Phenix Gazette

From the Paris Etoile, December 4,

The Journals of the Opposition endeavor to compare the fall of our funds with that of the English funds, and to deny the influence which the financial crisis in England must necessarily exercise over the quotations of the French funds. These journals appear to be ignorant that the English hold nearly 20,000,000 of Rentes in the French Five per Cents, and five or six millions in the Three per Cents. These Rentes represent six to seven millions of capital, which are realized at pleasure by England upon the Paris Exchange, but fortunately only at the quotations of the public funds. In order to prevent these quotations from giving way in consequence of the financial crisis in London, it would have been necessary that French capital should be ready to replace that which England had withdrawn from the Paris Exchange. This was not the case. Every attempt made to sell at prices beyond the ordinary proportions caused the quotations to fall, and took away all interest to realize money for London by the sale of French funds in Paris. It is thus that is explained the reaction of the financial situation of London upon the French funds. The fall in such a case compels foreign holders to transfer at low prices their stock to French holders, as long as there are any to take them.

In England the Bank has had embarrassments—to prevent their augmentation the discounts have been limited. The public treasury has had difficulties for the payment of its Exchequer Bills, and the holders have consented to renew them. Here the Bank has supplied all the wants which have been manifested, and they have still the means of supplying much larger, if they should occur. The journals of the opposition having gone so far as to advise the holders of Bank notes to claim their reimbursement. Here the treasury has had no want, and supported an insignificant floating debt, by issuing less than a third of the Royal Bonds which it was authorized to create for its exigency; yet the opposition has not ceased to endeavor to bring discredit upon the public funds to such an extent, as to induce the holders of Rentes to rush to the Exchange to effect sales at any price.

This comparison is useful to complete the appreciation of the situations, resources, and dispositions of the two countries.