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
Statesmanlike measures, careful watching and wise management would,
doubtless, have ere long led to a return of confidence, a reappearance
of money and a resumption of business; but these involved patience
and self-denial, and, thus far in human history, these are the rarest
products of political wisdom. Few nations have ever been able to
exercise these virtues; and France was not then one of these few. [2]
There was a general search for some short road to prosperity: ere long
the idea was set afloat that the great want of the country was more of
the circulating medium; and this was speedily followed by calls for an
issue of paper money. The Minister of Finance at this period was Necker.
In financial ability he was acknowledged as among the great bankers of
Europe, but his was something more than financial ability: he had a
deep feeling of patriotism and a high sense of personal honor. The
difficulties in his way were great, but he steadily endeavored to
keep France faithful to those principles in monetary affairs which the
general experience of modern times had found the only path to national
safety. As difficulties arose the National Assembly drew away from him,
and soon came among the members renewed suggestions of paper money:
orators in public meetings, at the clubs and in the Assembly, proclaimed
it a panacea--a way of "securing resources without paying interest."
Journalists caught it up and displayed its beauties, among these men,
Marat, who, in his newspaper, "The Friend of the People," also joined
the cries against Necker, picturing him--a man of sterling honesty, who
gave up health and fortune for the sake of France--as a wretch seeking
only to enrich himself from the public purse.
Public-domain text, read in full here on John Shaqi.
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