GIPE-PUNE-OIIOI2 - DSpace@GIPE

56 THE RE~MAKING OF THE RElCHSBANK
The Banque de France, founded or rather recons~
tituted by the law of April 22, 1806 and decree of Jan. 16,
1808,11 for nearly 'half a centl}ry does not appear to have
been bound down to any maximum. The maximum was
fixed, as we have noted above, at 350,000,000 francs by
a decree of March 15, 1848. During the F ranco~Prussian
War the maximum was raised to 2,800 millions (Decem~
ber, 1.871). In 1884 the figure 3,500 millions .was
sanctioned by law. In 1897 it was raised to 5,000 millions
(5 milliards), in 1911 to 6,800 millions, and in 1925 to
58,500 millions.
But although there was no statutory compulsion in
regard to the relations between the issue of notes and the
cover in gold or securities the history of the Banque de
France indicates that the governors of this credit~institution
have out~Germaned the Germans and .even out~Englished
the English in their practical solicitude for the safety of
national credit and the country's reserve.
The actual proportion between cash and notes such
as . prevailed during the critical period of the. 70's is
indicated below:-
Cash Notes
Jan., 27, 1870 1,202,000,000 1 ,471 ,000,000
1871 398,000,000 2,359,000,000
1872 630,000,000 2,678,000,000
.1873 705,000,000 3,071,000,000
1874 1 ,330,000,000 *'
1875 e* 2,600,000;000
1\ Loi. et .tatut. qui regiasent la Banque de France (Paris. 1926); pp.
20. 28. 41. -Figures not available.