The Vancouver independent. (Vancouver, W.T. [Wash.]) 1875-1910, 1877-10-11
Resumption in France.

The first of January next is fixed by
law as the period at which the Bank of
France shall resume specie payments,
and, unless the peace of the country is
materially disturbed by its present po-
litical complications, or it becomes in
voved in the European war, resumption
will take place then. The reaction in
France has been much quicker than with
us, and as we are passing through pro-
cess similar to the one going on there,
and are also approaching period fixed
for resumption, we may be profited by
a consideration of her condition. By
the exercise of very sound and wise
financial policy the Bank of France
will be ready for resumption on the
first of January; indeed could. if neces-
sary, resume tomorrow. On the 26th of
July the amount of its notes in circula-
ton was $4S3,8OO,0O0, it owed on
deposit account 100000, and had on
hand in coin and bullion $40, 600, 900.
The Government owes the bank large
amount, and one of the conditions of re-
sumption is, that the Government pay
its dues to it, which it has been doing
regularly.
Resumption might be said, really and
practically, to exist now, as the notes of
the bank are at par. The advantage of
their financial system is, that they have
the three-fold standard in their circula-
ton, gold and silver, with the bank notes,
circulating equally, and each being a
legal tender. The notes of the bank are
for convenience more sought after than
the metallic currency, but the note-holders
and depositors are only supplied with the
notes as matter Of favor. As a prepare
tory step to resumption they have re-
tired in the past five years 1856, 100000
Of their notes, Withdrawing the smaller
notes from circulation, so that now there
are very few notes in circulation, less
than 100 francs, about $50 in our cur
rency. This necessarily keeps large
amount of specie in circulation, and thus
guards against depreciation of the paper
money. Connected with all this is great
ease in their money market, and gen.
eral condition of business prosperity.
The statement Of the financial condi-
ton in France shows wherein we are de-
fcient, and the processes necessary t.
prepare us for resumption. From the
fact that gold will be constantly drained
from us to pay the interest on the debt
held abroad, a drain which can scarcely
be remedied by the import dues and sup
plies from mines, it seems scarcely posi-
BILE to accumulate the amount of gold
necessary to make resumption possible in
1879, only year and a half away. In
addition, we are cut off from silver as q
circulation, except subsidiarily. So that
instead of having three currencies in cir
culation, as in France, we have practically
only one, which is paper. The remoneti
cation of silver and the restoration OF the
silver dollar will bring the paper cur
rency to par. There will then be no rea'
son why gold should not circulate, or al
least that payments in greenbacks will
not be substantially pay in gold, and
we will be ready for resumption by hav'
ing the three currencies, and all at par
In the meantime gold must flow largely
into the country from the balance OF
trade in our favor, not to be boarded, as
now, but to be circult ted CO. Ordinately
and co-equally with the other standards,
and we will be in the fortunate and de-
sirable condition financially that France
is to-day. The whole matter hinges on
the reconciliation Of silver which We
hope to see established early in the ap.
preaching session of CoDgress.-St Louis
Journal Of Commerce.