its progress.

"The ill-success of the States, in their prohibition of the exportation
of gold and silver coin, did not lead them to perceive the futility of
the measure; but they were fearful that the copper money, the _sous_ and
the _liards_, would follow their betters, particularly as sous and
liards had risen in value in France, and that thus the Island would be
deprived of all metallic circulation. They therefore, on the 9th of
April, 1720, prohibited the carrying out of the Island of _liards_ and
_sous_ to a larger amount than five livres tournois for each person,
under the penalty of confiscation; and all persons were authorised to
seize the moneys thus exported, and to require the assistance, if
necessary, of the constables and centeniers in the searching of the
vessels; while the master and crews on board of which such sums should
be found, if cognizant of the fact, were to be liable to a fine and an
imprisonment of three months.

"By an act of the States of the 3rd of May, 1720, it appears that there
was no longer any gold or silver in circulation: it had disappeared,
having been sent out of the Island; and the only metallic currency
remaining was that of _liards_, which it was probable would also
disappear. The States, in consequence, found it impossible to repay the
sums which had been generously lent, without interest, by individuals,
for the works at the harbour; and in order to obtain a supply which was
to enable them to pay their debts, and to avoid the loss accruing from
the variable market value of the coins, they resolved on the adoption of
a plan which could only increase the evil, and perpetuate the banishment
of gold and silver coin. The States evidently confused the want of funds
with the want of metallic money; for had they possessed the former, the
latter would have been forthcoming. An easy mode of creating money,
according to them, which was to enable them to pay their debts, without
any detriment or cost to anybody (sans qu'il n'en coute rien a
personne), and to build the harbour without any expense to the Island,
was by the issue of a paper currency, from the circulation of which the
public were to derive much benefit, and which, besides, would not be
liable to fluctuation in value. They seemed not to be aware that a paper
currency must be based on a metallic one; that it must represent, and be
exchangeable for, a metallic currency, and therefore must follow the
fluctuations of the latter