Blackfoot news. (Blackfoot, Idaho) 1891-1902, 1897-03-27
BANK OF FRANCE.
1T IS SIMPLY A BRANCH OF THE
GOVERNMENT.
Why the French Nation Is the Wealth.
lest ON Esrth-More Money Re-
deems Paper with Silver Money
and Avoids Bonds.

Oh the BANK OF France, WHICH tAplAcs
on December 81. 1897. will probably be
extended on new basis. The bank.
though not owned by the government,
enjoys the monopoly of note issue in
France, and is therefore largely under
control of the government. The basis
Of the proposed extension of the charter
provides an increase of 1,000,O00.0O0
francs in the banks circulation, max
ing the limit 5000, 900 900 francs. This
is greater issuing power of notes than
possessed by any other bank in the
world. The operations of the bank
have been so successful that the limit
has been constantly increased since the
establishment of the bank. the
banks privileges are very valuable and
the government for its concessions de-
mands in exchange the renunciation OF
further interest on loans made by the
bank to the government on 140,0OO,OOO
francs of previous loans. and the bank
must lend the government further
sum of 10000, 900 francs free Of interest.
The bank must also transact free OF
charge the business of some of the
government departments, besides pay
ing 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 ,000. 900 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 1t would
be renewed As a matter of fact, the
officials Of the concern have been ne
that end in view for some little time,
and they are about concluded. The
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
heavy and burdensome debt. The
Bank of France has always been ex-
ceptionally strong. IL has accumu-
lated the largest amount of currency
gold and silyer-of any of the European
national banks. The charter which ex-
| pires 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-s1 900 ,000.00 New
/ burdens, however, and services are i'm
posed. The bank is to advance to the
government the sum of 10000, 900
francs free Of interest, and is to re-
nounce all interest on loans made TO
the government in 1857 and 1878, ag-
gregating about 100000 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 If they are ever presented
A new tax is imposed of one-eighth OIL
the rate Of discount on that part 81
the banks circulation, classified a;
productive circulation in taxes o.
: the metallic reserve. In November las
this excess was about 100000, 900, tn,
rate Of discount being 2 per cent, OF
such sum the tax would be $3.50, 900
Various important services are to b.
added to those already performed 70
the government free OF charge Som
Of these relate to the payment OF inter
est on the public debt and the taxes o
public funds. The republic in the re
8 newal OF the charter not only ar
e ranged better terms for itself, but TO
8 the people OF France as well. Some @
: the provisions of the new charter ar
$ of decidedly socialistic character. Tn
I bank Is required to grant increased IA
y ciIities to agricultural associations /
Z the matter OF loans. Such association
: must be allowed the same discount o
y their paper as merchants. Similar pre-
/ visions, it may be stated, are in fore
q with the banks of Italy, Russia an
], Germany, and experience has show
e that they are absolutely safe. Tt
g farmers are to be allowed a represen
q atives on the governing boards OF II
., several branches of the bank. Tt
e branches are to be increased to 20 will
/ in two years. and 30 new auxilial
" agencies must be established in tho
, parts of France not sufficiently pr
I. vided with banking facilities just
1t present. After the year 1900 fiftet
II more agencies must be establighe
I Taken altogether 1t might be said tn
% the French government has made mo
Of advantageous terms with the Bank
I. France, which will not only benefit Il
rs republic itself, but every citizen ther
I'd OF. A comparison between the tv
e. countries will show that the financI
Il policy OF the republic across the wat
ne Is far more beneficial to the peop
Is there than the policy pursued, and
be pursued. In the United States. The
is no mere marked contrast betwe
D. the two governments than the tres
~ ment OF primary money. The poll
40 adopted by the Bank of France In pa