Gazette Of The United States

Extract of a letter from a Gentleman in Paris to his friend in this City, dated Sept. 23.

"I shall remain here about a month longer, where I employ myself studying politics in the two great schools of this city, the club 80 and the Jacobins. I likewise associate as much as possible with the aristocrats: But I do not intend to say a word to you upon this subject until my return to London, and have had time to shake off the tumult of passion with which all parties here are overpowered. I cannot help, however, mentioning to you a most singular circumstance, and which has given me a good deal of pain. There is now the same passion for paper money in this country which once subsisted in America; a large party has proposed to issue at once two milliards, that is two thousand millions of livres, the supposed value of the property of the clergy, and pay at once a full half of the whole debt of the State; and it is most likely that they will succeed in a great measure, by procuring an emission to a very great extent, although they are vigorously opposed by many of very sound judgment, with all the force of reason drawn from principles and experience. They will not even take warning by their own experience; they have already issued 300 millions of this paper, which is sold publicly at 8 per cent. discount. It is surprising it has kept up so well—Judge what the consequence will be of two milliards. It is perfectly clear to me that it will ruin every manufacturer in the kingdom, and those alone will profit by it who are now ruined with debt. I have purchased since I came here, chiefly for your use; the Proces Verbal de L'Assemblée Nationale with the Decrees et Debats, in 23 vols. octavo. I think it will be a treat to most of your American friends, who are fond of politics. Our friends and Abbé _-, in spite of all their philosophy, are as much smitten with the paper money disease as the most violent amongst them. They do not perceive that only a certain quantity of money can circulate in a country in proportion to the commerce of that country, without sinking in value. Where that surplus is gold and silver, it can be exported; but paper money made a tender for gold and silver, is at once violating all the private contracts of the kingdom. This paper money must remain in France, and exceeding greatly what is necessary for the circulation, must sink in value in the hands of the creditors, and in the hands of every person who keeps it a few days. It must put an end to all future confidence in private transactions, and consequently to the whole commerce and manufactures of the kingdom where credit is given. The manufacturers will therefore want employment, and starve, which will create more confusion than was ever created by the want of corn, or the manoeuvres of the aristocrats.

P. S. The National Assembly has this moment voted 1200 millions of assignats, paper money. (30th Sept.)"