The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1878-03-25
Official Press Of King County.
Monday, March %. 1878.
FRENCH AND ENGLISH SYs-
TENS.

Though the French people are econ
omizers. the English are economists.
The French have not yet practically
mastered the details of banking science
in the same degree of perfection, TO
which il has been carried by the Brit
ISL. The French people have always
ieen in measure their own bankers.
instead of carrying on nearly oil their
commercial transactions by means of
book accounts. bank cheques aud bills.
As result, the French have always
been discovered in every great financial
emergency to be a people of greater
pecuniary resources than they were re-
puted to be, whilst England. by reason
of the greater mobility of her funds
from their complete concentration and
centralized control. has always been In
current affairs the stronger financial
power. This could but result from the
practical duplication and re-duplication
Of every dollar, in consequence of being
held in fiduciary hands. where it may
DO kept in circulation necessarily
ready to answer every mans specie re
qnirements in a moment. through re-
preventative issues of bank vouchers of
some kind. based upon it as a security.
But there is this to be said of the
English system If it is the moro eco
nomical and furnishes q great multi
plication of the power of money, it 10
likewise the most risky. That system
might be compared to vessel making
great spread of canvas on O little
hull. while the French moro resembles
heavy barge. that may run deep in
the water. but cannot be upset. Not
seldom, the British bankers. like VOL
sey in his sea of glory" venture " far
beyond their depth" Then when one
part of the edifcc of credit crumbles
and falls, there is no telling where the
tornado of ruin that is caused, involving
wide spread destruction, will stop.
When the plumnet begins 10 be
thrown, there is no determining just
how far down it may be before the solid
bottom is reached Credit is the
soul aud basis of the whole system.
Its perfection and universally is the
glory and greatest honor of the Brit
ish people. II has been possible in
Great Britain because the drift Of pub
lic sentiment in that country has been
TO hold 1t shame and crime for
man 10 take what does not belong to
him. 1t requires not only very perfect
laws, but also very high standard Of
public morality where the whole peo-
pie will put their whole cash capital
into common pool as it were for the
common use aud service Mt the risk
that If any one leading creditec under
the system proves uncreditworthy, the
standing and capital of many if not
all arc jeopardized through him. The
system makes credit OF least an equal
factor with cash in business. This is al
together practicable and just AS sub
stantlal rs an all cash basis, provided
there could bs guarantee that the
credit element would not be over
strained. and the reserves always held
by IN times of seeming calm, which
would be necessary in the event of
sudden panic or emergency.
The French system was the out
growth of the oppression and infamous
corruption of the French court under
the monarchical regime. when war. ex-
iravaganoe and official rapine made
hoarding necessary. The English sy,-
tenn was fruit of her free popular
institutions and constitutional regard
for the sanctity of property rights.
The universal diffusion among the
people of the French resources enabled
that people to accomplish prodigies in
their revolutionary struggle when ar
rayed in selfdefenss and in the cause
at popular freedom. but In the contest
later which Napoleon led for the con.
quest of the world, the superior might
of England's credit was ,riumphantly
displayed, II kept armies in the field
year after year and bea. back the
forces of the conqueror step by step,
rallying the peoples 10 her standard by
the prestige of her soldiers. that paid
for everything they took. and met with
punctuality the obligations that they
made.