# General Maximum

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{{Short description|Law enacted during the French Revolution}}
{{More citations needed|date=July 2019}}
{{Use dmy dates|date=June 2020}}

The '''Law of the General Maximum''' ({{langx|fr|Loi du Maximum général}}) was instituted during the [French Revolution](/source/French_Revolution) on 29 September 1793, setting [price limits](/source/price_controls) and punishing [price gouging](/source/price_gouging) to attempt to ensure the continued supply of food to the French capital. It was enacted as an extension of the [Law of Suspects](/source/Law_of_Suspects) of 17 September, and succeeded the Law of the Maximum of 4 May 1793, which served a similar purpose.<ref>White, E. "The French Revolution and the Politics of Government Finance, 1770–1815."  ''The Journal of Economic History'' 1995, p 244</ref>

== Background ==
Competing theories exist as to the causes of the conditions the General Maximum was intended to ameliorate. In 1912, the historian [Andrew Dickson White](/source/Andrew_Dickson_White) suggested that the ever-greater and ultimately uncontrolled issuance of paper money authorised by the National Assembly was at the root of France's economic failure and constituted the cause of its increasingly rampant inflation.<ref>White, A.D,  [Fiat Money Inflation in France](/source/Fiat_Money_Inflation_in_France) 1912, The White Collection at the Cornell University, https://rmc.library.cornell.edu/collections/subjects/frrev.html</ref> Eugene White, in his 1995 publication "The French Revolution and the Politics of Government Finance, 1770–1815", argues that years of revolution, international conflicts, and poor climate conditions had led to an economic environment with massive inflation and food shortages throughout France.<ref>White, E. "The French Revolution and the Politics of Government Finance, 1770–1815." ''The Journal of Economic History'' 1995, pp. 236–238</ref>

Although it varied according to region, the maximum price for first necessity goods was about a third higher than the 1790 prices, and the legal maximum fixed to the wages was about half higher than the average level in 1790. Committee members feared new and more radical revolutionaries were being created by the crisis.{{Citation needed|date=December 2010}} Their concern intensified on 5 September 1793, when the ''[sans-culottes](/source/sans-culottes)'' invaded the [National Convention](/source/National_Convention) demanding "food—and to have it, force for the law".<ref>Palmer, RR. ''Twelve Who Ruled''. Princeton University Press, 1970, p. 47</ref>

== Content ==

On 29 September 1793, the [Law of Suspects](/source/Law_of_Suspects) was extended to include the General Maximum. The Law of Suspects was initially created to deal with counter-revolutionaries, but hunger and poverty were seen by the [Committee of Public Safety](/source/Committee_of_Public_Safety) as dangerous to both the national interest and their positions within the government.<ref>Darrow, M. "Economic Terror in the City: The General Maximum in Montauban." ''French Historical Studies'' 1991, p 500</ref> The law set forth uniform price ceilings on grain, flour, meat, oil, onions, soap, firewood, leather, and paper; their sale were regulated a third over the maximum price set in 1790.<ref>Darrow, M. "Economic Terror in the City: The General Maximum in Montauban." ''French Historical Studies'' 1991, p 498</ref><ref>White, E. "The French Revolution and the Politics of Government Finance, 1770–1815."  ''The Journal of Economic History'' 1995, p 244</ref>

Written into the text of the law were regulations and fines. Merchants had to post their maximum rates in a conspicuous location for all consumers to see and were subject to repeated inspections by police and local officials. Furthermore, the law gave legal protection to consumers who reported violations of the Maximum to local officials. If the consumer did not have a role in the infraction and gave report to the proper authorities denouncing the merchant, fines would be levied against only shop owners.{{citation needed|date=July 2019}}

