The advocate., 1895-05-15

ing In their possession more Bnan 0OO uVEeS
in specie, under penalty Of OonfscatiOn,
fine, and imprisonment.
These measures had the effect Of throw
ing into the bank in speOls, between the
months Of February and April, 1870, the
sum Of 300, ,0OO, 900 livres. OF $56,250,OOO.
The royal bank was now incorporated
with the company Of the Indies, and the
king remained guaranty Of the notes, Of
which none were to be fabricated n future,
except by an sdiCt Of council.
The profits Of the bank, since his maj
esty had taken il into his own hands in
December, l718, were given up to Che COM
pany; and az they were supposed TO be inn
mense, the public entertained a high idea
Of che OOmpaNy's opulence.
AZ this period the credit Of France was at
it's height; but il soon experienced q re-
verse that involved thousands in misery
and distress.
The ministry, who were opposed 10 mo-
law, represented TO che regent that @ tOGs
necessary 10 eqItGEizS the VGIlle of paper cur
r0aCy and The COtn, by either rGtstng the de-
nomination Of the latter 30 130 iVHes the
mark, or reducing the former one-half.
This absurd notion prevailed in the Ooun-
oil, and il was resolved to diminish the UGIue
Of The bank notes, and the India COmpGny's
actions chat just proportion between them
and the coin might be maintained.
For that purpose an ediCt vas passed on
the 21sb May, 172O, ordering shat shares
should be reduced TO 5000 iVres, and on
the 1sb Of July to 1900 hvres, and 30 on 500
livFes q month till the first Of December,
when they we're TO be fixed at 5000 hVres,
It ordered, also, that bank notes should
be reduced az 10 TO 8, but thsb on the arSS
day Of July thev should be further reduced
those of 10000 ivres TO 1850 and 90 on
monthly, at the rate Of 500 iVEes, until
December, when they should remain fixed.
This impolitio and disgraOeful measure
was followed with corresponding OOnSe-
quences: The notes lost all credit, and the
whole paper fabric fell 10 the ground. Mr..
Laws system was overturned; and, in itS
ruin, involved thousands, who had con-
verted their property into bank currency,
ON the faith and declarations Of govern
ment, which had solemnly engaged thGs,
DUhGteUer should change tho cOtn, the bank notes
should dIuVdy0 remain the same, and be paid
IN ftgU.
At this time the notes in circulation
amounted 10 the enormous sum Of 2,285,-
085, $50 hUes, or $4l9, ,07S, ,5S5. 81. And as
they would not pass for any fxsd value, the
distress Of the people became extreme, and
threatened the very existence Of the gov
ePnment.
To alleviate, in some measure, the evils
existing, the bank was shut for q few days,
under pPetenBe Of examining the accounts;
bub was opened again on the 10th Of June,
for She exchange of notes Of 10 ivFeS; and
notes Of 100 livres were to be changed into
small notes, but only one TO be brought By
each person coming for that purpose. The
17sh July was fixed for the payment Of
notes Of 100 ivres; bat the concouFSe Of
people was 30 great, that scene Of riot and
confusion took place and was only quelled
By military force.
To absorb, however, the immense amount
Of paper with which the nation was delugsd,
the government had recourse to granting
annuities to the holders Of bank paper.
Accordingly, 100000 Of perpetual an
nuitieS, at the rate Of forty years purchase,
and 100000 at the rate Of twenty y-AVe years
purchase, we're constituted, Books Of sO-
count current, and transfers Of 6OO,0O0,OOO.
were opened at the bank, and in August
5000, 700 more Of perpetual Rnnuties, ct
ShA ,ako % eRk, ,,oo-. v,upnhnan ,va,a q,