II. Conditions in 1793. A Lesson in Market Economics.
Economical effect of the Jacobin policy from 1789 to 1793.
—Attacks on property.—Direct attacks.—Jacqueries, effective
confiscations and proclamation of the socialist creed.
—Indirect attacks.—Bad administration of the public funds.
—Transformation of taxation and insignificance of the
returns.—Increased expenditures.—The War-budget and
subsistence after 1793.—Paper money.—Enormous issues of
it.—Credit of the Assignats run down.—Ruin of Public
creditors and of all private credit.—Rate of interest
during the Revolution.—Stoppage of trade and industry.—Bad
management of new land-owners.—Decrease of productive
labor.—Only the small rural land-owner works
advantageously.—Why he refuses Assignats.—He is no longer
obliged to sell his produce at once.—High cost of food.—It
reaches a market with difficulty and in small quantities.
—The towns buy at a high price and sell at a low one.—Food
becomes dearer and famine begins.—Prices during the first
six months of 1793.
Such is the hardship in France at the moment when the Jacobin conquest has been completed, a misery of which the Jacobins are the cause due to the systematic war they have waged against property during the preceding four years.
From below, they have provoked, excused, amnestied, or tolerated and authorized all the popular attacks on property,[4203] countless insurrections, seven successive jacqueries, some of them so extensive as to cover eight or ten departments at the same time. The last one let loose on all France a universal and lasting brigandage, the arbitrary rule of paupers, vagabonds and ruffians; every species of robbery, from a refusal to pay rents and leases to the sacking of chateaux and ordinary domiciles, even to the pillage of markets and granaries. Free scope was given to mobs which, under a political pretext, tax and ransom the "suspects" of all classes at pleasure, not alone the noble and the rich but the peaceable farmer and well-to-do artisan. In short, the country reverted back to a natural state, the sovereignty of appetites, greed and lust, to mankind's return to a savage, primitive life in the forests. Only a short time before, in the month of February, 1793, through Marat's recommendation, and with the connivance of the Jacobin municipality, the Paris riff-raff had broken into twelve hundred groceries and divided on the spot, either gratis or at the price it fixed, sugar, soap, brandy and coffee.
From above, they had undertaken, carried out and multiplied the worst assaults on property, vast spoliations of every sort; the suppression of hundreds of millions of incomes and the confiscation of billions of capital; the abolition without indemnity of tithes and quitrents; the expropriation of the property of the clergy, of emigrés, that of the order of Malta, that of the pious, charitable and educational associations and endowments, even laic; seizures of plate, of the sacred vessels and precious ornaments of the churches. And, because they have the power, others still more vast. After August 10, their newspapers in Paris and their commissioners in the departments,[4204] have preached
"the agrarian law, the holding of all property in common, the leveling of fortunes, the right of each fraction of the sovereign people" to help itself by force to all food and stores at the expense of the owner, to hunt down the rich, proscribe "land-owners, leading merchants, financiers and all men in possession of whatever is superfluous."
Rousseau's dogma that "the fruit belongs to everybody and the soil to no one" is established at an early date as a maxim of State in the Convention, while in the deliberations of the sovereign assembly socialism, openly avowed, becomes ascendant, and, afterwards, supreme. According to Robespierre,[4205]
"whatever is essential to preserve life is common property to society at large. It is only the excess which may be given up to individuals and surrendered to commercial enterprise."
With still greater solemnity, the pontiff of the sect, in the Declaration of Rights which, unanimously adopted by the all-powerful Jacobin club, is to serve as the corner-stone of the new institutions, pens the following formula heavy with their consequences:[4206]
"Society must provide for the support of all its members. The aid required by indigence is a debt of the rich to the poor. The right of property is limited, and applies only to that portion which the law guarantees. Every ownership, any trade, which bears prejudicially on the existence of our fellow-creatures is necessarily illicit and immoral."
