| abstract
| - In 1640 introduced France the golden Louis d'or in value of 10 livres. One year later it began to mint the ecu blanc equal to 60 sol (corresponding to the German thaler), later known as sous. In 1689 was the fiscal situation of the French state so bad, that all circulating money had to be withdrawn and re-stamped to a higher value. In 1693 was instituted a "reform" of the currency: all coins were devalued, withdrawn, and restamped with a higher nominal value. It became a repeated source of income. 1703 were for the delivered coins given paper notes with a temporary currency status. 1705 began the state to pay with interest-bearing paper notes, and by law could be a quarter of all payments made with paper. A few years later was the budget in a complete disarray. Desmarets was named minister of finances to remedy it, and had some limited success. After the death of Charles II of Spain broke out a succession war. France used it to take over Spain's foreign trade with South America to great profit, including direct imports of gold and silver, which were used to withdraw some of the paper notes from circulation. But the budget was not to be saved. After the death of Louis XIV, the Sun King, in 1715, was the state debt at incredible 2 billion livres. The new regent Philippe of Orléans tried to reduce the state's expenses. With an income of 69 Millions livres against expenses of 147 Million, it was close to impossible. The entire state debt was reexamined, from over 600 Million were only 250 recognized, with a reduced interest rate - but a promise was made to stop with the reformations. The trust in government was heavily hit, when a reformation followed only two months later. It was calculated, that 1000 million coins would be withdrawn, with a profit of 200 million for the state. But only 380 million were delivered, the profit reduced to 76. Private counterfeiters have ruined the whole operation. Another attempt to find more income was a revision of all financial contacts with the state. Special Chambers of Justice have prosecuted every person, that was in some kind of a financial contact with the state. Over 4000 were convicted, to a sum of over 200 million in livres in fines. But since most of them were very influential, only 70 million were actually paid. When the chambers attempted to charge all rich people, the regent was forced to disband them. Then came John Law and his ideas of paper currency.
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