French Experiments with Paper Money - Part 2 By: Pierre Driessen Following the collapse of John Law’s “System”, the French government’s finances became desperate. Royal debt had tripled between 1715 and 1722, credit was drying up, interest rates were soaring and the crown’s credibility had been severely tarnished. Over time however, through governmental and administrative reforms and a program of careful diplomatic, economic and tax policies, the finances of the Bourbon monarchy were placed on a more sound footing. The corner stone of this program was the use of diplomacy to advance … [Read more...]

French Experiments with Paper Money - Part 1 By: Pierre Driessen This article was sparked by a conversation with a dealer at a recent coin show. As I was admiring the nice mandat he had for sale, the dealer surprised me with his questions. He was wondering exactly what it was, who issued it and how it worked? As we were talking, I was struck by the similarities between the story of this mandat and present day experimentation with paper money by governments all over the world. The mandat, a form of paper money, was issued by the Revolutionary government of France at the close of the 18th … [Read more...]