The meaning of this is more than clear: the Jacobin populace, having decided that the possession of, and trade in, groceries was prejudicial to its existence, the grocers' monopoly is, therefore, immoral and illicit, and consequently, it pillages their shops. Under the rule of the populace and of the "Mountain," the Convention applies the theory, seizes capital wherever it can be found, and notifies the poor, in its name,
"that they will find in the pocket-books of the rich whatever they need to supply their wants."[4207]
Over and above these striking and direct attacks, an indirect and hidden attack, even more significant, which slowly undermines the basis of all present and future property. State affairs are everybody's affairs, and, when the State ruins itself, everybody is ruined along with it. For, it is the country's greatest debtor and its greatest creditor, while there is no debtor so free of seizure and no creditor so absorbing, since, making the laws and possessing the force, it can, firstly, repudiate indebtedness and send away the fund-holder with empty hands, and next, increase taxation and empty the taxpayer's pocket of his last penny. There is no greater menace to private fortunes than the bad administration of the public fortune. Now, under the pressure of Jacobin principles and of the Jacobin faction, the trustees of France have administered the country as if they purposely meant to ruin their ward; every known means for wasting a fortune have been brought into play by them.—In the first place, they have deprived him of three-fourths of his income. To please the people and enforce the theory, the taxes on articles consumed, on salt, with the excise subsidies and the octroi duties on liquors, meat, tobacco, leather and gunpowder, have been abolished, while the new imposts substituted for the old ones, slowly fixed, badly apportioned and raised with difficulty have brought in no returns. On the 1st of February, 1793,[4208] the Treasury had received on the real and personal taxation of 1791, but one hundred and fifty millions instead of three hundred millions. On the same taxes for 1792, instead of three hundred millions it had obtained nothing at all. At this date, and during the four years of the Revolution, the total arrears of taxation amounted to six hundred and thirty-two millions—a bad debt that can hardly be recovered, and, in fact, it is already reduced one-half, since, even if the debtor could and was disposed to pay, he would pay in assignats, which, at this time, were at a discount of fifty per cent.—In the second place, the new managers had quadrupled the public expenditure.[4209] What with the equipment and excursions of the National Guards federations, patriotic festivals and parades, the writing, printing and publication of innumerable documents, reimbursements for suppressed offices, the installation of new administrations, aid to the indigent and to its charity workshops, purchases of grain, indemnities to millers and bakers, it was under the necessity of providing for the cost of the universal demolition and reconstruction. Now, the State had, for the most part, defrayed all these expenses. At the end of April, 1793, it had already advanced to the city of Paris alone, one hundred and ten million francs, while the Commune, insolvent, kept constantly extorting fresh millions.[4210] By the side of this gulf, the Jacobins had dug another, larger still, that of the war. For the first half of the year 1793 they threw into this pit first, one hundred and forty millions, then one hundred and sixty millions, and then one hundred and ninety million francs; in the second six months of 1793 the war and provisions swallowed up three hundred million francs per month, and the more they threw into the two gulfs the deeper they became.[4211]
Naturally, when there is no collecting a revenue and expenses go on increasing, one is obliged to borrow on one's resources, and piecemeal, as long as these last. Naturally, when ready money is not to be had on the market, one draws notes and tries to put them in circulation; one pays tradesmen with written promises in the future, and thus exhausts one's credit. Such is paper money and the assignats, the third and most efficient way for wasting a fortune and which the Jacobins did not fail to make the most of.—Under the Constituent Assembly, through a remnant of good sense and good faith, efforts were at first made to guarantee the fulfillment of written promises the holders of assignats were almost secured by a first mortgage on the national possessions, which had been given to them coupled with an engagement not to raise more money on this guarantee, as well as not to issue any more assignats.[4212] But they did not keep faith. They rendered the security afforded by this mortgage inoperative and, as all chances of re-payment disappeared, its value declined. Then, on the 27th of April, 1792, according to the report of Cambon, there begins an unlimited issue; according to the Jacobin financiers, nothing more is necessary to provide for the war than to turn the wheel and grind out promises to pay: in June, 1793, assignats to the amount of four billion three hundred and twenty millions have already been manufactured, and everybody sees that the mill must grind faster. This is why the guarantee, vainly increased, no longer suffices for the monstrous, disproportionate mortgage; it exceeds all limits, covers nothing, and sinks through its own weight. At Paris, the assignat of one hundred francs is worth in specie, in the month of June, 1791, eighty-five francs, in January, 1792, only sixty-six francs, in March, 1792, only fifty. three francs; rising in value at the end of the Legislative Assembly, owing to fresh confiscations, it falls back to fifty-five francs in January, 1793, to forty-seven francs in April, to forty francs in June, to thirty-three francs in July.[4213]—Thus are the creditors of the State defrauded of a third, one-half, and two-thirds of their investment, and not alone the creditors of the State but every other creditor, since every debtor has the right to discharge his obligations by paying his debts in assignats. Enumerate, if possible, all who are defrauded of private claims, all money-lenders and stockholders who have invested in any private enterprise, either manufacturing or mercantile, those who have loaned money on Contracts of longer or shorter date, all sellers of real estate, with stipulations in their deeds for more or less remote payment, all landowners who have leased their grounds or buildings for a term of years, all holders of annuities on private bond or on an estate, all manufacturers, merchants and farmers who have sold their wares, goods and produce on time, all clerks on yearly salaries and even all other employees, underlings, servants and workmen receiving fixed salaries for a specified term. There is not one of these persons whose capital, or income payable in assignats, is not at once crippled in proportion to the decline in value of assignats, so that not only the State falls into bankruptcy but likewise every creditor in France, legally bankrupt along with it through its fault.
