Currency of Old Mode

During more than one millenium, France will obtain a monetary Système rather complex but surprisingly durable.

The system of account , at duodecimal base, strong complex for rural and illiterate France, will exceed the thousand years age and will perdurera even in its english language version until the years 1970!

The system of payments will finance the royal Treasury by the very particular mechanism of the Seigneuriage and will contribute for much to the constitution of the kingdom through the wars and the internal conflicts, while providing to the French Numismatics its more beautiful documents to through the expansion of the standard monetarists .

The Revolution will substitute the Decimal system for the duodecimal Système. But behind this change, the continuity of the system of payments strikes the historian of the currencies. The system will remain containing Bimétallisme and the weight in fine gold of the Unit of Account, the Gold franc, will remain close to that of the preceding Unit of Account, the Livre tournaments, until 1914! Better still, the system French bimetallist made followers through the Latin Monetary Union and failed to become the base of the system international currency. Astonishing history…

the system of account

the duodecimal System, of the “ dozen S ” of sums of money

the monetary Mode of the Old Mode rested on a duodecimal Système, “ dozen S ” of sums of money.

Indeed, the two Units of Account higher and intermediate, the Book and the Ground (Penny) were defined like multiples of 12 sums of money. The sum of money was the Unit of basic Account.

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The duodecimal system was defined under Charlemagne in 781:

• The Unit of basic Account was the Denier and took its roots in the Roman monetary mode since the 3rd century before J. - C.: the word sum of money is derived from Latin denarius, equalizes a part of 10 ace. • The intermediate Unit of Account was the Penny or Ground, Francization of the Solidus, gold currency introduced by Constantin Ier, at the 4th century of our era, in order to put a term at the degradation of the Roman monetary mode, and which still perdurait after the dislocation of the Empire, in the old Roman provinces. The Penny/Sol was defined by a value of 12 sums of money.

• A new higher Unit of Account, the Book, was defined by a value of 240 sums of money or 20 Grounds/Under. It was derived from one of the Units of weight of the Old mode: the delivers weight of marc, equivalent to approximately 489,5 grams, cf Units of mass of the Old Mode . It is on this level that equivalence " was fixed besides; Money - Poids" book.

The duodecimal system will remain the system of account of the monetary mode of the Old Mode during more than one millenium, until the 18 germinal year III (April 7th 1795), where a new system of Units of simpler Account because founded on the Decimal system, will be defined.

duodecimal systems of the Book tournaments and the Book parisis

Origin and evolution of the duodecimal systems parisis and tournaments

The generic term of book has as of the affublé beginning of an adjective, in reference to the unit employed to define the weight of the noble metal ingot (gold or money) in which were " taillés" a certain number of Blank S to be brought to the Striking, number fixed by the monetary authority and which defined the legal tender. For example, the ordinance of April 20th, 1365 ordered that " are manufactured; sums of money of fine gold to the flowers of lily (it is then the official name of the franc to foot) (...) of 64 with the marc of Paris (...) ". What meant that 64 blanks were cut (cut out) in a gold ingot of a weight of 244,75 grams to be struck by the Coin S with the monetary type of the " frankly with pied". By extension, the amounts appearing in the contracts, accounts and official documents were made out in reference to the unit of weight used by the monetary workshops for the striking of the currencies.

As of 781, the number of cut blanks was defined in reference to the delivers weight (489,5 grams). This delivers carolinienne was to remain the official money of account until the 11th century.

Towards 1080, under Philippe Ier de France, the number of cut blanks was defined in reference to the weight of marc (weighing half of a weight delivers, that is to say 244,75 grams). This unit of weight was also called marc of Paris or marc of Troyes or even marc parisis . By extension, the exchanges and the accounts on the fields of Paris and Troyes, were established in books parisis. The book parisis was used as official money of account of the royal field until in 1203.

Other cities of the Kingdom, places of exchange and fair credits, had their own weights of marc, like Limoges, La Rochelle and Tours. In 1203, the fastening of the Anjou and monetary workshop of the abbey of Saint Martin's day de Tours to the royal field, made Livre tournaments, derived from the weight of marc tournaments (weighing 195,8 grams), the official money of account.

However, parisis delivers it continued to be employed like Unit of Account in certain areas of the kingdom until in 1667, date from which its use was prohibited.

