depreciation of silver affected the Indian govern. at its exact value in gold, it might be made to play an important part in the work of international exchange without danger to any interest. Count Rusconi (Italy) contended that money was not merchandise, but a creation of law; consequently the ratio of fifteen and one-half was just as good as the ratio of sixteen or twenty. Mr. Burkhardt Bischoff (Switzerland) contended that money was merchandise, and not the creation of law. All that the state could do was to give a certificate of its weight and fineness. This it effected by means of a stamp. When that stamp was affixed, the state had exhausted its powers. The double or alternative standard was unjust in that it allowed the debtor always to pay in the cheaper metal. The greatness of London as a centre of the world's exchanges was due in large part to the invariableness of the English standard. You could always know what a pound sterling was; you could never know with certainty what a franc was under the double standard régime, when that standard existed. Replying to Mr. Cernuschi's observation on the loss of ninety-sixing from the uncertainty of the exchanges and a million marks incurred by Germany, he contended that this was a fallacious assumption. Instead of incurring a loss, Germany had really made a gain. She had sold her silver at rates considerably higher than the present market price. If she wished to repurchase it she could do so now at a profit. The proper way to deal with the great stocks of silver in the banks of the Latin Union was to melt them down into ingots, and issue silver certificates for them, of so many kilogrammes each, which might pass into the world's commerce at their value according to the weight represented by them. Mr. Cernuschi reiterated that Germany had lost ninety-six million marks by her monetary reform. This was testified to by the memorandum of the German government submitted to the conference. (This memorandum showed a loss of 96,481,136 marks, comparing the sales with the original cost of the silver.)—During the fifth, | sixth, seventh and eighth sessions the theoretical discussion was continued by Mr. Horton, Mr. Howe and Mr. Evarts on the part of the United States, by Count von Kuefstein and Chevalier von Niebauer (Austria-Hungary), Mr. Cernuschi and M. de Normandie (France), Mr. Pierson and Mr. Vrolik (The Netherlands), and Mr. SeismitDoda (Italy), in favor of bi-metallism; and by Mr. Brock (Norway), Mr. Pirmez (Belgium), Mr. Forssell (Sweden), and Count San Miguel (Portugal), against it. Sir Louis Mallet, on behalf of the government of British India, made some important statements. He said that he was authorized to engage that India would continue to keep her mint open to the free coinage of silver for a certain definite period, provided and upon the condition that a certain number of the principal states of the world engage on their part to maintain within their territories during the same period, the free coinage of silver, with full legal tender faculty, in the proportion of fifteen and one-half of silver to one of gold. He would explain how the 124 - 5 VOL. III. | loss of 20 per cent. on the great quantity of silver hoarded by the natives. The great wish of the financial authorities of India had been to have a common monetary system with England. Silver being impossible as a common standard on account of the English system, the choice must be between bi-metallism and gold, and although the latter was at present too difficult, it was certain that if any opportunity should offer itself India would seize it and enter into the struggle for the sole metal left as a solid basis for an international currency. Mr. Moret Y. Prendergast suggested that England might second the undertaking of Germany in behalf of silver by keeping one-fourth of the bank reserves in that metal as authorized by Sir Robert Peel's act. Mr. Fremantle replied that his government would take into very serious consideration the views put forward by the conference, but he suggested that the proposals be put in as definite form as possible. Mr. Forssell (Sweden) said that it was vain to talk about the sufferings and groans of this country and of that country, of this great bank and of that great bank, for the want of bi-metallism, so long as England and Germany refused to be converted. Notwithstanding all that had been said about the growth of bi-metallic opinion in Germany, here was the imperial government absolutely inflexible in its adherence to the single gold standard. There was not one ray of hope in that quarter. England was equally unmoved. Her Indian interests were so far inferior to her general interests that there was not the smallest prospect of her entering into a bi-metallic union. It was said that £2,000,000 per year are lost in the Indian exchanges. That was an ascertained sum, but the loss to be sustained by entering into a bi-metallic union was an indefinite and unascertained sum. Was an exact amount of loss ever bartered for an indefinite amount of risk? Was the monetary supremacy of a country ever sold for two such as it has been organized by the universal consent of nations, the abasement and ruin of individuals, instead of finding in it a fruitful and efficient cause of their prosperity and development. A proposition which remains true in spite of the crookedness imparted to it by these sophisms, is this, that when suffering is born of the sins of society or governments and the vice of institutions and of laws, it is no longer a question of humanity, decency and wisdom, but of a strict obligation of the state to alleviate it. It is no longer a case of donation, but of credit. Society, being held to repair its own wrongs, is not obliged to correct those which individuals inflict on themselves, any more than those which they suffer from others or from undeserved misfortune. It would be