Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-02-05
BANK OF FRANCE.
sit Is SIMPLY A BRANCH OF THE
GOVERNMENT.
why the French Nation Is the Wealth.
lest on Earth-More Money - Re-
deems Paper with silver Money
and Avoids Bonds.

OIL DeCeIDeT OIL, 1891, Will PiooAo'J
extended on a new basis. The bank,
though not owned by the government,
enjoys the monopoly of note issue IN
France, and is therefore largely unuer
control of the government. The basis
of the proposed extension of the charter
provides an increase Of 1,OOo,ooo'VoV
francs in the banks circulation, max
Ing the limit 5000 100000 francs. This
Is greater issuing power OF notes tnan
possessed by any other bank IN the
world. The operations OF the pahk
have been SO successful that the limit
has been constantly increased since the
establishment of the bank. Inc
banks privileges are very valuable ana
the government for its concessions de-
mands in exchange the remuneration ol
further interest on loans made by the
bank to the government on 14O,ooo'ooo
francs of previous loans, and the DanK
must lend the government a further
sum of 40,000,000 francs free OF interest.
The bank must also transact Tree Oh
charge the business of some OF the
government departments, besides pay
ing a direct tax of Ism of the rate OF
discount upon that part Of the circu-
lation which is classed as productive,
that is, on the excess Of the metallic
reserve by more than 500, 100000 francs.
The extension of the charter will prob
ably be for thirty three years"
1t is true that the charter OF the
Bank of France expires next year and
there is but little doubt that it would
be renewed. AS matter Of fact, the
officials of the concern have been ne
gotiating with the government with
that end in view for some little time,
and they are about concluded. me
terms agreed upon might be OF interest
to Americans, showing as they do, the
financial policy pursued by govern
ment which has perhaps been the most
successful in monetary matters and
kept its credit as high as any nation
that ever existed, and too, in spite OF
a heavy and burdensome debt. The
Bank of France has always been ex-
ceptionaTly strong. 1t has accumu-
lated the largest amount of currency
gold and silver-of any of the European
national banks. The charter which eX-
pires a year hence is to be renewed
and extended, under an agreement just
reached, for the period Of twenty-three
years, but with some changes and no
defactions, however. The limit of the
next issue is raised from four to five
billion francs-$1, 000,0 100000. New
burdens, however, and services are i'm
posed. The bank is to advance to the
government the sum of 4O,0OO,OOO
francs free of interest, and is to re-
nounce all interest on loans made to
the government in 1857 and 1878, ag-
gregating about 140,000,000 francs.
About 100000 francs of the banks
notes are supposed to have been de-
strengthening been out for a long
time and never presented for, redemp-
ton. The bank is not to gain by this
loss to the note-holders. The govern
ment takes the 100000 francs and
assumes the responsibility Of redeem
ing them il they are ever presented.
"A new tax is imposed of one-eighth of
the rate of discount on that part OF
the banks circulation, classified as
productive circulation" in taxes of
the metallic reserve. In November last
this excess was about 500, 100000, the
rate of discount being 2 per cent, on
such a sum the tax would be $250,0O0.
Various important services are to be
- o1roodu norfprn1ad for
the government free of charge. Some
of these relate to the payment of inter-
est on the public debt and the taxes of
public funds. The republic in the re-
newal of the charter not only ar
ranged better terms for itself, but for
the people of France as well. Some OF
the provisions of the new charter are
of decidedly socialistic character. The
bank is required to grant increased IA
cilities to agricultural associations in
the matter of loans. Such associations
must be allowed the same discount on
their paper as merchants. Similar pro-
visions, it may be stated, are in force
with the banks of Italy, Russia and
Germany, and experience has. shown
that they are absolutely safe. The
farmers are to be allowed a represent
p alive ON the governing boards of the
several branches of the bank. The
branches are to be increased to 20 with
in two years, and 80 new auxiliary
agencies must be established in those
parts of France not sufficiently pro-
yided with banking facilities just al
present. After the year 1900 fifteen
more agencies must be established
Taken altogether it might be said that
the French government has made most
advantageous terms with the Bank oil
France, which will not only benefit the
republic itself, but every citizen there.
of. A comparison between the two
countries will show that the financial
policy of the republic across the wafer
is far more beneficial to the people
there than the policy pursued, and tc
be pursued, in the United States. There
is no more marked contrast between
the two governments than the treat
ment of primary money. The policy
adopted by the Bank of France in pay.
ing out gold and silver for notes would