Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1878-09-12

Our GREENBACK friends are ali
laotinG France as authority fer their
IDEAS. claiming that France has an i'm
aense circulating medium, based On
the paper system. Hon. 5Ir. Wash
burne, who has recently returned from
the position Of Z. 5. Minister t.
/ France, gives few wholesome facts
that sAeaIl be read and known by al:
a. 1T the outbreak Of the Fran,
oo-German war, in 1870, the paper cir
calatinn OF the bank Of France was
/ sol .OGU.C01, the bank adding :
specie reserve OF S229. 600, eco, equal
90 % cents on the dollar. Thers wa.
10 other bank Of issue in France, AM
the lowest notes izsug,i were 100 frame
or $40. The government issued no
paper money then c. since. cd The
:. vernmant being in great went OF
n.o4cy; authorized tie bank Of France
10 issue It's notes to a sum not eXcce4-
ing 3,-JO.Jt0.0Q0 francs, or a0oa
SG+a, Gy0,Ot0 such NOUS to he le-.a.
lender, ana specie payments being 81.
PENDED. Of TINS Issue of bank paper
the government borrowed in all l. $50
GOO, coo francs or S3G5. 000, 600. the
same to be repaid in seven annual in
staIlmen5s nf about z333. coo, go francs
each. or ABOUT loco. 00U. It was
provided BY law, however, flat as soon
as the government shuu'I ay pavu.gpt
reduce the tebt ue to bank 10
$50, 0G3,0o#, ~ 90 . 600, Tie
notes AoaLd cease 10 be legal tender.
and tho banks should res.suo sg...,
payments, the time being Jan. /, Io1s
The war was hardly over, aud the j
demnity to Germany put in process 9.
payment, before the government began
its rcpayments to the banks rs fast
as the govern mcnt paid over the notes
to the bank. they were cancelled ANA
the bank began another form Of re-
duction. 1t first called in the 4-ffauc
notes, redecming item in silver soon
after, and in order thG 23-franc. 90
franc, 200-franc and 50G-franc notes
followed. They were bought up and
destroyed. Is } GA the first Of
January, 1878, the bank formally re-
sumed, as it had long before practic-
ally done, specie payments, and within
a month nearly all the extra rdinary
issue Of paper put out during the war
had been taken up and destroyed.
The bulk Of the regular issues # the
bank now IS in notes Of the denomina-
ton Of $50, $500, $500 each all
small money is in silver and gold.
The present average note circulation
Of the bank Of France. including what
is held in the bank itself, is $3.50, coo, :
GOO, ali Of which is rcdrcmablo on de-
mand in coin, and no part Of which is
legal tender in France except siIre~
and gold.
At no time was the paper money of
France in excess Of &G40, eco, coo ;
and the process Of reducing this began
Immediately after the close Of the
German war. The bank and its forty
! OF more DfancnCS nave now only G&JU,
000,C04 Of bank notes outstanding,
for the redemption Of which It holds
from 50 to IS per cent. in coin and
this paper money is not legal-tender tc
any amount, and is by law redccma5lc
on demand in coin. The issue Of bank
notes may be increased to @GJ0, 600
! 600, but the bank must, like the bank
of England, have the specie with
which to redeem it, and the paper it
self depends on the solvenoy Of tn,
bank, and not upon any governmental
support beyond being a depositor in the
bank The paper itself IS not lega
money, and nothing is now legal
tender in France except gold aud sill
yer. Keep these facts in mind.