New-York tribune., 1876-06-27
NEW PUBLICATIONS.
psa MONEY IN FRANCE.

Tl ur,e,,al effect of m inconvertible paper cur
re,v il or, foreibls shown by the lessons of rNa-
nile than the discussions Cf theory iTtfheh' " ni'
hos selected for his theme the experiment oi 'p'
t,.uch a, sign ats ds dueing fom tie u history Hf
financial principles that are essential 10 hatoha'
rrsnrity His brief sketch is full OF interest," s'''
st Tins IN, ment j. oI perfume as II IS insirh'Ne
A eoncse summary of ils statements cannot fah t
attract the attention of raders- and N the
present conflict between paper currency al"
srecie viii afford a subject of profitable study.
The en-, i.iou of rance just before the breaking
out of the kevoution OF great financial EN-
h,rrassrueut A want of confidence generally pre-
vailed in business circles capital was withdrawal az
far as possible from public sgh :; bat little money
WAS in circulation every thing was ST. ganf there
was heavy national debt aud n large dehclt' Inc
Llea was started that the great want OF the c"nntTy
was All imitation of the currency. This was followed
BY calls for the issue Of paper money. NJ Necker
the lebrated minister of finance, III spite of The
popular clainor resisted the proposal tie firmly all
h,red to the prin,ipcstwhich modern experience IN
finance had established as the only conditions "'
national safety Neeker supported by Keen
sivht.. and able men, 'th III the Assembly and ou'
of it, But the current was too strong. On the 'Hth
of April 1880 the Finance Committee of the Asse'-
hiv r,prt,d in favor of increasing the currency by
an issue of papr to the amount OF iOoooo,oW
francs $50 OFT, ,000. In tue debate which ens"e'
Oh the sui ect il contended that the stagliaIl"
of Lusinr>s wouId find a remedy i'll the enlareemeni
of the circulating nedlun; that paper money should
be made legal tender; that the assignais w0nl
draw out specie from the Golfers where II was
boarded In connection with tie hnahchl arg-
nent there WAS political argument ofgreat weight
The prouerty of the French Church. amounting
1000. 900 900 francs, had become the prol"rt,
linn anlII has
immense financial future. There were tw"
rraops II WAS urged for selling the ecclesiastical
hands First TO obtain money Ia relieve the hiIa'-
e,al Distress aud second. to commit the thr'fN
middle class to tie rev, lutionary Government by |"
wide distribution among them of the eonfiSFateh e.
tales Ii was argued that the issue OF 4Oo,o0o,""'
of paper would relieve the national necessities;
that the circulation of 80 n uch money would stimn
late business; that it would give capitalists 'he
means of buying the ecclesiastical real estate; an'
that from the proceeds of this real estate the ma
tion would again obtain new funds for new neeess
ties.
The French people indeed, not ignorant 0i
the evils of irrrteemsble paper However plansibh
the seductive theory might be set FORTH all thoaeh'
ful men in France were aware of IFS dark side Ii'
.xn.r;ep,e ot John Laws time had taught them the
dangers of a currency not founded oI specie They
had then learned how easily paper is Issued; VIII
what difficulty an over issue is checked; how soof-
hgly il leads to the absorption of snail proi~r'i'N
how inevitably il impoverishes men of hXtd inc"meS'
.,I,r.s ,r wares how creates the ruins OF t'
workiuginan a small class of unprincpled Spten'
laiors; how it stimulates Uver-prodncton al hrS''
and enervates every industry aferwaTd now u
br,aks down the ideas Of economy. providence. ano
thrift and quickens reckless expenditure hhh s"ca
and political immortality. There we're many Ill th
National Assembly at that time who owed the pov-
erty nf n cir families the of paper money
und.r John Law Every child in the country la
heard curses invoked on the men who had
issued that paper the authors oil tile mos
terrible catasti ophe which France had the
ever known But the current toward paper money
had brcome irresstibl,. IL was insisted and with
certain show of force, that if any nation could issn'
paper money, il was France. She had been warh""
by A severe experience. She conSti'' =
tonal government controlled by an enlghteiie'
people not as III the days of the former issue OF pup
money an absolute monarchy. controlled by poliil-
e;ans and adventures. She now able tn secnr
every frame of her currency 10y mortgage ON landed
estates of far greater vane than the entire 'ssu'
Nor with such men Bailly Necker. aud MIrabea'
at her head could she commit the blunders aud crime
from which size suffered under Law and the regent
and Cardinal Dubois.
This plausible oratory carried the day over ex
perlence and science. The proposal for paper none
was carried into effect in December. 1889. Afte
mucb djsc,ssion il was derided TO issue 400 OOO.o0
francs based upon the landed property OF the nafio
ss its security. 1he issue was actually made II
April 1890 in assignats bearing three per cent ~
terest and secured by pledge Of productive rea
estate. No irre.leemable currency has ever claimed
q more scientific and practical guarantee. Tb
notes were put in circulation speedily az possi Die
The first result highly satisfactory. The Treas
...sl., pnrftn of he Out
debt was paid: credit revived; fresh stimulus wat
givep 10 trade and everything looked lovely. Th'
anxiety of Neeker and his friends. proved II
all appearance. to he utterly ground'ess Bn
soon "a change came Oer the spirit Of th'
drram.D The times grew less easy. Within fou
months after the issne of the aSSignats the
were all spent and the Government was again in dis
tress The old remedy WAS naturally snggestr'
Another issue of paper called t'r. " waN pr"
posed tn liqui late the debt of 2i0o,OOOo0o by al
emission to that amount Of legal tender not"s. and
law that spccie should not he received ~ payment
except for the purchase Of national lands. The na
tipn at large took part in the debate. Most OF th'
great comme cial cities sent up renonstrances
against the new issue. compromise hlil was ~
length uassed and il was voted authorize the r.
sue of 800, 100000 new assig'ats, onr-thIrd 81
the sum originally proposed and resolving that in no
case should the entire amount put in circulation ~
eeed twelve hundred millions II was also provided
that IA fast as the assignats were paid into thr
Treasury they should be burnt. and thus healfbful
contraction I've constantly maintained The nation
was thrown into AL ecstasy of JOY at this relief The
assiRnats were hailed as the keystone of the poll
zeal arch Every MEASURE taken to keep up then
credit. II wa predicted that the time would sooi'
come when gold would lose all its value. The pros
perity Of France guaranteed by the successive