Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-01


/ My grecnback neighbors are continually referring
to the financial policy and example of France,
snscly superior 10 ours aud having given that
country immense prosperity, while ours has been
plunged into despair These greenbackers tell me
that France issued more paper currency than We did
and held 1t AT par with gold, without redemption In
CON- until she had paid of all her d.b.n this paper
money. As the senior editor Of the journal recently
spent some time In France, probably he can give us
some information ON these points, rs many of the
rank and Tile of the greenbackers sincerely believe
the representa- ons which their leaders (whO know
better have made to them.
J. 4. Bu,kNAM.
Mechanic FALL. July %.
REPLY.
When we were in Paris we took special
pains to obtain from official sources, through
United States Minister Noycs. a full state
ment of the financial policy of France since
the close of her six months war with Ger
many in 1901. To pay her war expenses
and the large Indemnity exactcd By Germany.
France issued bonds, or rentcs, bearing ON IN
average per cent. interest, to the amount of
about si.100, 900 nearly twice as much rs
our war expenditures. Possessing the wealth
of an old country, and freedom from croakers
to cry down her credit, the bonds of France
were all promptly purchased by her own pes-
3 PIE Inc anu Interest OF tnlS utbt
might have been paid in silver, and even pa
per, on as good grounds as claimed in this
country. But the nation has thought it the
wisest policy to pay both in gold without even
suggesting the possibility of any other course.
Instead of having paid off her debt. it has
been reduced only few millions, and at the
date of the last statement was 81 69j 900. 900,
against 81, 900, 900, 600 United States debt.
The French government never issued a
dollar of paper money. Under the exigen-
cics of war in 1870, specie payments were
suspended, and the Bank of France-the only
bank of issue in the republicans authorized
to increase its circulating notes (made legal
tender) to about $40, 00O, 00O on condition
that it loaned the government about
S306, 100000, the same to be repaid
in seven annual payments. 1t was also
provided by law that when the government
had reduced it debt to 500, ZOO, 900, the notes
should cease to he legal tender; and also that
on Jan. |, 1873. specie payments should be
resumed. These provisions for early redemp-
ton prevented the French bank notes from
deprcciating more than per cent. As fast as
the government paid, the bank accumulated a
specie reserve and began to call in its notes
first of all the five franc (Sl) pieces, then the
81 and $40 notes followed. contracting its cir
culation by the latter part of 1877 to about
manned. Specie payments were successfully
resumed Jan. |, 1878, and have been easily
maintained since that time. Nothing is now
legal tender in France except gold and silver !:
and no notes are used below 81 and very few
below $50. There never was much paper
money in France as there has been all the
time in this country since 1864.
All the money used in France under the
denomination of 81, is silver, which gives a
chance for "A larger use of silver than could
be employed here where we have small notes
We rarely ever saw paper note used in
France-gold and silver being the almost uni
versal currency outside of large business
transactions. Notwithstanding this advan-
tage of France she has coined no silver ex-
cept for small change for three years, and has
recently agreed to continue the suspension Of
silver coinage, in common with other men,
bers of the Latin Union. The government
is anxiously watching the course of the sill
yer market in the hope that something will
turn up to relieve the country of the difficult
ties arising from silver coinage.
For several years after the close of the
war, business was very good in France The
brief duration of the struggle and the re-
markable economy and industry of the
French mitigated and delayed the usual evil
results of war; so it was not till last year
!
France. But during this period of so-called
prosperity so cents per day was the average
wages of workmen. The past year French
industries have been much depressed, in COM
mon with those of other countries of Europe
and thousands of wOrkmen have been out
of employment. Few men are getting
more than 40 cents per day, and thousands of
women are at work in the fields for 10 cents
to go cents per day. The great body of
working men live on black bread and vim
egary wine. Happy France!" The mon
archists are endeavorng to persuade the
FrenSh people that republican institutions
have caused 'hard-times," and that the rem
edy is to vote up the Empire. Nobody has
ever suggested the contraction or ere
sumption theory of hard times.
The public expenditures of France are
very much larger than those of this country,
as she maintains an army of 10000 men,
Taxation is onerous, and extends even to
everything that is eaten and drank. During
the past year the imports have largely exceed
ed the exports, and there has been deficit of
several millions in the revenue. Were it
not for the remarkable industry and econo-
my of the French-an economy by which
they live on what we should throw out of the
kitchen window they would be in bad
way. With such economy as is practiced by
everybody in France, we should soon be-
come the richest nation in the world.