Assignats

Assignats were a form of paper money and security issued during the French Revolution. They were introduced by the National Constituent Assembly in 1789–1790 to address a severe fiscal crisis and to finance the state without immediate taxation. The notes were initially issued as bonds backed by confiscated church lands and other national property, and were nominally redeemable in land or money once these assets were sold. In practice they functioned as currency and were widely circulated in addition to existing coinage.

As wartime needs expanded, the government issued more assignats, and confidence in their value rested on the ability to convert lands into cash. Over time, the backing shifted from specific lands to general faith in the state’s finances. The supply of assignats grew rapidly, fueling inflation and depreciating their value relative to coins and goods. By 1793–1794, the notes had lost most of their purchasing power and contributed to economic distress for peasants, merchants, and urban workers.

In 1796–1797 the system was reformed. The government introduced new instruments, notably the mandats territoriaux, to replace depreciated assignats and to stabilize public finances. The currency reform continued in the ensuing years, culminating in monetary stabilization under Napoleon Bonaparte and the establishment of a more stable franc.

The assignats are frequently cited as an example of the dangers of inflationary overissuance and the political risks of tying currency to state assets during wartime.