Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-15
The Paper Money of France.

The average greenbscker, fresh from the lee
lures of Leo Miller, Moses Hall, and others like
them, will assure you that France is out of debt,
able paper money, such as the nationals have de-
vised rs a. panacea for our financial troubles.
Now listen to Minister Washburn, who by long
residence in that country is qualified to speak uD-
derstsndingly upon its financial management:
A correspondent seeking information writes US
asking several questions, and, as the inorDstlAn
may he useful 10 Others as well rs TO him, we an
sger il this form. lie asks; o. What was the
circulating medium in france prior TO the Ger
Iuan war, aud was II issued by the Government or
hv the banks, and how much was 10 circulation ?
(2) Did he French Government during the Ger
man war, issue paper money, making it legal
tender If not the Government, did The bank,
and was il legal tenderi (3) Has this paper
NOR eN been redeemed 10 e IN siuce then
az At the on break of the Franco German war,
IN 1870, the paper circulation of the Bank Of
France was S2jl 900 900, the bank holding spe-
Gle reserve OF $40 600 600, equal to 80 certs on
the dollar. There wa no other bank OF issue IN
France aud the lowest notes issued were for 100
francs, OF $50. The Government issued no
paper money then or since. (2) The Government
being in great want OF money, authorized the
Bank Of France to issue IT'S notes to sum of not
exceeding 100 O00,010 flames. or about 500 ,0O0.
600 such notes to be legal tender, and
specie payments being suspended. o. This ISSUE
OF bank paper the Gov rnment borrowed ia all
$50, 1000 francs, S3O6, 100000, the same to
De repaid III seven annual in>lailmeuts of about
223 900 francs each, ~ S4i 100000. II was
provided by law, however, that IS the
Government should ty patmeuts reduce the debt
due the bank 300, 900 900 francs 500 900 600,
the notes should 10 he iegdi tender, aud the
bank wss 10 csune specie puy nents, the time be-
ing Jan. |, 1873. The was hardly over and
the indemnity to Germany put 10 process OF pay
ment, before the Government began It's repay
meBts to the bank. As fast as the Govern hent
paid over the notes to the banx they were cancel
led and the bank b. gan smother fOI III Oi reduction.
IL first called IN the five franc notes, rcdeemug
them IN silver; soon af or, and Ia order, tue %
irauc. so franc, 2O0-ranc aud 5OO-fsnc notes lol-
lowed. They were bought up anu destroyed
80 On the first Of January. 1873. the bank tor
maIly resumed, rs 1t had long before practically
done, specie payments, and within a month nearly
ali the extra oriinary issue Of paper put out dur
ing the had been taken up aud destroyed.
The bulk of the regular issues of the bank now Is
10 notes OF the Ut denomination of $50, 500 aud
500 each all small money is 10 SILVER and gold.
line present average note circulation OF the
Bank of France, Including what is held in the
baak ITSELF Is S450, O0O 900, all of which Is Ge-
deemsble on demand III CON- and no part of which
is now legal tender in France excep. silver and
gold.
At no time the paper money of France in
of 500, 900 5000; and the process of educ
ing this be- al immediately after the close of the
German The bank aud its tory or more
branches have now only Si5O 900 900 of bank
notes outstanding, for the Redemption Of when 1t
holds from IS 10 % per cent in CON; AID this pa
per money not legal tender 10 any amount,
and is by law redeenabe on demand i'll eoiu.
The issue OF bank notes may be increased to
$3.50 600 900, but the bank must, like the Bank of
England, nave The specie with which to redeem
1t, and the paper itself depends the solyency OF
tue bank, and not upon any governmental support
beyond being ueposltor the bank. The paper
itself Is not legal money, and nothing is
legal ender III + ance except gold aud SILVER.
Keen lhuse TACT, In mind.