GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 63
system-"proportional cover" of the Reichsbank-has
been preferred by the Banque de France to the rigid
British system of statutory maximum of fiduciary circula~
tion.
The law of June, 1928, has introduced certain
changes in the accounting and preparation of balance~
sheet. On that date all the gold cash in the possession
of the Banque was "revalued" at the new rate of
exchange. The silver cash was likewise revalued
and "demonetized" and made over to the government.
The Compte rendu (Paris, 1929) publishes the account (in
millions of francs) of the Banque for the second semester
of 1928 in the following rnanner :
Percentage of
Gold-cover
Date Geld-cash Notes for notes and
current accountso-
25 June 28,935 58,772 40·45
7 Sept. 30,426 61,552 39'17
21 Dec. 31,835 61,914 39·32
During this period the gold~cover fluctuated between
39'17 and 40·45 p.c. of the engagements a Vue, i.e., sight~
engagements or daily and short~time liabilities. This is.
much above the legal 35 p.c. The proportion would be
much higher if the disponibilites a Vue a [' etranger, i.e .•
sight~claims or day~to~day and short~period assets abroad,
be added to the encaisse~or (gold~cash) in the vaults of the
Banque .
. Even within the "preportionar cover" group the
difference between the new Reichsbank and the new
Banque de France is very fundamental., The difference in
the provisions of the two note~legislations cannot by any_