Chapter 40

To establish a current circulating credit upon any _land-bank_, under any circumstances whatsoever, has hitherto proved difficult at the very least. The attempt has commonly ended in bankruptcy. But when the Assembly were led, through a contempt of moral, to a defiance of economical principles, it might at least have been expected that nothing would be omitted on their part to lessen this difficulty, to prevent any aggravation of this bankruptcy. It might be expected, that, to render your land-bank tolerable, every means would be adopted that could display openness and candor in the statement of the security, everything which could aid the recovery of the demand. To take things in their most favorable point of view, your condition was that of a man of a large landed estate which he wished to dispose of for the discharge of a debt and the supply of certain services. Not being able instantly to sell, you wished to mortgage. What would a man of fair intentions and a commonly clear understanding do in such circumstances? Ought he not first to ascertain the gross value of the estate, the charges of its management and disposition, the incumbrances perpetual and temporary of all kinds that affect it,--then, striking a net surplus, to calculate the just value of the security? When that surplus (the only security to the creditor) had been clearly ascertained, and properly vested in the hands of trustees, then he would indicate the parcels to be sold, and the time and conditions of sale; after this he would admit the public creditor, if he chose it, to subscribe his stock into this new fund,--or he might receive proposals for an _assignat_ from those who would advance money to purchase this species of security. This would be to proceed like men of business, methodically and rationally, and on the only principles of public and private credit that have an existence. The dealer would then know exactly what he purchased; and the only doubt which could hang upon his mind would be the dread of the resumption of the spoil, which one day might be made (perhaps with an addition of punishment) from the sacrilegious gripe of those execrable wretches who could become purchasers at the auction of their innocent fellow-citizens.

An open, and exact statement of the clear value of the property, and of the time, the circumstances, and the place of sale, were all necessary, to efface as much as possible the stigma that has hitherto been branded on every kind of land-bank. It became necessary on another principle,--that is, on account of a pledge of faith previously given on that subject, that their future fidelity in a slippery concern might be established by their adherence to their first engagement. When they had finally determined on a state resource from Church booty, they came, on the fourteenth of April, 1790, to a solemn resolution on the subject, and pledged themselves to their country, "that, in the statement of the public charges for each year, there should be brought to account a sum sufficient for defraying the expenses of the R.C.A. religion, the support of the ministers at the altars, the relief of the poor, the pensions to the ecclesiastics, secular as well as regular, of the one and of the other sex, _in order that the estates and goods which are at the disposal of the nation may be disengaged of all charges, and employed by the representatives, or the legislative body, to the great and most pressing exigencies of the state."_ They further engaged, on the same day, that the sum necessary for the year 1791 should be forthwith determined.

In this resolution they admit it their duty to show distinctly the expense of the above objects, which, by other resolutions, they had before engaged should be first in the order of provision. They admit that they ought to show the estate clear and disengaged of all charges, and that they should show it immediately. Have they done this immediately, or at any time? Have they ever furnished a rent-roll of the immovable estate, or given in an inventory of the movable effects, which they confiscate to their assignats? In what manner they can fulfil their engagements of holding out to public service "an estate disengaged of all charges," without authenticating the value of the estate or the quantum of the charges, I leave it to their English admirers to explain. Instantly upon this assurance, and previously to any one step towards making it good, they issue, on the credit of so handsome a declaration, sixteen millions sterling of their paper. This was manly. Who, after this masterly stroke, can doubt of their abilities in finance?--But then, before any other emission of these financial _indulgences_, they took care at least to make good their original promise.--If such estimate, either of the value of the estate or the amount of the incumbrances, has been made, it has escaped me. I never heard of it.

