ved with the
market women of Paris, as stated in their famous petition, that "laws
should be passed making paper money as good as gold," Couthon, in
August, 1793, had proposed and carried a law punishing any person
who should sell _assignats_ at less than their nominal value with
imprisonment for twenty years in chains, and later carried a law making
investments in foreign countries by Frenchmen punishable with death. [59]

But to the surprise of the great majority of the French people, the
value of the _assignats_ was found, after the momentary spasm of fear
had passed, not to have been permanently increased by these measures: on
the contrary, this "fiat" paper persisted in obeying the natural laws of
finance and, as new issues increased, their value decreased. Nor did the
most lavish aid of nature avail. The paper money of the nation seemed to
possess a magic power to transmute prosperity into adversity and plenty
into famine. The year 1794 was exceptionally fruitful: and yet with the
autumn came scarcity of provisions and with the winter came distress.
The reason is perfectly simple. The sequences in that whole history are
absolutely logical. First, the Assembly had inflated the currency and
raised prices enormously. Next, it had been forced to establish an
arbitrary maximum price for produce. But this price, large as it
seemed, soon fell below the real value of produce; many of the farmers,
therefore, raised less produce or refrained from bringing what they had
to market. [60] But, as is usual in such cases, the trouble was ascribed
to everything rather than the real cause, and the most severe measures
were established in all parts of the country to force farmers to bring
produce to market, millers to grind and shopkeepers to sell it. [61] The
issues of paper money continued. Toward the end of 1794 seven thousand
millions in _assignats_ were in circulation. [62] By the end of May,
1795, the circulation was increased to ten thousand millions, at the
end of July, to fourteen thousand millions; and the value of one hundred
_francs_ in paper fell steadily, first to four _francs_ in gold, then to
three, then to two and one-half. [63] But, curiously enough, while this
depreciation was rapidly going on, as at various other periods when
depreciation was rapid, there came an apparent revival of business. The
hopes of many were revived by the fact that in spite of the decline of
paper there was an exceedingly brisk trade in al