Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-09-05
The Example Of France.

An Enquirer" asks US the following
questions with reference 10 the example
OF France" which is freely and approvingly
quoted by greenback papers and speak
ers -
!. l am told that France maintained great
prosperity after the war with Germa ny, by is
suing go per inhabitant of irredeemable paper
money, which was increased and not contracted
In volume, and maintained 1T par with gold
simply by receiving it for taxes and duties. Is
IL 50:
Ans. The French government never is
sued dollar OF paper money. Under the
eXiyencies OF war, the Bank OF France was
authorized to increase its ordinary circula-
ton from 400 to 6i0 millions. [maklng the
paper money about SIC per inhabitant) on
condition that II loaned the government a
certain pOportion, to be repail in install
ments, and called in its circulation as fast
as government made its payments. and re-
sumed specie payments Jan. lst, 1873.
Under this policy the bank maintained
large specie reserve, and made such prep
arations for specie payment that the bank
notes under temporary suspension of
specie payments, deprecated only five per
cent and rose to par before specie pay
ments were consummated last fall. From
1878 to 1873 the bank steadily contracted
its circulation, so that at the beginning of
the present year, it had only 450 millions
(Sll per inhabitaDO outstanding, and
since January last not one OF these has
been a legal tender. II the paper money
of this country had been reduced in volume
rs much in proportion as has that OF France,
We should to-day have only AS millions of
paper money (Sll per inhabitant) instead
Of go millions (sl5 per inhabitant.) In
other words, France has ~ contracted
her paper money more than One-fourth
since the war closed. CD France has only
Sll per inhabitaEt OF paper money, while
we have els. (3) France issues no goy-
ernment paper money, but |, Is all issued
by a national bank. a. No paper money
In France is now legal tender. (5) France
passed resumption act four Years ago,
and resumed specie payments last January
without difficulty and but little call for spe
Gle.
Didn't France pay of her debt in paper mon
ey like our greenbacks?
Aus. No. She has paid of scarcely any
Of the principal OF her debt. She paid her
Indemnity to Germany, and the cost of the
war by the proceeds OF per cent. bonds,
which to-day are outstanding to the smount
Of over 1895 millions dollars-more than
twice as much as our public debt, with
more than twice the annual interest.
France pays both principal and interest of
her public debt in gold, notwithstanding
her bonds were issued when paper was a
legal tender; and her annual payments for
interest alone are much larger than our
payments for both Interest and large re-
duction Of principal.
How does It happen that France has been
prosperous after her great war, while we have
been in trouble for 6ye years!
Ans. The French war lasted only six
months, and therefore did not exhaust
France so seriously IS our four years. war.
Besides the French war closed only eight
years ago, and ours thirteen years ago. 1t
took us nearly eight years to experience
the whole Of the evil effects OF our war, be-
cause the speculation and unhealthy stim-
ulation arising from the war did not reach
its crisis until It had this run. The French,
also, have felt the stimulation of war in
duences until within year. Now the
crisis has been reached, and French indus-
tries are suffering IS ours are. Bot France
will not suffer as much As We have, tor the
reason that her currency has constantly
looked TO q specie basis, and her people
live more economically, and are sceustom-
cd to smaller wages than we are. Forty
cents day is regarded Is good pay in
France.- Lewiston Journal. )f 81