The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-04-14
WHAT WE ARE COMING TO

PRESIDENT WHITE, OF CORNELL UNIVERSITY,
SKETCHES THE HISTORY OF PAPER MONEY IN
FRANCE.
At the monthly meeting OF the Union League Club
last night President Andrew H. White, OF Cornell Unit
versty read carefully prepared essay on 1.-The Paper
Money OF the French Revolution; How It Began and
How II Ended" II was intimatcd by Judge Noah h.
Davis who presided at the meeting, that The speaker
was, in skctchng the history OF imitation in
France, presenting us WITH q photograph OF our
own national future should the views OF infationist
statesmen prevail. Near the end Of the year 1889,
said he, tho French people found themselves in great
embarrassment There was distress In financial
circles which statesmaulikc measures and careful
management would probably have soon aleviatcd;
but Il was sought TO remedy itby the issue Of paper
money. The Finance Minister Of tho tme Necker and
othcr thoughtful men opposed this. But clamor
throughout the nation for more circulating medium,
and an issue OF $500 Of paper money secured
by pledge OF tho conscatcd ecclesiastical property
for its redemption, decrecd There great re-
jocing at this and It afforded temporary alienation.
But within few months matters bad they
before, and again there cry for paper
money. II claimed by the nnationsts that infa-
ton was dangerous only under dcspotism, but that
in constitutional country and amid patriotic people
there danger; that 1t could be checked at any
time when the amount OF paper money was likely to
become too great; that virtually France was superior
to tho laws OF political economy which existed in tho
world ut large, and that additional issue OF paper
money would bring prosperity to commerce, manufac-
lures and tho people In general The re-
suit was that within few months nner tho
nrss another issue OF s4oo 900, 900 was
made. making the total issue $500 900 900, but with
solemn pledge the total amount put in circulation
should never exceed 81, 200, o00, 900 But very
this pledge violated under tho popular PRESSURE
and sl00 900 900 more OF small currency issued
In a lew months more, under like pressure, II was
again violated $500, COO, 600 were issued but
with solemn promise that the circulation should
never exceed sI,40o ooo, COO This, TOO, was
rapidly increasing RATIO under what Mr.
White called the Flaw OF accelerated issue aud dcpre
cation aad which he declared to be real law OF
nature the law OF the increase oi velocity OF falling
body by gravtaton These issues gave great stimu
lus temporarily 10 speculation, gambling and stock
Jobb,ug throughout the country Thcre and was
rapidly developed great debtor class partly OF those
who had bought the national real estate paying small
part down and intending 10 pay the remainder in small
instruments; partly from those spectators and gam
bIers in values who had bought for rise in nominal
values. Mr. White showed how this specializing debtor
class soon
OBTAINED THE CONTROLLING INFLUENCE
and how issues and depreciation accelerated
II was shown from citations from various reports
speeches and documents OF tho PERIOD mat commerce
and manufactures, though at first stimulated,
sroyod; that the mercantile interest, which supposed
that 1t aided by this imitation, since the prices OF
saso found hs. was nuroa no ess
than other interests. Since the merchants
had TO attach 70 their goods prices to
cover the increase in nominal value, and tho
risks from nuctuation the number OF buyers dimn-
ishcd and payments grew less certain. the speaker
monstratcd that imitation brought tho worst evils Of
all upon the Of the nation-upon the people Of
small fortunes and upon tho working classes The IN
certainty IN values having paralyxed manufactures,
pf rktuo pilout fha
thrown out OF employ 20 that after prices wore inflated
200 or 800 per cent tho wages Of labor remained the
Same before tho imitation began The moral
suits detailed At the great centres a
reckless gambling in values which spread
into the country at large arose. which led men to look
steady labor and moderate gains with contempt
The idea OF thrift was oberatcd among the French
people, though they are naturally ono OF the most
thrifty OF nations, and a corruption OF public mon iol
lowed. Maribean, Chabot, Fabre dEglan,,ns and
others VINO, two three before, risked their
lives purely patriotic motives had now become 50
involved IN the specializing mania and luxurious living
that Mirabcau received brides from tho court, and
others received brides for their votes tho national
Mr. White showed how this wild extravaganza ex-
tended TO ladies' In the first circles Of tho nation, and
comparison made between the simplicity Of
Madame Roland in 1892 and Madame Cabarrus- Tallien
In 1895 and 1896 The idea OF national honor was eaten
by this disease Of imitation and spccula-
ton, and who had rsked their lives against
tyranny from the most potriotic motives sought
to dcprcciat the national securities for gam
bling purposes When imitation became hope
less body OF men arose tho national
assembly aud out OF it who claimed that
imitation was. after all, blessing and that It
good thing TO have currency that could 90 OF
tho country, and that in some way manufactures
would be promoted thereby. The speaker demon
strated that manufactures and commerce steadily de-
cayed and tho only thing that saved tens OF thousands
OF workers from starvation under these circumstances
was the fact that they wcre
DIg FOREIGN BATTLE FIELDS.
The progress Of the imitation was greater than in jan
uary 1926 the total amount issued was a. 600 600 00of
OF which 30, 600, coz, GOO were circulation. Al
last franc IN gold was worth 2SSf In
paper. Tho severe measures which were rcsortcd TO
In tho way Of fines and imprisonmcnts, 10 prevent the
speculation In coin, and their fruitcss results were
related. The measures OF the Directory then
skechcd, together with tho Issue OF the 'Terrtoriai
Mandats - which were good gold. These mxndats
were pulled I'D the newspapers and pamphlets OF the
time and issued with every guarantee for their security
In the best Of the national real estate yet they depre
catcd TO thirty and fifteen per before they
issued from tho press, and at last fell 10 five
cent The speaker described the collapse and the rum
state in which France lett. Hc related
how alter this vast amount OF paper money,
o. 900, 0OO,O00 "assgnats' and 2, 400 00O 900 imam
OATS" had been repudiated, coin began 10 como
easily and naturally and trade having been put
solid basis. prosperity was gradually restored The
speaker showed In those historical the develop
Incnt OF natural laws which he claimed certain
ura universe. Among tho secondary points
presented was the making OF maximum
laws" fixing prices Of goods In paper money
which wrought destruction to tho small farmers and
merchants Of tho country and brought about riot and
famine. Mr.. White showed that this, too, was tho
simple result OF natural law that II arose SIMPLY and
naturally out OF the original faacy OF all which
sisted In leaving 10 the theories capccs and interests
OF legislative body the fixing and regulation OF values
that be properly liked and regulated only by real
standard OF value recognized by the entire commercial
world.
vote Of thanks was rendered Mr. White at the close
OF his address.