Can this state of affairs be remedied, and can the needs of the future be met by a great increase of Coinage of 50 and 20 centime pieces? Your Government is not of opinion that this is possible. It is evident that the small change which is needed for the gold 10 franc piece, or even for the gold 5 franc piece, cannot be exclusively composed of 50 and 20 centime pieces, without such a multiplication of these coins, themselves not easy to handle, as would cause inconvenience in payments.

The regulations of the Mint were imspired by the actual needs of trade when they ordained in 1854 that in a million of francs worth of Silver to be coined, 950,000 francs should be struck in 5 franc pieces, and 50,000 in pieces of 2 francs and under, as follows:

The 50 and 20 centime pieces have thus been considered as entitled to form 30 per cent of the small change of the country and it would be impossible to make them the principal basis of that circulation without inconvenience to the public.

Your Government, Sire, has therefore been led by the favor with which the new fractional coins have met, to give its adhesion to the idea which has of late inspired certain legislatures and notably those of the Swiss Confederation and of the Kingdom of Italy; which have established, by the side of the normal standard, subjected to the chances of exportation and of return to the market, a species of small change coined at a diminished fineness and thus preserved from exportation, a species of money comprising all the fractional parts of the dollar of five franes, under its double form of dominant coin in the Silver Standard and of coin of lowest denomination in the Gold Standard.

The consequences of this system have been, so to speak, hastened by international influences worthy of consideration. The System which has established Silver change of diminished fineness in Switzerland, in Italy, and in France has shown in its course no uniformity, no harmony. While Italy and France adopted the fineness of 835 thousandths Switzerland chose a fineness of only 800 thousandths. It was to be feared that the Swiss Coins, introducing themselves into circulation by way of our eastern frontier, and becoming rare through the exportation of the pieces of 900 thousandths in fineness should usurp a great part of the place belonging to our national coin.

On April 14, 1864 a circular order from my department prohibited the admission of the Swiss coins in our public offices of receipts. These coins were in fact penetrating into the circulation and were giving rise to dispute, and to doubt in transactions between private persons.

Upon this, Belgium, whose monetary system is intimately connected with that of France Switzerland and Italy, having on its own account

instituted an examination into the question of the reduction of the fineness of its fractional Silver coin, apprehended the importance of making its action conform with that of neighboring States, and made known its view as to the utility of a Treaty between the four States whose monetary system rests on numeration by francs.

Struck by the opportuneness of this idea, which was discussed in various diplomatic communications I expressed to my colleague the Minister of Foreign Affairs the opinion that it would be well to bring together in Paris delegates of the four states who should be charged with the task of satisfying the requirements of commerce by a cominunity of money, which had been disturbed by recent events, although in states which had long been, in fact, united.

In pursuance of this action on my part, and through the good offices of the Department of Foreign Affairs, a Conference of delegates of the four States interested was opened in Paris the 20th of last November, under the Presidency of Mr. de Parieu the Vice President of the Council of State. *

Enlightened by the discussion the Swiss Government has consented to raise its system of coinage to the proportion already sanctioned by the legislations of France and of Italy. The amount of change to be issued has been fixed at a maximum for the different States, according to the number of the population and in conformity with the results of experience. Various mutual concessions have permitted the formation of a veritable Monetary Union in reference to gold and Silver coin, and the Treaty defining these arrangements was signed at Paris by Commissioners Plenipotentiary on the 23d of December, 1865. It has already been ratified by the Swiss Federal Assembly in the course of the last month.

Many of the dispositions of this treaty remain entirely within the free exercise of the prerogative of Your Majesty in relation to diplomatic agreement, and notably in relation to treaties of commerce.

Thus the uniform regulation of the coinage of Gold pieces, and of Silver 5-franc pieces, which was maintained in spite of the desire expressed by the delegates of the Belgian, Italian, and Swiss Governments, that in the new Monetary Union the principle of the Gold Standard should exclusively prevail, and, again, the obligation of accepting in public offices of receipt of each State, under fixed conditions, Coins struck in the other contracting States, did not appear in any respect to exceed the constitutional powers of Your Majesty in matters of diplomatic agreement; these stipulations chiefly affect the relations of international commerce. The same cannot be said of the articles of the treaty

The members of this Conference were:

For France: Messrs. De Parieu and Pelonze, delegates of the ministry of Finance; Herbet, delegate of the Ministry of Foreign Affairs; Julien, delegate of the Ministry of Agriculture, Commerce, and Public Works.

For Belgium: Messrs. Fortamps and Kreglinger.
For Italy: Messrs. Artom and Pratolongo.
For Switerland: Messrs. Kern and Fer-Herzog.

S. Ex. 58-50

which concern the fabrication of 2-franc and 1-franc pieces under conditions analogous to those which have already been adopted for pieces of 50 centimes and 20 centimes. The effect of the treaty of December 23 being to react, in this regard, upon the interior organization of the French Monetary System, in terms almost identical with those of a bill presented to the legislative body by your Government on the 6th of April, 1864, Your Majesty has thought proper to associate the Legislative Body in the examination of the articles of the treaty of December 23, 1865, which relate to the establishment of the new divisional Silver Coin. Your Majesty has believed that the Legislative Body would be conducted by an attentive study of the interests at stake in this question, to give force of law to these articles, and would hasten to add the sanction of its authority to an international enactment which may bring important advantages in the commercial communications of more than 66 million souls, which, in spite of the diversity of language and of nationality, are united under a monetary system whose name and origin remain French; an international enactment the announcement of which has been received with favor by public opinion. I have, in consequence, the honor of proposing to Your Majesty that the following bill be remanded to the examination of the Council of State (united sections of Legislation, Justice, Foreign Affairs, and Finance).

