The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-06-11

/ uiiiBcnce became lOst virtues, giving
way to needless extravagance among
all classes.
subsequently. and by slow and pain
fHl processes, the evils were in some
measure reduced; but even yet the
cloud hangs over the nation. Every
year since has shown a deficit in the
national finances
France again fell into the hands Of
the advocates OF irredeemable paper
money in 1889. The national assem-
bly, provided for the issue Of 400, ,000.-
600 frances in assignats, paper money
not only "backed by all the power.
credit. and authority of the nation. :"
bat secured. under the terms OF its is
sue by pledge OF productive real
estate and bearing interest at the rate
Of per cent. To justify their action
and quiet the fears II a recurrence 10
the nations terrible experience under
John Law. the national assembly is
sued an address to the nation in which
IL was stated paper money was without
inherent value excepting when il repre-
sented real property, and that "there-
fore il is that the paper money which
has only the public authority as its
basis has always caused ruin where il
has been established. This is the rea-
son why the bank-Dotes Of 1720, issued
by John Law, after having caused ter
rible evils have left only frightful men,
ories." Hence the assignats had been
devised. having "a value real, immuta-
ble," which was to make them an ad-
vantageous competitor with the pre-
cious metals themselves. To recall all
the arguments advanced would be but
to recapitulate those urged to-day by
those who wish our paper kept ire
deemable. Very little time elapsed
after the first issue before the thought
less and the speculative. their appetite
whetted by the universal rise in prices,
began to clamor for more paper money.
The 29th Of September. 1870, the
assembly again yielded. BY vote Of
sos 10 423 new issue of eight hum
dred millions was ordered, making
twelve hundred millions in all. A
solemn pledge was then given, however
that the entire amount OF circulation
should never exceed this amount. Not
so was the tide to he stayed. The
breach once made in the wall the flood
came pouring recklessly in. Again
came up the cry OF "insufficient circu-
lation. Less than nine months after
the pledge OF limit was given an ad-
ditional issue Of six hundred millions
was provided for.
The results Of this suicidal policy
began prominently 90 appear in a rap
ID depreciation Of paper. disappearance
Of specie, and uncertainty OF values
which practically brought trade ~ a
standstill, while spectators and stock
gambling ruled the hour. A reckless
and corrupt spirit rAu through all
classes and conditions OF life. A dis
like for steady living and plain labor
became general throughout the nation,
aud all eyes were turned 20 additional
issues OF paper money for relief. De-
cember Il, 1871, fourth issue Of three
hundred millions more was ordered
The total issues now provided for
reached an aggregate Of twenty-one
nav OF speculation called for more,
end on the 30th of April, 1872, the as
sembly added three hundred millions
more. After this came other issues,
until on December IA, 1872, the amount
in circulation was twenty eight hun
dred millions. II large issues OF legal
tender paper create prosperity, France
should have become the most prosper
Gus country on the globe. On the con-
trary II was found that the deprecia-
tion Of the paper mouey had caused
snch heavy advances IN the necessaries
Of life that want and misery were
spreading rapidly among the poorer
classes. The effect upon the pOpulace
is well described by Professor Andrew
ID. White:
"The washer-women OF Paris, find
ing soap so dear that they could scarce
ly purchase 1T, insisted that all the
merchants who were endeavoring 20
save something OF their little property
by refusing TO sell their goods for the
worthless currency with which France
was flooded should he punished with
death; tho women Of the market, and
tho hangers-oA Of the Jacobin club,
called loudly for law TO equalize the
value Of paper money and silver coin.
IL was also demanded that tax be laid
especially on the rich to the amount Of
400, 900 900 francs 10 buy bread; and
the national convention, which was
DOW the legislative body Of the French
republic, ordered that such tax be
levied. Marat dec arod loudly that
the people, by hanging a few shop
keepers and plundering their stores,
could easily remove the trouble. The
result was, on the 2Sth Of February.
1898, at eight o'clock in the evening.
mob Of men and women in disguise be-
gan plunderihg the stores and shops Of
Paris. At tirst the demanded only
bread; soon they insisted on coffee and
rice aud sugar; at last they seized ey-
erything on which they could put their
hands, cloth, clothing, groceries, and
Injuries II every kind. Two hundred
shops and stores were plundered. This
was endured for six hours, and finally
order WAS restored only by a grant Of
1000, 600 francs 10 buy OF the mob. -
The new political economy was begin
ming TO bear its fruits. One OF its mi
nor grOWths appeared at the city hall
Of Paris, where, in response TO the
complaints Of the plundered merchants,
Roux declared, in the midst Of great
applause, that the shop-keepers were
only giving back what they had hither-
30 robbed them OF. -
Laws were passed making the sale Of
goods compulsory aud fixing their price
In paper nroney. Asa natural result
every possible device was adopted to
avid making any sales. A great search
" ensued and 10 was found necessary
to put the people Of large cities upon
an allowance. Efforts 90 support the
paper we're redoubled. All the power
of the government was brought into
rcquisition 90 sustain the value Of the
paper. Laws were passed forbidding
/ the sale or exchange OF specie for more
| than its nominal value in paper under
/ penalty OF sax years in irons. An
other law provided that whoever sold
/ assignats Of less than their nominal
value should be punished by imprison-
ment for 30 years in chains.
Surely this paper money was backed
10y the whole power, authority, faith
aud credit Of the government"
Still higher and higher rose the wave
Of imitation, until early in 1896 the cir.
culation reached thirty-six thousand
millions. Despite stringent laws en-.
acted 20 support the paper, enforced
by such relentless men as led the reign
81 terror, AZ this time one franc in gold
i wac worth 2sS francs in paper money.
! Of the situation at this time Professor
White gives US the following graphic
picture:
The writings % the period give Gu,
rious details of these prices. Thibaa.
deau in his memoirs speaks of sugar az
500 francs pound, soap $50 francs,