already cited.

[88] For facts regarding French finance under Napoleon I am indebted
to Hon. David A. Wells. For more recent triumphs of financial
commonsense in France, see Bonnet's articles, translated by the late
George Walker, Esq. For general subject, see Levasseur.



THE BANK OF NEW YORK, established in 1784, was the only Bank in
existence in the city of New York at the time of the French experiment
with fiat money.

THE BANK OF NEW YORK AND TRUST COMPANY, which celebrates its
one-hundred and fiftieth anniversary in March, 1934, considers it a
privilege to be able to distribute some copies of this scholarly
article of the late Andrew D. White. The article emphasizes the fact
that the use of fiat money in France was in its beginning a sincere
effort on the part of intelligent members of the National Assembly to
stem the tide of misery and wretchedness which had brought about the
Revolution in 1789. But the article also shows clearly that once
started on a small scale, it became utterly impossible to control the
currency inflation and that after some slight indications of
improvement in conditions, the situation went from bad to worse. In
the long run, those most injured were the people whom it was most
desired to help--the laborer, the wage earner and those whose incomes
from previous savings were smallest.

ANDREW D. WHITE had a long and distinguished career as educator,
historian, economist and diplomat; his description of the events in