New-York tribune., 1919-01-06
By Carl Snyder

"Yop A-ao,c, n.cssieurs, the
comp1o5nts Mat houc arisen as to
the increasing dea1msss of cue,y-
thi,1g, tie accusations ayhich houc
been made IN oil quarters OF the
city, cad thc dcmnnd 9chich has
beer mcde upon the Prince to
hy'o5y ,chepce tbs dco,ncss pro-
coeds.'
It might be imagined that this quo
ta.ion comes from some recent news
paper CT book in France 1t is from
volume Just $50 years oId. The story
of it is Of curious interest now.
A littc after the time that Shakes
poare came up to London, to serve as
a link-boy around The theatres, the
Due d'Alcncoa journcyed to England
to ask the hand Of Queen Elizabeth in
marriage. In his train came a stat
counsellor, Jean Bodin by name, who
had already attained considerable fame
IN his own country. He vas lawyer.
Of immense learning; he told good
stories, was bon vivant and much
sought after dinner guest. He was
almost the first to write in France, in
modern way, on what we now call
Political Economy He was an early
precursor of Adam Smith and Turgot;
and when he came 10 England he found
that his chief work. "Six Books on the
Republic" was alrcSdy known.
A Pioneer Economist
Jean Bodin's larger claim to fame is
that he appears to have been almost
the first to have written on the "money
question: with a quite modern under
standing. 1t happened in this wisc
While Henry III Of France was Dau-
phin there was introduced into French
business 4 new institution. the Bank
of Lyon. the far precursor of the
famous Credit Lyonnais. It began loan
ing money at 10 per cent, but so great
was the demand that it raised its rate
first to Is per cent and then to 90 per
cent. 1t made ssch enormous profits
that it attracted to France the money
lenders from Genoa. Lucca, Switzerland
and even Germany. Just about this
time The Spaniards had been bringing
back tho rich spoils OF their conquest
CT Mexico and Peru. and especially
great sums OF silver and gold. There
was an abundance OF money.
The result VIC know was a great rise
IN prices. which gradually extended all
over Europe, asfthc new money began
to flow through the arteries Of trade.
TIC effect in Franco VIC have seen re
foctod ir~tAc quotation abovc-a great
rise in prices and violent discussion
over the cause, "accusations" and de-
mand for commissions Of inquiry on
the Cost of Living. The King request
ed & NJ. Malcstroit, state counsellor,
who appears TO have been Controller Of
the Mint, TO make report This NJ.
Malcstrot boldly took the position that
there had been no increase in prices
to speak of. 1t was his "Paradoxes"
which gave rise to Jean Bodin's celc-
bratod RESPONSE" In this little pam
nhlct Bodin sets forth the facts very
clearly, but what is Of greater interest
IS that he likewise understood the in
nor mechanism which was back of this
rise. He said succinctly:
81 find that the dearness which VIC
sec is due to causes the principal
(and almost solc) reason of which no
ono has yet touched upon: The |
abundance OF gold and silver, which
is to day greater fl this kingdom
than it has ever been in 400 years."
4 Fundamental Law
IIc proceeds to lay down the law !
hat:
"Thc principal cause of the dear
ness Of things, in any place whatso-
ever, is the abundance of what gives