Biens nationaux
Encyclopedia
Biens nationaux, or "national property", was a concept in French history. During the French Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...

, the possessions of the Roman Catholic Church
Roman Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the world's largest Christian church, with over a billion members. Led by the Pope, it defines its mission as spreading the gospel of Jesus Christ, administering the sacraments and exercising charity...

 were declared national property by the decree of November 2, 1789. These were sold to resolve the financial crisis that caused the Revolution. Later, the properties of the Crown suffered the same treatment.

The concept of national property was later extended to the property of the émigré
Émigré
Émigré is a French term that literally refers to a person who has "migrated out", but often carries a connotation of politico-social self-exile....

s, and the suspected counter-revolutionaries, which were confiscated from March 30, 1792, and sold after the decree of July 27.

Confiscation of the goods of the clergy

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 Assemblée Nationale
National Constituent Assembly
The National Constituent Assembly was formed from the National Assembly on 9 July 1789, during the first stages of the French Revolution. It dissolved on 30 September 1791 and was succeeded by the Legislative Assembly.-Background:...

voted that all the goods of the clergy "will be placed at the disposal of the nation", declared to be henceforth biens nationaux, national goods, to be put out to bid at auctions on behalf of the State.

New currency

This legacy, evaluated to just about 3 billion livres
French livre
The livre was the currency of France until 1795. Several different livres existed, some concurrently. The livre was the name of both units of account and coins.-Etymology:...

, constituted a substantial improvement for public finance. The disposition of these goods was entrusted to a special office, called la Caisse de l'Extraordinaire, which was formed on 19 December 1789.

The difficulty was that the sale of so many biens would take time, at least a year, while the caisses 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 la Caisse de l'Extraordinaire, a type of bonds called assignat
Assignat
Assignat was the type of a monetary instrument used during the time of the French Revolution, and the French Revolutionary Wars.- France :...

s
. The value of these bills or bonds was based on the estimated value of the clerical properties. The Assignats were issued by the National Constituent Assembly.

Initially meant as bonds, the assignats developed into a paper currency used as legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....

.

Inflation

As there was no control over the amount to be printed, the value of the assignats went beyond the limits of the confiscated properties. This caused hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...

. 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 assignats 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 (loi du maximum général) 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 Directoire
French Directory
The Directory was a body of five Directors that held executive power in France following the Convention and preceding the Consulate...

 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 assignats were becoming worthless.

France's financial problems were solved during the French Consulate
French Consulate
The Consulate was the government of France between the fall of the Directory in the coup of 18 Brumaire in 1799 until the start of the Napoleonic Empire in 1804...

 when Napoleon
Napoleon I
Napoleon Bonaparte was a French military and political leader during the latter stages of the French Revolution.As Napoleon I, he was Emperor of the French from 1804 to 1815...

, the First Consul, created the country's new currency, the franc germinal, by the law of 28 March 1803 (loi du 7 Germinal an XI).
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