St. Landry democrat., 1878-07-06
REMARK ABLE.
An Inner View OF French Finance, Given the
Means the People Of France, Under
Adverse Circumstances, Became
More Prosperous Than the

|
Country that Sought to
Impoyerish Them.
Mr.. J. W. Schuckers (private secre-
tary to Salmon P. Chase, when finance
minister), is enabled to add this to his
| former valuable contributions to eco.
nomic literature by being in possession
of memoranda left by the late Mr. Balch,
of Philadelphia, who devoted much time
when in France to, personally conversing
with the leading fnanciers of that repub>
lie, from whose oral statement the
following is compiled:
ut became apparent very soon after
the beginning of hostilities between
France and Germany that the armies of
the empire were too weak (the military
organization having been worn. eaters')
successfully to resist thesure and swift adj
vance of the Germans upon the French
capital. Various inconsiderable encoun-
ters took place even in the last days of
July, which clearly foresbadowed the sub
sequent immense disasters that
overwhelmed the empire and end
ed in the conquest of France.
Ga the ID of August, 1870, the
advance of 100000 imperialists upon
Ssarbrucken without decisive results had
powerful effect upon the public senti-
ment of the French people; on the 4th
the battle of Weissenburg resulted in
the actual defest of their army; on
the 9th the battles of Woerth and
of Saarbrucken Height of Speich-
ern) ended in the beginning OF the re-
treat pom Paris, and on the 7th the city
was declared in state of siege. These
events followed one another with extra
ordinary rapidity, and amid the conster-
nation everywhere excited by them the
huate finance of Paris took the alarm and
afgreat anxiety grew up lest, with the
threatened destruction of the military
power of the country, the native indus
tries-the handspring and support of the
credit and grandeur of France-should
perish also. The French financiers--not
the French politicians-foresaw the inn
pending dangers, and with characteristic
sagacity and courage provided the rem
edy.
The managers Of the discount banks
Of Paris met together at the call Of M.
Pinard, of the Compton's d'Escampte,
and considered the state of the country.
The result of their conference was res.
olution to extend financial assistance
wherever it could be made available for
the general good. They applied to the
bank of France for help. The officers
OF the bank promptly responded declaring
their willingness to and desire to
make common cause with the banks of
discount, but said they could only do 80
in conformity with the Fundamental laws
Of their establishment, which restrained
them from making loans except upon
the security of three names of known
responsibility or upon prescribed col
laterals; but they would, the necessary
being met, extend sll the
aid in their power. They pointed out at
the same time the prime duty of pre-
serving the resources and credit of the
bank intact for the worst EMERGENCIES
The result Of this answer was that the
discount banks determined to become
indorsers for the advances made by the
national bank; and, accordingly, with
this cooperation Of the bank of France,
bills were discounted during the first |
week after this arrangement wss agreed |
upon to the amount of one hundred |
millions IA total OF say nearly forty mill
lion Of dollars 1.-THE banks doors being
kept open till ten o'clock at night, and |
additional clerical force employed, to
meet the requirements of this extra
ordinary occasion. | understand that
the discount banks made the advances
in the first instance, the national banks
rediscounting upon the Endorsement of
the discount banks. This is no new thing
in France. It happened in 1913 during
tle suspension occasioned by the po-
itical events of that year, when the
national bank, at its principal Office in
Paris and at its several branches, made
ike advances to an amount approxi>
mating to $50 100000. (Tooke's History
If Prices, vol. vi, Fp. 1851
The whole transaction was con-
Guided by the 17sh OF August, and
Il the presence of vast military
disasters and amid civil and political
unparalleled in the
history of modern nations!
Ito whom were these immense ad-
7ances made? To merchants, manufac-
urers, shopkeepers, artisans and me-
'hanics; to any citizens, indeed, whose
books showed that their business during
sufficiently long period had been fairly
and whose industry and
integrity were established, and of course
much Importance was attached to this
after fact. Many of the advances to
rtisans and mechanics we're made with
'ut Endorsement or collateral at all on
10 other security, indeed, than fair
BUSINESS and an honest name. The
fleets of this extraordinary operation
rere of commensurate nnhiic inanor- |