The Revolution 357 



depreciation of the assignats. Paper currency has been at so 

 low a pitch that every species of goods has been preferred in 

 payments; master manufacturers paying their workmen, etc., 

 in assignats by which bread is purchased at a price proportioned 

 to the crop, can sell the product of that labour to such an advan- 

 tage as to create demand enough to animate their business: a 

 most curious political combination, which seems to show that 

 in circumstances where evils are of the most alarming tendency, 

 there is a reaction, an undercurrent, that works against the 

 apparent tide and brings relief, even from the very nature of the 

 misfortune. Combine this with the point of depression of 

 England in all her wars, as explained with such talents by the 

 ingenious Mr. Chalmers, and something of a similarity will 

 strike the reflecting reader. The loss by the depression of 

 assignats has not been by any interior transactions, but by those 

 with foreign powers. In consequence of it, the course of ex- 

 change rose at last so high that the loss to the kingdom has been 

 great, but by no means so great as some have imagined, who 

 supposed the intercourse to be moving in the same ratio as in 

 preceding periods. But this is no light error: the evil of ex- 

 change, like all other political evils, corrects itself; when it is 

 very much against a people, they necessarily lessen their con- 

 sumption of foreign commodities ; and on the contrary, foreign 

 nations consume theirs very freely because so easily paid for. 

 Through the month of January 1792, the course of exchange 

 between us and Paris has been about 18 on an average; reckon- 

 ing the par at 30 (which, however, is not exact), here is 40 per 

 cent, against France; deduct 36 for the discount on assignats, 

 and this apparent enormity of evil is reduced to 4 per cent. 

 Through the month of January 1791, the course was 25I; this 

 was 15 per cent, disadvantage, and deducting 5 for the discount 

 on assignats the real disadvantage was 10. Thus the exchange 

 in January 1792 is 6 per cent, more favourable to France than in 

 1791; a remark, however, which must not be extended to any 

 other case, and touches not on the internal mischiefs of a de- 

 preciated currency. It seems to show that the evils of their 

 situation, so little understood by the generality of people here, 

 are correcting themselves, relative to foreigners, through the 

 operation of the causes I have mentioned. It is at the same 

 time to be remarked that while the price of corn and other 

 things, in which there is no competition by foreigners, rises 

 merely on account of a scarcity, real or apprehensive; at the 

 same time, everything bought by foreigners, or which can be 



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