to destroy the dignity, the liberty, the responsibility of individuals, to transfer to the social body the task belonging to each one of guarding, preserving and developing himself. What society owes its members, is, to protect and guarantee the free exercise of their rights with all its strength; its office is not to think, to will or to act for them. The more liberty a state insures to its citizens, the less attention it owes their interests, since it leaves these interests more completely to the management and responsibility of the citizens themselves; if it interferes in private life and exerts an influence in managing the property of individuals, its responsibility to individuals increases with every extension which it gives to its guardianship. For societies, as well as individuals, to do good, is a secondary duty; not to do wrong is the first. The wants of a wise administration counsel the state to assist the parasitic mass, but the obligations not to create parasites itself, an obligation a hundred times more serious and binding, is antecedent to this. It should not act like a surgeon who would first wound the passers by, and then offer them his services. Society creates paupers, and consequently parasites, when it turns from the straight road of justice, and, changing the noble office of guaranteeing and pro against indulgence. Charity has its eyes fixed, not on what it gives, but on what it has itself received. All men would be charitable if they would remember the large number of services which each one receives from his neighbors, no matter how brilliant his actual situation may be. There is not an individual who does not draw abundantly from this large capital of the universal domain transmitted and increased from generation to generation, and who does not take much more from it than he can ever return to it. We owe too much to others to be authorized to bargain our assistance to those whom it is possible for us to aid. - Public charity is governed by narrower and more worldly rules than private charity. Consequently, men correctly cease to call it charity, and give it the more modern name of public assistance. Charity, which is love, strips itself to give to others. When the state gives and assists, it strips itself of nothing; its action is limited to distributing in a certain fashion the contributions which it levies on its citizens. Not every gift is charity; the assistance distributed by the state is only a branch of the public administration. The only parasites at the expense of the state should be the poor who can not be properly cared for by their families, associations or private charity. To live in a purely gratuitous manner at the expense of the state when not compelled to accept the gifts by which it supports the needy and unfortunate, is to belong to the worst class of parasites, to that class of people who are able not to be parasites, a perverse class, a public pest, whose close relationship with robbers we have previously pointed out, and to which we need not return. It only remains for us to speak of parasites who are really poor people. State donations, like private gifts, are essentially one-sided, in this sense, that the moral duty imposed on the donor does not suppose any right in the recipient. Where credit begins, donation ceases. It is the desire of humanity that human beings should not be left to perish of distress; it is the dictate of prudence that a mass of men ex-tecting property into a tyranny, takes possession of cited to disorder and crime by the spur of want should not be left to increase in the bosom of society; but the duty of the state to be humane and prudent creates no right to demand its assistance. | The destructive sophism which converts want into credit has been revived in our time under the names of the right to existence, the right to labor, the right to assistance. It has been frequently refuted in this cyclopædia. (See ATELIERS; CHARITY; COMMUNISM; LABOR, RIGHT TO.) The falsest sophisms are generally the exaggerations of a correct idea, or the improper generalization of a particular truth. The numerous varieties of the anti-social sophisms which parade the name of socialism, place their point of support on the undeniable theory of reparation of wrongs, but they draw strange conclusions from this. By attacking not only society, but also the law of sociality, the sacred foundation of society, they affect to see in the conditions of every-day life, property and labor, or injures them by its exactions it creates paupers when it arrests or hampers the free exercise of moral, intellectual or physical activity, the natural expansion of labor, the legitimate acquisition or transmission of property; it also creates paupers when it offers a premium on vice, idleness and lack of courage, by too great a readiness to grant relief. Society, through the enormous power which it wields, feeds and increases the evil when it distributes imprudently what it believes to be its benefits. The moderation in public assistance commanded by prudence, rests also on another basis. The state, which can levy only on the services and the property of workmen and capitalists, should never forget that whatever it gives is necessarily taken from the goods of its citizens; generosity at the expense of others easily degenerates into spoliation. The assistance given to parasites is an ex pedient rather than a remedy. Social progress consists, not in maintaining and supporting a greater number of parasites, but in decreasing and eliminating the parasites in existence. The perversion of manners, the extinction or abasement of the moral sense, makes most parasites. A bad book, a vicious sophism, an evil example, creates more misery than hail, fire or famine. If it is necessary, because they are men, to assist human beings who consume without producing and receive without giving, it is imperative