The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-09-18

vented any serious fall. But symptoms OF dis
trust in the new wealth which had been poured
unon the community wore manifested In vari-
GUS directions. In the height Of the specula-
ton the bills Of the bank had commanded q pre-
MUM Of 10 rer cent. over specie. because the
Mississippi Company refused to receive gold or
silver in pnymento OF descriptions. This condi-
ton OF nffairs was shortlivel. In tho early
part OF 1920 vendors Of land or Of commodities
began to look askance at parting with their
property for paper. Bank bills wero prac-
tlcally. II not formally. at a discount. Law
now began |, series of violent measures by
which ho sought to sustain the credit Of his
institutions. but by which he only succeeded in
making tho ruin moro complete. Not only
were the bills OF the bank declared n legal
tender. but II was forbidden to make any pay
mont in specie in excess OF 100 francs under
n penalty OF 1900 livres. This measure was
followed by ono still moro tyrannical.
II was urged by Law that only small pny-
mpnts could now 10 made In tho precious
metals, and so there could DO no pretext for
having large amounts in store. In February,
1T2O. an edict forbade any person Keeping with
him gold or silver to the value OF moro than five
hundred livres. Those who offended against
this provision were subjected to n penalty OF
ten thousand livrcs. and tho money found In
their possession was to DO conflscated fur tho
benont Of tho informant. This edict was no
idle form Of words. Rigorous search was made
to discovert the hidden treasure OF delin1uepts:
servants lodged information against their
masters: brothers against brothers: n son
his father. The odlum of such inauisi-
torinl proceedings was increased by the fnct
that tho law was not equal for all. The
Regent reproachcd the Duke OF bourbon
and tho Prince OF Cont for having carried AWAY
millions OF gold from the bunk. Tho Duke re-
Piled that he had taken the money and they
could find it IL they wished. Commissioners
went through the form OF searching for It. but
tho Duke kept his gold. Law next resolved to
do away with tho use of silver and gold alto
gether and to make paper the sole currency.
An cdict declared that after May 1. 1920, gold
should no longer be used in payment for any
debt. nor silver after Aug. l; no more Of either
metal should. be, coined. and no one except
g~olusmiths should have any in his possession.
France torn short time enjoyed the distinc-
man could not pay his debts with gold and sill
yer.
Laws suggestion were even more eytraor-
binary than banishing the precious. metals
from tho country. Endenyors to sustain the
BY m imitation Of the currency. By highly col.
ored statements. and by purchases In the
value ut nm absolute figure and to turn the
royal hank and The Mississipri COMPANY, into
S Toy, ff S.af es and tSa %iss Is ftSSr Sonpa an2o s tas
consolidated: Two weeks later the value. Of
the shares or the company were fixed at nine
price n and Eaid for in hills Of lie bark;
to buy could. when he pleased. present nine
ihHSf S"ped I'tth5s at Se la rff at last s sea u T trnns
market was ,stIll falling, and many gladly
ayT; led tn thsmts e af ,n Of a purchaser that was
ivo hundred to i've thousand Ii%ivres. now
S sHaShe them I. aar ensS th ae nine tt th0p trnnsac1 dhs
kept the printing presses q the bank in active
operation. Such an initiation Of the currency
came rreposterous. The bank bills that had
as 's'' Wor,{hi Fssn batcSers. BAKERS Mfas "U and ft srocsrs
were unwilling to receive paper money at all.
From this time the slow and painful process
Of liquidation really began. Toward the last
Of May the prohibition OF the use OF tho pre-
cious metals as currency was repealed. Any
one might have rs much gold and silver as he
could lawfully obtain. Alas" said a contem.
porary. tho permission comes when nobody
has any left" 1t was impossible for the royal
bank to redeem bills which had been so
profusely issued. Its reserve in the precious
metals was not two per cent. OF the amount
Of the bills in circulation. Even an at
tempt to relieve the necessities OF the
public by redeeming bills OF tho denomi-
nation Of ten livres had soon to be suspended.
Meanwhile the decline in the price Of the Mis-
sissippi stock won't on. In July. 1920. the
shares sold at 1920. payable in bank bills
which were themselves at n discount Of
fifty per cent. Less than ono-thfrd OF the
U24.00O shares OF tho company wore now in
the hands OF the public. Those that were
held by the King and the company were can
cclied. and the capital was reduced to two
hundred thousand shares. In September an
other cdict attempted to Ak the value of the
that purpose. Tho fall continued unaffected
by such measures. and it was accelerated by
the collapse of the Paper currency. BY Oct. I
bank bills were at a discount OF almost eighty
lSat e frnn t Sgy' ! dtihy sy s sq,S5 an ne Sd johs declared ar q
made in gold and silver. Thus the paper cur
than two years. was. extinGuished. Alter the
resummntion OF specie payment the stock Of
Tor two Thousand livres. payable in paper
that vas worth but ten cents on the d9i,
stock which had becn sold the year before for
twelve months; The results Of such a do
probation are described by one OF the suffer
ers. Last January writes Barber in his
journal. -! had sixty thousand livres in
but l Ind only to realize on it and turn it into
money. i did not have the. wisdom nor the
good luck to do SO, Now it is worthless. md.
though i have neither speculatcd nor lost, to.
day .hlave. not enough money to give New
Iear'sgifts to my servants"
Laws errors involved in 4, common ruin the
beneficial institutions with which he had
sought 10 endow France. The bank. which
under proper regulations might have been OF
great advantage to trade. passed out Of exist
ence. Almost a century was to slapse beioret the
3rganization Of the Bank OF France, The re-
tion were abandoned. The Mississippi Com:
pnny, whose shares were successfully reduced
to l25.OOO and to 5000. was deprived OF tho
privilege 81 coming and tho farm OF the taxes:
and. save Tor Its retention Of the monopoly OF
tobacco, remained simply n trading corpora
ton. As such 1t carried on business for many.
years. and at times with n certain degree OF
rrosperit}. Its shares once sold at 5000 llvres:
to pay moderate dividends. h cdeclino Of the
Goloni4l empire Of France during tho reign OF
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