The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1877-10-07
CHAPTER or FRENCH FINANCIAL
HISTORY.

The future historian will probably place
q high estimate upon the wisdom OF the
managers of the Bank of France who, early
in the Franco German war, in her own
interest as private corporation, advanced
to the Government of France las per
report, Nov. 3, 1873, of NJ. Magne, Minister
of Finance), the imperial sum of $50 ,OOO,-
600 francs (say $306 900, 000) payable in in
stalnleuts OF 200, O0O, 600 francs ($40 900 ,OO0)
per year, with interest at one per cent.
Almost simultaneously with this aid to The
central executive departments of the ma
ton, they carefully nurtured with singular
providence the productive and commercial
functions of the nation, neglecting not even
the humblest.
BY tho kindness of MIR. J. w. Shuckers,
we are permitted to copy the following
report of the matter made by the late Mr..
Thomas Balch, who obtained his lntorma-
ton from leading bankers of Paris:
lit became apparent very soon after the
beginning of hustilities between France and
Germany, that the. Armies of the Empire
were too weak (the military organization
had been worm. eaten" as was express
lively said) successfully to resist the cure
aud swift advance of the GermAUs upon the
French capital. Various inconsiderabie
encounters took place even in the last day s
|. of July, which clearly foreshadowed the
| subsequent immense disasters that over
whelmed the Empire and ended IN the con-
auest of France. On the ID of August,
| 1870, the advance of l0e, 900 Imperialists
upon Ssarbrucken, without decisive results,
had powerful effect upon the public SEN
timenr of the French people; on the 45h
the battle of Weissenburg, in the actual
defeat of their army, on the 9th, the battles
of Woerth and Saarbrucken (height OF
Speichern) ended in the beginning of the
retreat upon Paris, and OF the 9TH the city
was declared in state of siege. These
events followed one another with extraOr-
binary rapidity; and amid the conBterna-
ton every where excited by them, the hGntt
! finance of Paris took the alarm and great
anxiety grew up lest, with the Threatened
destruction of the military power of the
country, the native industries-the main
spring and support of the credit and grand
eur of France-should perish also. The
French hnanciers-not the French poiiti-
cians-foresaw the impending danger, and
with characteristic sagacity and courage
provided the remedy.
"The managers of tho Discount BankG
of Paris met together at the call of NJ. Pi
nard of the Compton d'Escompte, and con-
sidered the state of the country. The result
of their conference WAS resolution to OK
tend financial assistance wherever it could
be made available for the general good
They appealed to the Bank of France fol
help. Tho officers of the Bank promptly
| responded, declaring their willingness and
desire to make common cause with the
Banks of Discount but said they could only
do 30 in conformity with the fundamenta
law of their establishment, which restrain
ed them from making loans except upon the
security of three names of known responsi
bility or upon prescribed collaterals bu
they would, the necessary requirement.
being met, ex tend all the aid in their power
They pointed out at the same time The
prime duty of preserving the resources anC
CREDIT of tho Bank intact for the wors
emergencies. The result of this answer
was, that the Discount Banks determined
to become endorsers for the advances made
by the National Banks and accordingly
with this cooperation of the Bank o
France, bills were discounted, during the