to attempt their reformation and endeavor to make them acquire property through morality and labor. Next to the task of improving its institutions and its laws in order to free itself from participation in evil, society has no more important mission than to obtain good results from good laws by improving the morals of men. The amount of misery is enormous, and alarms the most civilized societies. The true problem would be to dry up or lessen the thousand impure channels through which it is formed and increased. Society should by law leave religion free to propagate its principles; it should open schools, make education and enlightenment general, honor letters, sciences and arts, elevate the moral sense, exalt disinterestedness, remunerate services rendered, give life to indolence, smooth obstacles, remove all obstructions of the market. Its firm and vigorous humanity should avoid, as far as possible, the degrading form of alms; it should without asperity, uniting prudence to kindness, never forget that severity is generally more merciful than weakness. The danger is great, when the instinct of natural dignity which finds unearned bread bitter, grows weak and loses its honorable sensitiveness. The loss of the feeling of responsibility in individuals toward themselves, in families and other collective bodies toward their members, throws into the ranks of parasites persons of equivocal morality who find it more convenient to receive aid than to work. In the train of idleness follows covetousness; then corruption, which, increasing more and more, impels all to live at the expense of all. -The only efficacious and honorable means of combating the parasitic spirit, the last extremity of human abasement, and assisting pauperism, is a gradual increase of the freedom of labor and property. All other methods serve simply to conjure the necessities and dangers of to-day, without promising, but often preparing, a worse to-morrow. When workmen can display their activity in peace, when capitalists can with confidence accumulate and lay up their property, the products of which will enrich all, the class of parasites decreases and is quieted through the development of the other two classes. Just as workmen and capitalists prosper and suffer together, and as it would be to impel them to suicide and to mutual oppression, to arouse rivalry and envy between them, parasites should respect capitalists and laborers, not only on account of moral obligation and the command of positive law, but also from calculation of what is useful for themselves. Parasites in fact or in intention, the unfortunates who are, and the cowards who wish to be, parasites, would be, like the rest of society, ruined by the despoiling of those who labor and those who own property. Swarms of rivals, left behind, would be excited by the contagion of victory, and would rise up as enemies and destroyers of the success of the violence of a day. Ill gotten gains are not easily kept. A few days of dissipation would quickly throw back into misery those who had escaped from it by detestable means. Their momentary triumph, by removing further from them the capacity of suffering with dignity, would only redouble their incapacity for labor and their helplessness to acquire property honestly. The man accustomed to live only on others, destroys his most lasting resources, if he ruins those who alone are able to acquire and preserve. (See PAUPERISM.) CH. RENOUARD. PARDON. Pardon is the remission, granted by the sovereign or head of the state to a sentenced person, of the penalty imposed on him by the courts. Such penalty is sometimes replaced by a less severe one. This is what is called a commutation of sentence. - Pardon, in contradistinction to amnesty, abolishes neither the offense nor the sentence. The utility of the right of pardon has been questioned by some publicists, as for instance, Beccaria, Bentham and even Rousseau, who have contested the necessity of its intervention. Beccaria desired to introduce clemency into the law, but not into the execution of its judgments. He thought that the moderation of penalties and the "perfection of the law" would render pardons superfluous. "The right to remit the penalty imposed on the culprit," he said, “is a tacit disapprobation of the laws.” This inflexible rule, which attributes the same weight and measure to all acts of the same nature, although in the infinite variety of human affairs they differ considerably one from the other, and never have the same moral value, has been condemned by experience, which has rejected the system of the fixity of penalties. J. J. Rousseau, although less absolute than Beccaria, reached almost the same conclusions. "The right of pardon," says Rousseau, "or of exempting a culprit from the penalty declared by the law and pronounced by the judge, belongs only to one who is above the judge and the law, that is, to the sovereign; moreover, the right of the sovereign to exercise the pardoning power is not quite clear, and the cases in which that power should be exercised are very rare. In a well-governed state there are but few punishments, not because pardon is very frequent, but because there are few criminals; the multitude of crimes insures their impunity when the state is in a condition of decay. ** Frequent cases of pardon indicate that crimes will soon have no need of it."