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
To sustain this new currency the government resorted to every method
that ingenuity could devise. Pamphlets suited to people of every
capacity were published explaining its advantages. Never was there more
skillful puffing. A pamphlet signed "Marchant" and dedicated to "People
of Good Faith" was widely circulated, in which Marchant took pains
to show the great advantage of the _mandats_ as compared with
_assignats_,--how land could be more easily acquired with them; how
their security was better than with _assignats_; how they could not, by
any possibility, sink in values as the _assignats_ had done. But even
before the pamphlet was dry from the press the depreciation of the
_mandats_ had refuted his entire argument. [73]
The old plan of penal measures was again pressed. Monot led off by
proposing penalties against those who shall speak publicly against
the _mandats_; Talot thought the penalties ought to be made especially
severe; and finally it was enacted that any persons "who by their
discourse or writing shall decry the _mandats_ shall be condemned to a
fine of not less than one thousand _francs_ or more than ten thousand;
and in case of a repetition of the offence, to four years in irons." It
was also decreed that those who refused to receive the _mandats_ should
be fined,--the first time, the exact sum which they refuse; the second
time, ten times as much; and the third time, punished with two years in
prison. But here, too, came in the action of those natural laws which
are alike inexorable in all countries. This attempt proved futile in
France just as it had proved futile less than twenty years before in
America. No enactments could stop the downward tendency of this new
paper "fully secured," "as good as gold"; the laws that finally govern
finance are not made in conventions or congresses. [74]
Public-domain text, read in full here on John Shaqi.
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