The Hickman courier., 1878-06-28
REAIARKABLE.

! AZ Inner View OF rfeh~n finance -. Cs,yao - +,
Means. tn. People q France. Under
Adverse Circumstance Became
More Prosperous Th.n II.
County that ssssb, 10
lnpoyerish Tssa.
Mr. J. w. schuckea (priyate secre.
tary to Salmon P. Chass, when finance
minister), is enabled to add this to his
former valuable contributions to eca.
nomic literature by being in possession
of memoranda left by tnsl lste Mr.. Balch
of Philadelphia, who deTpted much time
when in France to persosally conversing
with the leading fnsncissof that repub,
| lie, from whose oral atatement the
following is compiled;
1T became apparenteery soon after
the beginning of hoslities between
France and Germe any Il the armies Of
the empire were too Sk (tbe military
-.-sas.1 49, ~
vance of the GermsssEsn the French
capital. Various inconiderable encoun-
ters took place even in ne last days of
July, which clearly foreshdowed the sub
sequent immense disasters that
overwhelmed the empre and end
ed in the conquest of France.
On the d of Augut, 1870, the
advance of 100000 imprialists upon
Saarbrucken without deci.ye results had
q powerful effect upon tn, public senti-
ment of the French peope; on the 4th
the battle of Weisseubug resulted in
the actual defeat of thir army on
the 9th the battles OF Woerth and
of Saarbrucken Height of Speich-
ern) ended in the beginnins of the re-
treat upon Paris, and on the tn the city
was declared in state Of slge- These
events followed one anotherwith extra
ordinary rapidity, and amidthe conster-
nation everywhere excited By them the
buate finance OF Paris took th alarm aud
a'great anxiety grew up les, with the
threatened destruction of he military
power OF the country, the mtive indus
tries-the handspring and support OF the
credit and grandeur of Frnce-should
perish also. The French fnnciers--not
the French politicians-fo the inn
pending dangers, and with Characteristic
and courage provided the rem
edy.
The managers Of the discount banks
of Paris met together st the ;ail OF I.
Pinard, of the Compton's d'Escampte,
and considered the state OF the country.
The result of their conference vas a res
olution to extend financial assistance
it could be made availsble for
the general good. They applied to the
bank of France for help. The officers
ot the bank promptly responded declaring
their willingness to md desire TO
make common cause with the banks Of
discount, but said they could only do 80
in conformity with the fundamental laws
IF their establishment. which restrained
them from making loans except upon
the security OF three names of known
or upon prescribed col
aterals; but they would, the necessary
being met, extend all the
aid in their power. They pointed out at
The same time the prime duty of pre-
serving the resources and credit ST the
bank intact for the worst emergencies.
The result Of this answer was that the
discount banks determined to become
ndorsers 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 was agreed
upon to the amount of one hundred
millions "a total OF say nearly forty mill
ion of dollars l)-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
n the first instance, the national banks
-ediscOunting upon the Endorsement OF
-he discount banks. This is no new thing
n France 1t happened in lS48 during
lhe 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 $50 600, 900 (Tooke's History
ot Prices, vol. vi, Fp. 5S-590
The whole transaction was con-
GUIDED by the 18th OF August, and
n the presence of vast military
disasters and amid civil and political
connections unparalleled in the
history of modern nations
TO whom were these immense ad
Vances madeT To merchants, manutac
-urers, shopkeepers, artisans and me-
to any citizens, indeed, whose
books showed that their business during
! sufficiently long period had been fairly
and wbAa, industry and
were establsy. and of course
much Importance was attached to this
after fact. Many Of the advances to
artisans and mechanics were made with
put Endorsement or collateral at all on
40 other security, indeed, than q fair
business and an honest name. The
effects of this extraordinary operation
we're of commensurate public impor-
,ance. In spite of the most frightful ard
military and political ca
amities, and the gradual environment
IF the French capital by the German
nests. the trade and labor of France were
and even stimulated and It
was altogether owing to this patriotic
and most sagacious audacity that, in q
period os special and terrible trial. no
or industrial failure occurred
md that France was afterward enabled
% provide for the payment, without
serious difficulty, of an indemnity in
.ended permanently 10 crush her, and
which excited by its magnitude the as
constituent of the whole world"
Mr.. schuker's remarks: 1T remains
o be added that st the date of Mr..
Balch's recital of these facts to me in
1874 only about $4,000 of the great ad>
7ances made, as above stated, were still
unpaid. and this small sum was due