The Sun.
London, England, 1857-05-25 00:00:00

FRENCH FINANCIAL SPECULATORS.

The failure of M. Place, one of the Directors of
the Credit Mobilier, was a Parisian scandal of last
year, the details of which, although carefully hushed
up, transpired to a sufficient extent to shake the
presiige of the body to which he belonged. The
public came perforce to the conclusion that a seat
in the Direction of that colossal establishment by
no means implied habits of sufficient prudence to
avoid dangerous speculations and consequent em-
barrassment ; and what other qualification as an
equivalent for the absence of that prudence such
Directors as M. Place possessed was' a subject of
considerable wonder and mystery. Among the
Parisian bankrupts of the last week figures the
name of M. Charles Thurneyssen, who is said also
to have fled ; and rumour of course swells the
amount of his liabilitif3 to somethins enormous.
. Whatever the real sum may be, there is no doubt
that this failure is of a most unfortunate character,
from the near relationship existing between the •
bankrupt and two of the magnates of the Credit
Mobilier. Had the sum involved been moderate,
it is to be supposed that they would have made
even large sacrifices to avoid the personal scan-
dal, mid the • reaction of that scandal on the Credit
Mobilier. Nor is the effect on the Money Market
in Paris likely to be unimportant, from the evi-
dently unsound position of that market, with a vast
amount of stock of every kind seeking permanent in-
vestment. It is clearly a settled thing in France that
matters are to be represented couleur de rose, or not
at all. The Press, which ought to be the enlightener
of the public in finatci al matters, has to avery great
extent been demoralised by the gagging system
adopted by Louis Napoleon, and from sheer lack of
useful employment has become in a manner the
more organ of the Bourse—and, what is worse, not
an independent organ. Irrespective of the weekly
papers specially devoted to commercial and finan-
cial matters, no small proportion of the Daily Press
of Paris has become the property of one or other of
the associations of capitalists formed for the same •
object as the Credit Mobilier, and trusting like it
to make lucky ventures in the ;old mine of pre-
miums. The tone of these journals is consequently
such as may furnish a stimulus to speculation,
rather than open the eyes of the public to the
truth ; for the return of the Parisians to their senses,
and to a use instead of an abuse of the facilities for '
monetary operations offered by the Bourse, would
be the ruin of these institutions, and would reduce
to extremely small dimensions the circulation of
some of the Paris Journals.

A more convincing proof of the unhealthy condi-
tion of the French Money Market cannot be adduced
thanthe tone in which the French Press has (Focussed
the very simple question of the renewal of the pri-
vilege of the Bank of France. The propriety of in-
creasing the capital was apparent. The transactions
of the Bank and its note circulation has vastly in-
creased ; and it was but reasonablethat the capital,
which in reality formed the guarantee fund for the
creditors of theestablishment, should be somewhat in-
creased also. As regards the public it is clear that in
fixingthisnew capital by an investment in Govern-
ment stock, theguarantee would assumeitsmost effec-
tive character; but the Bourse world, represented by
the Press, were clamorous for the employment of
the four millions of new capital in loans on stock
and shares. While it was thought that such a des-
tination would be given to it, prices rose, and there
was a general desire for the adoption of the law ;
but as soon as it was hinted that it was not to be
placed at the disposal of the Bourse, a complete in-
difference to the measure succeeded. Men clearly
feel that this state of speculative tension is perilous,
but have not the courage—probably not the power,
to remedy the evil. And in the face of these evi-
dences of an overcharged market for securities, the
railway companies are about to issue more, to the
value of several millions, while France is largely
interested in all sorts of foreign schemes, and has
even undertaken to set Spain financially on her feet
by means of joint stock enterprise. It has also
taken Austria under its wing ; and the Credit Mo-
bilier is godfather to all these undertakings, which
}Ave clearly over-weighted the financial powers of
France. But as though this were not enough, the
most gigantic project of all, that of civilising Russia
by vast railway reseau, has been also undertaken,
and, so far as appearances go, is likely to prove a
millstone round the neck of the Credit Mobilier.
We have said that the press of Paris is to a great
extent in the hands of Bourse capitalists, who, of
course, seek to use it for the furtherance of their
own designs. Hitherto the Credit Mobilier, trust-
ing to its general influence for a furtherance of views
in which so many found a collateral profit, has not,
as Mires and others have done, established any
organ of its own. But there are symptoms that it
has found it necessary at last to have recourse to
this sort of puffing; and the pages of the periodicals,
great and small, have been absorbed by articles
on the Russian scheme until the public is weary
of it. Pamphlet after pamphlet has appeared ; re-
prints of articles in the higher class periodicals—
such as the "Revue des deux Monde& —have been
issued; but all with little effect hitherto. In like
manner the Spanish schemes of the Monster Com-
pany have been preached up in the periodical we
have named. When we thus find that the Credit
establishment which was to do such wonders is com-
pelled to have recourse to the same manoeuvres as
its more insignificant followers, we are naturally
inclined to suspect that its glory is departing. The
failures of Place and Thurneyssen show that there
are vast risks, as well as vast profits, attached to
the system of which they and their friends were the
originators and high priests ; and no sane man
doubts that any return of the calamities which have
recently tried France so severely will bring about a
financial convulsion the consequences of which will
be terrible.
Three-fourths of the labouring population of
France is engaged in agricultural pursuits ; but
ever since the inauguration of the present Bourse
and bayonet regime, the Government has systema-
tically encouraged the creation of joint stock com-
panies for commercial purposes, which have had
the double effect of withdrawing capital from agri-
culture, and of fostering the habit of premium
hunting. The result has been that the agricultural
districts, save those in the vicinity of the capital,
are becomingdepopulated. The labourers, attracted
by the hopes of employment on the public works
undertaken in the large towns, have flocked thither;
the agricultural production of the country is ra-
pidly declining, and the agriculturists are becom-
ing more and more impoverished. The State has
steadily increased its unproductive expenditure,
and while the landholders bear their portion of the
additional burthens, they do not share in the bene-
fits of the outlay. All France is taxed in order that
the population of the department of the Seine may
purchase the necessaries of life at a lower rate than
they naturally command in the market ; and a
high scale of expenditure is stimulated among
that population by the distribution of fabulous
sums in wages, which attract workmen from
every part of the empire, under the delusion
that high wages mean increased facilities for sub-
sistence, and under the pressure of poverty arising
from the absence of agricultural enterprise in their
own deyartments. The Credit Foncier, founded to
supply the agriculturist with capital on moderate
terms, is practically a failure. The notaries through-
out France, whose chief business was connected.
with loans on mortgage, have no employment ; and,
in fact, agriculture cannot compete with the Bourse
in its demands for capital, and has been suffered to
go to the wall. The great and rapidly created for-
tunes of Paris are one of the great
perils of the
day. The mode in which they have been accumu-
lated furnishes examples of a most pernicious cha-
racter, and examples which unfortunately are too
readily followed. Those possessing peculiar quali-
ties and certain advantages of position have great
chances of success on the Bourse ; but with others.
forming the majority, the odds are all i n
thattheu
scocnh-
trary direction. It is for this reason
failures as we have
hm
above noted create an anxiety
in the minds of Englisen, convinced that a vast
mass of unsound speculation, doubtful ostensible
wealth, and much real misery co-exist in France,
and fearing consequently lest every failure of al
should prove to be his first move-
isnpetchllat
iisfionrancial house of cards towards its
mgreenatt
destruction.—Daily News.

ROYAL FREE HOSPITAL, GRAY'S-INN-ROAD. -- The
number of patients relieved at this Hospital during the
week ending
May 23 was 2,285, of which 626 were nett
cases.