Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-05-11
The Evils of Imitation.


PRESIDENT A. d. WHITE, of Cornell
University, read paper before the Union
League Club last evening, entitled: Pa
per Currency Initiation in France: How 1t
Began" The Club theater was filed with
members, all of whom listened attentively
to the strong hard-money document, not
outstanding many of them were, or had
previously been, paper money men. Pc
ter Cooper was among those who went
upon the stage to congratulate President
White as soon as the lecture was over.
After reviewing briefly the events which
occurred toward the end of 1899, which
created the financial embarrassments in
France and led to a new issue Of paper
currency, the lecturer said:
Within a few months after the first is
sue another issue of $500, 100000 was
made, making the total issue $500, 000, 900,
but with solemn pledge that the total
amount put in circulation should not eX-
coed 81, 2O0,0 100000. But very soon this
pledge was violated under the popular
pressure, and 800, 100000 more of small
currency was issued. In few months
more, under like pressure, it was again
violated, and $500, 10000 more were is
sued, but with a solemn promise that the
circulation should never exceed 81 400,
100000. This, too, was violated, and the
issues went on in rapidly increasing
ratio. These issues gave a great stimu-
lus, temporarily, to speculation, gamb-
ling and stOck-jobbing throughout the
country There arose and was rapidly
developed a great debtor class, partly OF
those who had bought the National real
estate, paying small part down, and in
tending to pay the remainder in small in
stallments; partly from those spectators
and gamblers in values who had bought
for rise in nominal values. Commerce
and manufactures, though at first stimu-
lated, were soon paralyZed, and finally
almost universally destroyed. The mer-
camille interest, which supposed that it
was aided by this imitation, since the
prices of goods on the shelves of the mer-
chants were raised, soon found that
it was injured, no less than other inter
ests Since the merchants had to attach
to their goods prices not only to cover the
increase in nominal value, but the risks
from fluctuatiOn, the number of buyers di-
minished and payments grew less certain.
Initiation brought the worst evils OF all
upon the masses of the nation-upOn the
people of small fortunes and upon the
working class. The uncertainty in values
having paralyzed manufactures, vast mum
bers of workmen throughout the Nation
were thrown out of employ, so that after
prices were inflated 200 or 800 per cent,
the wages of labor remained the same as
before the initiation. At the great centers
reckless gambling in values, which
spread into the country at large, arose,
which led men to look on steady labor and
moderate gains with contempt. The idea
of thrift was obliterated among the French
people, though they are naturally one of
the most thrifty Of nations, Corruption
of public men followed. Mirabeau, Cha
bot, Fabre D. Byzantine and others who
two or three years before risked their lives
from patriotic motives, had now become
so involved in the specializing mania and
luxurious living, that Mirabeau received
brides from the Court, and the others re-
ceived brides for their votes in the Ma
tional Legislature. At last franc in gold
was worth 2SS francs in paper. The
measures Of the Directory were then
sketched together with the issue Of the
Territorial Mandats," which came to
be as good as gold. These mandats were
issued with every guarantee for their Sc
curity in the best of the National real es-
tate, yet they deprecated to thirty and
even fifteen per cent. before they were IS
sued from the press, and at last fell to five
per cent. The collapse was then de-
scribed, and the ruinous state in which
France was left. After this vast amount
of paper money, $4,000, 900 assig-
nats'' and 2, 400,O0O,OO0 "mandats" had
been repudiated, coin began to come in
easily and naturally, and, trade having
been put on solid basis, prosperity was
gradually restored.-N. 7. World.