Blackwell Reference Online

Extract

Paper currency employed during the french revolution of 1789. First authorized in December 1789, the assignat originated as a government bond paying 5 percent interest and secured against the nationalized property of the church. The growing financial deficit, together with a shortage of specie and the failure of the anticipated economic resurgence, led the government to make the assignats legal tender and to double the number in existence in September 1790. Further issues ensued, mainly to help finance the french revolutionary wars , and assignats equivalent to some 11 billion livres were put into circulation between January 1793 and July 1794. This resulted in their devaluation relative to the metallic coinage. By 1796 the assignat was worth only 0.25 percent of its nominal value, and it was abolished in May 1797. ... log in or subscribe to read full text