In consideration of this superiority in value the prohibition which
forbade the deposits of gold and silver for bills, at Paris, was taken
off, so that notes could be procured at the bank for coin. This
permission was simply ridiculous, for no one now wished to exchange
specie for paper, even at par. But this was not all; the decree declared
that thereafter silver should not be used in payments of over one
hundred francs nor gold in those over three hundred francs. This was
forcing the circulation of notes in large payments, and that of specie
in small, and was designed to accomplish by violence what could only be
expected from the natural success of the bank.
These measures did not bring any more gold and silver to the bank. The
necessity of using bank-notes in payment of over three hundred francs
gave them a certain forced employment, but did not procure them
confidence. Notes were used for large payments, but coin was amassed
secretly as a value more real and more assured. The creditors of the
state ceased to carry their receipts to the Rue Quincampoix, because
they already distrusted the shares; they could not decide to buy real
estate, because the price had been quadrupled; they suffered the most
painful anxiety, and in their turn embarrassed the holders of shares
who needed the receipts to pay their instalments of one-tenth. The
catastrophe approached, and nothing could avert it, unless some magic
wand could give the company an income of four or five hundred millions a
year, which was now only seventy or eighty millions.
Law, adding measures to measures, at last prohibited the circulation of
gold, because this metal was, by its convenience, a rival of bank-notes
infinitely more dangerous than silver. He then announced an approaching
reduction in the value of coin, which he had raised by a decree in
February, only to reduce it again in a short time. The mark, in silver,
raised from sixty to eighty francs, was reduced to seventy on April 1st,
and sixty-five on May 1st. But this measure was utterly insufficient to
bring it to the bank.
The situation grew worse every day; the issue of notes to pay for the
shares presented at the bank had risen to two billions six hundred
ninety-six millions; their depreciation increased; and creditors of
every description, being paid in paper which was at a discount of 60 per
cent., complained bitterly of the theft authorized by law.
Public-domain text, read in full here on John Shaqi.
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