Year: 1870

The correspondent of the London Times
writes from the French Capital on the 25th:
In Paris we begin to experience some of
the inconvenience of war. People old
enough to remember the time when silver
was almost the exclusive currency in
France, and when, if one drew ], 900 francs
at bankers, he lad either to pay high
premium for gold or to carry home the
numbering dollars, will appreciate the in
convenience implied by the announcement
that we have returned to very nearly the
same state of things. The
Bank OF France now makes
its payments only in silver and paper. -
Gold is at five per cent premium ri the
money-changers'. There is an enormous
accumulation OF gold in the Bank, but il is
not put into circulation. There is fear of
its being exported to England and Bel
gium, thence to be taken to Prussia.
hear that Paris banker has recommended
the Government to establish forced paper
currency. The objections to this are OBJ
vious, end we have only to look back to
1866 for an experience of the evil effects OF
such measure. In Italy the compulsory
paper was Immediately at a heavy dis
count, while the exchange on foreign
countries rose in proportion. The conse-
quence. of course, was that everything
brought from abroad rose greatly in price,
and this reacted on home produce.


Throughout Italy everything became
dearer, and although the premium on gold
not long afterward fell to five per cent, and
has even, believe. since been Is low as
three per cent, shopkeepers' prices, SER
wants wages, and in general all the neces-
saries and Injuries OF life have never since
fallen again in proportion. A forced paper
currency is real curse to any country,
entailing also the issue of innumerable
small notes-in Italy they have them down
to half franc, miserable little shinplasters;
while the local hanks issue twenty-cent
notes, which do not pass out of their own
town or district; for when there is no silver
or gold, the copper also disappears.


Meanwhile, the Bourse is well supported
considering that we are on the brink of a
terrible war, and financial men speak
cheerfully OF its prospects. There have
been no catastrophes yet, and We are bop
ing that the next settling day July 81
will go off as the last, when everybody paid
up. My own conviction is that there is
hardly moneyed man, banker, merchant
or tradesman who would not gladly have
av ted the war, but, since 1t is inevitable,
they put the best face on it,and grid them
S sslvts up to support the burdens it must
inevitably entail To quote their own
proverb. 'The wine is drawn and must be
drunk" bitter though the draught
may lie. and more akin to worm
wood than to the grape juice.
One cl9Ts of persons, upon whom
the war imposes a heavy tax is that fathers
OF families whose sons are to draw in the
next consumption, and who are not dis.
posed te let them serve. A case came to
my knowledge two days ago, that of a
friend of my own, whose son is studying
| for the bar, and who is not disposed to LET
nim break off those studies and be con-
verted into food for powder. He tells me
that if the young man draws number low
enough 10 include him in the levy he shall
have to pay 5000 francs for substitute


The usual prlce in peace time is about
], 500 francs, or little more


That the martial and patriotic spirit o
France runs high at the present moment
] is proved by the fact of 10o. 600 volunteer
having already enrolled themselves. 9th
proofs are not wanting of willing deter
mination to make sacrifices in support o
the government and of the war. The
perceptelu', or chief tax-collecter, of one o
the districts of Paris, informs ne that al
the payers in his district have volun
tarily paid up the whole of their taxes fo


the year 1870. and that many Of them hav,
offered to pay Immediately those for 1S7
If it would be agreeable to the government