Assignats

On 19th February 1796, the Directory government symbolically burned down the printing presses that had been used to generate the “Assignats”. That paper money had been in use since the beginning of the French Revolution.

The Assignats had been initially backed by the land properties “taken” form the Clergy. The government had seized two billions pounds worth of land to sell, but as France was in financial difficulties, they kept printing more and more paper money.

Ultimately, over forty billions of pounds were printed, ie over twenty times the value that could actually be backed. Predictably the Assignats kept been depreciated to the point where they were worthless. That’s when it was decided to burn down the printing presses.

The following month, the Directory created and issued new paper bonds. Can you guess what happened next?