The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-08-08

-. S.s SmGe WEltluS lHS toiSSoia.5 80, .
come across the following article from tue
f.n,cayu 1ysbnrs, gtfich ss6 interesting
and fun an account soi The paper money
which Is, now circulating In France, an Nc
bow 1t came to be as It Is, and no more t'an
It fs, that we give the article In full ~
correspondent seeking information
70 rites me- asking several questions, and, as
the information may be useful to others asi
well az to him, we answer in this form.
He asks:S fl) What was the circulating me-
dunn I'll, France prior TO the German War,i
and was it issued By the Government or ~.
the banks, and how much was IN circuia.
tionP (2) Did ! the French Governments
during the German war issue paper money.
making II. "a legal tenders II not the Gov f,
eminent, did the bank, and was y :. iessa iI
tender? .(3), Has ibis paper, money Deeni
redeemed In coin since then ~, ~
~ .Ae the Outbreak Of the Franco2Gers
man war III 1870 4 he paper circnlation -, 81
the Bank OF France was 2ol,V0o.ysyao, ,tne
bank holding specie reserve OF szzs,9Sgv,-
0c0.a equal To ninety cents on the uonsa:
There was no other bank q issue 70 france NJ
ana the lowest, notes issued were ior IVY
francs, or $40. The government assue9 1 no
paper. money, then 81, since. u ez).ine no o,,
ernmept,; being In great Wanb .oi anonG =,
authorizea the Bank of France to issue us
notes no q sum NOT exceeding 8, 200,OOO,0oe
,irancs,aer about $40, 100000, such notes 10
&c q leeaftentfer, and specie.pay menus Deihs
suspended, > or this issue OF bank paper Inc
Governmelt borrowed IN all 1,66o,O0O,UVV
francs. j or r 5000, 1000, 900, the same TO- De
repaid in seven annual. ,instalments O.,
saboI,t '223. 0O0, 900 francs each, or S44,O0O,-,
400. lit was provided by laws however,
fbat as SOON as the Government, should Dy
PAYMENTS reduce the debt due ,thei bank to
400, 00O. 900 francs, or $50, 000, 900, the notes
should cease To- beReddt fendeTr, and, tile oark
was to resume specie.pay mentS,T tae tine
being, Janury i, 1873. 1.-The .war'Was hardly
over. and the indemnify to Germany, pul,
in process Of payment, before the HoVegniI
ment benin its .repayments- to--Lne-0an &.
as fast as the Government paid over tne
notes to the bank they were cancelled, and
thk hang Began another form OF reduction
It..first. called il tie 5:franc notes, re-
deeming them jim silver ), soon after, and IN
Order, the 25-ffanc, 5u-lranc, 200-franc, and
500 irancg,notes wi followed. Nphey were
bought up and destroyed, ,.l3) On the lst
of january" 1878, the bank formally re-
sumcd, as. 1T had long before practicaliy.
done, specie payments, and within monga
nearly all the extraordinary issue OF paper
put out during the war had been taken up,
and destroyed. The bulk of the regular
issues of the bank.now1ls in notes OF the
denominations ofS20s 300. and $500 eacn ;
ali small money is SILVER and gold. 80
The presents average note circulatlon or OF
the Bank OF France Including what is held
in, the bank ltset, is: $450.000. 00o,. all OF
W hieh!is retieenabIe ON demand Ia coin, and
nd part4 81 which IS nova legal tender.
Nothing is nowdanlegal tender inhFrance'
except silver and gold. ten yr
l!lItthi no. time was the paper money OF
Fra,lee in sxcess ,of :ss640, 200, 900; and the
process of reducing this began Immediately
after tile close OF the German war, Ihe
hank and its forty or more inches have
now only iS450; 1000. 900: of bank notes out.
for the redemption aof which Ii
holds from 50 to SO per cent. in coin ana
this paper money iss'not legal tender TO
any amount, and is by law redeema9le on
demand in icon.i Tie issue. aofnbank notes
ma be Increased 10 $500, 0e0,eo0, But the
bank must, like the Bank Of England, nave
the specie with which to- redeenliit, and the
paper itself depends on the soiYency' OF tue
bank, land. not .upon', any governmental
support beyond being n depositor ~ the
bank. The paper Itself. is not legal money,
and nothing is now aalegal tentter'ln France
except gold and silver. .,kssYp those facts IN
min "a. u! ,;ui. ..s 80 no dr. 80