After 1720, the official designation of the book tournaments is shortened in " livre" , quite simply.

Models of conversion enters the books parisis and tournaments

The table of conversion of the Units of Account parisis into Units of Account tournaments below must be read in the following way:

1 book parisis (lp) = 5/4 book tournaments (1,25 lt) 1 LP = 25 grounds tournaments (st) 1 LP = 300 sums of money tournaments (dt)

The table of conversion of the Units of Account tournaments into Units of Account parisis below must be read in the following way:

1 lt = 4/5 book parisis (0,8 LP) 1 lt = 16 grounds parisis (sp) 1 lt = 192 sums of money parisis (dp)

But the duodecimal system remained the base of the systems parisis and tournaments. Thus, one had simultaneously: 1 LP = 20 sp = 240 dp and 1 lt = 20 St = 240 dt

systems of payment

During its long millenium of existence, the Monetary Mode of the Old Mode knew 3 great systems of Currencies of payment. Concretely, the Currencies of payment are the monetary species used for the payment of the transactions (purchases of goods and services).

781 - XIIIème century: the System of mono-métallisme Money of the Sum of money

XIIIème century - 1679: The System of bimetalism Ecu of Gold/Money Sum of money

1640 - 1795: The System of bimetalism Gold louis/Ecu of Money

The monetary type founder of this system is the Gold louis to the long wick of Louis XIII and the ecu of money to the punches of the engraver Jean Warin.

principal monetary types of 781 with 1795

The Monetary Type materializes a Currency of Payment by declining it in the form of several token coinages. Each System of Payment counted many monetary types.

synoptic Table of the Monetary Types (System ecu of gold/Sum of money of Money of 1260 to 1679) PROVISIONAL VERSION

Note: the table counts all the monetary types out of gold produced by the royal capacity until 1679 and indicated under the generic term of ecu. It thus recovers types of gold currencies from which the denomination can be different from monetary the types known as " with the écu" , in reference to the ecu of France engraved to the avers.

synoptic Table of the Monetary Types (System of the louis of money or/écu of 1640 to 1793)

Note 1: the monetary reforms were often accompanied by a recasting of the preceding monetary types. Under the reign of Louis XIV (4) and of Louis XV (2), the Réformation S monetarists consisted in saving the costs of recasting while carrying out an overtyping of the new monetary type on the Old one.

Note 2: the periods of manufacture of the monetary type are superimposed sometimes. Indeed, the production being ensured by several monetary workshops, it could cease for the Workshop of Paris and be authorized to continue in some workshops of province.

factors of change of the Monetary Type

The change of the monetary type was the form par excellence of the Monetary policy of the capacity Royal .

It was thus initially the consequence of its evolutions. Thus, at the time of the monetary reforms accompanied by a change of metal equivalences of the Book. However, a modification of equivalences could also be decided without the monetary type in circulation not being modified by it.

In addition, the monetary type could change without modification of metal equivalences. In this case, it symbolized the continuity of the monetary policy:

• during a change of reign or political regime (revolutionary transition)

• at the time of the change of the aspect of the monarch

the Monetary policy under the Old Mode

The objective of the monetary policy under the Old Mode was to optimize the financings of the royal State:

By handling of the legal tender and/or the convertibility of the metal species: the policy of seigneuriage
By increase in the quantity of the metal species in circulation: the monetary Mercenary attitude

the legal tender and convertibility

3 components of the legal tender

From 1262, the legal tender of each currency of payment corresponding to a monetary type was defined by three parameters:

the weight (i.e the Mass) of the metal contained in the currency of payment expressed in marc of weight of marc (1 marc = approximately 244,7 grams and 1 book of weight of marc = 2 marcs)
the Title (i.e the quality) of the metal of the currency of payment defined in carats (1 Carat = 1/24e)
the value in Book tournaments

Example: the legal tender of the Louis was fixed by the edict of March 31st, 1640 at 10 books tournaments for a size of 36 1/4 louis in a gold ingot of a weight of marc of Paris and a quality of 22 carats, which corresponded to a weight of 0,619 grams pure gold for a pound tournaments.

