The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-29
THE BANK or FRANCE.

Unlike the Bank of England, the
Bank Of France is not the fiscal agent
of the government. 1t Is the second
largest bank In the world. being only
exceeded by the Bank Of England. 1t
WAS authorized and organized In the
year 1900 In 1905 it was granted the
exclusive privilege in Paris OF issuing
demand notes or currency. and in 1S4S
this privilege was extended to- embrace
all of France. There is today no bank
currency in France save that issued by
this bank
Previous to fS4S numerous joint stock
banks organized on a basis similar to
many OF the larger cities. These all
issued notes. When the exclusive priv
ilege OF such issues was vested in the
Bank of France. these local institu-
lions were made branches of the main
bank. and SO continue. Owing to strin-
gency caused by the revolution in 1S4S
specie payments were suspended. but
resumed three years later. In August.
1870. during the F'ranco-Prussian war,
specie payments were again suspended.
but We're resumed again on the 1st OF
January, 1873, since which time they
have been maintained.
Since 1S4S the notes of the Bank OF
France have been legal tender. While
II has not been the fiscal agent of the
government, 1t has been its main de-
pendenee In several exigencies. Ioaning
1t vast sums. and by its credit in the
form Of notes and acceptanees has
tided the government over many finan-
cial troubles. This was especially
manifested during the war with Prus-
STA According 10 the report or the
French minister OF finance for 1878 the
cost OF that war to the French people
was e.2sS. 10000 francs. or about si.s57.-
100000. an amount equal to about two
thirds the cost of the war of the re-
be!lion.
When the war began the ratio of
specie TO circulation was 30 per cent
Within a year the reserve had fallen
To - per cent. In November. 1873. IL
had fallen To u per cent, and within
swo years increased to 20 per cent. IL
has maintained this, or a greater per-
centage ever since. and rarely has tho
specie reserve fallen below so per cent
In the year 1875 the Bank Of France
paid out in gold 100000 of francs.
and in silver So 900, zoo, and yet It's stock
Of coin increased over $1,000. 0e0. The
bank carries a large portion of the pub
iic debt. and during nearly all the time
that specie payments were suspended
It's currency remained at par. The
bonds of the government do not. as
with the Rank OF England, constitute
a part os the authorized reserve, that
being maintained exclusively in coin,
and ordinarily in about equal proper
tions Of geld and silver.
There ia no limit 10 the rate of IN
teres, which the bank may charge upon
lis private loans and discounts Fer
merry the maximum was fixed at 6 per
cent. but in 1851, when its capital was
largely lne~esset ard its charter ex-
tended. this restriction was taken Of.
On loans 10 the French government,
however. the bank is limited to an in
teteSt charge Of ) per cent. per annunf.
The Sank Of France has been and Is
| now Justly considered as a financial
| huiwark by 4he French nation. II holds
| larger specie reserve than any hank
ms institution in The world. and under
extraordinary stress has signaily main
tanned lis soivency and credit Its adj
| fniaistyat.on is vested In a council 81
tweniy-oae members, governor and
/ two sun-goN ERRORS nominated by the
/ chief Of state, and fifteen directors and
three censogs nominated by the share
| holders.