The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-10-25
POOR GERMANY RICH FRANCE.

BERLIN, October 3.-The Imperial
Bank of Germany has raised It's rate
of discount to five and half per
cent. and the rate of interest on adj
yances to six and half per cent.
The dream of Bismarck as to max
ing Germany "a first-class power of
the English type is rapidly being real
lied. ssHa! Ha!'' said he, when hui
inflated France yielded to this de-
mand for five milliards OF francs
indemnity. ssNow we will show them
some big fnanciering. With this
great flood of money coming in from
conquered France, it will be safe for
us to initiate England and come down
to a gold basis. / will see to it that
the French don't euchre me by pay
ing this indemnity in anything but
hard gold. when it can possibly be
done.
But, oh, the French just did euchre
him. He sent forth his manifestoes
that the country must prepare for
gold basis, just as our wretched
rulers did. When 10 7! the whole
prospect of prosperity through the
conquest Of France vanished like a
dream. Stagnation sOverspread the
industry of Germany, and has con-
tinued to do so. Then was the oppor-
tunity for Industrious, energetic
France. Her wise rulers appealed not
to the people. The millions of peas
antry even, blessed by the great Rev
olution with the ownership of the
soil, responded readily to the demand
for the necessary cash. But the gov
eminent. realizing that its own
wealth was sufficient basis for
money. issued millions of francs OF
paper through the Bank of France;
and therein was wiser than the United
States, in that it made it receivable
for all debts due to itself.
Up rose France like phenix.. In
dustries everywhere flourished. Quite
contrary to the theories of our ''lead
ing economists" the abundance OF
money pushed manufactures so that
competition brought prices down
, Germany was in despair. Her goods
, could not sell on her own territory II
} competition with those of France
5 so that by the time the first install
t ment of the indemnity was due, sht
5 owed France so much for merchandise
3 that the latter could pay the debt IL
bills of exchange. And thus came
I about the well-known fact that Ger
!, many has gained very little gold from
9 France, while the latter is flooded
, with it. to such a degree that she i:
5 enabled to call in her paper money; /;
9 bad thing to do in any case.
: The despatch from Berlin quoted
E above illustrates the depressed condi
e ton of business in Germany. TIL,
t Imperial Bank finds gold flowing from
r it's vaults sorapidly that it resorts t,
: the old trick of the Bank of England
1 to keep it there. If there is one thin.
t more absurd than another in the fog,
!. financial system of England it is tn
!. way in which the bank of Englanl
/. ssweathers Storm and holds it
0 gold basis. 1t must be admitted
K however. that it adopts the only pla1
t bv which the inherently vicious gold
n basis system can be maintained
4 When the panic comes and merchant
n clam0r for accommodation. the de
q mure ssOld Lady of Thread and Net
a die Street, does not tell them the
d can have it, but quitely raises its rat
n of discount to four, five, seven. eve
o ten per cent. By this brutal, CASTRO
it system, the Bank maintains the legs
e proportion between the gold in 1t
# vaults, and its loans, while the poo
# merchants, ETC., unable to pay sue
70 usury. go to smash in their regula
le periodical 'scrises," Just IS we tn
# humble imitators of the English sy'