Indeed, 10 lt = (244,7 * 1/36,25) * 22/24 grams of gold. Thus, 1 lt = 6,188/10 = 0,619 grams of pure gold (with 24 Carat S)

The legal tender thus fixed, at the same time, the official course of metals and of the Unit of Account, delivers it tournaments.

freedom of striking, convertibility and bimetalism

The legal tender of the book tournaments was defined out of gold and money. This is why the monetary system was a system containing Bimétallisme. The relationship between the two quantities of metal (gold and money) defined a ratio of conversion of silver gold, which varied enters 14 and 15,5 grams of pure Money for 1 gram of pure gold under the Old Mode.

The monetary system of the Old Mode was founded on the freedom of striking of metal in cash metals and on convertibility between metals: a given quantity of metal (for example gold) could be brought to striking to obtain metal species in same metal (gold) or in other metal (money), according to the legal tender into force.

typology of handling of the legal tender

In theory, the modification of the legal tender of the book tournaments out of noble metal could be operated in 14 different ways, according to whether the devaluation or the revaluation were required. A devaluation or a revaluation could thus be theoretically obtained in 7 different ways:

Standard 1: Variation of the value tournaments exclusively.

The devaluations of this type in fact were called of the increases . Typically, the 6 reformations of 1690,1693,1701,1704,1715 and 1720, used this process. The revaluations contrary, were called reductions . After the outcome of the crisis of Law, several revaluations intervened (3 in 1720,1723 and 1726).

Standard 2: Variation of the Title of metal.

This type of devaluation was frequently used during the One hundred Year old war. In particular under the reigns of Philippe VI and Jean II, where the quality of the gold currencies passes from 24 to 18 carats between 1345 and 1355. It is at that time, moreover, which the Loi of Gresham is formulated. The purpose of the revaluations by rise of the quality will be to restore confidence in the monetary authority (1355, 1429), taxed to emit " currency bad aloi". This is why, the quality seldom will not be any more but used like variable of adjustment. Between 1430 and 1640, it will be stabilized with 23 carats. And, starting from the passage to the Gold louis system, in 1640, the Aloi of the currencies will remain fixed at 22 Carat S.

Type 3: Variation of the metal weight (devaluation of 1785)
Standard 4: combination of increase in the value tournaments with fall of the title (1349-1354 and 1519)
Standard 5: combination of increase in the value tournaments with fall of the weight (1436, 1450 and devaluation of 1718)
Standard 6: combination of fall of the title and fall of the Standard weight
7: combination of increase in the value tournaments with fall of the title and lowers weight

The combinations used actually were sophisticated even to make handling monetary less transparent to the eyes of the public:

Standard 5a: combination of increase in the value tournaments on-compensating the rise of the weight (devaluation of 1339)
Standard 6a: combination of fall of the title on-compensating the rise of the Standard weight
7a: combination of increase in the value tournaments with fall of the title on-compensating the rise of the weight (reform of 1640)

financing of the Royal Treasury by the monetary changes under the Old mode: the mechanism of the Seigneuriage

The paramount role of the seigneuriage in the arbitrations between the financial, tax and monetary policies in the financing of the royal State

The financing of the royal Treasury under the Old Mode was ensured by means of 3 large instruments:

the fiscal policy: the tax legalized by the general states (example: size); the tax forced by seizure on the richnesses deprived by means of the wars or of spoliation (of the goods of the templiers, the Jews, the lombards, etc)
the financial policy: recourse to the debt
the monetary policy: the seigneuriage, producing an income related to the kingly capacity of the State to beat currency

The monetary policy (i.e. the Seigneuriage ) was an instrument of privileged financing of the royal Treasury. Its use could be explained by the limits inherent in the financial policy or the fiscal policy :

the tax very often required the approval of general states and the installation of a heavy administrative building,
the recourse to the debt was limited by the rise of interest rates in the form of allowance for risk related to anticipations of the future monetary changes, still increased by the distrust towards the royal capacity after spoliations of the goods of several categories of creditors.

mechanisms and great forms of the seigneuriage

the seigneuriage of the right of coinage:

The right of coinage generated a profit of monopoly (G) equal to the difference between the contract price of metal and the legal value tournaments of metal less struck the costs in striking.

