General maximum
Encyclopedia
General Maximum or The Law of the Maximum was a law created during the course of the French Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...

 as an extension of the Law of Suspects
Law of Suspects
The Law of Suspects is a term which is used to refer to an enactment passed on 17 September 1793 during the course of the French Revolution. It allowed for the creation of revolutionary tribunals to try those who were suspected of treason against the Republic and to punish those convicted with death...

 on 29 September 1793. It succeeded the 4 May 1793 loi du maximum which had the same purpose: setting price limits, detering price gouging
Price gouging
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies...

, and allowing for the continued flow of food supply to the people of France.

Historical conditions enabling the General Maximum

Years of revolution, international conflicts, and poor climate conditions had led to an economic environment with very high inflation and food shortages throughout France. Although it varied according to region, the maximum price for first necessity goods was about one third higher than the 1790 prices, while 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. This fear was intensified on 5 September 1793 when the sans-culottes
Sans-culottes
In the French Revolution, the sans-culottes were the radical militants of the lower classes, typically urban laborers. Though ill-clad and ill-equipped, they made up the bulk of the Revolutionary army during the early years of the French Revolutionary Wars...

 invaded the National Convention
National Convention
During the French Revolution, the National Convention or Convention, in France, comprised the constitutional and legislative assembly which sat from 20 September 1792 to 26 October 1795 . It held executive power in France during the first years of the French First Republic...

 demanding "Food- and to have it, force for the law."

The General Maximum is enacted

“The municipal police shall fine everyone who buys or sells merchandise for more than the Maximum… double the value of the item sold, payable to the person who denounced them; they will be recorded on the list of suspect persons and treated as such. The buyer will not be subject of these penalties if he denounces the seller’s violation and each merchant must post in his shop a table of the Maximum or the highest price of the merchandise.” Article 7 of the General Maximum, 29 September 1793

On 29 September 1793, The Law of Suspects
Law of Suspects
The Law of Suspects is a term which is used to refer to an enactment passed on 17 September 1793 during the course of the French Revolution. It allowed for the creation of revolutionary tribunals to try those who were suspected of treason against the Republic and to punish those convicted with death...

 was extended to include the General Maximum. Although the Law of Suspects
Law of Suspects
The Law of Suspects is a term which is used to refer to an enactment passed on 17 September 1793 during the course of the French Revolution. It allowed for the creation of revolutionary tribunals to try those who were suspected of treason against the Republic and to punish those convicted with death...

 was initially created to deal with counter-revolutionaries loyal to the crown, hunger and poverty were seen by the Committee
Committee of Public Safety
The Committee of Public Safety , created in April 1793 by the National Convention and then restructured in July 1793, formed the de facto executive government in France during the Reign of Terror , a stage of the French Revolution...

 as equally dangerous to both the national interest and their positions within the government. As decreed, the law set forth uniform price ceilings on grain, flour, meat, oil, onions, soap, firewood, leather, and paper; the sale of these products were regulated at the maximum price set in 1790 value, plus one-third.

Written into the text of the General Maximum law were a series of 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. Provided the consumer did not have a role in the infraction and gave report to the proper authorities denouncing the merchant, fines would only be levied against shop owners.

Effects of the General Maximum on the French public

In 1793, France was still in the throes of the Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...

 and fighting wars with Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

, Great Britain and Spain. The government continued to function during the economic and political crises through a series of loans, bonds and tax increases. Matters were worsened by food shortages which had largely resulted from bad harvests, but which were widely blamed on hoarders and price gougers.

The General Maximum was written with an eye towards businessmen who were profiting from the demise of the French economy. However, in practice, the law targeted local shopkeepers, butchers, bakers and farmers—the merchants who were profiting the least from the economic crisis. With the General Maximum, the Convention offered the people someone to blame for their hunger and poverty. Furthermore, due to the Law of Suspects
Law of Suspects
The Law of Suspects is a term which is used to refer to an enactment passed on 17 September 1793 during the course of the French Revolution. It allowed for the creation of revolutionary tribunals to try those who were suspected of treason against the Republic and to punish those convicted with death...

, when a citizen informed the government about a merchant who was in violation of the law, he had done his civic duty.

Conclusion

Turning price gouging and food hoarding into crimes was met with limited success. With respect to its overt intention of ensuring that people were able to purchase food at a reasonable rate, the Maximum was mostly a failure. Some merchants, finding themselves forced to sell their goods for a price lower than what it cost to create it (i.e. cost of baking bread, growing vegetables, etc.,) chose to hide their expensive goods from the market, either for personal use or for sale on the black market. The National Convention's attempt to enforce the General Maximum by repressing, detaining and executing those who didn't respect it made of it one of the symbols of the Terror
Reign of Terror
The Reign of Terror , also known simply as The Terror , was a period of violence that occurred after the onset of the French Revolution, incited by conflict between rival political factions, the Girondins and the Jacobins, and marked by mass executions of "enemies of...

. However, the General Maximum was very successful in deflecting a volatile political issue away from the Committee of Public Safety
Committee of Public Safety
The Committee of Public Safety , created in April 1793 by the National Convention and then restructured in July 1793, formed the de facto executive government in France during the Reign of Terror , a stage of the French Revolution...

, enabling them to focus on larger political issues.

Ultimately, the General Maximum proved to be controversial and unenforceable. In December 1794, it was repealed.

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.
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