Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-06-20
French Finances.


Those who cali themselves Green
hackers are still harping on the beau
ties of the French financial system
and the French method of sspaying
off" a war debt. We have invariably
spoken of and regarded the active
Greenbackers in this county, with a
few exceptions, as honest and gener-
ally Intelligent men but if they per-
sist in either being misled or attempt
ing to mislead the public after the
facts have been shown to be the very
opposite of what they have been stat
ing we assure them they will eventu-
ally lose character. Men, however
heretofore regarded as honest and
wise, cannot persist in dishonest or
erroneous statements without in time
losing their former well-earned repu-
tation for honesty and good sense.
We say this in all frIendliness. We
desire that those men should save
their regulations and influence. We.
showed few weeks ago that in ev-
cry essential point the French fnan-
cial system was antipodal to that
proposed by the Greenbackers. If
we make that showing so clear that
the ordinaryreader can see we are cor.
rect, what must be the effect even 90 so
conscientious politician as un.
Gle Luther Brown or a man of
such reputed integrity as Mr.. J. A.
Kilbourn, if they while pretending to
want gre enback legal tender only, TO
bank money, no bonds not taxed, can
collation. of bonds due by payment in
greenbacks, no resumption of specie
payment-we say if they pretend
these are the planks in their platform
and they yet hold up the French sys-
tenn as their model, how when we
show clearly that the French method
Id in every respect the contrary
can they expect to sustain their repu-
tations for honesty, candor, good
sense and consistency We shall
here say something more of the
French system. France has not, nor
ever had, since the explosion of the
disastrous John Law bubble, any pa
per money corresponding to our
greenbacks Since lS48 not dollar
of paper money has been issued or
circulated in France except Bank of
France notes, and this bank pays rev.
enue to the Government on its issue
the same as our national banks pay to
our government, its circulation is
limited in like manner, and in other
respects it takes the place of our ma
tional banks but in the important
particular that the Government does
not make good to the people losses
on those notes they do not come as
near being "greenbacks" as our bank
notes do. Now if this is true what
must we think of the Greenbacker who
says, "Give us money like the money
OF France ?" Again the cry is that
there is not enough currency in this
country, and they say, "Let us have
plenty OF paper money like there is in
France !" The population of France
does not vary widely from that of this
country. 1t is an old country where
there is much moro wealth and there
fore much more currency needed.
Yet what is the fact? "The highest
point attained by the paper-money
emissions was 1902, 900, OOO'-every
dollar Of it in the bank notes, and not
dollar of specie in circulation. In
this country since the war the circu.
lating medium has never been less in
the aggregate than 800, 900, 900. Now
gentlemen, is it hypocrisy or ignor-
ance makes you say, "Let us have
plenty of circulating medium like
there is in France? If it is neither
hypocrisy nor ignorance what is it?
Again it is said "Let us pay off our
war debt like France did-"pay
in Greenbacks, cancel interest bear
ing bonds" etc. France had to pay
war indemnity Of $1,10O,O00, 900
to Germany. Bismarck exacted it in
gold and silver. The French peo-
pie paid it in gold and sill.
yer. They did not issue "greenbacks''
TO the people and say, "Here, you
give us the specie for these Govern.
ment notes" They issued bonds, and
they pay on those bonds per cent.
interest. For the bonds they received
but 63 per cent. in specie-thus pay.
ing tax to the bondholder, on their
issue, of II per cent. Those bonds
are drawing higher interest than
bonds now offered and taken in place
of old bonds in this country and they
are not taxable. Well, what snail
we say of the men, long reputed hon
est fellows, who say, "Pay off your
bonds with greenbacks and tax the
bondholders like France does ?"
In lS4s the Bank of France OBJ.
tanned leave of the Government, ow.
ing to political troubles, to suspend
specie payment, and its notes ere
made legal tender. But when the
government gave this aid it lin ted
the banks issues to $7O,0OO,o 900. This
limit raised the notes to par. The
next year the limit was allowed to 90
up to $l05,000,000, and in 1850 the
limit was withdrawn, but when that
was done the Government required
the bank to resume specie payments.
In consequence of the war with Ger
many the notes of the Bank were
again made legal tender in 1870. but
not without again limiting their cir.
culation. This limit was than fixed
at SS60,000,00o, and from time to
time raised until in July 1872, circu-
lation to the amount of S64O, O0o. 900
was authorized but never reached the
greatest issue being as before stated
S602,0o0,000 in November, 1873.
France again made law requiring
resumption of specie payments of the
Bank to take place January /, 1878.
In the face of all these facts what
must we think of the "honest men"
who say, "give the people all the cur
rency they can use and stop resump-
ton, like France ?" For shame, gen.
tlemen, if You are honest, candid, con.
scientious and wise, shut up on your
French methods and save your repu.
tations.
If you think there is any secret
which gives the French people an ad.
vantage over those of the United