The Express.
London, England, 1867-09-23 00:00:00

MOH WAVER AT LONDON OUDOT.

me Day —Mariam 9%. Ns__ „Mammon. Oh. Ma.
TO-M,..asow—Mornlay 101". ILL Lin.

Lo.VDON, 3fONDAY, SEPTEMBER 23.

Ir seems to be generally agreed that the liqui-
dation of the greatest financial society of France,
the Credit Mobilier, is inevitable. Although the
Bank of France have granted their assistance, and
some other wealthy companies are ready to help,
in both cases within certain limits, the negotia-
lions do not proceed smoothly. Some hitch or
other is constantly taking place, and, worse than
all, is openly discussed, not only in financial
circles, but in the press. Publicity of this sort
is almost invariably fatal to a banking or financial
institution, which necessarily lives by its credit.
Zven when names are not mentioned, and the
difficulties of a great house are referred to in a
carefully guarded manner, there is at all times the
danger of precipitating a stoppage. An announce-
ment of this kind at once provokes inquiry, and
the discovery is soon made to whom it relates.
Where aid is promptly given the peril may even
then be averted, but the delay of a single day will
often make the difference between safety and ruin.
Those who remember the events of 1857 will call
to mind a notable instance, in which not only the
mercantile community were at that time deeply
interested, but, as it proved eventually, the
poorer classes also. The Credit Mobilier have
experienced the double disadvantage of having
both their difficulties talked about, and also fur a
whole fortnight their unsuccessful attempts to over-
come them. Matters have even gone so far that
shit of the securities held by the company has
peen published by a portion of the Paris journals.
Admitting that this document may be unauthentic
and incomplete, its effect upon the public mind
could not fail to be unfavourable, especially since
there can be no question that it conveys, if not
the whole, at least a great portion of the truth.
At first sight a more unpromising list of assets has
rarely appeared even in the accounts of our worst
managed companies. Whether for the present
they can be realised at all seems doubtful, but
in the case of a sale being effected a loss is esti-
mated to accrue varying from 1,500,0001. to more
than double the amount. There is probably, how-
ever, some exaggeration in the figures given.
It cannot be denied that the collapse of the
Credit Mobilier would be severely felt throughout
France. We have already adverted to the im-
pulse that has been given by this association to
the industrial activity of that country, and in
proportion to the benefit already gained by its pre-
vious successes, so will be the harm caused by its
present failure. In one respect also the event
would happen at an unlucky moment. Trade and
enterprise are unusually stagnant in all parts of
the world. Here it is the function of the Govern.
ment to leave these questions to right themselves.
If pe•,ple choose to be timid and distrustful, there
is no help for it but to wait until they recover
their confidence. Abroad the Government is ex-
pected to interfere. As we mentioned last week,
in France a preliminary inquiry has been insti-
tuted by M. ROEMER for the express purpose of
devising measures to remove the present state of
distrust and uneasiness. Whatever results may
bare been arrived at, it is not unlikely that the
whole calculation will be upset by the inability of
the Credit Mobilier to get satisfactorily over its
difficulties. The great object of the French
Government is to reawaken the spirit of indus-
trial enterprise, and to induce the small capitalists
of France to embark once more in extensive works
of public utility. Ministerial assurances are not
likely to be wanting of a highly encourag-
ing nature both on political and financial
grounds. Able as they may be, we question if
they will turn out of much practical use. Against
them stands the hard naked fact that the great
company which, from nearly the conuuencement of
the Empire, has been identified with the successful
establishment of new canals, railways, and a host
of other projects, commercial, industrial, and
financial, has at last come to trouble. The de-
duction is sure to be drawn that money is safer
locked up at home than deposited in these risky
undertakings. The Government are evidently
well aware of this feeling, and hence may be attri-
buted the pressure put upon the Bank of France
to afford the Credit Mobilier the utmost help
possible, even at the hazard of violating its own
statutes.

A comparison has been drawn between Overend,
Gurney, and Co. in London and the Credit Mobi-
lier in Paris. In one respect only the parallel
holds good, that of each company being the lead-
ing monetary institution of the day in their
respective cities. In other points they
differ. The management of the Credit