The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-01
FRANCES GREAT BANK.
SOME OF ITS ENORMOUS PRIvI-
LEGHS MAY BE TAKEN AWAY.
It Excels the Bank OF England in
Some Particulars and Has Unlim-
tied specie Resources-Papsr Issued
for the Coin Taken in.


tied specie Resources-Papsr Issued
for the Coin Taken in.
From. the Pittsbur0 Dispatch.
PARIS, July 25.-On June 50 the balance
sheet of the Bank of France showed a circu-
lation of S.211, 100000 francs (Sj42 ,0O0. 1000
in paper money payable at sight to bearer.
Now on what basis does this enormous
aduciary rest and what credit do all these
blue bills meritl The answer is simple; the
same balance sheet shows 1856, 0O0, 600
francs worth of gold, 1895, 100000 francs
worth Of silver-this is the greatest
amount of metal money ever on
hand at one time in any country-and
$40, 7J5, 200 francs worth of commercial
paper on deposit in the banks vaults and
strong boxes. Thus you see there is q total
guarantee on hand of 8, 4ol, fS5,0sO francs,
or 100, 735, 900 more than the banks sight
engagements, and all this Independents Of It's
other resources. The legal limit Of this pa
per money circulation is now 81 millards,
but There is a new bill under discussion in
the French parliament proposing to increase
the sum to millaras, that Is to say, to
$500, 900 900.
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
1924, 600, 900 worth of Bank OF France bills
in circulation, while at the same Time the
Bank of England had out only $4,000, 900
covered by specie deposits Of Sl4S. 200 900.
Then how is 1t that the English can do their
immense commercial business with such
small amount of money! Why, by employ
ing checks, a system which mas much
greater use In England than it has in this
country. Indeed, the use Of checks In
France is not at all popular; 1t 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
Dec. 81, 1897, and the relative proximity of
that date impelled the regents Of the insti-
tuition TO ask for a renewal of their privi-
lege and for some new advantages from the
government. This is why discussion has
been going on ia the Chamber Of Deputies
for a week past over a bill to renew for
twenty-three years the same privileges to
tina bank that it has been enjoying since
1857. The government favoFs this renewal
and the committee to which the bill was ne
ferred also reported IN favor Of its passage,
but a considerable part OF the chamber, and
particularly members of the extreme left of
their eloquence.
Now, in my opinion, no legislative body
could discuss any measure more Intelli-
gently or more eloquently than the French
deputies are debating this bill This is not
the first time | have been struck with the
superior brilliancy of this chamber over
some of it's predecessors. 1t is full OF talent
and it has been for me real JOY to hear
the speeches of a discussion that was bril-
liantly led by M. Milleraud and continued
by Nm. Leon Say, Camille Pelletan, Bur
deau, Minister of Finance Rouvier, etc, aud
which are being delivered with nigh and
fine intelligence. 1t is a revival of French
eloquence and shows unexpected orators
among the young ReI- GRAFTON Of gentlemen
who are desiEous of taking part in the
affairs of state and who are periodically
working for their country In such q way as
to command the respect OF all their listeners.
FRENCH ELoQUENcE BROUGHT TO BEAR.
Perhaps the most interesting speeches
were those delivered by NM. Pelletan and
Burdeau. These two men have opposed
each other often. but always in a becoming
manner Peiletan Is a InanCof letters OF the
Ecole des Chartres, and is q bright journa-
llsr as well as politician, being one of the
editors Of the Justice, Or. Clemenceaus or
gan. Burdeau is philosopher OF the nor
NAL school type, and has translated Scho-
whom Drumont attacked so brutality in the
Libre Parole newspaper, and for which Of
Tense the latter was heavily punished by
Judge aud jury. Burdeau, as chairman OF
the committee TO whom the bill was referred,
spoke in favor of the renewal Of the privi-
lege. while Pelletau opposed it , and he did
30 not only with picturesque eloquence, but
with loyal frspkness that reflected honor
on French deputies.
Without abS0lutalU 0OntaStine, tha nriO-
oiple of renewal he held that the hank
should be compelled to pay dearly for its
privileges, and he explained what were the
conditions that he would impose for such
renewal. Moreover, he was opposed to a
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 England can be denounced at
any moment and taken away in a single
year; that in Germany the government has
a right every ten years to buy the banks
furniture and fixtures and all iEs shares at
their nominal prices, and that in Belgium
and in Holland the banks have no
monopoly.
THE PATRONAGE THR BANK ENJOYS.
The Bank of France does business with
patronage of two sorts; business men aud
commerce in general form one part, and the
state forms the other, for at certain mo-
meRus the state has need of credit and this
must DO satisfied first of all. The BANKS
relations with commerce can be resumed in
a slHgls 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. 80 TO speak, to fur
nish French commerce with a premium
against foreign concurrents. The decline of
rates of discount and OF interest is the
march Of progress and civiliz alton. Though
you must not loose 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 the solidity Of its paper
money.
Such q bank must be able to insure pay
ments from day to day; 1t must have
needs OF all transactions, for such is the role
and purpose of bank of emission. 1t is net
practical to oblige private individuals to
verify the provision of money necessary for
their transactions, and it would be impos-
siole to use coin only, for 1t would have to
be carried about like so much freight or so
many passengers. The principal role of
circulating bank is to deliver in return for
money bit Of paper, and which is re-
deemable with its face value in coin. This
paper money ts called bills or bank notes,
and aaoh and axnarv ana issuad nnuat hav its