The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1878-10-05
The Latin Monetary Union.

As the Silver bill, which is now the law Of the
United States, provides for a Conference between that
country and the Latin Monetary Union on the sub
ject Of metals, everything relating to that financial
compact is invested with considerable interest. The
Union has now only two years TO run-namely, until
1880. But if at that date it is not terminated, il is
to continue for fifteen years longer. Some disagree
ments, arising principally from the fact that one Of
the members Of the Union-Italy-is using an in
convertible paper currency, have taken place. which,
if not arranged, are likely to bring it to an end at
the aforementioned date. The Paris correspondent
Of the London E~eonomist says that at present the
compact is working to the disadvantage Of France.
The silver coined by Italy finds it's way to France,
and circulates there at 10 per cent. more than its
intrinsic value.
France, being a creditor country, draws ell the
Italian silver, for the reason that the paper money
Of the latter would not be- accepted. This neutral
ICES the effect Of the restriction on the coinage Of
silver, by which alone the circulation Of the two
metals has so far been maintained. For the better
understanding Of the matter it may be proper to
state that the Latin Union is composed Of France.
Belgium, Italy, Switzerland and Greece. BY treaty
these countries are bound till 1880 TO receive each
others gold and silver coins at the ratio Of 155 10 /.
By an agreement entered into in January, 1874, i'm
mediately after the characterization Of silver by Ger
many, and which still continues, free coinage Of
silver was abandoned, and limit put on the amount
to be issued by the Union. This was the only way
in which the effects Of German demonstration could
be warded of. but it relocated oil silver for the time
being to the condition Of token money. The limit
for the Union for 1874 was fixed at 14O, OOO, 900
francs, for 1875 to 80, 600, 900 francs, and for 1876
to 1O8,O 900, 900 francs.
But it was also stipulated that any Of the coun-
tries might omit the quota assigned to it. In 1876
Switzerland did so, and in 1876 the President Of
France suspended entirely, in accordance with an
act Of the Assembly, the coinage Of silver, except for
subsidiary purposes. In December Of the same
year Belgium followed in the footsteps ofFrance. No
fve-franc pieces we're coined by either Of these
countries in 1877. Bat the benefit Of this restriction
il. being destroyed by Italy, for being a paper
country, it cannot retain its coin. In the meantime
resumption took place in France on the LIST Of Janu-
airy last. The event was nothing more than q for
mality. For this reason it has for the most part
been passed without notice. We find the facts, how
ever, substantially stated by a Paris correspondent
Of the Chicago Tribune. The following facts 10 rela-
ton to the bullion in the country, the writer says,
we're communicated to him by NJ. Mignot, the chief
cashier Of the Bank Of France
On February 4h the value Of the gold (coin and
bulion) in the Paris Office Of the Bank Of France was
915. So, 974 francs. and Of the silver (coin and
bullion) 5S2,97l 500 francs, q total Of ,49S, 83O,474
francs. To this large sum must be added the gold
and silver lying in the Golfers Of the various provin-
cial branches, which on January 3lst amounted
together to AIS. 200, 900 francs, thus divided Gold
coin and bullion, 1sS, COO, 900 francs silver coin and
bullion, 266 100000 francs ; a total Of 475. 200, 900
francs. 1t will thus be seen that the total amount
of gold in the Bank Of France ia approximately
l,lO4 ass, ga francs, and Of silver S69. 57l 500
francs, and Of both together 1874, 030,474 francs,
roughly equal to the extraordinary sum Of S4OO-
O00, 900.