New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-04-17
FRENCH FINANCES.

TRENCH FINANCES
For many reasons the finances of France are
especially interesting and instructive 10 peO-
pie of this country. The widest vagaries of the
inhationists have been defended, though most
improperly, by citation of real or supposed ex-
perience in France the coinage of silver was
thought desirable here mainly through mis-
taken idea of the past experience and present
operations of France and the conduct of the
French authorities in the management of the
public debt and in the adjustment of taxes has
often been held up as worthy of imitation by
the United States. While there have been at
tempts to defend the most absurd errors by ref
erence to French experience, it is updeniable
that the history of French finance is in the high
est degree instructive to the American student
or statesman who examines it with candid mind.
The annual report of the Bank of France for
1879 shows with great wealth of detail the OPP
erations of the bank during that year, and gives
much information such as has never been OBJ
tanned in regard to operations of the Bank Of
England, or the banks of this city or country.
The aggregate OF trade bills discounted during
the year was 1878, 200, 900 in Paris, the num-
Der being 3,902,213 and the average only
$171 80 per bill by all the branch banks
4,169,292 bills were discounted, amounting to
$773, 800, 900, and the average was 1886 Copper
bill. At glance this shows, to one at all famil
lar with banking operations here or in London,
that the dealings with the banks in France are
on scale which would seem insignificant else
where. The loans and discounts of the New
York banks, for example, average nearly
$500, 100000 at each weekly statement, and
must amount during the year to many times the
aggregate Of bills discounted at all the banks in
Paris but the difference s doubtless much greater
in the average amount Of bills discounted than
in the number of the bills. Differences Of such
vital Importance should not be overlooked, as
they usually are, In discussing the value of diff
erent systems of currency or of banking to the
two countries. The maximum OF trade bills
discounted at any one time at Paris and at all
the branches was $172, 100000 in November.
and the minimum 974, 100000 in March, 80
that it may be inferred that the average dura-
ton of bills discounted was not more than about
one month. The proportion of bills refused was
O.42 per cent in Paris and O.65 per cent in the
year preceding. The number of borrowers at
the end Of the year was 1901.
For such a commercial system as these bank
ing operations disclose, the currency seems to be
well adapted. The amount of notes Outstand-
ing at the end of January last of each denOmi-
nation, was substantially as follows: 1877, 44S
of 81 each 335, 635 of "a each; 27,323 of So
each and 2O7,516 of $40 each, making in all
only 1888, 665 francs, or about So, S37, 1873 in
notes of $40 each Or less Of the larger notes
there were 5,716,919 of 800 each, 716,990 Of
800 each 1871, AIT Of 5000 each, and of
ST 900 each. No further explanation is needed
of the ability of France to hold in circulation
large amount of silver coin. But upon COMPARE
son of these figures with those which show the
enormous volume of small-note circulation in
this country, it will be seen at glance why it
has been found impossible to force large
amount of silver coin into circulation here.
The taxes paid by the Bank of France, with
all its branches, amounted to only 1,975,076
francs, or about $395,00O, in the year 1879
The capital and undivided profits are about
19O,502, 900 francs or 1873, 100000, so that the
burden of taxation for all purposes was only
about / per cent When this is cOntrasted with
the barbarOus taxation which banks in this
country are forced to bear, it may be easily I'M
derstood why banking capital does not accumu-
late more rapidly here, and ia found insufficient
for the needs of the community at so many Pc
RODS of str1ngency. The Legislature Of this
State, since it Is obliged to devise some new law
under which National banks of New-York can
be taxed, if they are to be taxed at all, may
wisely consider whether it is wise to impose
upon banking capital here burdens SO much
heavier than those borne by such capital in
other great commercial cities.
The Bank reports that Sin less than six
months the reserve of gold lost 3OO,00O,OO0
francs, exclusively taken for export, while the
Sincrease of 69,00O,O00 in the silver ut the
same time cannot be considered as a compen-
sation, as the temporary depreciation of that
metal does not permit the use of it abroad,
aand restricts the employment Of it to France"
This brief statement ought to be seriously con-
sdered by those statesmen ct Washington who
still insist upon continued coinage of useless sill
yer by the United States The Bank Of France
at latest dates held 816.159, $50 francs In gold
and ,275, $685. 937 francs in silver, and the con-
ditiou of the reserve in the United States Treas
ury is rapidly changing in the same direction.
Those who have looked to France for an ex-
ample may we'll take notice that the French