The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-30


There was both an enormous public debt
and deficit. Ttere was no credit. Capitdi
had retired and was boarded. Business
stood still.
Men began 10 mutter that cheaper hoh-
ey was needed.
The trouble. they claimed, was too
small ciIculs ting medium. Give US more
money. Give US good. sound paper mon
ey." Nearly all the leading ReVoluuon-
lists said this. Even Mirabeau supported
IL ever there was a good plan for cheap
money, they had IL. IL was as follows:
France had just contiscated the entire
estates OF the Church. This wealth, ac-
cum ulated for 1900 years, was 1900 O00,Ov0
francs one-third the wealth OF the ma
ton. IL yielded yearly income or w.
600 900 francs.
the statesmen wished TO sell all this
real estate TO the people, both In order to
attach the people 10 the revolution ana TO
get money for the State.
So they proposed to issue mortgage
notes. called assignats, OF 4OO,V0,OO francs
against this land, bearing interest at
per cent.
Could any paper money be better? The
value of the land ten times greater than
the assignats, and the interest certain
to retire them soon.
True, wise men opposed IL. Necker. the
greatest hnancier OF that century, and
true patriot nearly lost his life in show
ing its folly.
But oratory was all in its favor The
favorite argument was the patriotic sem
timent, France can afford 10 stand alone
and teach all Europe a lesson
The bold Revolutionary leaders who had
upset absolutism were like blacksmiths at
matchmaking when they tried their
heads at finance.
Tho 400 900 600 asslgnats were, however,
but a beginning. There had been many
warnings that they would only open the
way for a deluge of paper money. so a
law had been passed limiting the issue.
But in few months things were as bad
as ever, and soOOco.cO more were Issued IN
1880.
The legal limit had been reached. But
(~nCre circulating medium" was still cali
ed for Prices were high, yet wages were
low. More money would help. SO the
limit law was eVaded, and III 1871 oOV, e0V,VOV
more were issued.
The nation was now inebrated with its
cheap money. With each new issue there
were good times for few weeks; then
came harder times and the call for more
assienats IL was like drunkard after
each drink. The faster the new issues
cane. the shorter was the good feeling.
Now bad signs appeared.
Cd Assgnats dropped ten per cent.
Statesmen tried TO mend this by an ad-
dress to the people showing how wrong
this Y as.
~ Specie began to disappear This
was charged TO British influence and 10
the greed OF gold-bug bankers. IL was
urged that a few might be hung Tor an
example The real reason gold disappear.
ed was that assgnats could be used ana
gold was n ere valuable.
so Prosperity stopped altogether. Az
first manufacturers had been stimulated
then the markets were suddenly slut-
ted. then factories shut down. The nerve
OF PRODUCTION was cut. The statesmen put
up tariffs But the collapse went on.
CD Uncertainty as to the future , value
and excited stock gambling. Business
dwindled to living from 1and TO mouth.
Every body was specializing. Louis Blahc
sovs: Commerce was dead, gamDllhS
took It's place" Money went TO the CUES
the farmers no longer saw money,
CD A vast debtor class arose. IL WIS
10 their interest to have the currency de-
preciate still more so they could pay their
debts easier. They clamored .or more
money"
mats were issued, making thus far Zl",vvv-
Now a new kind OF financial theory was
heard. Deprecated currency, said the
Dlatherskite orators, is a blessing IL
keeps France from buying foreign aru-
Giles. Ii Keeps al our interests II NOME
Give us more money.
So In April, 1922. 3O0,0OOoOo more were
issued.
TIE security had improved. for the es-
tates of the emigrant nODllty were COINS
Gated by the nation.
Yet the assignats went lower stnl' down
10 thirty below par. finahy, payment
was suspended TO public creditors ior Al
amounts over 10000 francs. lhlS was INC
first step OF reputation. -
Then capital indeed locked Itself up.
All that saved multitudes of men from
starving was being drafted into the army
to be shot . -,
IDENTIFY needed. and in July, 1872, SN,OoO,ooo
more assignats were issued.
Prices were now enormous, but wages
did not rise at all.
In 1893. the mob began 10 plumber shops.
After 200 Paris stores had been sutted
they bought off the mob with IWo.9oo
frarcs But the market women, VINO
could not pay the eNorbitant price lor
soap. agreed that a law should be Tram
Such laws were passed, regulating
prices but the only result was that mer-
chants would not sell. and farmers would
not bring I'm their produce.
More starved than We're killed by the
enemy I'm the war.
the peoples money; and new issues
were made. until i'm 1876. over forty-hve
billions of the wretched things had been
issued.
lust the same. II bought just as much In
i7as as in 1880. But September !. 1885 this
95-franc gold piece was worth 92O francs
of the peoples money; December LIST, II
was worth 5000 francs. and FEBRUARY l.
1886 IL was worth 1900 francs.
TO check this depreciation il was made
\ crime punishable by twenty years IN
chains 10 give more than the face value
for gold.
Then the gold was hid.
Meantime. who suffered? Not the rich
nor the shrewd. There were plenty or
methods by which they commanded mon
ev and spent II i'm prodgality.
Tie sufferers were the laboring people.
Before 1896. the paper money was nearly
all I'm their hands. The rich had unload
ed. When the crash OF reputation came.
and i'm July. 1895. the Government had 70
admit that its paper was all worthless.
this worthless money was held almost
entirely by those Of the smallest means.
on the laboring man and woman came
the crushing weight Of the final loss.
The lesson Is plain Natural law does
not 90 out Of its way for orators. Cheap
money always leads TO cheaper money.
More and more depreciation follows
When the crash comes the poor are
ground to the earth.-Montgomery r.
Roberts. I'm Illustrated American.