The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1878-09-27
FRANCES PAPER MONEY EXPERT.
MENTS.

In l1l6, JOnn Law, aH Eogllsn nnau-
cier, established. by royal assent, a
bank in Paris. 1t was authorized to
discount bills of exchange, and issu,
notes redeemable in coin. But as
money was scarce, ii mes hard, the
Government pills at a heavy discount.
and ,ai'or unemployed, Mr.. Law con
ciuded to try a new departure from
ordinary banking proceedings, in order
TO make money plenty and times pros
porous AS gold and silver we're exces
sively scarce and substantially out of
circulation, Mr.. Law conceived the
Idea that, while there was no fixed
standard of prices or money, the credit
of the Nation was everything, and that
great State like France could use its
credit acith safety as q basis for the issuing
Of paper currency to pass as money. 1t
is needless to follow the details of bis
plans. Under the magic touch of bis
paper money France awoke to a new
life. The Conrt glittered with dazzling
splendors, the shops were crowded
with eestly merchandise, customers
Wed with each other who should buy
the most splendid apparel, and lands
about Paris rose to such enormous
values that their owners became rich
beyond their widest imagibings. For
time all went merry as a marriage
bell, and speculation, plenty, extrava-
gance and enjoyment went hand in
hand. But the historian gravely OBJ
serves that the steady decrease of
specie in France. the constant issue Of
Government notes" reaching to the
sum of two thousand million francs (or
four hundred millions of dollars), their
depreciation in value, and tie refusal
on the part of the people to longer &C -
cept them as money. brought France
to financial crash, which ended In
utter bankruptcy and ruin. Law fled
from Paris to avoid being murdered by
an outraged people, desolation and
misery were everywhere seen. Money
was almost impossible to obtain, labor
could find no employment, and vic
lence, bloodsbsd, riots. aud mobs cry
ing for bread were met on every side.
TIE paper money was spit upon, tramp
led under foot, pasted on the walls,
and treated with every possible indig-
nity. Yet the credit of ell France was
pledged as is indorser.
In 1870 gold and silver having been
driven from circulation in France, the
Assembly appropriated the rich lands
of the clergy to National purposes, and
decreed their sales. They determined
to issue paper money based on the Sc
curity of these unsold lands, bearing
interest like Exchequer bills. These
notes were called assignats. In 1871
the Assembly sequestered the lands of
ali the Emigrants for the use of the
State. and added all this great wealth
TO enrich the fund on which the paper
money was based. At first these notes,
for the payment OF which the Govern
ment pledged itself. were readily re
eejved as money, and the temporary
relief was very great. At the end OF
the first year they began to depreeiate
in value. Soon their overissue was
felt in the advanced price of corn and
other products, Snd the unwillingness
of the farmers to dispose of their pro
visions and receive them in payment.
The price of all food doubled; the
wages of labor did not rise in proper,
t;o1, and universal distress was the
consequence. In June, 1893, one franc
in silver was worth three in paper. IN
1-a5 a numbered franc note was worth
tifteen francs in silver, and in 1876 a
gold Louis(four dollars) cost at the
Paris Exchange 5, $50 francs In paper.
The assignats finlly became utterly
worthless. involving the whole Nation
in a common ruin. That "old foo