GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 57
For subsequent periods the proportion (in millions) is
as follows (daily average):-
1880
1890
1897
1900
1905
1909
1913
Cash
1,974
2,513
3,184
3,237
3,956
4,524
3,927
Notes
2,305
3,060
3,687
4,034
4,408
5,080
5,665
It will be noticed that except during the years 1871-73
the cash amounted in value almost to the note-circulation.
Literally speaking, the notes were very often covered to
the extent of nearly 90 p.c. by metallic money. And this
without any law corresponding to the English Bank Act of
1844-45 or the German law of 1875.
Cash, however, was not the sole cover for the notes
during all these years. The commercial papers constituted
about Y3 of the notes. We have the following
figures of daily average (in millions) : 12
Papers Notes
1897 1,088 3,687
1900 1,367 4,034
1905 1,124 4,408
1911 1,842 5,243
1913 2,374 5,665
. If we now add the cash (90 p.c.) and other securities
(about 33 p.c.) we ha:ve a not~-circulation covered 123 p.c.,
i.e., much above its volume.
12 Courcelle-Seneuil. 0,... cil., p. 276.