The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1878-11-01
FRENCH FINANCE.

The great fiscal instrument by which
the financial interests of France is regu-
lated is its National bank. 1t was found
ed in 1896 as private institution, but
with a right to issue notes payable on
demand. Its capital, originally $6,00O,-
600, has been increased at various times,
and in 1857 was fixed at $162, OOO, coo.
At the same time its charter .was extend
ed TO 1897, and its monopoly of the right
to issue currency first granted to it in
1903 for fifteen years, was continued to it
by the renewed charter. Its first loan to
the State was made in 1903. The amount
was $8,000,000. In the same year it es-
tablished provincial banks. During the
reign of Louis Philippe it made numer-
GUS loans to the city of Paris. AT the
revolution of 184S run" was made on
the bank, the coin of the provincial
branches and finally the bank itself was
nearly exhausted, and the provisional
government authorized it to suspend
specie payments and to issue notes which
should be legal tender. The govern
ment was led to take this step chiefly for
the reason that it was dependent on the
bank for its current expenses. At this
period the suspension of specie payment
was of short duration. The management
of this institution since the outbreak of
teresting study to all financial investi-
gators.
Before the declaration of war, July
9th 1870, the bank of France had in cir
culation $3.50 100000 of currency. Its
coin reserve was 1927, 100000 The lar
gest denomination issued was $50 In
September the government authorized
the bank to issue $1S9, 100000 additional
notes and to suspend specie payments.
Its currency was also made legal tender.
The government then borrowed $780,
OOO, 600, to be returned in seven yearly
payments. When this loan had been re
duced to $60,OO0O0O, the legal tender
was to become imperative, and specie
payments were to be resumed, Jan. 1st
1878. The payments of the immense
war indemnity to Germany still further
depressed the finances of France, but nc
change was made in the policy of the
country. Bonds were issued in denomi
nations suited to all classes Of investors
and were readily taken by the people
The debt due the bank Of France was
paid according to the terms stipulated
The excessive issue was cancelled, and
the bank found itself in situation tc
resume specie payments some months
before the time fixed by law. On Nov
| Is, 1877, the circulation of the bank Of
France was S491 600 900. Its reserve al
that time was $3.50, 900 in silver, and
$277, 900, 900 in gold. 1t was estimated
that there was then in the possession o.
private persons $3.50, 100000 in coin. L
will be seen that by resumption in
France was understood the possession o
coin reserve larger than has ever beer
thought necessary in our own country
According to recent statements, the issue
of currency in France is $40. 000, 900
This amount can be increased to $3.50,
000,0 if the amount of coin is CORES
pondingly increased. The fact that thu
French use checks and other commercia
conveniences of that kind far less thar
the people of this country and Grea
Britain partly accounts for the necessity
of large coin reserve.
| AS the population of France is mo-
much over 81, 0O0, 900, its per capita cir
culation is about $36. Perhaps it serves
to explain the willingness with which
the French people made whatever sacri
fees was necessary to bring about a re
turn to specie payments that the govern
ment has made great efforts to advance
all the industrial interests of the coun
try. Large sums have been appropriate
ed to the purpose of internal improve
ments. By this means employment has
been afforded to large bodies of men
and the constant circulation of whatever
currency was in the country has been
maintained.
French habits of economy are also mo-
to be left unconsidered in any theory as
to the present prosperity of France
Some expressions of GuizOt have recent
ly been brought to notice in which he
bears testimony to the superiority of his
countrymen in this respect over all othel
nations. Whatever we may think as tC
initiating the "paternaP' character of the
French government, the economic vir
adoption.