREDEEMABLE PAPER MONEY.
WHAT 1T HAS DONE FOR FRANCE.

From the Philadelphia Times. |

In grateful compliance with your
request avail myself of the earliest
leisure to reply more precisely than [
could without reference to official pa
ers to your questions as to the causes
the wonderful power Of France as
own in her payment,l in anticipation
the time named by her cOnqueror,
the enormous war tine inflicted
on her and the maintenance OF the
TuStries of the people during the
tr and the succeeding interval,
lich has been of such terrible finan-
: lal depression to Germany, the re-
ipient of the fine, and to Great
titan and the United States.
THE disting uishing characteristic of
ne financial policy of the French
government is found in the fact that
assumes the duty of preventing
iternate periods of inAation and their
= Inevitable consequent contractlon,a land
hat to accomplish this end whenever
fyar or other eXigency has caused an
issue of irredeemable paper it has in
Sested such issue with the character
legal tender--made it available for
ii purposes to which money could be
Eplied in France, whether the trans
ftiOnS were between citizens or be-
- fyeen citizens and the government,
vice uerSa. and has taken measures
b prevent the withdrawal of the
Nper until continuance balance Of
de had brought into the country
metallic money enough to support
the channels temporarily filled by the
paper money with which the eXigen-
L fCnTht tho
French people and Napoleon empha-
sized the lessons of Colbert, that 1t is
labor that supports government ana
ociety, and that to arrest the employ
lloyment of productive industry is to
mpoverish the public treasury and
roduce discomfort and possible dis
rider among people. And | hesitate
lot to say that had this lesson been
orne in mind by our government
lad our paper money been, us the
louise of Representative when pro-
7iding for the issue of the greenback
i assisted that it .,should be, received
the government in payment OF all
ueS. and had there been no attempt
\ retire any part of the paper which
AL been invested with the character
legal tender until II metallic sub
itute had been purchased by the
port of other commodities, we
puld never have been without the
\, use of gold and silver at a rate of
MUM no greater than that which
LIS prevailed in France, where it
,er exceeded , II per cent. and
ut but for II brief period. and that
Ee question OF the resumption of
kacie payments would have been one
as little consequence to the Amer
IN people us it now is to the French
Aeople. who use gold, silver and IL
Hedeemable bank notes interchange
SHY. Indeed it is II fact that, while
NE government will not permit the
Aank to close the operation by which
s notes were made legal tender, the
INK will not without compensatory
remium, receive any considerable
lount of gold or silver in exchange
". it's notes. because it holds an eX-
. 50 of bullion. and there is Z tax of
on ST. 900 of its circulation. We
our banks a. -, 5 and & per cent
issuing notes which the govern
.ent furnished them. France. even
the greatest of her cNigencies,
l. y
the country by demanding slight
* upon circulation whenever she
lthoriZes n bank to issue notes ire
,emable, rs our national bank notes
e, and pays the bank but per cent
the amount of such notes loaned it
hen first issued.
Great Britain and the tnited States
lopt another and opposite financial
)licy They restrict the volume of
- BARTENDER money to the narrowest
ssible limits available us Il basis for
nix circulation and compel the en-
rprising and producing classes to
: tribute to capitalists. foreign or
tive. for credit upon which to con.
ct their undertakings. France
eks to give the whole people money
!. following the example of Eng
ld. seek to compel them to use
dit or currency obtained through
S at such rates OF discount 4:
prevail.
GERMANY. prior TO the war. was Il:
. from commercial and t'nancia
es as France had been. Her finan
system was kindred to that o
. lnce. Her circulation consisted o
ney Wnlcn WIS SILVER tlt't VI ".s'A
er. The great volume OF pape
with in circulation were notes 0
Ill denominations many OF then
less than one dollar American
ley. But after the war she dis
led both silver and small banl
IS ard ordained gold currency
.blished the Imperial Bank AM
libited the issue of any bank note
less than the equivalent of IS 0
and the mere attempt. ineffectua
et. to carry ont this scheme ha
ICED both government and peopl
condition contrasting painful
/. that which they exhibited 70
before this mad eNperimen
undertaken. | now proceed
bit some of the facts from whic
conclusions have been deducet
ter the French Revolution i
on the night of the 18th {
III, the Republic, by decree, mad