II
From the 14th of July, 1789, to the 14th of July, 1790, the scenes which were comprehended in this, which may be called the first act in the great drama then agitating France, were upon the whole such as rather to excite the hopes than the fears of mankind; but from the latter period the aspect of things greatly changed, and almost each day became marked by some disappointment as to the success of a favourite scheme, or the fortune of a popular statesman.
On the 4th of September, 1790, M. Necker left almost unnoticed, and altogether unregretted, that Paris to which but a year before he had returned amidst unanimous acclamation. About the same time, Mirabeau began to be suspected; and the shouts of “Vive Lafayette!” were not unfrequently changed into “à bas Lafayette!”15 by the ever fickle multitude. At this period also it became apparent that the sale of the church property, which, properly managed, might have restored order to the finances, was likely, on the contrary, to render the national bankruptcy more complete.
In order to give a just idea of the conduct of M. de Talleyrand, it is necessary that I should explain rapidly how this calamity occurred. The Assembly, desiring to secure the irrevocability of its decrees by disposing as soon as possible of the vast estate which it had declared was to be sold, and desiring also to increase its financial resources without delay, looked out for some means by which this double end could be accomplished. After two or three projects, for a moment taken up and then abandoned, the idea finally adopted was that of issuing State notes, representing a certain value of national property, and giving them a forced currency, so that they would have an immediate value independent of that which they acquired as the representatives of property.
These notes or bonds, in short, thus became money; and they had this advantage over ordinary paper money, that they represented something which had a positive value; and as the first issue of four hundred millions of francs took place at a time when some substitute was really required for the coin which every one, from alarm and want of confidence, had then begun to hoard, its effects were rather beneficial than the reverse. The Assembly instantly thought it had an inexhaustible fund at its disposal; consequently a new issue of eight hundred million bonds followed shortly after the first issue of four hundred millions, as a matter of course; and it became evident that this mode of meeting the current wants of the State was to be adopted to a greater and greater extent, thereby increasing the currency in a manner not in any way called for by the increased wealth or business of the community, and altering the value of money in all the transactions of life. M. de Talleyrand at once foresaw the evils to which this system would naturally lead; and saying, “Je serais inconsolable si de la rigueur de nos décrets sur le clergé il ne résultait pas le salut de la chose publique,”16 demonstrated, with a singular clearness and sagacity, that the course on which the Assembly had entered must inevitably cause the total disappearance of bullion, an enormous rise in provisions, a daily depreciation of State paper and of land (such State paper representing land), a rapid variation of exchanges, an impossibility of all regular commerce.
But men in desperate times disregard ultimate results. The Assembly wanted funds at the moment: forced assignats created those funds; and when Mirabeau shrewdly observed that to multiply assignats was, at all events, to multiply the opponents to reaction, since no man who had an assignat could wish the property on which its value depended to be restored to its former possessors, this political argument settled the financial one.