New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-10
FRENCH BANK FIGURES
National Institutions Measures
to Maintain Public Credit.
STOCK RISING IN VALUE
Drain of Silver from It's Vaults
Steadily Increases Value of
It's Paper Currency.

Paris. Feb 2s-Bank of France shares
have improved recently, when most Sc
curitjes have been dull or have lost large
~ for reasons depending on the internal
tional crisis and on economic considera-
lions. There has been a marked employ
ment of capital otherwise lying idle In
the form of loans for short account. Inc
power of the credit of the national bank
has again proved the wisdom OF boarding
a large reserve OF gold at all times, but
more particularly AT times of interna-
tional crises or economic di'hculues.
The position of the Bank OF France
offers general considerations OF much IN
| terest on account OF events abroad The
| figures are eloquent. They show not only
that the resources of the country are
! fully maintained and that the national
credit is solid. but also that the monetary
/ situation, as exempifed in the returns Jf
the Bank of France. just Issued, Is not
only excellent. but likewise the best in
the world 4 study Of The financial policy
of the Bank of France seems 10 point 10
its being the most ably conceived and the
most effective in the world for safeguard
ing national credit I'm days of money
l
/ time its own prosperity.
How did the Bank Of France meet the
difficulties of the international situation
and It's economic consequences? The an
swcr Is that financial transactions were
dropped, and that, therefore, there was a
big accumulation of capital handy for
short ,o3ns. The bank was able TO meet
al requirements by It's traditional policy
and the effective use Of the great reserves
Of credit which IL possesses. Ii suiiiced
10 increase the rate of discount from 3la
! 10 per cent. while money loans on for
/ eign exchanges rose quickly 10 and
Der cent. In order to facilitate CONNER
cial operations hampercd by private
boarding and TO assist the formation of
metal reserves. the Bank Of France III
creased the issue of 50-franc notes and
made am unlimited drain on its stock ~
silver ecus 0ve-franc pieces. Notwlth-
standing the extreme difficulty OF obtain
ing gold in France for several months
past. tine bank placed in circulation the
sum of 100000 francs IN gold which had
been prudently added 10 ;he bank reserve
in the summer. The Efforts Of the ma
tioual bank were directed To- reducing Ia
"a minimum the public Inconvenience OF
monetary ughiuess and firmly maintain
ing the still greater and more general III
t,rest Of keeping the gold reserves intact
Observers note the steady yearly Inn
proyement and growing intrinsic value OF
the guarantees upon which the credit Of
the notes IN circulation is based and which
Is the bedrock OF all the financial under
/ takiugs Of the Bank Of France. on Feb
uary I. 1895, the number Of notes In cir
rulatlon was e. the value OF s771.SO0,0O0,
I while on February q. 1913, the notes IN
circulation gave the figures ~ fl.l10,SOO,-
600 The gold reserve amounted IN the
former year To S3S5.400.00O and in the
latter wear To- sGf3.C00.o00. Discount
showed "a marked increase during TN,
same period and also loans on scrip. The
real value u the metal guarantee has also
greatly Increased and IN a manner that
tho figures do not indicate al first sight
because whLe the silver reserve in lNHN
formed - per cent of the guarantee 90
the nduciary circulation. the proportion
of silver compared with gold has fallen
90 about 10 per cent at this present mo
mont. % must also be- remembered that
I ine silver rat. has increased In value from
/ @, francs Calmost 500 Nlogram 10 81
within the last fifteen years.
At no time has the position OF tho
/ Bank Of France been 50 strong The
greater the drain Of silver from the cellars
" the bank the greater will become the
! value of the paper currency. II there
were no more silver left in the bank eacn
French bauknote would be- literally a bill
order for payment In gold because the
/ totally Of the nduciary circulation would
/ he represented by an equivalent quantity
Of gold and by commercial paper securi-
/ ties ri limit Of three months credit
which is equivalent 20 gold. Many states
would be glad TO possess AZ the present d
national bank enjoying the credit ana
/ holding the reserves OF the Bank OF
/ Franc. &. / Il.