Napoleonic Period in Mauritius

Napoleonic period (1803 – 1810). Resolving the problem of paper money
Article of Raymond d’Unienville (article extrement technique et complique)

Paper money (debts) introduced.
The problem of circulation of money was a regular problem in the Mascarene isles F.I.E.C only accepted money which was recognized. In Ile De France the Piastre was used only for paying the employees of the company. They were rarely given their wages or late due to lack of coins in circulation.

At the beginning of colonization it was accepted because the colonists were debtors (debiteurs) to the company and the company gave them everything and they paid ‘in espece’ and it was a barter system. When the colonists were free from their debts they wanted to be paid in money instead of livelihood. They could satisfy them only partially.

The excess of products were sold in cash and that is the source of the probability. Isle De France was to be a port of call so the Company sent no gold or silver money but copper money, BILLON was a mixture of copper and Silver of low value refused by colonists.

If the colonists had to accept they were annoyed. The company had fixed the Piastre of Spain which had the value of 102 soldes but in Isle De France its value was lower imposed by the Company, 60 soldes. The colonist were exploited.

The colonists understood that the coffee bought in isle de France for 20 pound for 50 KG of Coffee but the company sold this same coffee between 70 pounds to 80 pounds. The company realized benefits of 250% to 300%. So the colonists were not interested to sell their product. The colonists wanted cash money which had value.

This money was 1/3 of the value in France. The money disappeared systematically. The commerce interlop (black market – clandestine par rapport a l’exclusif). The company had tried to introduced in the islands, isle Bourbon and isle de France a money made of copper which was marked at Pondicherry. Piastre of one or two soldes with the courrones de Marquis and nine Lys leaves.

Having to face the absolute refusal of the colonists to use this money in America. This new copper coins were brought to Mauritius. But even this money was not accepted as its predecessor though it had a certain value.

The governor Lenoir chief of the Compteurs des noirs, would on his own introduce in Bourbon island the Pagode D’or and Fanons d’Argent made in Pondichedrry. With their initiative of Pierre Lenoir the company found itself in front of an accomplished act. It sent regularly these coins in the Mascarene : the probability would not be regulated easily. Those islands of Bourbon and Ile De France would find themselves without a single coin. Each time a new coin was issued all of them would be taken.

Each time people would come to the island to buy their products and return to France. When Mahe De Labourdonnais came he found the island without any money. There cannot be money in this isle – the greatest amount of money went to “particulier commerce”’ “Amassing” was not a real solution for them.

In March 1738 the Consul Superieur De Bourbon reassured colonists. He established a great circulation. The copper money was made for the colonists in France especially for Ile De France. The coins would have the value of 6 to 12 Denier. The monetary circulation problem was complete. The company did not know what to do, there was insufficient money and the ‘creancier’ received Spain Piastre, lots of copper money. The company had to pay in cash and copper was given preference over silver, and the situation started to get improve this ………. Of lack of money. Those who trade with outside with European ships would diminish in Ile De France and the ‘interloppe’ (black market). To facilitate the commerce Labourdonnais would have an original and ‘audacieux’ idea. He would put paper money of equivalent value in circulation. These money would be valued by “café et vivre’ and ‘volaille’.

The barter system, the people would keep these notes. The islands were the granaries of the Compagnies des Indes. The mission of France was accomplished. February 03, 1737, the consul would incite ‘a la volaille’, ‘tout habitant…………’ The ‘Piece D’inde’ – 600 pieces for a female Negro and 300 for a young female Negro.

Labourdonnais would give their notes to captains of ships which had food and bring “pieces d’inde’. These notes did not have real value “6 Volaille per note” a crafty way of pursuing the barter system – Labourdonnais will introduce a ‘vente a l’encan’ Cossigny also became Governor.

Co-existence:
1- paper money.
2- Coppermoney
3- Pagode D’or and Fanon D’argent.

There is no rules of which money is worth what - Big speculation. Three years later the directors are going to stop their expansion but they were still important because of lack of money: They had to encourage the continuation of circulation of the paper money through trade with the Company.

In 1740 – 1741: there were more paper money. 1744 – a solution – The St Gerant sank with 54,000 piastre from Spain on board. The lack of this sum of money was more badly felt. In l’ile Bourbon made paper notes from ‘parchemin’ and from that time it became of the culture of the island to use paper money. Piastre would get more value 3 pound at the beginning of 1760, 11 pounds in 1764 at the end of the 7 years war and 33 pounds 2 soldes and 5 denier. The conditions were ideal for the speculators to do whatever they wanted with the increase in; price of the goods, the piastre and the paper money. It was a vicious circle. They could buy the paper money and the goods and the propriety at a lower price and sell at a very high place. These people would make great profits. People would hire from money lenders who impose great interests, the colony ‘ ne fit plus qu’un gros corps enfle d’endettement et d’interet’

With the emission of the ‘Parchemin’ at Bourbon isle in Piastre the shipwreck of the St Gerant and the billet de caisse. Notes for 30,000 piastre which the company should return with the arrival of a ship. When ile De France will be under the Royal administration the commissaire liquidataire there would be greater general consternation on the inhabitants. Particular trade was interdicted from 1764 . the inhabitants had to be paid in notes when the denree were paid in shops. P. Miller with those who were indebted to the company at very high rate. Each time there was a lack in liquid more and more coins.

In 1785 the administrators scattered among the population 57,600 Fanons from Pondicherry and they thought that these coins would in the company was equivalent to 1/16 of a piastre. There was use and abuse of the paper money .

In 1781 – try to stop emission. Suppress paper money. In 1785 there was a great financial crisis. The paper were replace by receipts which will be paid by the treasury ‘recepisse’ of the Marine in Paris. They are going to send piastre in the island – lots of people thought they were rich but were not really all those paper money were absorbent. Disproportionate inflation was not able to create a stable economy because of speculation so as to enrich rapidly. After the revolution the problem increased and was very ‘tenaces’ in the islands.