-More recently than Rousseau's time clemency in the execution of penalties found new adversaries. Mr. Livingston, an American, opposed it in principle, and proposed at least to restrict its application to certain cases. "The - strument of commerce, and of being backed by the discount on merchandise, it is handed over at the arbitrary will of the state, which transforms it into a mere resource of the treasury. It then becomes almost impossible to avoid a fatal declivity; an excessive emission leads to bankruptcy, for the state always issues more notes than the needs of circulation require, and, in proportion as the law of depreciation manifests itself, it hastens the catastrophe by the necessity of employing more notes to meet the same expenses. -The loss which the country suffers is far from being confined to the diminution in price of the mass of fiduciary signs; it is increased by the unnatural amount of business transactions, rendered so by a fictitious value. The money of a nation never forms but a small portion of its wealth, and the depreciation of paper exercises a direful influence upon all products, which are henceforth distributed in a false proportion. All the relations of the sovereign power with citizens and of citizens with one another, are changed by it; contracts are violated; injustice triumphs, and the public fortune declines as a result of the ruin of individuals. How deplorable soever the system of paper money appears to us, we do not wish to exaggerate anything; it is not impossible to escape the dangers which it seems to provoke, but to do so we must renounce the idea of seeing in it too rich a mine, and of demanding of it more help than it can render. By confining it to well-defined limits, by scrupulously preventing it from exceeding a fraction of the receipts and expenses of the state, the government may find in paper money, if accepted by all the public treasuries, the means of effecting a real loan without interest. But this can never be but a limited resource, and as it may lead to dire consequences, it would be better to renounce it from the moment there appears a possibility of these consequences. Many of the small German states have treasury notes, which circulate as money, because there are but very few of them. In 1873, with a budget of 1,000,000,000 francs, Prussia had not 60,000,000 of Tresorscheine; the duchy of Baden reached a larger proportion, 3,000,000 florins of paper money to a budget of 19,000,000 florins. It is only in microscopic and needy states that the relative proportion is still further increased; but the amounts are small. Saxe-Meiningen had, in 1873, a budget of 2,000,000 florins and 356,000 florins of paper money. Saxe-Altenburg had 400,000 thalers of paper money when the treasury receipts reached only 874,192 thalers, and there were 950,000 thalers (more than $600,000) of this irredeemable paper in Anhalt alone. These modest figures seem insignificant by the side of the 3,000,000,000 of paper money of the Russian empire, which would like to appear less majestic in this respect. If France, at the close of a disastrous war, was compelled to carry such an amount of paper, she did it only by maintaining a larger specie reserve in the presence of wealth treble the amount, and of a trade four times that amount. She endeavored, besides, to resume her normal condition by a prompt redemption of the state's indebtedness to the bank of France. - The two distinctive characteristics of paper money are, that it is not redeemable in coin, and that, instead of having public confidence for its limit, it is imposed by authority, by means of forced circulation and the usurpation of the power of discharging debts. Bad as an instrument of commercial credit, it becomes disastrous as an instrument of public authority, unless it be lessened to such an extent as to render only secondary services. As soon as the attempt is made to use it upon a very large scale, it leads to an abyss. Never more than in these later times have we seen numerous states applying the dread remedy of paper money upon a great scale. The United States at the close of the war of secession, Italy after gaining her independence, and France when defeated by Prussia, have put themselves side by side with Russia and Austria in the use of this dangerous expedient. This affords us a great lesson, for all these states were or are merely endeavoring to escape from a false situation, whose inconveniences they all appreciate. The old illusions have disappeared: men no longer extol paper money; they no longer see in it a source of wealth; they appreciate better the elements which constitute productive power; they know how often an apparent economy is transformed into losses of various kinds, whose amount far surpasses the pretended benefit. If we sum up the total amount of paper money issued by the five powers mentioned, we will find, after deducting the amount of the specie reserve, that it amounted, in 1873, to $250,000,000,000. This was not oneseventieth part of the accumulated wealth of these states; as a pretended increase of productive power, therefore, paper money is a feeble benefit, entirely counterbalanced by the trouble it causes in circulation. The measure is already full, and can not be increased. The common efforts of all civilized nations are directed toward a reduction of the amount of paper money. But should not this necessary reduction of notes render those more circumspect who, acknowledging only gold as a medium of circulation, would run the risk of destroying the necessary equilibrium between business and money? (See MONEY AND ITS SUBSTITUTES.) L. WOLOWSKI. PARAGUAY (Republic of). Paraguay was one of the numerous provinces included in the vice-royalty of Buenos Ayres, which comprised the Spanish-American possessions connected by the Rio de la Plata with the Atlantic ocean. Like all the other Spanish colonies of Central and South America, Paraguay, when the cry of inde pendence resounded throughout the American continent, succeeded in shaking off the yoke of the mother country, almost without a struggle, in 1810. But this province, which had already had its separate history in the past, a strange history and one entirely different from that of any other state, also contributed to the revolution which it had just accomplished, features which contrasted in a most striking manner with those of the other republics of La Plata. - A