Biens nationaux

A few months into the Revolution, the public purse was all but empty. To amend this fiscal problem, the deputy Talleyrand proposed nationalizing the goods of the clergy. Pursuing the proposal, on 2 November 1789, the voted that all the goods of the clergy "will be placed at the disposal of the nation", declared to be henceforth , national goods, to be put out to bid at auction on behalf of the State. ==New currency==

This legacy, evaluated to just about 3 billion , constituted a substantial improvement for public finance. The disposition of these goods was entrusted to a special office, the Caisse de l'Extraordinaire, which was formed on 19 December 1789. The difficulty was that the sale of so many would take time, at least a year, while the of the State were empty and national bankruptcy appeared to be immediate. Therefore, it was decided to produce, the very same day as the creation of , a type of bonds called . The value of these bills or bonds was based on the estimated value of the clerical properties. The were issued by the National Constituent Assembly. Initially meant as bonds, the developed into a paper currency used as legal tender. ==Inflation==

As there was no control over the amount to be printed, the value of the went beyond the limits of the confiscated properties. This caused hyperinflation. In the beginning of 1792, they had lost most of their supposed value. This hyperinflation was inspired by continual food shortages. Rather than solving the financial problems, the became a cause for food riots. Insecurity continued after the abolition of the monarchy, and the situation got worse with the wars France faced. These circumstances interfered with the completion of good financial policies that would reduce debts. Bills were passed such as the Maximum Price Act () of 1793, meant to control price increases. On 28 December 1793, the Assembly issued the legislation to confiscate the property of individuals regarded as enemies of the Revolution, which included the émigrés and fugitives, hostile priesthood, the deportees, prisoners, those sentenced to death, and the aliens from enemy countries. When the came into power in 1795 the Maximum Price Act was lifted. High monetary inflation reemerged and in the next four years Paris was the scene of yet more riots. The were becoming worthless. France's financial problems were solved during the French Consulate when Napoleon, the First Consul, created the country's new currency, the , by the law of 28 March 1803 (). == See also ==