In such a situation how can any enterprise be commenced or maintained? Who dares take a risk, especially when disbursements are large and returns remote? Who dares lend on long credits—? If loans are still made they are not for a year but for a month, while the interest which, before the Revolution was six, five or even four per cent. per annum, is now two per cent. a month on securities." It soon runs up higher and, at Paris and Strasbourg we see it rising, as in India and the Barbary States, to four, five, six and even seven per cent. a month.[4214]
What holder of raw material, or of manufactured goods, would dare make entries on his books as usual and allow his customer the indispensable credit of three months? What large manufacturer would presume to make goods up, what wholesale merchant would care to make shipments, what man of wealth or with a competence would build, drain and construct dams and dykes, repair, or even maintain them with the positive certainty of delays in getting back only one-half his outlays and with the increasing certainty of getting nothing?
During a few years the large establishments collapsed in droves:
* After the ruin of the nobles and the departure of wealthy foreigners, every craft dependent on luxurious tastes, those of Paris and Lyons, which were the standard for Europe, all the manufactories of rich fabrics and furniture, and other artistic, elegant and fashionable articles.
* After the insurrection of the blacks in St. Domingo, and other troubles in the West Indies, the great colonial trade and remarkable prosperity of Nantes and Bordeaux, including all the industrial enterprises by which the production, transportation and circulation of cotton, sugar and coffee were affected;[4215]
* After the declaration of war with England, the shipping interest;
* After the declaration of war with all Europe, the commerce of the continent.[4216]
Failure after failure, an universal crash, utter cessation of extensively organized and productive labor: instead of productive industries, I see none now but destructive industries, those of the agricultural and commercial vermin, those of dealers in junk and speculators who dismantle mansions and abbeys, and who demolish chateaux and churches so as to sell the materials as cheap as dirt, who bargain away national possessions, so as to make a profit on the transaction. Imagine the mischief a temporary owner, steeped in debt, needy and urged on by the maturity of his engagements, can and must do to an estate held under a precarious title and of suspicious acquirement, which he has no idea of keeping, and from which, meanwhile, he derives every possible benefit:[4217] not only does he put no spokes in the mill-wheel, no stones in the dyke, no tiles on the roof, but he buys no manure, exhausts the soil, devastates the forest, alienates the fields, and dismembers the entire farm, damaging the ground and the stock of tools and injuring the dwelling by selling its mirrors, lead and iron, and oftentimes the window-shutters and doors. He turns all into cash, no matter how, at the expense of the domain, which he leaves in a run-down condition, unfurnished and for a long time unproductive. In like manner, the communal possessions, ravaged, pillaged and then pieced out and divided off, are so many organisms which are sacrificed for the immediate relief of the village poor, but of course to the detriment of their future productiveness and an abundant yield.[4218]
Alone, amongst these millions of men who have stopped working, or work the wrong way, the petty cultivator labors to advantage; free of taxes, of tithes and of feudal imposts, possessing a scrap of ground which he has obtained for almost nothing or without stretching his purse strings, he works in good spirits.[4219] He is sure that henceforth his crop will no longer be eaten up by the levies of the seignior, of the décimateur and of the King, that it will belong to him, that it will be wholly his, and that the worse the famine in the towns, the dearer he will sell his produce. Hence, he has ploughed more vigorously than ever; he has even cleared waste ground; getting the soil gratis, or nearly so, and having to make but few advances, having no other use for his advances, consisting of seed, manure, the work of his cattle and of his own hands, he has planted, reaped and raised grain with the greatest energy. Perhaps other articles of consumption will be scarce; it may be that, owing to the ruin of other branches of industry, it will be hard to get dry-goods, shoes, sugar, soap, oil, candles, wine and brandy; it may happen that, owing to the bungling way in which agricultural transformations have been effected, all produce of the secondary order, meat, vegetables, butter and eggs, may become scarce. In any event, French foodstuffs par excellence is on hand, standing in the field or stored in sheaves in the barns; in 1792 and 1793, and even in 1794, there is enough grain in France to provide every French inhabitant with his daily bread.[4220]
