Although this a reprint from 1933, it was first published in 1896. Prior to the formation of the Federal Reserve, the bankers were trying to see how a fiat system could be controlled and what the effects could be. They're go to guy was Andrew White.
As an original Bonesman they felt he could give them the most scholarly insight. This was the book that formed the FEDRES system and created the system of perpetual inflation in America http://mises.org/books/inflationinfrance.pdf
FIATMONEY INFLATION IN FRANCE
How It Came, What It Brought, and How It Ended
ANDREW DIGESON WHITE, LL.D., Ph.D., D.G.L.
Late President and Professor of History at Cornell University;
Sometime United States Minister to Russia and Ambassador to Germany; Author of "A History of the Warfare of Science with Theology,'' etc.
FOREWORD BY MR. JOHN MACKAY
I am greatly indebted to the generosity of Mr. Andrew D. White, the distinguished American scholar, author and diplomatist, for permission to print and to circulate privately a small edition of his exceedingly valuable account of the great currency-making experiment of the French
From among an almost infinite variety, there are four great and fundamental facts that clearly emerge, namely,—
1) Notwithstanding the fact that the paper currency issued was the direct obligation of the State, that much of it was interest bearing, and that all of it was secured upon the finest real estate in France, and that penalties in the way of fines, imprisonments and death were enacted from time to time to maintain its circulation at fixed values, there was a steady depreciation in value until it reached zero point and culminated in repudiation
(2) In the attempt to maintain fixed values for the paper currency the Government became involved in an equally futile attempt to maintain a tariff of legal prices for commodities
...(3) An wholesale demoralisation of society took place under which thrift, integrity, humanity, and every principle of morality were thrown into the welter of seething chaos and cruelty.
(4) The real estate upon which the paper currency was secured represented confiscations by the State
of the lands of the Church and of the Emigrant Noblemen.
And finally, as to the general development of the theory and practice which all this history records: my subject has been Fiat Money in France; How it came; What it brought; and How it ended.
It came by seeking a remedy for a comparatively small evil in an evil infinitely more dangerous. To cure a disease temporary in its character, a corrosive poison was administered, which ate out the vitals of French prosperity.
It progressed according to a law in social physics which we may call the "law of accelerating issue and depreciation." It was comparatively easy to refrain from the first issue; it was exceedingly difficult to refrain from the second; to refrain from the third and those following was practically
It brought, as we have seen, commerce and manufactures, the mercantile interest, the agricultural interest, to ruin.
It brought on these the same destruction which would come to a Hollander opening the dykes of the sea to irrigate his garden in a dry summer.
It ended in the complete financial, moral and political prostration of France—a prostration from which only a Napoleon could raise it