Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-06-16

CONDENSED ACCOUNT CO THAT MOST REMARKABLE
FISAScIAL PEKATIos.

As the pubic NJ the present moment has pc
culiar interest M financial operstin-. based upon.
or rather conducted through The medium OF
paper CURRENCY: and a. frequent allu-on i N ,de
BY the pres and public speakers TO the assignat
system OF France. a. illustrative Of our osn
currency, &c have thought thai c"Ddensed se-
cuuDto thi> most remarkable financial operation
wvtiib prove Of considerable value. Almost ev
ervbOds has heard Of the ss-ignats. anu knows
that they we're issued by France. and that they
finally proved = s'upendous failure; but of the
details attending the issue. circulation. and hnal
withdrawal OF this currency. and Of the vast ef-
iect e1eriei by IL ia every department. of the
French nilionsl org,niz ton. nothing il known
save by the fes whom time and inclination have
enroled 20 become familiar with history. IL is.
then, Tor the bene6t Of those who are preclud-d
by circumstances from being students Of history.
that we prepare the present article.
ORIGIN or Ass.GSArs
Is is not necessary. uuder this head. 10 pene
trste into the history Of France a. the period in
which the assgnais were cresteI further than 70
s,y that il was ~ the memorable year OF 1890. q;
which time the State IN the second year Of
what is known ~ the French Revolution. Ia
March the National Asse nbly was in session.
having. ia connection with other means. already
almost completely reyolutonized France The
feudtl syssefn aad been abolished; liberty Of
opinion in politics and religion had been decreed
ecclesiastical pr perty bad been declared 10 be
the property of the nation; monastc VOWS had
been abrogsted; religions orders suppressed: the
odiOus Letters de eaehet exterminated: while L.
tayette had juss proclaimed In the National A.
-emby those memorable words, that when OF
preston renders revolution necessary. insurrec
ton i the sacred of duties Such il
bfief outline OF the internal cOndiOn OF France
when. on the l7th OF March. 1890. the Assembly
iecreed the creston OF sssignats. 70 remedy the
financial embarrassment Of the State.
At that time the clergy. formerly most pow
srful and wealthy class, had been dispos-essed OF
their property. which consisted largely OF terrific
~. Its sale for some time hud been oTdered
with view 10 relieve the Indebtedness OF the
State as we'll as with view OF creating landed
proprietors among the masses, and to make the
land more profitable and fertile by division into
smaller portions.
A part OF this property, 10 the amount OF 400.
900 900 francs, had been ordered Ia be oferel at
public sale; but il was justly considered that. il
This amount thrown upon tue market ut
once, il would not bring its value Ii was finally
determined to divide the property among the mu
ucipalities, who should give bills oi certain
ate 10 the municipality OF Paris. v hich cUndur-
'ed the affairs in the name OF the nation. La or
Ter To make this process available Ia quiet the
he>e men bpus. or orders. on these mGni''ipali-
80 which they we're % ply IN designated sue
cessions.
A. ,nIs time specie had become scarce. which
" many Was attributed 20 emigration. ia pay =
nents To foreigners, and. ~ a celebrated French
writer adds, Ito malevolenee' H. two OF thes,
,lluled causes will he fuu ID the prototypes OF
sht TAI day in Tins country urged by short
sighted fnsncers NJ the cause of The present
value of specie. viz: excessive importa,ions and
"copperhead conspiracies.
iat historian Ihers saws that these however
we're not the real causes: but they were found IL,
he want of confidence accustomed by the d.
urhe,l condition OF the country; and II NAV h.
aided thar precisely the -'me logic il applicable
- the United States IN June. ie6l.
The Assembly, being anxious u hnd substi-
ute for specie. and with further view of giving
he creditors oi the State something which the'
could use. providing they did not wish To- buy II G
iuds OF the clergy. hnal, after much di-cussinr.
etermined Ia give these bous, or ns.ignals. the
v,iue OF currency in other words. they were
nldc legal tender.
IL was supposed that these nssisnats would. ~
come time smother bc u-ed tor the purchase oi
tnd-, in which cise they we're % be burned, an
hu- gradually Withdrawn from circulation Ac'
.pon these ideas. issue at 40o .0nO.nO
rfucs Of as-gn,ts. be irlng Interest, wits decreod
md 1T once put in operation
In relation To tins --ae. celebrated writer
whom we translate. saws:
1t Is true that paper. however ssie. IL not. like
sperie. reality. lece carries It's value with IL
Paper, Ola the other hand, necessltlies an add-
tions operatirn--a purch OF end or te,iiz :
tion-bef0re its value Is ebtained. IL must
therefore. no below specie. which nobody will
1--WE for paDer. Is boarded aud finally Disappears
&c there. in addition. should toe abuses in the nd
unusiration OF that upon which the paper is
'aundel, AMI which should destroy the proper
tIou between the circulating medium and the cap
tai. confidence dstppe r.: the nominal value
of the paper il retained. but is actual value
ceases and he who gives this money robs
him who receives IT, and great crisis mus
ensue"
la commenting upon this first issue OF aisig
nats. it viii be sufficient 10 say that while, as
political measure, was not without qualities o.
recommend il. a. n financial measure It was ruin
Gus. as are ali financial operations which attempt
TO supply the want of specie with raper issues to
oe used as money.
SECOND ISSUE oY AssiGyArs
From March TO September Oi 1880 little &C
Cured IN France beyond the establishment OF
JUDICIAL AMI other reforms including the suppres-
ion OF various taxes aud the abolition of vatiou-
eiicts relative 20 property created under the old
regime Up to this time the assignats issued H.
March. although below par. were not dista-teful
10 the people. and we're, therefore, received and
circulated with avidity, 10 which respects they
we're the same A. our own greenbacks during the
hrst few months Of their issue In September the
Assembly. finding that the irst issue OF assgnats
mad afforded decided relief. and there remaining
still an enormous amount OF con6scated clerical
property uupledgei. determined upon seconu
issue. basing Il upon the same security as the
inst. and making !, substantially ike The Others.
ave that this issue bore no interest. The second
issue reached the sun OF sou 900 600 francs, and
ths IN spite of the Tact that IT, opponents showed
most unnistakably the ruinOus consequences
which must euSue
Siid NJ dc TAlleyrand. in speaking OF this nes
issur:
why will sssignat money be always beloS
specie? Because, money being put IN compete
ttOu with paper. both become n marketable
commodity. and the more abundant any com
modify j.. the lower mus, be its price To
create an assignat currency is not representing
metallic commodity: il Is merely representing
metallic currency Now metal that ~ merel,
money. whatever idea may be attached 70 il.
cannot represent At the same time that which i
boih monev and merchandise
But the National Assembly did no, heed these
oi,jectiuns. AMI the issue was decreei As in the
c,se OF the Unitei Sates. the prime though OF
epen shiny the exeheQuer Overcams all o'.iec-
ions. and tie future was remor.elessly sacrificed
to meet The wants of the present.
THREE YEARS LATER