GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRA"ICE 59
governed according to the "currency principle." But
it is curious that, this "philosophical" difference notwithstanding,
all the three note-banks have evolved in
their . actual history fundamentally the same practice in
regard to the relation between the cover and notes. Whatever
be the form of the cover, gold, securities, etc., they
all have developed the custom "no cover, no note."
And this uniformity is due essentially to the technique of
bank-management which involves the proper orientation
to risks. Factually, therefore, the banking principle and
the currency principle meet on the same platform.
A word may be added in regard to the exceptional
circumstances since 1914.
The daily averages· for the war-period can be
envisaged from the following three entries (in million
francs) :
Year Cash Bills Notes
1914 4,405 2,314 7,325
1915 4,709 928 + 2,399 urider 12,280
moratorium
1918 5,690 2,098 + 1,082 under 27,536
moratorium
For the post-war period until the reorganization
effected by the law of June, 1928, the note and reserve
biography of the Banque de France may be indicated as
f~llows :13
13 Banque de France: Compte ,endu, (Paris, 1921-28), annual publication
of the Banque.