to interference of the government makes felt in another way, more prejudicial than able to the expansion of trade, namely by tanif old regulations which are constantly ed by the working class. The government has to regulate the system of customs r is largely based on the principle of pro n, in France as elsewhere favorable to some producers and a source of grave difficul ties to others.
It is practically impossible to give a numeri cal estimate of the amount of business trans acted in France. Mr. Maurice Block put it at 1,000 francs ($200) per inhabitant in 1875. It would certainly be more now, even without in chiding the business carried on at the Stock Exchange; to give an example of the latter it was estimated in 1888 by Mr. Neymarck that the stock negotiated on the Paris Exchange alone reached a yearly total of from 30 to 35 billion francs or 6 to 7 billion dollars.
As to importation and exportation, the fol lowing statistics will give an idea of the com mercial movement in France. We first extract a few figures from the tables drawn under Louis XVI by Arnould, chef du bureau de la balance du commerce.
We may add that the total importation of France in 1787 seems to have reached from 400,000,000 to 500,000,000 francs as against somewhat less than 100,000,000 in 1716, and the total exportation at the same date from 50, 000,000 to 500,000,000 francs as against a little over 100,000,000 francs in 1716. The imperial policy considerably reduced our exchanges with foreign countries, especially with England, with the effect that even under the ultra-protectionist government of the Restoration the figures rep resenting our imports and exports hardly equaled those reached during the last years of the old regime.
In the following columns we give the aver age reached by the commerce general and the commerce special respectively during ten-years' periods from 1827 to 1907, and the yearly aver ages from 1907 to 1913. (The commerce general includes all imports and exports of any sort, coins excluded; the commerce special only in cludes among imports foreign goods meant to be consumed in France and among exports goods wholly or partly manufactured in France and sent to foreign countries. The sums given represent millions of francs).
The revival of the French commerce and industry after the Revolution and in the course of the 19th century was bound to have its effect on the working of the banks• which, being the organs of the public credit, are the natural auxiliaries of exchange. The financial system the state has also been subjected to a com plete reorganization; public works of all kinds, military expenses, etc., have brought about •a considerable demand for capital; all the finan cial markets have come to share in the greater operations of credit and an ever closer solidarity has been established between the various finan cial markets themselves. The function of bankers; formerly mere money-lenders to the sovereigns, has thus evolved, being placed by circumstances on a broader basis. Hence it is true to say that, although some banking firms can proudly trace their origin several centuries back, the constitution of the banking system in France was the work of the 19th century.
The French banks are divided as follows: (1) The two official institutions, viz., the
Banque de France and the Credit Fonder; (2) the so-called °Haute Banque) and some credit societies of an equal standing; (3) the other credit establishments; (4) the discounting banks. We must point out at once that, from a legal and fiscal point of view, the name of banquiers is officially given to some financiers whose function is in fact the same as that of stockbrokers, and who are designated in pro fessional slang by the name of coulissiers (as though operating behind the scenes, dans la coulisse). The latter name was given to them at a time when they could only practice their business by tolerance, being theoretically ex cluded from the market by the stockbrokers' privilege.
1. The Banque de France was founded in 1799 by the first consul and finally organized by him, as emperor, in 1806. Its constitution was inspired by that of the Bank of England, but not made similar to it; it belongs to the system which, with some variants, now prevails in most European countries, and is entirely different from that of the United States. The Banque de France has, to begin with, an official function, viz., the issue of bank notes, which it owes to a privilege conferred upon it by law as early as 1803 and renewed ever since, the last renewal having taken place on 19 Nov. 1897, when it was stipulated that it would last for 15 or 23 years more and expire on 31 Dec. 1920. A fresh renewal is already under consideration and cannot fail to be voted for an important period, as it is the wish of the majority of business people. The currency of bank-notes is balanced partly in metal and partly in dis counted bills. Something of this system can be recognized in the new principles recently introduced in the United States by the Federal Reserve Act. The sum total in gold and silver amounted in July 1914 to about 4,500,000,030 francs($900,000,000) in gold and between 300,000,000 and 400,000,000 francs ($60,000,000 to $80,000,000) in silver. Since the outbreak of the war, the gold stock has been gradu ally increased to 5,000,000,000, francs ($1,000, 000,000 at the beginning of December 1916), although several consignments of gold have been sent to England and to the United States. The amount in bills discounted is constantly varying under the direct influence of the economic activity of the country; dur ing the last 20 years it has oscillated between 500,000,000 francs ($100,000,000) and 1,500, 000,000 francs ($300,000,000). The limit of the Currency of bank-notes has been raised a number of times, and amounted before the war to 6,800,000,000 francs ($1,360,000,000). It must be observed that cheques are used on such a limited scale in France that a high number of notes are a necessity of the ordinary course of business and life. Bank-notes were recog nized before the war as legal currency. The limit has now been raised (by a ((decree° of 15 March 1916) to 18,000,000,000 francs ($3,600, 000,000) in accordance with the necessities of the war, the enforced currency of bank-notes being decreed at the same time; the limit had been successively put at 12,000,000,000 francs ($2,400,000,000) 5 Aug. 1914, and 15,000,000,000 francs ($3,000,000,000) 15 May 1915.