== Example ==
The following table is an excerpt from the decree issued on 13 October 1792 by the administration for the [district of Le Mans](/source/%3Afr%3ADistrict_du_Mans), [department of Sarthe](/source/Sarthe).
{| class="wikitable sortable mw-collapsible"
! colspan="2" |Fruits for eating, and others <ref>{{Cite web |date=1793-10-13 |title=Arrêté definitivement, le 13e jour du second mois de l'an 2e de la République Française, Une & Indivisibile, par l'ADMINISTRATION DU DISTRICT DU MANS |url=https://unsansculotte.wordpress.com/2019/06/08/tableau-du-maximum-le-mans-octobre-1793/maximum-1-1/}}</ref>
|-
!Item
!Price, in [pounds](/source/French_livre)
|-
|Apples, first quality, [bushel](/source/Traditional_French_units_of_measurement)
|[£1 10s](/source/%C2%A3sd)
|-
|''Idem'', second quality, bushel
|£1
|-
|Pears, first quality, bushel
|£2
|-
|''Idem'', second quality, bushel
|£1
|-
|Potatoes, bushel
|15s
|-
|Redcurrants, pound
|1s 6d
|-
|Sweet cherries or geans, pound
|1s
|-
|Sour cherries, pound
|1s 6d
|-
|Nuts, bushel
|£3
|-
|Marons,<ref group="note">''Marrons'' are large chestnuts, usually one per [cupule](/source/Calybium_and_cupule), considered a premium product compared to regular chestnuts</ref> 1st quality, bushel, full measure 
|£4
|-
|''Idem'', 2nd quality, bushel, full measure
|£3 5s
|-
|Chestnuts, 1st quality, bushel, full measure
|£2 10s
|-
|''Idem'', 2nd quality, bushel, full measure
|£1 5s
|-
|Winter butter, from 1 November to 1 June, pound
|15s
|-
|''Idem'', Summer, pound
|12s
|-
|Fresh milk, no water, pint
|3s
|-
|Eggs, dozen
|8s
|-
|White cow cheese, six inches in diameter and three inches deep
|3s
|-
|Goat cheese, dry
|3s
|}

== Effects ==
In 1793, the [French Revolution](/source/French_Revolution) caused wars with [Austria](/source/Austria), [Prussia](/source/Prussia), Great Britain and Spain. The government continued to function during the economic and political crises by a series of loans, bonds and tax increases; an increasingly large amount of paper money issuance was a vain attempt to stimulate the economy.<ref>AD White "Fiat Money Inflation in France", 1912, The White Collection at the Cornell University library https://rmc.library.cornell.edu/collections/subjects/frrev.html 
</ref> In many ways, the law actually exacerbated the problem, as the new price setting led to many food producers lowering their production or halting altogether, while many of those who continued to produce held onto their inventories, rather than sell at the legal price, which was often below the cost of production. This led to continued food shortages and recurring famines throughout the country. The Committee of Public Safety responded by sending soldiers into the countryside to arrest farmers and seize their crops. This temporarily alleviated the shortages in Paris, however it led to shortages becoming more intense in the rest of the country.<ref>{{Cite web|url=http://westerncivguides.umwblogs.org/2013/12/10/law-of-the-maximum-2/|title=Law of the Maximum : Western Civilization II Guides|access-date=2020-01-12}}</ref>

The law was written with an eye towards preventing business practices like [price gouging](/source/price_gouging) and [rent seeking](/source/rent_seeking), but in practice, the law targeted local shopkeepers, butchers, bakers and farmers, who were already feeling the effects of the economic downturn like other citizens.<ref>Darrow, M. "Economic Terror in the City: The General Maximum in Montauban." ''French Historical Studies'' 1991, pp. 503–505</ref>

== Conclusion ==
The General Maximum's economic impact was largely negative, as its efforts at price control led to an overall decrease in food supply and prolonged famines in parts of the country. The law amplified parts of the problem it was trying to solve. The political and symbolic impact of the General Maximum were clear, as the harsh punishments enacted upon those who breached the Maximum became a symbol of the Reign of Terror.{{citation needed|date=July 2019}}

== Notes ==
{{reflist|group=note}}

== References ==
{{reflist}}

== Further sources ==
* Darrow, Margaret H. . "Economic Terror in the City: The General Maximum in Montauban." ''French Historical Studies'' 17, No. 2 (1991): 498–525.
* Popkin, Jeremy.  ''A History of Modern France'', third edition (2006)
* White, Eugene N.  .  "The French Revolution and the Politics of Government Finance, 1770–1815."  ''The Journal of Economic History'' 55, No. 2 (1995): 227–255.

Category:1793 events of the French Revolution
Category:1793 in law
Category:Economic policy in Europe
Category:French business law
Category:Inflation
Category:Law in French Revolution
Category:Macroeconomic policy
Category:Price controls
Category:Regulation in France

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