Fiat Money Inflation in France: How it Came, What it Brought, and How it Ended — John Shaqi
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
This system in finance was accompanied by a system in politics no less
startling, and each system tended to aggravate the other. The wild
radicals, having sent to the guillotine first all the Royalists and
next all the leading Republicans they could entrap, the various
factions began sending each other to the same destination:--Hébertists,
Dantonists, with various other factions and groups, and, finally, the
Robespierrists, followed each other in rapid succession. After these
declaimers and phrase-mongers had thus disappeared there came to power,
in October, 1795, a new government,--mainly a survival of the more
scoundrelly,--the Directory. It found the country utterly impoverished
and its only resource at first was to print more paper and to issue even
while wet from the press. These new issues were made at last by the two
great committees, with or without warrant of law, and in greater sums
than ever. Complaints were made that the array of engravers and printers
at the mint could not meet the demand for _assignats_--that they
could produce only from sixty to seventy millions per day and that
the government was spending daily from eighty to ninety millions. Four
thousand millions of _francs_ were issued during one month, a little
later three thousand millions, a little later four thousand millions,
until there had been put forth over thirty-five thousand millions. The
purchasing power of this paper having now become almost nothing, it was
decreed, on the 22nd of December, 1795, that the whole amount issued
should be limited to forty thousand millions, including all that had
previously been put forth and that when this had been done the copper
plates should be broken. Even in spite of this, additional issues
were made amounting to about ten thousand millions. But on the 18th of
February, 1796, at nine o'clock in the morning, in the presence of a
great crowd, the machinery, plates and paper for printing _assignats_
were brought to the Place Vendome and there, on the spot where the
Napoleon Column now stands, these were solemnly broken and burned.
Shortly afterward a report by Camus was made to the Assembly that
the entire amount of paper money issued in less than six years by the
Revolutionary Government of France had been over forty-five thousand
millions of _francs_--that over six thousand millions had been annulled
and burned and that at the final catastrophe there were in circulation
close upon forty thousand millions. It will be readily seen that it
was fully time to put an end to the system, for the gold "_louis_" of
twenty-five _francs_ in specie had, in February, 1796, as we have seen,
become worth 7,200 _francs_, and, at the latest quotation of all, no
less than 15,000 _francs_ in paper money--that is, one franc in gold was
nominally worth 600 _francs_ in paper.
Such were the results of allowing dreamers, schemers, phrase-mongers,
declaimers and strong men subservient to these to control a
government. [71]
III.
Public-domain text, read in full here on John Shaqi.
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