At length they have spoken out, and they have made a full discovery of their abominable fraud in holding out the Church lands as a security for any debts or any service whatsoever. They rob only to enable them to cheat; but in a very short time they defeat the ends both of the robbery and the fraud, by making out accounts for other purposes, which blow up their whole apparatus of force and of deception. I am obliged to M. de Calonne for his reference to the document which proves this extraordinary fact: it had by some means escaped me. Indeed, it was not necessary to make out my assertion as to the breach of faith on the declaration of the fourteenth of April, 1790. By a report of their committee it now appears that the charge of keeping up the reduced ecclesiastical establishments, and other expenses attendant on religion, and maintaining the religious of both sexes, retained or pensioned, and the other concomitant expenses of the same nature, which they have brought upon themselves by this convulsion in property, exceeds the income of the estates acquired by it in the enormous sum of two millions sterling annually,--besides a debt of seven millions and upwards. These are the calculating powers of imposture! This is the finance of philosophy! This is the result of all the delusions held out to engage a miserable people in rebellion, murder, and sacrilege, and to make them prompt and zealous instruments in the ruin of their country! Never did a state, in any case, enrich itself by the confiscations of the citizens. This new experiment has succeeded like all the rest. Every honest mind, every true lover of liberty and humanity, must rejoice to find that injustice is not always good policy, nor rapine the high-road to riches. I subjoin with pleasure, in a note, the able and spirited observations of M. de Calonne on this subject.[133]

In order to persuade the world of the bottomless resource of ecclesiastical confiscation, the Assembly have proceeded to other confiscations of estates in offices, which could not be done with any common color without being compensated out of this grand confiscation of landed property. They have thrown upon this fund, which was to show a surplus disengaged of all charges, a new charge, namely, the compensation to the whole body of the disbanded judicature, and of all suppressed offices and estates: a charge which I cannot ascertain, but which unquestionably amounts to many French millions. Another of the new charges is an annuity of four hundred and eighty thousand pounds sterling, to be paid (if they choose to keep faith) by daily payments, for the interest of the first assignats. Have they ever given themselves the trouble to state fairly the expense of the management of the Church lands in the hands of the municipalities, to whose care, skill, and diligence, and that of their legion of unknown under-agents, they have chosen to commit the charge of the forfeited estates, and the consequence of which had been so ably pointed out by the Bishop of Nancy?

But it is unnecessary to dwell on these obvious heads of incumbrance. Have they made out any clear state of the grand incumbrance of all, I mean the whole of the general and municipal establishments of all sorts, and compared it with the regular income by revenue? Every deficiency in these becomes a charge on the confiscated estate, before the creditor can plant his cabbages on an acre of Church property. There is no other prop than this confiscation to keep the whole state from tumbling to the ground. In this situation they have purposely covered all, that they ought industriously to have cleared, with a thick fog; and then, blindfold themselves, like bulls that shut their eyes when they push, they drive, by the point of the bayonets, their slaves, blindfolded indeed no worse than their lords, to take their fictions for currencies, and to swallow down paper pills by thirty-four millions sterling at a dose. Then they proudly lay in their claim to a future credit, on failure of all their past engagements, and at a time when (if in such a matter anything can be clear) it is clear that the surplus estates will never answer even the first of their mortgages,--I mean that of the four hundred millions (or sixteen millions sterling) of assignats. In all this procedure I can discern neither the solid sense of plain dealing nor the subtle dexterity of ingenious fraud. The objections within the Assembly to pulling up the flood-gates for this inundation of fraud are unanswered; but they are thoroughly refuted by an hundred thousand financiers in the street. These are the numbers by which the metaphysic arithmeticians compute. These are the grand calculations on which a philosophical public credit is founded in France. They cannot raise supplies; but they can raise mobs. Let them rejoice in the applauses of the club at Dundee for their wisdom and patriotism in having thus applied the plunder of the citizens to the service of the state. I hear of no address upon this subject from the directors of the Bank of England,--though their approbation would be of a _little_ more weight in the scale of credit than that of the club at Dundee. But to do justice to the club, I believe the gentlemen who compose it to be wiser than they appear,--that they will be less liberal of their money than of their addresses, and that they would not give a dog's ear of their most rumpled and ragged Scotch paper for twenty of your fairest assignats.

