An Odious Comparison

From the Detroit Tosí. The difference between trying to return to specie payment and getting away from it is well illustrated by the finanoial conduct of France and of the United States during the past six months. On October 30, in 1873, the note circulation of the bank of France was $602,000,000 ; on the lst of May it was $51 1,000,000. During these six months it contracted the currency ninety-one niillions of dollars. On the 30th of October it held in specie $145,000,000. On the lst of May it held $219,000,000. lts specie was, therefore, incroased seventy-four millions. In other words, France is one hundred and sixty-five millions nearer specie payments than it was six months ago. Where did this gold come from 't A part of it undoubtedly came from the private hoards of the French people, accumulated during the civil troubles and tho suspension of specie paynients. A part of it undoubtedly came from the United States. During the same period tho United States added twenty millions to their currency, and by so much made gold unnecessary here. It was shipped out of the country to enable France to return to specie payments ; to get on to a solid tinancial basis ; to substituto ccrtainty in business for uncertainty, confidence for distrust. It inay be said that the kind of money lias nothing to do with the question ; that there has béen depression in business in France as well as in America. This is true. But the difference is that France took advantage of commercial dullness, took advantrge of the opportunity when inonoy was not needed in other words, to cali in its paper and substitute specie for it. On tho contrary, in this country the stagnation in business, that is the comparative disuse of money, was used as an argument for an inflation policy. It came very near being used as an occasion for an inflation measure. France having put evorything in trim for a prosperous time, is in much better condition to improve its opportunity when prosperity returns than she would have been had she inflated her paper and diminished her specie. She did not, in the true sense, contract her currency by the amount of paper money she withdrew - that is ninety millious; but seventy-four millions of specie was substituted for tho same amount of paper, making the actual contruction only sixteen millions. The tact that the resumption of specie payments will add specie to the currency is often lost sight of in discussing the questiou of inflatioii. Specie payments will not necessurily contract tho currency to any considerable amount. They will only give stability to it. It is pumping water out of a ship and putting a valuable, well-packed cargo in its plaee. France haa pumped the water out, while we have furnisbes her with a part of the cargo we needed for ourselves.