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Fiat Money Inflation in France by Andrew Dickson White
page 29 of 91 (31%)
dreaded small paper, and a beginning was made by issuing one hundred
millions in notes of five _francs_, and, ere long, obedient to the
universal clamor, there were issued parchment notes for various small
amounts down to a single _sou_.[25]

Yet each of these issues, great or small, was but as a drop of cold
water to a parched throat. Although there was already a rise in
prices which showed that the amount needed for circulation had been
exceeded, the cry for "more circulating medium" was continued. The
pressure for new issues became stronger and stronger. The Parisian
populace and the Jacobin Club were especially loud in their demands
for them; and, a few months later, on June 19, 1791, with few
speeches, in a silence very ominous, a new issue was made of six
hundred millions more;--less than nine months after the former great
issue, with its solemn pledges to keep down the amount in circulation.
With the exception of a few thoughtful men, the whole nation again
sang paeans.[26]

In this comparative ease of new issues is seen the action of a law in
finance as certain as the working of a similar law in natural
philosophy. If a material body fall from a height its velocity is
accelerated, by a well-known law, in a constantly increasing ratio: so
in issues of irredeemable currency, in obedience to the theories of a
legislative body or of the people at large, there is a natural law of
rapidly increasing emission and depreciation. The first inflation
bills were passed with great difficulty, after very sturdy resistance
and by a majority of a few score out of nearly a thousand votes; but
we observe now that new inflation measures were passed more and more
easily and we shall have occasion to see the working of this same law
in a more striking degree as this history develops itself.
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