Early in this year the Assembly issued paper to the amount of sixteen millions sterling. What must have been the state into which the Assembly has brought your affairs, that the relief afforded by so vast a supply has been hardly perceptible? This paper also felt an almost immediate depreciation of five per cent, which in a little time came to about seven. The effect of these assignats on the receipt of the revenue is remarkable. M. Necker found that the collectors of the revenue, who received in coin, paid the treasury in assignats. The collectors made seven per cent by thus receiving in money, and accounting in depreciated paper. It was not very difficult to foresee that this must be inevitable. It was, however, not the less embarrassing. M. Necker was obliged (I believe, for a considerable part, in the market of London) to buy gold and silver for the mint, which amounted to about twelve thousand pounds above the value of the commodity gained. That minister was of opinion, that, whatever their secret nutritive virtue might be, the state could not live upon assignats alone,--that some real silver was necessary, particularly for the satisfaction of those who, having iron in their hands, were not likely to distinguish themselves for patience, when they should perceive, that, whilst an increase of pay was held out to them in real money, it was again to be fraudulently drawn back by depreciated paper. The minister, in this very natural distress, applied to the Assembly, that they should order the collectors to pay in specie what in specie they had received. It could not escape him, that, if the Treasury paid three per cent for the use of a currency which should be returned seven per cent worse than the minister issued it, such a dealing could not very greatly tend to enrich the public. The Assembly took no notice of his recommendation. They were in this dilemma: If they continued to receive the assignats, cash must become an alien to their Treasury; if the Treasury should refuse those paper _amulets_, or should discountenance them in any degree, they must destroy the credit of their sole resource. They seem, then, to have made their option, and to have given some sort of credit to their paper by taking it themselves; at the same time, in their speeches, they made a sort of swaggering declaration, something, I rather think, above legislative competence,--that is, that there is no difference in value between metallic money and their assignats. This was a good, stout, proof article of faith, pronounced under an anathema by the venerable fathers of this philosophic synod. _Credat_ who will,--certainly not _Judæus Apella_.

A noble indignation rises in the minds of your popular leaders, on hearing the magic-lantern in their show of finance compared to the fraudulent exhibitions of Mr. Law. They cannot bear to hear the sands of his Mississippi compared with the rock of the Church, on which they build their system. Pray let them suppress this glorious spirit, until they show to the world what piece of solid ground there is for their assignats, which they have not preoccupied by other charges. They do injustice to that great mother fraud, to compare it with their degenerate imitation. It is not true that Law built solely on a speculation concerning the Mississippi. He added the East India trade; he added the African trade; he added the farms of all the farmed revenue of France. All these together unquestionably could not support the structure which the public enthusiasm, not he, chose to build upon these bases. But these were, however, in comparison, generous delusions. They supposed, and they aimed at, an increase of the commerce of France. They opened to it the whole range of the two hemispheres. They did not think of feeding France from its own substance. A grand imagination found in this flight of commerce something to captivate. It was wherewithal to dazzle the eye of an eagle. It was not made to entice the smell of a mole, nuzzling and burying himself in his mother earth, as yours is. Men were not then quite shrunk from their natural dimensions by a degrading and sordid philosophy, and fitted for low and vulgar deceptions. Above all, remember, that, in imposing on the imagination, the then managers of the system made a compliment to the freedom of men. In their fraud there was no mixture of force. This was reserved to our time, to quench the little glimmerings of reason which might break in upon the solid darkness of this enlightened age.

On recollection, I have said nothing of a scheme of finance which may be urged in favor of the abilities of these gentlemen, and which has been introduced with great pomp, though not yet finally adopted in the National Assembly. It comes with something solid in aid of the credit of the paper circulation; and much has been said of its utility and its elegance. I mean the project for coining into money the bells of the suppressed churches. This is their alchemy. There are some follies which baffle argument, which go beyond ridicule, and which excite no feeling in us but disgust; and therefore I say no more upon it.

It is as little worth remarking any farther upon all their drawing and re-drawing, on their circulation for putting off the evil day, on the play between the Treasury and the _Caisse d'Escompte_, and on all these old, exploded contrivances of mercantile fraud, now exalted into policy of state. The revenue will not be trifled with. The prattling about the rights of men will not be accepted in payment of a biscuit or a pound of gunpowder. Here, then, the metaphysicians descend from their airy speculations, and faithfully follow examples. What examples? The examples of bankrupts. But defeated, baffled, disgraced, when their breath, their strength, their inventions, their fancies desert them, their confidence still maintains its ground. In the manifest failure of their abilities, they take credit for their benevolence. When the revenue disappears in their hands, they have the presumption, in some of their late proceedings, to value _themselves_ on the relief given to the people. They did not relieve the people. If they entertained such intentions, why did they order the obnoxious taxes to be paid? The people relieved themselves, in spite of the Assembly.

