Evening star., 1931-12-09

made, and to make the prophecies good
| every means was taken to keep up the
credit of this issue.
Pressure for new issues became more
and more strong. In 1871 new issue OF
| SOC, 100000 francs was made, notw1th-
standing the solemn pledges made at
the time of the previous issue to keep
down the amount in circulation. Bad
signs began to appear: depreciation
from to 10 per cent was In evidence.
Wrong Remedies Offered.
Every cause was assigned for the de-
probation; every remedy was suggested
except the right one-to stop the print
ing presses, Specie was fast disappear
| ing. 1t was declared coin would keep
rising until the people hanged a banker
Another popular cry was that the Bour-
bon family in some miraculous way
were drawing off all solid money to the
! chief centers Of their intrigues In Ger
| many.
Though paper money had increased,
| prosperity had diminished Activity
! grew more and more spasmodic, enter
| prises chilled and stagnation followed.
| Everything that tariffs and customs
! houses could do was done. Still the
great manufactures of Normandy were
close, and those of the rest of the king
dom steadily followed
! Vast numbers Of workmen were
thrown out Of employment. Capital
declined to embark in business. Enter
prises received a mortal blow. Business
ow1n1led into a mere living from hand
to mouth. All that saved vast numbers
OF laborers in France from starvation
was that they were drafted into the
army and sent to the battle fronts.
In February, 1892, asSignats were
more than 80 per cent below par. BY
July, 1892, 2.4o0 900. 900 had been is
sued; by December the same year
3,40o,000,000. Even the bell metal
sous, obtained by melting down the
| bells, disappeared from circulation, and
parchment money of from 20 sous to
sous was issued, and at last bills of
sou and even Of y a SOU Articles
of common consumption has become
enormously dear and the price rose
constantly
Farmers in Revolt.
Laws were passed making the sales of
goods compulsory and fxing their price
In paper money. Every means was
taken to evade the fixed price. Farmers
brought in as little produce as possi-
BILE; people of the cities were put upon
an allowance; tickets were issued au-
thorizing the bearers to obtain a certain
amount of bread or other food.
In April, 1893, a law was passed max
Ing forced loan of 100000 900 francs
from the rich. Soon afterward came
tne law confiscating the property of all
frencnmen who left France before July
-, lI69, and Who had not returned.
This gave new land to be mortgaged
for the security of the paper none.
Month after month, year after year.
this went on. Ever thing possible was
cone to keep up the value of paper.
The market wcTen of Paris stated In a
petition that law should be passed
making paper as good as gold. In 1898
law was passed Furnishing any person
VINO should sell paper money at less
than nominal value. The punishment
was imprisonment for 20 years in
chalns. Later law was passed making
investment by q Frenchman in foreign
countries punishable with death.
Notwithstanding all of these laws,
paper money steadily fell In value The
year 1794 was exceptional. Fruitful
crops were abundant and yet with Au-
tumn came scarcity of provisions and
with Winter came famine.
Reason Was Simple.
The reason was absurdly simple
First, the Legislature inflated the cur
rency, with resultant enormous incree So
In prices; next, it had been forced to
establish an arbitrary maximum price,
Eut this price, large as it seemed. was
not equal to the real value of the
produce.
Toward the end of 1894 1000 900 900
francs IN paper money were In circula-
ton; in May, 1795, it had increased to
10000, 100000. at the end of july to
lo,O00,000,00 and the value of 100
francs IN paper fell steadily. first to 4
francs In gold, then to 8. then to 2
new issues continued until at the be-
ginning OF 1886 over $4,000, 600 600
francs had been issued. OF these. over
3o,Ooo,00o. 900 were In actual circulation.
Notwithstanding threats of prison and
gulilotine, the gold louis stood as
mcnltor not to be bribed or scared. In
August, 1905, a 25-franc god louis was
worth 92o francs; Sepember /. / ono.
5000. -
ii FEBRUARY, 1876, 1t was worth In
the market 1900 francs. or one fran.
IN gold was worth 283 francs In paper
Inc same month it was decreed that
no more assignats be issued, but a new
issue was tried, called mandats secured
by choice public real estate. Any one
possessing any quantity of mandats
could at once take possession of govern
ment lands at their full faoe value
Even before this new currency could be
ISSUED from the press it fell to 80 per
cent OF It's nominal value, and from this
specify fell to is and soon after
ward to S.
Plan Complete Failure.
me plan was complete failure, lust
aS II tailed under American Coufedera-
Ion IN l73l and under the Southern
Confeaer2tion during the Civil War In
July. 1895, the bubble burst. tt was
oecreed that all paper should be taken
at It's real value; that bargains might
De made in whatever currency the peo-
pie chose r'o
Inc reign of paper money in France
was over; the 2,500,000 900 mandats
went into the common heap of refuse
with the previous $4,000, 100000 assign
aus: Inc whole issue was repudiated
Collapse had come: the nation wss
plunged into financial distress and de-
oaucnery frcm che end to the other
10 TINS general distress there was one
eE@e',ton-the luxury and extrayag ,nce
o. tle he2rtles-, debsuched. lux,lrious
,3c1u 2t2rs, contractors and stock gam
pes -2~ne1 enc Of the most signifcant
l,-c,a IS OF the social conditions of that
When all was over with paper mcnev
spec b2gan TO resppear, at first in
SuHclent sums to do the small amount
OF business that remained after the
collapse; then, as business demand in
creased, the amount Of specie flowed in
from the world at large and the Ma
lloh gradually recovered from the long
paper money debauch.