Fiat Money Inflation in France: How it Came, What it Brought, and How it EndedWhite, Andrew Dickson
History
Fiat Money Inflation in France: How it Came, What it Brought, and How it Ended
White, Andrew Dickson
Assignats; Inflation (Finance) -- France -- History
But these evils, though great, were small compared to those far more
deep-seated signs of disease which now showed themselves throughout the
country. One of these was the _obliteration of thrift_ from the minds
of the French people. The French are naturally thrifty; but, with such
masses of money and with such uncertainty as to its future value, the
ordinary motives for saving and care diminished, And a loose luxury
spread throughout the country. A still worse outgrowth was the increase
of speculation and gambling. With the plethora of paper currency in
1791 appeared the first evidences of that cancerous disease which
always follows large issues of irredeemable currency,--a disease more
permanently injurious to a nation than war, pestilence or famine. For
at the great metropolitan centers grew a luxurious, speculative,
stock-gambling body, which, like a malignant tumor, absorbed into itself
the strength of the nation and sent out its cancerous fibres to the
remotest hamlets. At these city centers abundant wealth seemed to be
piled up: in the country at, large there grew a dislike of steady labor
and a contempt for moderate gains and simple living. In a pamphlet
published in May, 1791, we see how, in regard to this also, public
opinion was blinded. The author calls attention to the increase of
gambling in values of all sorts in these words: "What shall I say of the
stock-jobbing, as frightful as it is scandalous, which goes on in Paris
under the very eyes of our legislators,--a most terrible evil, yet,
under the present circumstances,--necessary?" The author also speaks
of these stock-gamblers as using the most insidious means to influence
public opinion in favor of their measures; and then proposes, seriously,
a change in various matters of detail, thinking that this would prove a
sufficient remedy for an evil which had its roots far down in the whole
system of irredeemable currency. As well might a physician prescribe a
pimple wash for a diseased liver. [34]
Now began to be seen more plainly some of the many ways in which an
inflation policy robs the working class. As these knots of plotting
schemers at the city centers were becoming bloated with sudden wealth,
the producing classes of the country, though having in their possession
more and more currency, grew lean. In the schemes and speculations put
forth by stock-jobbers and stimulated by the printing of more currency,
multitudes of small fortunes were absorbed and lost while a few swollen
fortunes were rapidly aggregated in the larger cities. This crippled a
large class in the country districts, which had employed a great number
of workmen.
Public-domain text, read in full here on John Shaqi.
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