few words here about the past. Paraguay, like the greater part of South America, was conquered to the crown of Spain, about the middle of the sixteenth century, by the hardy adventurers who, on the heels of Columbus, Cortez, Pizarro and Americus Vespucius, had cast themselves upon the new world, as ardent in their endeavors to despoil and enslave the aborigines as to convert them to the Christian faith. But in these remote countries, in which relations with Europe were almost impossible, the religious element soon prevailed over the political element, and the powerful company of Jesus which, since 1588, had through its missions planted the germs of refinement of manners and community life in these countries, obtained, in 1611, the privilege of governing Paraguay, under the suzerainty paramount of Spain. - This government of the Jesuits established a pure theocracy in Paraguay, and maintained it with firmness, moderation and success during more than a century and a half, until the year 1767, when the society was expelled under the ministry of the count of Aranda. We can not here undertake to defend theocratic government, as both experience and reason demonstrate that human societies develop only under the influence of ideas of progress and liberty. We must note, also, that individual action, under the enervating régime of their vast conventual organization, no longer had the energetic stimulus of the feeling of ownership or property. But, when we consider the savage state of the inhabitants, it is impossible to deny that the Jesuits worked a marvelous transformation during their prolonged domination. If they concerned themselves more about the souls than the intellects of the aborigines, if their religion itself was a sort of paganism, tending to divert the natives because external in form in almost everything, they nevertheless bent these large and lazy children to the law of labor; and it is a demonstrated fact that the agriculture of Paraguay was checked after the expulsion of the company, and that even to this day it has not regained its former development, so that numerous localities, formerly well cultivated, are now abandoned. What is specially worthy of note is, that the rule of the Jesuits left a strong impression upon their minds, and that respect for authority remained the heritage of the country when the declaration of its independence handed it over to the experiment of a republican form of government. Nor were its efforts in this direction long continued: while everywhere else, throughout Spanish America, the people sought their way amid endless commotions, the people of Paraguay found theirs without hesitation and without groping; or rather, as immutably disciplined disciples of the Jesuit fathers, the people of Paraguay allowed themselves to be led without a shadow of resistance, by the energetic man who 123 VOL. III.4 took their destiny in his hands. With the aid of the patriots of Buenos Ayres, Paraguay had overthrown the Spanish domination in the month of May, 1811: a junta had been established, and the victorious insurgents gave the highest place to Doctor Francia, who had taken no part in these events, but whom they regarded as the only Paraguayan capable of directing public affairs. — In fact, from the moment that Doctor Francia was accorded a place in the new republic, he became everything: he first presided over the junta, then when a congress had established, at his suggestion, a government with two consuls, he filled one of the consular chairs, which had been called by the names of Cæsar and Pompey. Soon after, in 1814, the chair of Pompey, which had been only an embarrassment, was removed from the hall of congress, and Francia was named dictator for three years. Finally, the assembly conferred perpetual dictatorship upon him. Thus was the republic of Paraguay governed until the year 1840, when the dictator, weighed down with years, but ever feared, respected and obeyed as a god, was called from the throne and from the world. - Absolute power was not exercised dur ing so many years without falling into excesses. Francia, who had obtained supreme power at the age when passions are extinct, and who had immediately renounced all taste for gaming and sensual indulgence, hitherto the sole object of his life, abandoned himself to the sombre passion of old men, vengeance. He was sure of the submission of the people, but he wished to inspire fear, and he cared little whether he was hated or not. Those who had known him best, those who, in the beginning of his career, had helped to bring him forward, and whose jealousy had been excited by his new greatness, were the more especial objects of his pitiless spite. Under pretext of conspiracy, his old friends were imprisoned, judged by him alone, and executed. His dictatorship was a veritable reign of terror, and even to-day scarcely any trace can be found of the bloody executions he prescribed, as his written orders were returned to him after the execution, and by him immediately destroyed. — Francia had, we may add, no regard whatever for human life, and this is the odious feature of his dictatorship; but his cruelty, his strange and fantastic humor, did not constitute the entire man, for whose continued power there would be no pretext, even in Paraguay, if he were not possessed of certain striking public virtues and of extraordinary governing qualities. The old dictator, with a preconceived system, devoted himself to what he believed to be the interest of Paraguay. Much bet ter informed than any of his countrymen, he took everything into his own hands, always knowing the end which he wished to attain. Without ministers, without counselors, without confidants, he had with him only a secretary of the lowest rank, called actuario, who recorded his wishes, without pretending to influence them. He was ever disinterested: he said that the state stood |