The advocate., 1894-02-21

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and private, Of every rank In soCiety.
was essentially 70 enable Che manufacturer
TO work, lest their Workman, driven 10 des
peration, should ding themselves amongs
the most violent enemies Of public order.
was essential TO provide money for Che foot
Of Paris, FOX the pay Of troops, and for th
daily support Of the industrial establish
ments Of the nation. A failure ON any ON
point would have led TO q fresh Convulsion
for the panic had been followed By 80 grea
scarcity Of the metallic currency, that
few days later, out Of q payment Of 5000,
600 fallen due, only 1900 francs could b
recorded in silver.
In this extremity, the government cam
10 the rescue, and ON tho night Of the 15bl
Of March, the notes Of the bank were, By
decree, made legal tender, the issue Of thes,
notes being limited in all 90 $50, 900, 900. IL
ton days the amount lseued In this form had
reached $4,000, 900 francs.
To enable the manufacturing interests u
westhsr the storm at q moment when al
sales were interrupted, decree Of tbe RdttOnG
assembly had directed warehouses to bs opened
for tho reception Of all kinds Of goods, and pro
Vided that tho registered tNvOtCe Of the goods q
deposited should be made negotiable by tndOrSe
mSnt The bank Of France discounted theSe ne
Oetpts, In HGUre Gl0Re 1900 900 SCeFe thus Gd
UGRCed on colonial produce, and IN Parts 1900.
600 on merchandise; IN dll 10000 900 VCere mGdC
available for the purpose of trGds Thus, thC
great Institution had placed itSeB as u Cere Sg
direct contact IOtth eUeyy interest Of the eOmnSs
nifty, from the minister Of Che treasury &OlOR Il
the trGdr On q distant out port. Ltko a huge
hydraulic machine, Il employed Go colossal
pOuOsrS to pump fresh stream into tho er
hGaIStsd GrterieS Of trade 30 sustain credit and
prcSerUs The circulation from complete collapse
And / needn't repeat that this policy
was an immense success. The Difficult.
ties and dangers were tldsd over, bust.
meas resumed ita normal channel, and
everything moved along smoothly and
successfully, where otherwise anarchy
might have prevailed.
Again, in 1870, after Francs became
involved in the war with Germany, the
Bank Of France expended the currency
to an immense amount, and with like
marvellous results. In June, 1870, her
circulation was s275,OOO 900, but after the
war it stood at over 96O0OO0OOO, ell the
while circulating at par with coin, be-
cause it was q full legal tender for all
debts, public and private, unlike our
gresnbacks with the famous exception
clause dishonoring and debasing them.
By the free use Of this irredsemRblO
paper, the French people, like the people
of the United States during the rebel
lion, rallied to the support OF their gov
eminent. But there the parallel ends.
For after the German war was ended,
the circulation, IS We have said, was still
further increased, and the producing
forces of the French people developed
accordingly. The wonderful success Of
this policy is known to all the world.
The German indemnity Of 81, 600, 100000
was paid before it was due, apparently
without an effort; and gold has flown in
upon her till now she hes, besides her
legal tender notes, q specie circulation Of
near $2,OO0,0OO,OO0. Such is the differ
encs between the contraction policy Of
England in extraordinary financial
emergencies, and liberal supply Of cur
rency as in France under similar clrcum-
stances and conditions.
And it would seem az il the foregoing