The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-06-07
As to the Bank ofFrance.

A few days ago THE SENTINEL mentioned
as a somewhat remarkable fact that the
Bank of France had more gold than the
national banks of England and Germany
combined. The esteemed Evansville
Courier informs us that there is nothing
remarkable about it, and kindly gives the
following explanation:
The Bank of France maintains perfect
parity between gold and silver at ratio of
153 to l by the common sense plan OF
making silver protect its gold reserve by
paving out silver when there is an I'M
usual run on its gold. The notes of the
Bank of France. like those signed by the
treasury department OF the United States,
are PAYABLE in COIN" and the Bank of
France takes advantage OF the option re-
served TO the issuer OF the notes and pays
out silver whenever and as often as il is
necessary to protect the gold reserve.
When the monetary conference was in
session last year Senator JONES of Nevada
member OF the commission appointed
by President HARRISON, asserted that be
was personally cognizant of an instance.
then OF recent occurrence. where a syndi-
cate had given draft for 100000 francs
on the Bank of France, which the bank
refused TO cash in any other way than half
gold and half silver and the senator de-
clared that to be the uniform practice of
the Bank of France. 1t seems so obvious
that by no other method can silver and
gold be kept in circulation side by side
that the imbecile practice of the treasury
department under HARRISON, still adhered
10 under President CLEVELAND, is a con-
slant source of wonder.
The SENTINEL always welcomes informa-
ton as to the conduct of affairs of foreign
countries, because of the difficulty of OBJ
tanning reliable information of that char
acter. 1t is usually hard enough to learn
what is being done in this country, let
alone foreign lands. We would be under
additional obligations if the Courier would
explain one or two points more in this
connection. ia the Bank OF France is
bank of discount and deposit, what con-
nection is there between its rules as to
cashing drafts and its custom, or our Gus
tom, as to redeeminG paper currency
Any bank in this country uses its discre-
ton as to the kind of legal tender in
which it pays drafts, deposits or
any other debts, but because the Bank
of France does this is no evidence that it
refuses gold for its bank notes when pre-
scented for redemption. In fact we would
be grateful if the Courier would furnish
its authority for this statement because
in a speech in the senate on April 20,
1892, Mr.. TELLER. who is a very good silver
man, declared that France made no effort
whatever to hoard gold. and even went to
ba IF win
silver coin at par. He said:
She has Sl2O.O 900 of silver belonging
to other people. She has had the oppor-
tunity for five years to take gold for this
S120,000 600 at the French ratio of 159 to
!, which she has declined. in the interest
OF commerce and trade and humanity, to
take. She keeps it and circulates il as
money. While il does not bear her i'm
print. yet she makes it good to the people,
because she says you bring 1t to us and
We will give you French money, gold or Sil-
Ger, as you icish, and she declines to ex-
change it for gold with the countries whose
stamp il bears.
OF course Mr.. TELLER may have been
mistaken about this. but neither Mr..
STEWART OF Nevada. who occasionally Of
fered a suggestion during the speech. nor
any other senator offered any correction.
Nr. TELLER further declared that it had al
ways been the policy of France to send
dear money" abroad; that she had sent
silver to India when it was at premium,
and that she was sending gold in the same
way now. His words we're:
She sent her dear money to India as to-
day she is sending her dear gold to En-
Il l.
makes the dear money that she possesses
bring . greater amount OF imports than