G = value tournaments of metal - (contract price of metal + costs strikes)

the seigneuriage by recasting of the species:

Recasting of the species of the monetary types in circulation => Stockage of metal in the Royal Treasury => Frappe of the new metal species to the new monetary type => immediate appreciation (of books tournaments) corresponding to the rate of devaluation of the legal tender.

An alternative of the seigneuriage by recasting, was the seigneuriage by royal edict: identical by its effects, it saved in more the right of mixing (equal to the costs of recasting and striking). Indeed, the absence of facial value on the currencies of Old Mode until in 1789, facilitated monetary handling considerably. The process was the following: Storage of the metal species => Publication of a royal edict ordering the monetary change => destocking of the species to the new legal tender.

In both cases, the appreciation of seigneuriage (S) is equal to:

S = Value Stock in lt after change - Value stock in lt before change - (costs of recasting + costs of striking)

the seigneuriage of devalorization of the debt: the made out debts of books tournaments were devaluated (in money and gold weight) => reduction in the value (gold and money) of refundings.

Example: a Dévaluation of 10% of the book tournaments made it possible to compensate for an increase in the national debt of 11%. Into 1720, the monetary changes divided by two the value into gold of the national debt (3 billion books tournaments).

The effectiveness of the policy of seigneuriage , measured by the optimization of the revenue of seigneuriage S was strongly dependant on the maintenance of the secrecy of the decision and its discrétionnaire character in time. The repeated and regular monetary changes were anticipated and their effects (on S) decreased by the Thésaurisation.

Evolutions of the policy of seigneuriage between the Middle Ages and the modern time

Between 1262 and XVIe century: the revenue of seigneuriage was centralized by the resumption of the monopoly of striking by the royal capacity . In 1262, Saint Louis poses the principle of the convertibility extended to the kingdom, the currency struck by the King and the convertibility limited to their provinces of the currencies struck by its vassal. In XVIe century, the monopoly of striking by the King is almost generalized.
As of the reign of Philippe Beautiful the (fine of XIIIe century) and until 1726, the seigneuriage was frequently used with paroxystic periods:

Between 1337 and 1360, in the first 23 years of the Guerre One hundred Year old, 85 changes were operated (1 every 3 months on average). In 1360, they accelerated at the rate/rhythm of a change every three weeks. In 1349, the monetary changes accounted for 2/3 of the public revenues. Between 1715 and 1726: 10 monetary changes. Between on July 1st, 1720 and on September 30th, 1720, 6 changes are operated (1 every 2 weeks), on a rate/rhythm even faster than at worst of the monetary crisis of the Guerre One hundred Year old.

Limits of the policy of seigneuriage

a rise of interest rates related to an allowance for risk (of devaluation) increased. It was the financial sign of the distrust of the High finance and could engage a cumulative mechanism of debt: raise interest rates => monetary debt acrrue => change => rise of interest rates…
a hoarding of the metal species, related to anticipations of appreciations. The small people anticipated the monetary changes and behaved the such royal Capacity while trying to collect part of the revenue of seigneuriage. Hoarding slowed down the money circulation and handicapped the exchanges.

The Loi of Gresham is an attempt at comprehension of the effects of the changes by the contemporaries themselves. Thus, Thomas Gresham noted that the base coinages replaced the good currencies (i.e Of good quality) in the money circulation.

the exit of the metal species of the national territory related to the speculative movements on the foreign exchange rate of the currencies.
the trimming of the metal species: part of metal was filed on the species in circulation, to be accumulated and molten in new metal species. It led to a fall of the species in circulation and thus, with the same effect as hoarding on the economic activity. He obeyed the same behavior of private collecting of a quota of the seigneuriage. The technological innovations in the striking of the currencies aimed in particular to make more difficult trimming (as the striking of the sections of the metal species).
a distrust increased in the royal capacity (in 1295, Philippe Beautiful the was called the king counterfeiter) and the increase in social and political violence: the jacqueries and revolts of XIVe- 17th centuries, ended up being transformed into Revolution, 1789.

In 1356, Nicolas d' Oresme had seen the danger well and claimed: " money and gold strong and good currency, a stable currency which can remain in a estat at greater length that one puisse". By noting the devastating effects of the monetary changes, he concluded from it that the currency did not belong to the Prince but was a community property.

