THE CURRENCY QUESTION.

Evening Star, Issue 10401, 24 August 1897, Page 4

THE CURRENCY QUESTION.

TO THE EDITOR. Sir, —Please find room for the enclosed slip anent this all - important question. Many think France has solely a gold standard, but it would appear, for domestic purposes at any rate, such is not the case. We have now so many market competitors that we should rouse ourselves from laissez faire before it is too late, remembering, of course, that we are nob a silver-producing country but an agricultural and pastoral one, which no parliamentary ratio can regulate as to quantity or price.—I am, etc., F.M. Dunedin, August 23.

The Parliamentary debates upon the renewal of the charter of the Bank of France have been of a very practical and far-seeing nature. The charter will be so amended as to deprive the establishment of its close borough character and bring it into touch with modern requirements. The Bank has ever been too timid to effect ameliorations, and too plutocratic to move in unison with democratic] necessities. It stood in need of air and light. It forgot the number of younger rivals in the field of high finance. It was too exacting in discounting commercial bills, and avoided all risks by declining to run any. Its transactions must be certainties. Hence its refusal to open branches and to accord the ordinary facilities of banking which constitute the life blood of commerce and industry. The governor of the bank is a public functionary and is presumed to represent the State ; three-fourths of the Council are composed of professional financiers, holding nearly all the bank stock, while in the case of London, Vienna, and other moneyed centres, the State Bank’s Board consists of merchants and prince industriels. It was objected to, that for a democraoic nation like France the governor of the bank, or regent, is alway selected in one or two of the milliard families—the Bourbon or Bonaparte financial dynasties. New blood, hence, is required. The Bank of France was upbraided as not being national. It accorded Prince Napoleon at once 25,000,000fr to run his coup d’etat, but hesitated for a long time in IS7O to grant pecuniary assistance to obtain war material that was so much wanted. The shares of the Bank of France are of the first order ; their price is at present 3,800fr each, and the dividends at the rate of 120fr. The bank has the exclusive privilege of issuing notes, but is not bound to redeem these with gold. It pays dividends or cashes its large notes partly in paper, silver, and gold. Having cellars full of silver, France is naturally bimetallist. She compels you to accept a silver coin for sfr that has not an intrinsic metal value for half that sum. It is a feather in the cap of tbe Old Lady of Threadneedle street that she alone can pay five sovereigns for her five-pound notes.