But that is not enough. In order that each Frenchman may obtain his bit of bread every day, it is still essential that grain should reach the markets in sufficient quantities, and that the bakers should every day have enough flour to make all the bread that is required; moreover, the bread offered for sale in the bakeries should not exceed the price which the majority of consumers can afford to pay. Now, in fact, through a forced result of the new system, neither of these conditions is fulfilled.—In the first place, wheat, and hence bread, is too dear. Even at the old rate, these would still be too dear for the innumerable empty or half-empty purses, after so many attacks on property, industry and trade, now that so many hundreds of workmen and employees are out of work, now that so many land-owners and bourgeois receive no rents, now that incomes, profits, wages and salaries have diminished by hundreds of thousands. But wheat, and, consequently, bread, has not remained at old rates. Formerly a sack of wheat in Paris was worth 50 francs. In February, 1793, it is worth sixty-five francs; in May, 1793, one hundred francs and then one hundred and fifty; and hence bread, in Paris, early in 1793, instead of being three sous the pound, costs six sous, in many of the southern departments seven and eight sous, and in other places ten and twelve sous.[4221] The reason is, that, since August 10, 1792, after the King's fall and the wrenching away of the ancient keystone of the arch which still kept the loosened stones of the social edifice in place, the frightened peasant would no longer part with his produce; he determined not to take assignats, not to let his grain go for anything but ringing coin. To exchange good wheat for bad, dirty paper rags seemed to him a trick, and justly so, for, on going to town every month he found that the dealers gave him less merchandise for these rags. Being distrustful and a hoarder, he must have good, old fashioned crowns, with the ancient effigy, so as to lay them away in a jar or old woollen stocking; give him specie or he will keep his grain. For he is not, as formerly, obliged to part with it as soon as it is cut, to pay taxes and rent; the bailiff and sheriff are no longer there to constrain him; in these times of disorder and demagoguism, under impotent or partial authorities, neither the public nor the private creditor has the power to compel payment, while the spurs which formerly impelled the farmer to seek the nearest market are blunted or broken. He therefore stays away, and he has excellent reasons for so doing. Vagabonds and the needy stand by the roadside and at the entrances of the towns to stop and pillage the loaded carts; in the markets and on the open square, women cut open bags of grain with their scissors and empty them, or the municipality, forced to do it by the crowd, fixes the price at a reduced rate.[4222]—The larger a town, the greater the difficulty in supplying its market; for its provisions are drawn from a distance; each department, each canton, each village keeps its own grain for itself by means of legal requisitions or by brutal force; it is impossible for wholesale dealers in grain to make bargains; they are styled monopolists, and the mob, breaking into their storehouses, hangs them out of preference.[4223] As the government, accordingly, has proclaimed their speculations "crimes," it is going to interdict their trade and substitute itself for them.[4224]—But this substitution only increases the penury still more; in vain do the towns force collections, tax their rich men, raise money on loan, and burden themselves beyond their resources;[4225] they only make the matter worse. When the municipality of Paris expends twelve thousand francs a day for the sale of flour at a low price in the markets, it keeps away the flour-dealers, who cannot deliver flour at such low figures; the result is that there is not flour enough in the market for the six hundred thousand mouths in Paris; when it expends seventy-five thousand francs daily to indemnify the bakers, it attracts the outside population, which rushes into Paris to get bread cheap, and for the seven hundred thousand mouths of Paris and the suburbs combined, the bakers have not an adequate supply. Whoever comes late finds the shop empty; consequently, everybody tries to get there earlier and earlier, at dawn, before daybreak, and then five or six hours before daybreak in February, 1793, long lines of people are already waiting at the bakers' door, these lines growing longer and longer in April, while in June they are enormously long.[4226] Naturally, for lack of bread, people fall back on other aliments, which also grow dearer; add to this the various contrivances and effects of Jacobin politics which still further increase the dearness of food of all sorts, and also of every other necessary article: for instance, the extremely bad condition of the roads, which renders transportation slower and more costly; the prohibition of the export of coin and hence the obtaining of food from abroad; the decree which obliges each industrial or commercial association, at present or to come, to "pay annually into the national treasury one-quarter of the amount of its dividends;" the revolt in Vendée, which deprives Paris of six hundred oxen a week; the feeding of the armies, which takes one-half of the cattle brought to the Poissy market; shutting off the sea and the continent, which ruins manufacturers and extensive commercial operations; the insurrections in Bordeaux, Marseilles and the South, which still further raise the price of groceries, sugar, soap, oil, candles, wine and brandy.[4227]—Early in 1793, a pound of beef in France is worth on the average, instead of six sous twenty sous; in May, at Paris, brandy which, six months before, cost thirty-five sous, costs ninety-four sous; in July, a pound of veal, instead of five sous, costs twenty-two sous. Sugar, from twenty sous, advances to four francs ten sous; a candle costs seven sous. France, pushed on by the Jacobins, approaches the depths of misery, entering the first circle of its Inferno; other circles follow down deeper and deeper, narrower still and yet more somber; under Jacobin impulsion is she to descend to the lowest?