it was decreed that Banque Générale notes should be used in payment for all taxes, a measure initially resisted in some places but effectively enforced by the government. Law's ambition was to revive economic confidence in France by establishing a public bank, on the Dutch model, but with the difference that this bank would issue paper money. As money was invested in the bank, the government's huge debt would be consolidated. At the same time, paper money would revive French trade - and with it French economic power.
The Banque Générale was mandated to accept its notes as payment for all tax obligations, despite initial reluctance in certain regions, a policy that the government ultimately enforced. The intention behind this approach was to restore economic confidence in France by creating a public bank modeled after the Dutch system, with a distinctive feature of issuing paper currency. As investments poured into this bank, the overwhelming national debt would stabilize, fostering a stronger financial foundation.
Additionally, the introduction of paper money aimed to invigorate trade in France, thereby enhancing the nation's economic strength. Law's vision sought not just to revitalize the economy but to transform France into a powerful trading entity by effectively utilizing a banking model that had shown success elsewhere. The initiative encapsulated a strategic effort to merge public finance with innovative monetary practices to stimulate growth and recovery.
