Napoleon Series Archive 2017

Re: Follow the money
In Response To: Re: Follow the money ()

I found an inexpensive volume in hardback of the book you referenced. I've ordered it and am looking forward to reading it. Thanks very much for the reference.

As to Napoleon's financial system and the 'value' of French currency the following is offered:

By 1810 the French franc was the most stable currency in Europe, including the British pound. The British doubled its national debt during the period, went off the gold standard, and issued paper money. Napoleon believed in 'hard money' and not paper and the establishment of the Bank of France was an overall success, one continued by the restored Bourbons.

Napoleon established an efficient fiscal administration which assured that taxes were paid on time, and Napoleon's fiscal structures that he introduced ensured 'a tight fiscal operation, and in the process he kept his own regime going and founded structures that endured.' See Harold T Parker's article on Finances in the Historical Dictionary of Napoleonic France edited by Owen Connelly, 179-180).

For further information, see Harold T Parker's article in the same reference on the Franc, page191. Napoleon established the franc de germinal by Law on 28 March 1803, which gave the country 'for the first time in its history France was provided with a clearly defined 'real money' which coincided in value with its money of account. (see J Godechot's Les Institutions de la France sous la Revolution et l'Empire). Parker further states in the article that 'Newly minted, sound, and practical, it gradually replaced the old coins and became the strongest currency on the European continent. In 1811 it commanded a premium even against the British pound sterling. Indeed, the Law of 7 Germinal [28 March 1803] fixed the money standard of France for 123 years.'

'The financial achievement of the Napoleonic years is summarized in the creation of a good administrative instrument, which had been lacking in the old monarchy.' See Louis Bergeron, France Under Napoleon, 38.

Napoleon achieved this achievement, in part, by the creation of the three great funds, the Sinking Fund, the Service Fund, and the Domaine Extraordinaire. The system was not perfect but the bureaucracy thus established was kept intact by the restored Bourbons, as was the Bank of France. Even in 1814 the French national debt was not crippling and Napoleon always attempted, and sometimes achieved, a balanced budget.

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