men thinking. Without any conception of scientific value he leaned instinctively toward equity; and this is more than do many of his critics who regard it as irreverent to discuss either value or equity if such discussion in any way questions our present economic goose-step.
Assignats
The reproach of “fiat” has been dealt with[1] but there can be very little question that, at the proper moment, some venerable high-priest of our present economic system, or some complacent beneficiary, will interpose with the word “assignats” in the contemptuous tone that it is customary to use when land is discussed as a basis of value (for any purpose except that of safely securing a loan of money by a savings-bank). These should first be quite sure of their facts and then be quite sure that they realize that there is any essential difference between the assessed dollar-value of land and census-area-value. If such a critic is not simply passing on a sneer that is academically fashionable, but stands ready from his own first-hand reading of history to contend that the French Assignats represented an honest attempt to tie money to measurable land-value, then he raises a very pertinent issue. However, the issue raised is not the one he thought it was—it is that of his own ability to interpret data. There are unprejudiced statements in regard to the issue of assignats, even from those whose training compels them to regard any departure from our gold standard tradition with horror. From these may be learned, despite differences of emphasis, the following facts:
After the first issue of 400 million francs in August, 1789, there followed a second issue of 800 million francs in September, 1790, and at this time the French Government, in addition to its first undertaking to accept these notes in payment for the land which was their security, undertook further that they should be legal tender, acceptable by the Government Treasury in payment of dues. It was calculated that behind this total issue of 1.2 billion francs there was an actual value
- ↑ See page 108.
