New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-19
THE BANK OF FRANCES AID TO LONDON.
SOME OF THE BANKS PECULIAR CONDITIONS
BRITISH OPINION SHOULD BE INFLU-
ENCED TO DEMAND AN INCREASED
USE OF SILVER.

USE OF SILVER.
The Tribune prints an extract from letter by George
r. Gibson of the firm of Watson Gibson, sent TO It's
clients as il contains much information that Is Of In
terest at this time. The letter says In part
Commenting on assistance rendered TO the Bank OF
England by the advance OF G3,OOOOn sterling at per
cont ono Of the most distinguished nances OF New-fork
said to us the other day "Thnk oil It, the teeeathg
Engshman had TO u the frog-eS'hg frehehhah ior
ready money and the frugal Frenehman said 10 MS
British cousin: We believe your rate Is per cent
ours is only g. and at the lower rate you can nave wa
Won need, But as matter Of fact this event ~ not
without parallel, and curiously enough tne bafihss
aourd in IL then 1889 the harvest having peeii poor
and the drain OF specie great the BANK Oh Ehsanu "as
,duceo N sue straits that 1t had to apply TO the Bank
-, I,anca fos reef but as latter could not loan on
ANYTHING except in discount OF bills or Government Sc
,yi,,as and a. the Bank OF England could not make
,oou hills IL was arranged that Barring Brothers should
draw upon Paris bankers and then cash inc oS p''e
over To the Bank OF England the proceeds
At later period in 1860, when silver was worm ihore
49,. ,d ON the Latin Union ratio OF 10 159. the Bank
~ France had outstanding rcdcenabe in citr su
or silver at It's option A. It's reserves eonsstd oenl
., sIivcr II IL redeemed in that metal the holders
notes would present them for redemption, trusting W ~
oeive silver, which could be soid at preniu"i.
fortfy itself with gold then the cheaper metal IL appi
"a the Bank OF England, with which IL eHee'eo "ii "a
,o,oe NJ GO 600 600 silver for like quantity OF eod
we recall these facts, just now puthc attention IL
directed to the frsternal relations oil 'hcse to sre "
s,ttutLons and their present frat.rnal iceilhg'
we NAV 20 further since we are on the SUBJECT anu
inform our clients they not already familiar WIN
,h facts OF some the peculiar conditions OF the bnN
>, France When one OF firm was in Paris the past
,,nme, in conversation with the head OF one Oh 'he
,gest Franco American houses the latter was sskei
this question: ~ ,.no o,acI ,oy
"If take to the BANK OF fr'h'e "e'
easb,ng what viii IL pay me!
inc reply was: 'In It's paper notes"
..What t,en Will receive II present ue ho'"
IN o
ait will pay you in silver"
..,vh., will IL do II / ask for godF'
al, viii give you gold. but charge premium Tor W.
rnon gold is practically premium In Paris on large
sumsT
sYes.' ,s..,,o a,,or,t NJ the
a,., e in circulation outside the bank IN CONNER
so' and this finds freely into ana out Vi 'ne
o ,,nts but once IL falls into thc ciuehcs VI INC
., FRANCE its reissue Is matter OF poiiey anu 'o''
ba q, this is hoard OF $3.50 900 In god ana M
Inc ,nt Of silver and the overwhelming pr doh'hee
y.t ~ France Is now fact patent 10 e'eiS W,
" vs. when the Bank OF England finds It's goia s'ppi"t
, from IL IL has to an advance In '' a'ou,
""' ned both to attract gold to 1t ana stop ts WIN
~ ON the contrary. the Bank OF france uoes nD'
as.sarily ousuauy advance It's bank rae !" Aes0m'nA"