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The chapter IV. Development of the centralised bank system in France

Appeared unsuccessful the first experience of issue activity in France on

Many years has detained development of bank sphere in this country. Exclusive

The rights granted in 1716 to John Lo (John Law) on activity of its Bank - (Banque Generale), had result catastrophic scales Paper issue and the subsequent closing of the bank, existed all five Years.

After this the government has increased restrictions on establishment of the issue

Banks, and, though in other areas of bank business, mainly, in

Credit and currency its spheres, education of firms nevertheless occurred, any

The bank of issue and has not been founded up to 1776 by the First of the such

Banks there was Kes it'it (Caisse d'Escompte), partnership with limited

The responsibility, based Tjurgo (Turgot), the Minister of Finance of France. With

The beginning of the activity the bank had rather close relations with

The government, in due course actually becoming branch of financial department

The governments. The promise to give to exchequer the loan in 6 million francs,

Given by bank in 1783, has called "attack" on bank and has compelled to suspend that

Payments. Pitiable position of the finance of the state, is already strong by then

Run into debt Kes, has led to that in 1788 the course of banknotes of bank was

It is defined under compulsion. It was followed by an establishment

Essences, a lawful instrument of payment, and were only provided national Riches (biens nationaux) the short-term percentage state

Bonds, considered, as a rule, Kes. However in 1790 of the bank note of a steel

Lawful instrument of payment. After that France has sunk in a stream of bank notes,

Having finished Kes to bankruptcy and having left for many years general disbelief in the paper

Money.

The establishment of banks of issue was forbidden under the decree of 1792, however

Followed then cancellation of the decree and restoration of usual money in 1796-1797

Have pushed a number of the Parisian credit banks to realisation of the issue

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