Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1864-08-17
History of Paper Money in France,

The French government, in HIS, hrst issued paper
money on the credit of tle government BY running Mr.
Laws celebrated bank into national inst tuition Within
one year of the date of the establishment Of this royal
bank Of France it's paper promises to pay showed evident
of currency by edc uttered in l7ls tha:, thereaf
ter its paper money should pass at five per cent above
specie The dct forbid specie to be used at all in
sums under 200 vres. Still government papers contir-
ued down. The people boarded svery aud precious
stones order to lay bnsometllg that possessed mtrin.
sic value discovery of this device of the people drove
the government to issue an eiict forbiddng them to
have pearls diamonds. other precious stones Still the
governments paper money went down. Then
edct fro the government forbdding the transportation
Of specie also orbdding all persons from holding more
than 500 vres in specie under penalty OF conscatlon,
and fue Of 0r0O yrcs Still government paper money
declined And finally, the lth of March, 1920, an
edic, came forbddng any payment be made in specie.
Still the paper fabric crumbed; and, in few months
Of France might have hundred million Of govern
money in his pocket aud yet >tarve to death for
want Of ,D.ans to buy meal of vctua!s. When this
grand bubble of paper currency burst its cir
CITATION nearly two million and half lvres, while
there three hundred millions OF specie In the gov
eminent vaults So the government had this and
unweceme truth worked into its obtuse brains at last that
its paper issue promises to pay were not money and
could not be made equal to money not even with all the
tremendous power Of the government to uphold it. Bat
this terrible lesson of inevitable reputation and ruin
did not last France more than seventy years, when she
again launched paper balloon which brilliant
ly and down. if possible, still mere dlsastrously
than this of IT'S On the LIST Of April, $780, (well
started the lst of Apri the National Assembly issued
four hundred millions of francs of paper the credit Of
the government. Wise in France sh0ok-ther heads
and warned the National Assambl ythat ley would bring
financial ruin both upon the government and the people
But they sienced by the cry, What is not the
governments money good?" To doubt it was to incur
the charge of being foe to the government Soon other
large issues became necessary, and consequence the
assgnats began to Decline "Ah. hal said the wise men,
we tod You sol" But the government came up resi-
utey though not wisely to the of its darling
rency 1t to the despotic keep
| it at par. 1t prohibited the @se of metallic coin.
And nally in 1885, just six years after its first paper
issue it uttered decree Of death against all who should
refuse to take it at par But under this terrible law
its paper fell to one half of one cent And final
y toek COO Of government paper francs to buy pair
of boots In those good times for the silly people who
had little while before split their Threats in baw ling.
"Whsl! is not the government money good?" it took
Fenchman pound of butter Those who had confident
ly boarded this excellent government n.ney could then
bring out and treat their children to stick of barley
candy for 80 francs
1t interesting how the state of depreciation OF
paper kept with the increase Ut its issue
| Thus:
First ISSUE four hundred millions of francs.
| Second ISSUE hundred and twenty millions; dis
count ~ per cent.
Third issue, twenty.seven hundred millions discount
81 per cent
Fourth ISSUE Eve thousand millions; discount SIS pei
cent
When the whole issue amounted to eight thousand mil
lions of francs the discount rs per cent Aud finally
1885, only five years after the first issue when the whole
mount twenty millions of francs, the discount wa.
j9 per cent Soon after this the government paper fell
Zero, and alb andJned valueless.
The experience of Russia with government paper,
less DISASTROUS is the less instructive in teaching tn
great lesson that it is not within the power of any govern
ent to make its paper issue of promise to pas
money for any length Of time.