Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-07-26
FRANCES GREAT BANK
Some of Its Many Enormous Privi-
leges May Be Taken Away.
IT EXCELs THE BANK OF ENGLAND
In Some Particulars and Has Unlimited
Specie Resources

In Some Particulars and Has Unlimited
Specie Resources
PAPER ISSUED FOR THE COIN TAKEN IN
PARIS, July 25.-On the 30th of last
month the balance sheet of the Bank OF
France showed a circulation of 8, 211, 600, 900
francs (S642, 200. .000) in paper money pay
able at sight to bearer Now on what basis
does this enormous fduciary rest and what
credit do all these blue bills merit? The
answer is simple; the same balance sheet
shows 1856, 600, 900 francs worth of gold,
/, 295, ,000, 900 francs worth of silver-this is
the greatest amount of metal money ever on
hand at one time in any country-and
$40, 735, 900 francs worth of commercial
paper on deposit in the banks vaults and
| strong boxes. Thus you see there is a total
guarantee on hand of 8, 401, 735, 600 francs, or
100, 735, 900 more than the banks sight en-
gagements, and all this independent of its
other resources. The legal limit of this
paper money circulation is now three and a
half milliards, but there is the new bill
under discussion in the French parliament
| proposing 10 lHCTedS6 Tue suul 10 lOuT ull-
lizards, that is to say, to $500, 600, 900.
There is an enormous difference in the
sums of paper money used by the French
and by the English people. In May last
there were S624, 1000, 900 worth of Bank of
France bills in circulation, while at tho
same time the Bank of England had out
only $3.50, 900, 900 covered by specie depos-
its of 81 14s, 600, 900. Then how is it that the
| English can do their immense commercial
| business with such a small amount of
money? Why, by employing checks, a sys-
| tenn which has much greater use in Eng
| land than it has in this country. Indeed,
the use Of checks in France is not at all
popular; it is very rarely we see them in
| circulation, and there is no clearing house
in Paris.
Privileges Too Good to Let Lapse.
But the emission of paper money by the
Bank of France Is q privilege which expires
December 81, 1897, and the relative prox-
unity of that date impelled the regents of
the institution to ask for a renewal of their
privilege and for some new advantages from
the Government. This is why discussion
has been going on in the Chamber of Depu-
ties for week past over bill to renew for
% years the same privileges to the bank that
it has been enjoying since 1851. The Gov
ernment favors this renewal, and the COM
mittee to which the bill was referred also
reported in favor of its passage, but a con-
siderable part Of the Chamber, and particu-
larly members of the extreme left of the
House, have been opposing it with all their
eloquence.
Now, in my opinion, no legislative body
could discuss any measure more iatelli-
gently or more eloquently than the French
Deputies are debating this bill. This is not
the first time have been struck with the
nnrya hill Ax Nha, ,lar
some of its predecessors. 1t is full of tai
eEt, and it has been for me a real joy to
hear the speeches of discussion that was
brilliantly led by NJ. MilIeraud and contin-
ued by NM Leon Say, Camille Pelletan,
Burdeau, Minister of Finance Rouvier, etc.,
and which are being delivered with a high
and fine intelligence. 1t is revival of
French eloquence and shows unexpected or
ators among young generation of gentle
men who are desirous of taking part in the
affairs of State and who are patriotically
working for their country in such way as
to authorize great hopes for their future, and
to command the respect Of all their lis
tenera
French EIoquence Brought to Bear.
Perhaps the most interesting speeches
were those delivered by MN. Pelletan and
Burdeau. These two men have opposed
each other often, but always in a becoming
manner. Pelletan is q man of letters of the
Ecole des Chartres, and is bright journa-
list as well as politician, being one of the
editors of the Justice DR.. Clemenceau's or
gan. Burdeau is a philosopher of the nor
NAL school type, and has translated Scho-
penhauer and Herbert Spencer. 1t was he
whom Drumont attacked SO brutally in the
Libre Parole newspaper, ard for which of
fense the latter was heavily punished by
Judge and jury. Burdeau, as Chairman of
the committee to whom the bill was referred,
spoke in favor of the renewal of the privi-
lege, while Pelletan opposed it, and he did
SO not only with picturesque eloquence, but
with loyal frankness that reflected honor
on French deputies
Without absolutely contesting the prin-
ciple of renewal he held that the bank |
privileges, and be explained what were the |
conditions that he would impose for such |
renewal. Moreover, he was opposed to |
prolongation of such privileges for twenty |
three years, as asked by the Government, on |
the ground that it would be to abandon the |
credit of the country for too long time. |
He pointed out that the privileges of the |
Bank Of Egland can be denounced at any |
moment and taken away in a single year;
that in Germany the Government has |
right every ten years to buy the banks |
furniture and fixtures and all its shares at |
their nominal prices and that in Belgium |
and in Holland the banks have no monop- |
oily.
Tho Patronage the Bank Enjoys.
The Bank of France does business with a |
patronage of two sorts; business men and |
commerce in general form one part, and the |
State forms the other; for at certain mo- |
ments the State has need of credit and this |
must be satisfied first of all The banks |
relations with commerce can be resumed in |
a single word, discount This is one of the
duties not the most important it is true,
but one Of the most apparent of the bank to
business men. To discount paper at the |
lowest rate possible is, so to speak, to fur !
nish French commerce with premium
against foreign concurrents. The decline
of rates of discount and of interest is the
march of progress and civilization. Though
you must not lose sight of this fact that rate
of credit is not enough, for stability of
credit is also necessary. And learn this by
heart, too, that bank which issues paper
money has not for essential functions
the regulating of the value of silver, but it
has that of maintaining tho solidity of its
paper money.
Such q bank must be able to insure pay
ments from day to day; it must have enough
specie on hand to respond to the needs of
all transactions, for such is the role and pur-
pose of bank of emission. 1t is not practi-
:al to oblige private individuals to verify
the provision of money necessary for their
and it would be impossible to
use coin only, for it would have to be car
ried about like SO much freight, or so many
The nrincipo1 ro1a Of n |