But waiving all discussion on the parties who may claim the merit of this fallacious relief, has there been, in effect, any relief to the people in any form? M. Bailly, one of the grand agents of paper circulation, lets you into the nature of this relief. His speech to the National Assembly contained a high and labored panegyric on the inhabitants of Paris, for the constancy and unbroken resolution with which they have borne their distress and misery. A fine picture of public felicity! What! great courage and unconquerable firmness of mind to endure benefits and sustain redress? One would think, from the speech of this learned lord mayor, that the Parisians, for this twelvemonth past, had been suffering the straits of some dreadful blockade,--that Henry the Fourth had been stopping up the avenues to their supply, and Sully thundering with his ordnance at the gates of Paris,--when in reality they are besieged by no other enemies than their own madness and folly, their own credulity and perverseness. But M. Bailly will sooner thaw the eternal ice of his Atlantic regions than restore the central heat to Paris, whilst it remains "smitten with the cold, dry, petrific mace" of a false and unfeeling philosophy. Some time after this speech, that is, on the thirteenth of last August, the same magistrate, giving an account of his government at the bar of the same Assembly, expresses himself as follows:--"In the month of July, 1789," (the period of everlasting commemoration,) "the finances of the city of Paris were _yet_ in good order; the expenditure was counterbalanced by the receipt, and she had at that time a million [forty thousand pounds sterling] in bank. The expenses which she has been constrained to incur, _subsequent to the Revolution_, amount to 2,500,000 livres. From these expenses, and the great falling off in the product of the _free gifts_, not only a momentary, but a _total_, want of money has taken place." This is the Paris upon whose nourishment, in the course of the last year, such immense sums, drawn from the vitals of all France, have been expended. As long as Paris stands in the place of ancient Rome, so long she will be maintained by the subject provinces. It is an evil inevitably attendant on the dominion of sovereign democratic republics. As it happened in Rome, it may survive that republican domination which gave rise to it. In that case despotism itself must submit to the vices of popularity. Rome, under her emperors, united the evils of both systems; and this unnatural combination was one great cause of her ruin.

To tell the people that they are relieved by the dilapidation of their public estate is a cruel and insolent imposition. Statesmen, before they valued themselves on the relief given to the people by the destruction of their revenue, ought first to have carefully attended to the solution of this problem:--Whether it be more advantageous to the people to pay considerably and to gain in proportion, or to gain little or nothing and to be disburdened of all contribution? My mind is made up to decide in favor of the first proposition. Experience is with me, and, I believe, the best opinions also. To keep a balance between the power of acquisition on the part of the subject and the demands he is to answer on the part of the state is the fundamental part of the skill of a true politician. The means of acquisition are prior in time and in arrangement. Good order is the foundation of all good things. To be enabled to acquire, the people, without being servile, must be tractable and obedient. The magistrate must have his reverence, the laws their authority. The body of the people must not find the principles of natural subordination by art rooted out of their minds. They must respect that property of which they cannot partake. They must labor to obtain what by labor can be obtained; and when they find, as they commonly do, the success disproportioned to the endeavor, they must be taught their consolation in the final proportions of eternal justice. Of this consolation whoever deprives them deadens their industry, and strikes at the root of all acquisition as of all conservation. He that does this is the cruel oppressor, the merciless enemy of the poor and wretched; at the same time that by his wicked speculations he exposes the fruits of successful industry and the accumulations of fortune to the plunder of the negligent, the disappointed, and the unprosperous.

Too many of the financiers by profession are apt to see nothing in revenue but banks, and circulations, and annuities on lives, and tontines, and perpetual rents, and all the small wares of the shop. In a settled order of the state, these things are not to be slighted, nor is the skill in them to be held of trivial estimation. They are good, but then only good when they assume the effects of that settled order, and are built upon it. But when men think that these beggarly contrivances may supply a resource for the evils which result from breaking up the foundations of public order, and from causing or suffering the principles of property to be subverted, they will, in the ruin of their country, leave a melancholy and lasting monument of the effect of preposterous politics, and presumptuous, short-sighted, narrow-minded wisdom.