The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1897-07-01
PROTECTION OF THE GOLD RE.
SERVE.

France has never had any trouble il
protecting her gold reserve, for her poll
cy is not that Of the United States. The
French government bank exercises the
option of paying silver and does moi
boycott silver as our authorities at Wash,
ington have done and still do, regard
less of law of congress. No run is evei
attempted on the gold in the bank oi
France, for the demand would be met
with silver. Hence it is that discount
rates do not vary in France as they dc
in England, and Frances financial stand.
ing is much more solid than that of Eng.
land.
In the June number of Money, a New
York magazine, Mr.. Raymond Z. Dodge
in an article, says:
"The ability to retain silver coin as
standard money after 1878 must be con.
sidered as a proof of the enduring
strength of the French financial system
and of its plan of bimetallism. Silver is
preserved on an exact par with gold IN
French circulation, not by government
credit and taxation, but by the power OF
the Bank of France to maintain it in
circulation. Four fve.franc pieces may
be exchanged at any time in France for
twenty.franc gold piece, though con.
tanning less silver bullion than Ameri.
can coins Of like value.
"The Bank of France has the option
of redeeming its note circulation and
standing accounts in tivefranc pieces or
in gold at the will of the bank. Silver
coin is freely received by all of the
banks in deposits and is in daily de
mand for the payment of debts Of every
kind. Silver coin, when not needed in
circulation, returns to the bank and LAS
there is no small note circulation to en-
barrass it, the bank soon finds opportu,
nifty for its reissue in trade or for com.
mercial paper.
"The ability of the bank to freely cir.
culate silver coin relieves it from the ne
cessity of increasing its discount rate
when demand for gold for export
arises and threatens contraction. The
bank is not obliged to exact high pre-
MUM for the delivery of gold while ii
retains the option to redeem notes in
silver coin. Thus the people who desire
to make profit on gold are the only
ones who have to pay the premium; gen
eral trade is not concerned with it,
whereas an increase in the discount rate
under the plan of the Bank of England
affects all merchants whose transactions
are in notes or credits"
There is no difficulty in France to ex
change four silver fve-franc pieces for g
twenty-tranc gold piece. Spectators in
gold are the only persons in France who
have to pay a premium. In this land
our government buys gold at premium
in order to accommodate gold brokers
and enable them to make profit. HaC
monetary matters been conducted by
our government as they have been il
France, no bonds need have been sole
to get gold. When secretary of tn,
treasury in 1877, John Sherman said t,
the finance committee of the senate tina
when the time came for resumption, oil
January l, 1879, he would redeem in sill
yer dollars. There was no run then ol
the gold reserve. No secretary of tn
treasury changed this line of policy un
til Charles Foster came in under Harri
son, when the gold vaults were opene
and the gold spectators rejoiced. Tn
raid commenced under this foul an
treacherous policy, and thus was ruin in
augurated, and Cleveland & Co. cor
tinued the outrage, Mr.. Carlisle proyin
himself most willing tool.