"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]