Protecting the Credit of the State - Speculation, Trust, and Sovereignty in Interwar France*

Abstract

This article investigates the creation, in 1924, of a new offence in French law, aimed at punishing anyone found guilty of “breaching the credit of the state”—that is, of discourses or practices likely to damage the financial reputation of the French state. In the midst of a destabilizing budgetary and monetary crisis, surrounded by fierce political disputes, “the credit of the state” was legally defined as an essential attribute of sovereignty, to be defended against internal and external threats. However, the intellectual history of public credit and the analysis of archival material relating to this new offence show how difficult it was for courts to draw a line between the freedom of the market and the protection of public order. More broadly, this research emphasizes the interconnected role of material and immaterial elements in promoting public trust in the value of the papers (bonds and currency) issued by the state.