he national
wealth, therefore, effected by the immoral confiscation of the lands in
question disappeared with compound territorial interest added under the
visitation of relentless retribution.

Public opinion in our own country is so far sound on the question
of currency, but signs are not lacking in some lay quarters of
an inclination to sanction dangerous experiments. The doctrine of
governmental regulation of prices, has, however, made its appearance in
embryo. Class dissatisfaction is also on the increase. The confiscation
of property rights under legal forms and processes is apt to be condoned
when directed against unpopular interests and when limited to amounts
that do not revolt the conscience. The wild and terrible expression
given to these insidious principles in the havoc of the Revolution
should be remembered by all. Nor should the fact be overlooked that, as
Mr. White points out on Page 6, the National Assembly of France which
originated and supported these measures contained in its membership the
ablest Frenchmen of the day.

JOHN MACKAY. Toronto General Trusts Building, Toronto, 31st March, 1914.

FIAT MONEY INFLATION IN FRANCE

How It Came, What It Brought, and How It Ended [1]

I.

Early in the year 1789 the French nation found itself in deep financial
embarrassment: there was a heavy debt and a serious deficit.

The vast reforms of that period, though a lasting blessing politically,
were a temporary evil financially. There was a general want of
confidence in business circles; capital had shown its proverbial
timidity by retiring out of sight as far as possible; throughout the
land was stagnation.

Statesmanlike measures, careful watching and wise management would,
doubtless, have ere long led to a return of confidence, a reappearance
of money and a resumption of business; but these involved patience
and self-denial, and, thus far in human history, these are the rarest
products of political wisdom. Few nations have ever been able to
exercise these virtues; and France was not then one of these few. [2]

There was a general search for some short road to prosperity: ere long
the idea was set afloat that the great want of the country was more of
the circulating medium; and this was speedily followed by calls for an
issue of paper money. The Minister of Finance at this period was Necker.
In financial ability he was acknowledged as among the great bankers of
Europe, but his was somethin