The Pacific commercial advertiser., 1892-11-16

be noted is, they helped themselves
on; by Issuing legal tender paper
money.
Iwlll refer 20 only two noted
instances, viz, IS4S and 1870, In
the first case the financial stress
was 50 great, that out Of : pay
ment Of twenty-six millions fallen
due only forsy-seven thousand
francs could be collected.
In this extremity the govern
ment came 70 the rescue, and. on
the night Of the 18th Of March, the
notes Of the bank Of France were
by a decree made legal tender.
After the decree, the great diff
Guilty met with was 10 print the
notes fast enough for the public
consumption, in ten days the
amount issued reached 0,0o0, 900.
More thsn s1O0,0o0,co0 were
made over 10 the Treasury and the
executive departments OF Paris
$4,000, 600 francs were loaned 10
the Government On excheQuer bills.
all 20 be paid before the end Of
March, 1S49. The bank made ad-
vances 70 the City % Paris, 70 Mar
seilles, 10 the department Of the
Seine, and 80 the hospitals, amount
ing in all TO 260,Oo0,00Q more.
This was not al. To enable the
manufacturing interests 10 weather
the storm, 3 decree Of the National
Assembly had directed warehouses
10 Be opened for the reception OF
all kinds Of goods, and loans were
made OF merchandise stored in
these warehouses, some IS, 10000
loaned 10 the people q Hsvre, and
1900, 600 10 the people Of Paris
in al 60,Oo0,000. Thus every
interest Of the community, from
the Minister Of the Treasury down
10 the trader in distant outpo-t
was protected Thus by the issue
Of irredeemable legal tender paper
money was fresh supply Of busi-
ness life-blood pumped into the ex-
hausted arteries q trade and IL
dustry 10 sustain credits
In 1870, thauBank of France sus-
pended specie payments and issued
legal tender notes 10 Al immense
amount, with Ike marvellous re-
suits The amount increased from
S275. 10000 in 1871 10 800, ,000,-
0o0 IN Ocsoba-. 1873.
These irre3eemable notes, as In
the other cases referred 10, relieved
the money pressure, and the in
dust-ies proceeded with greater
prosperity than before the failure
o. specie payments
Again, 10 saTe the Industries of
France from collapse after one bill
lion dollars OF its business life
blood had been paid zs indemnify
10 Germany, France Immediately
Issued five hundred million dollars
Of Legal tender paper money 10 ill
lie place, and the French people
vigorously prosecuted their indus
tries with Iii and, SO far az business
Ezgs concerned, never missed their
gold and a0ar5shed better without
il than Germany did with IL
The point make here IL, gold
coin having disappeared business
depression was prevented by the
issu8 d paper money Mind your
paper money did not drive the coin
ont Of the country, the German
a-uay did that
il must bs observed that il makes
10 difference whether coin IL driven
out o. . country By z war q na-
fions, or driven cut Of circulation
BY : financial wsr, the disastrous
ELECT upon buzi1ass L The same IN
al speeie-payDent countries when /
coin from any cause Is scared OUT
Of circulation, bpf The trouble IL
sooo rens35ed If 5ts government .
is wise enough 10 5ssue z legal ten
5sr paper money 10 Ill its place, as
France and America have
done.
What i7teses1s Hawaii 5nst now
under the depressed condition o. I
our finances Il, viii our statesmen
bs wise enough 10 relieve the bpsi- /
nsss depression By 3 well secured !
issus o5 q legal tender paper
money! Or Will they attempt 30 /
borrow outside and thus sink 0sgr
country deeper into the Enise than /
II now Il IN the muck We shall /
SEE
J30. n. H0sHER.