Evolution of metal equivalences of the book tournaments of 1602 with 1795

Between 1602 and 1795 , the periods of monetary stability are twice longer (130 years) that periods of monetary instability (63 years):

|- | • 1720 - 1726: |align=left| period of revaluations. the Livre tournaments is revalued of 151% (!) between on July 30th 1720 and January 1726 (0,312 G compared with 0,124 G of pure gold).

|- | • 1726 - 1785: |align=left| period of stability. (1 lt = 0,312 G of pure gold)

The monetary Mercenary attitude

the objective mercantilist in his monetary version was to increase the stock of the metal species in circulation in the kingdom, with like final objective, to increase the economic activity and thus, the taxability. The secondary objective was also to decrease interest rates and thus the cost of the financial resource for the private sector investment and the financing of the royal budget.

This relation between the quantity of currency and the growth was very discussed as of the 16th century (cf quarrels between Jean Bodin and Mr. de Malestroit). It remains it today still.

the instruments of the monetary mercenary attitude many and were varied:

technical of the sumptuary edicts, consisting in obliging the religious orders and the private individuals to be converted metal in cash, their objects out of noble metal.
prohibition of the metal exits by an exchange control
arsenal of the economic mercenary attitude, aiming at improving the commercial balance (protectionism, incentive with the investment, etc)

The use of the currency paper can also be arranged in the tools mercantilists. However, the experiments under Louis XIV, with the System of Law and even the Assignat S, badly led, led to resounding failures.

the monetary transition enters the duodecimal Système and the Decimal system (1795 - 1810)

The monetary transitional period will take 10 to 15 years and will be spread out Directory with the first Empire:

• The decrees of the 18 Germinal Year III (April 7th, 1795) and Thermidor 28 Year III (August 15th, 1795) established the decimalization of the monetary system (1 Franc = 100 hundredths) and the legal tender of the franc to 4,5 grams of pure money.

• The Law of the 25 germinal year IV defines the convertion rate monetary between the franc and the Livre tournaments by giving a light appreciation to the franc in order to take account of the Frai and tolerance of manufacture of the royal currencies brought to the exchange:

However, a tolerance was allowed for the conversion of the metal species of the 3 Denier S on the 30 Ground. Thus, the species of 3 Sums of money were converted during 1,25 centime of Franc (instead of a legal theoretical course of 1,23 centime of Franc).

• The decrees of the 29 Vendémiaire (October 20th 1798) and 17 Floréal An VII (May 6th 1799) made compulsory the establishment of the accounts and the execution of the payments in francs.

• The Law of the 7 germinal year XI (March 27th 1803) decided the general recasting of the currencies of old mode and their replacement by the new Napoleonean currencies. The weight of the franc out of gold was fixed at 290,3225 milligrams of fine gold. The silver weight remained that fixed in 1795 (4,5 fine money gr.). That is to say a ratio argent/or of approximately 15,5/1.

• the imperial decree of August 18th, 1810 equalized the values of the franc and the book tournaments in order to complete the transition from one system to the other, slowed down by the complexity of the convertion rate retained.

By extraordinary, the course of the Frankly with horse of Jean II of France (known as “the good”), which had been fixed at 1 book tournaments in 1360, will be finally the convertion rate appointed 450 years later!

Equivalences between the books tournaments and euros: costs of yesterday and today

To compare the values and costs of life of yesterday and aujoud' today, one can compare the cost of the same product, at the time, and today. As follows:

In VIIe century, Cologne, an ox or a cow costs 2 pennies (grounds) (source: Lex ribuaria)
In 1787, a hen costs 0,5 pounds, that is to say 10 grounds. (source: inventory after death, 1787)
In 2005, a hen: 10 euros.

On a purely strictly indicative basis, 1 ground of 1787 would be equivalent 1 euro from 2005, and a Livre tournaments of 1787 would be equivalent to 20 Euros of 2005.

However, the use as measuring rod of goods whose production was the high productivity gain object is not significant. Indeed, its relative price strongly decreased in the interval.

Another possible comparison would be to use the rate of gold in 2006 (17 Euros the gram approximately). Value 2006 of a Livre tournaments of 1602 would be of approximately 15 Euros. Value 2006 of a Livre tournaments of 1793 would be of approximately 5 Euros.

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