The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-06
A Land Of Few Bank-Notcs---Preva
lencc OF silver I'm France

81
fcnrresponacnce OF the New York TImes.J
Paris. June Nothing strikes an Anne
Irican visiting France more quickly than me
almost entire absence OF paper money IN
active circulation. / have been in Paris
now six weeks, and have only received
one bank-note, which was OF the value OF
500 francs, and was given me at my bankers
as part payment OF draft for 1.200 francs.
I have occasionally seen note OF the same
amount pass over the counter OF large Eetaii
store, but not, in ell, more than three OF
four times. 1t may be said, practicaliy,
that for purposes Of ordinary TRANSACTIONS
the bank-note is unknown. The money IN
actual use consist Of pieces OF gold OF ~
francs, 10 francs, and francs, ana siiver
coins OF 5 francs. 2 francs, franc, ana
franc, or so confines, and OF copper colns
NJ tho value of 9 sous and sou, or 10 cent
lines and confines respectively. OF these
the silHer pieces are used for payments OF
< francs or under, and occasionally as high
"a 10 or Is francs, but rarely. AS rule,
All nayments above francs are made IN
gold.
Economists differ widely as to the amount
OF silver existing at the present time III
france; but Of two facts think there can
be no question, basing my statement on my
own observation and on the opinions nave
received from such authorities as III. Michel
CheyaIier. M. Paul Leroy-Beaulieu, and NJ.
Menier. These are, first, that there is gut
Of silver in the country, and second, that 1t
is kent at par with gold only because the
restriction on its issue makes it substan-
tally a subsidiary, il not token, coin
age. The fact Of the glut OF silver is clear
" established by the result OF the efforts
of the Bank OF France to extend the clrcu-
lation of that metal. At the present rate
OF discount, and under the influence OF the
extreme depression from which France has
suffered for nearly five years, there Is
very slight profit in the issue OF notes by
the bank. The bank holds, according to
its latest returns-the 30th OF December,
1S77-about $3.50, 100000 in silver, out OF
an entire reserve OF some S4O0,00O,0O0.
This silver is in all possible Shapes,
much OF it in the coinage OF the
Papa States OF Greece, Roumania, and
the Kingdom of Italy, a large part
more or less deprecated by abrasion.
Knowing the risks of fuctuation ia the
market value OF silver, and especially
alarmed by the enormous changes OF 1876
ri, the managers OF the bank have for some
time been trying to draw in their notes and
pay out their silver. They make little or
nothing from the notes. They are liable TO
lose considerably on the silver. For long
time their notes have been at par, and they
are anxious to reduce the volume OF the
notes and OF their dangerous specie as
well. But so far their efforts have been
almost completely in vain. You nave
already taken notice Of the failure OF
the efforts to pass silver at Bordeaux
and Lyons. Similar efforts, with like fail
ures, have been made at Dion. Marsellles,
and Rouen. We thus see that the eXperl.
ment has met the same fate in every part OF
France, equally in the agricultural re-
gions and in the manufacturing towns.
The simple fact is that everywhere the
French people are welded to gold, the
more ignorant by tradition, the more intel
ligent from clear perception OF its actual
present superiority as the material lot
money. They do not like silver because 1t
is bulky and announcement in use, and be-
cause they are afraid Of its depreciation,
and they feel, perhaps, without fully know
ing it, the pressure OF German and EnStlsh
sentiment in favor Of gold.
It might be inferred from this state OF
things that there is q marked tendency IN
the policy of France toward gold stand
ard. But this is not the case. The present
position Of the Government on this ques-
ton may be described as one OF unstable
equilibrium. In other words, the Govern
ment will not be in haste to take any decided
steps either toward the decentralization OF
silver or toward the repeal OF the present
restriction on coinage.