The Example of France; Two Essays on the Payment of the Indemnity, and the Management of the Currency Since the German War, 1870-'74

The Example of France; Two Essays on the Payment of the Indemnity, and the Management of the Currency Since the German War, 1870-'74

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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1876 edition. Excerpt: ... be continued after the debt to the Bank is paid, or, at least, an annual reduction made of 150,000,000. Can we do it 2 We made a great mistake in our mode of borrowing the 5,000, -000,000 francs to pay the indemnity; we ought to have created terminable annuities, to be paid off at shorter and longer dates. In this way, the reduction of the debt would have been compulsory, and not open to discussion. Having chosen to borrow in the form of a perpetual rente, the reduction of the debt is now merely optional. After the debt to the Bank is paid, many peopie will be unwilling to go on reducing, and will argue that it is better to diminish taxes than to provide for paying off a debt which nobody thinks about, and which is, after all, easily enough carried. If this language comes to prevail, it will seriously injure our credit; for a reduction of debt has the double advantage of diminishing the burdens of the future, and improving credit in the present. In this matter, America offers a remarkable example; it has a large debt, as we know, but it devotes a very considerable sum, every year, to its reduction. The result is, that America is now able to borrow at 5 per cent., while a few years ago, before the War of Secession, loans would not have been made to that country at less than 7 or 8 per cent. If we could only be certain, in this country, that the debt to the Bank of France would inevitably be paid within the prescribed time, at the rate of 200,000,000 francs a year; and that afterward we should resolutely apply a sum of 150,000,000 annually to the further reduction of our indebtedness, our credit would experience an immediate, and perhaps very important, advance. Suppose the advantage gained were 1 per cent; 1 per cent., applied to transactions..show more

Product details

  • Paperback | 26 pages
  • 189 x 246 x 1mm | 68g
  • Rarebooksclub.com
  • Miami Fl, United States
  • English
  • black & white illustrations
  • 1236665864
  • 9781236665867