SINGLE ARTICLE.

The provisions of the fourth, fifth, sixth, and ninth articles of the Monetary Treaty signed at Paris December 23, 1865, between the Commissioners Plenipotentiaries of France, Belgium, Italy, and Switzerland, which conflict with the law of 7 Germinal year XI, shall have the force of law.

I am, with respect,

SIRE,

Your Majesty's very humble and devoted subject,

(Signed)

ACHILLE FOULD.

THE TREATY CONSTITUTING THE LATIN UNION.

MONETARY TREATY CONCLUDED DECEMBER 23, 1865, BETWEEN

FRANCE, BELGIUM, ITALY, AND SWITZERLAND.

His Majesty the Emperor of the French, His Majesty the King of the Belgians, His Majesty the King of Italy, and the Swiss Confederation, equally animated by the desire to effect a more perfect harmony in their Monetary legislation, and to remedy the inconvenience to trade between their respective countries resulting from the diversity of their small Silver Coins, and to contribute to the uniformity of weights, measures, and Coins by forming a Monetary union, have therefore resolved to conclude a convention for that purpose, and have named their commissioners plenipotentiary, as follows:

For FRANCE: M. Marie Louis Pierre Felix Esquirou de Parieu and M. Theophile Jules Pelouze.

For BELGIUM: M. Frederic Fortamps and M. A. Kreglinger.
For ITALY: M. Isaac Artom and M. Valentin Pratolongo.

For SWITZERLAND: M. Kern, minister plenipotentiary, &c., and M. Feer Herzog, member of Swiss National Council.

These commissioners, having interchanged their respective credentials, agreed upon the following articles:

ARTICLE 1. Belgium, France, Italy, and Switzerland unite to regulate the weight, title, form, and circulation of their Gold and Silver Coins. No change is made for the present, in legislation, relative to copper Coins for the four countries.

ART. 2. The high contracting parties bind themselves not to coin, or permit to be coined, any gold other than in pieces of 100, 50, 20, 10, and 5 francs in weight, standard, tolerance, and diameter, as follows: All

these coins shall be of the fineness or standard of .900, with a tolerance of two thousandths above or below the legal standard. The tolerance in weight shall be for the 100 and for the 50 franc pieces, one thousandth above or below; for the 20 and 10 franc pieces, two thousandths; for the 5-franc pieces, three thousandths. The weights and diameters are these:

Gold Coins.-100 francs, weight 32.258.06 grams, diameter 35 millimetres; 50 francs, weight 16.129.03 grams, diameter 28 millimetres; 20 francs, weight 6.451.61 grams, diameter 21 millimetres; 10 francs, weight 3.225.80 grams, diameter 19 millimetres; 5 francs, weight 1.612.90 grams, diameter 17 millimetres.

The different states will receive all the above coins when not worn to one-half per cent. or the devices effaced.

ART. 3. The contracting governments bind themselves not to coin, or permit to be coined, silver pieces of 5 francs, except in the following weight, standard, tolerance, and diameter: The weight of each 5-franc piece shall be of twenty-five grams; its tolerance in weight, three thousandths; its fineness, .900; its tolerance in standard, two thousandths; and its diameter thirty-seven millimetres.

They will receive the above pieces at par, unless reduced one per cent. by wear, or the device is worn off.

ART. 4. The high contracting parties will coin hereafter pieces of 2 and 1 franc, 50 and 20 centimes, only under the following conditions of weight, standard, tolerance, and diameter, The fineness of these pieces shall be of .835; their tolerance of standard, three thousandths; their tolerance of weight, five thousandths for the first two, .007 for the 50centime piece, and .010 for the 20-centime piece. Their weights and diameters as follows:

Silver Coins.-2 francs, weight 10 grams, diameter 27 millimetres; 1 franc, weight 5 grams, diameter 23 millimetres; 50 centimes, weight 2.50 grams, diameter 18 millimetres; 20 centimes, weight 1 gram, diameter 16 millimetres.

The above pieces shall be recoined by the respective governments when reduced by wear, or when their devices shall have become effaced.

ART. 5. Pieces of 2 and 1 franc and of 50 and 20 centimes of a different coinage from the above shall be withdrawn from circulation by the 1st of January, 1869. This term is extended for the pieces of 2 and 1 franc, issued in Switzerland by the law of January, 1860.

ART. 6. The silver coins authorized in article 4 shall be a legal tender between individuals of the states in which they are issued to the sum of fifty francs. The nation issuing them shall receive them in any amount.

ART. 7. The public banks of each of the four countries will receive the coins of article 4, to the sum of 100 francs, in payment to said banks. The governments of Belgium, France, and Italy will receive the Swiss 2 and 1 franc pieces of 1860, under the same conditions, as equivalent to the coins of article 4, and under the reservation relative to wear.