M. Tirard, the French Chancellor of the Exchequer, is.we fear,
not a safe financier. The French economists complain strongly of his budgets as concealing deficits, and he has now made to the Budget Committee a most insidious proposal. The Bank
-of France is at present allowed to issue £128,000,000 of notes, which it must caskon demand, either in gold or silver. It is not, however, compelled to hold a certain proportion of metal to notes, but may provide for its obligation to cash them as it pleases. M. Tirard now proposes to abolish the limit of issue, his idea evidently being, if he wants a loan, to borrow, say, 220,000,000 of the Bank, and take it in new notes. This method -would be so quick and easy, that it would tempt the Govern- ment to expense, and diminish the hold of the Chamber on its outlays, as it could not repudiate the loan when borrowed and spent. The Budget Committee, therefore, reject the proposal, but agree to raise the limit by £20,000,000 above the present actual issue, which is 120 millions sterling. They, in fact, grant permission to the Treasury to raise one loan from the Bank of France, but not more.
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