National Republican. (Washington City (D.C.)) 1872-1888, 1875-09-27
The French Assignats.

The National Assembly of France decreed,
On the LIST of April, 1790, the emission OF
lassignats, based on and in anticipation of the
emigrant mobiles and clergy, in payment Of
which they were to be received.
The first issue was 400, OO0, 900 francs, but
others followed rapidly, and they soon began
to depreciate in value. The Government re-
sorted to the most violent and despotic meas
ures to sustain the value of the assgnats, such
as prohibiting the use OF metallic coin; estab-
fishing maximum prices for commodities; in
ficting severe penalties on all who paid or re-
ceiyed them at less than their face value; and,
In 1796, even death was decreed against all
who should refuse to receive assignats at par.
But all in vain. These measures, were power
less to arrest the depreciation. There was a
temporary reaction in 1898, when by means Of
forced loan S40, 0O0, 900 were redeemed, can
celed and burnt; but in 1T95 the Government
made another forced loan, in payment of
which the assignats were only received at one
per cent. of their nominal value. How could
they continue to circulate as money when the
very Government that had issued them refused
them in payment of loans and taxes? Fur
Their large issues were, however, made; they
soon fell to one half Of one per cent, and,
finally, in the beginning of 1875, to zero.
Toward the end 5000 to 10000 francs were
paid for pair of boots; 600 to 700 francs for q
pound of butter, and 20 to 80 francs for q
stick of barley sugar.
In 1876 the assignats were withdrawn and
redeemed at one-thirtieth of their nominal
value, with mandates" which entitled the
holder to take possession of public lands at
their estimated value, whilst the assignats
could only be offered In payment at q sale of
public land. The mandates never obtained cir
culation as money, but fell at once into the
hands of Spectators. When first issued, they
soon were only worth one SEVENTEEN of their
nominal value, and in the course of 1796 they
were returned 20 the Government in payment
of taxes and4ands. In July, 1875, the whole
system of paper money came to an end by the
enactment of law permitting business to be
transacted in any circulating medium, and
making mandates receivable In payment OF
taxes only at their current value IN trade. Mr..
G.. de Puynode, in his able and interesting
work, Ia Ia Moandie, du credit ct de Pinpot,
SAYS: "Such are the terrible perturbations pro-
duced in communities by forced circulation
| of paper money. An inevitable fatality urges
| the Governments that use it toward its abuse;
| for q forced circulation Of paper money Is al
| ways resorted to In moments Of crisis, when
/ the ordinary resources are insufficient. A first
excess in the issue of paper money, rendered
| necessary by excessive expenditures, produces
| q depreciation In the value Of the money re-
ceived in payment of the taxes lowed, and this
depreciation obliges the Government to make
| further Issues to augment its resources, so as
| TO compensate the depreciation In the value OF
| the taxes, and 30 on, adj i,.tinittfm, until the
value of the paper falls to zero, which Is
equivalent to general, or rather national, bank
| ruptcy. Moran on Money.