The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-08-26


Saturday afternoon the Ilfh inst
Our correspondence and files of papers are full to
the latest dates.
Our French Correspondence.
PARIS, August 8, l849.
The Financial Condition of Framre-New Loan
Sad Condition of the Country The Property of
Louis Phai1pe-IVhdt rs to be done with it?-
The Grand Op1a-1hs Government acting as
Manager ola Theatre, &c &c.
Ii we have no event to report Of any great poll
tical Importance this week, outside the walls of
the Chamber, we have at least one remarkable
circumstance TO record as having occurred within
them. The Minister of Finance, M. Passy, has sud-
denly announced lean Of 200 millions of francs,
and has accompanied the announcement by a
speech, sInguary contrasted by its frankness with
all the speeches to which the public have been hi
thcrto accustomed from Ministers of Finance,
under all regimes, and in all countries. 1t appears
to have become traditional privilege with these
functionaries to shed over the financial landscape
the hue Of the rose, and to the most dis
astrous situations with the eye of sanguine hope
M Passy has departed from this tradition, and
has come forward with absence Of reserve al
together remarkable, and admitted the disastrous
financial condition of the country. He cannot be
accused of making the slightest disguise of the
difficulties of the situation, but he has not, the
other hand, exaggerated these financial embar-
easements, which every well informed person,
-conversant with the affairs Of the public expendi
ture and revenue, has been aware Of. The actual
position Of the finances of the country at this mo-
ment may be expressed in the simple and clear
announcement, that the incomngs Of the Treasu-
ny, for the present year, ls49, will be short of its
,outgoings by the sum Of $50 millions of francs
Now, as there was deficit last year, and the
year before, SO there is no ground for supposlng
that there will not be another deficiency ne xt year.
unless extraordinarily energetic measures be taken
70 prevent il, and il requires no unusual amount Of
commercial knowledge to be aware to what, at
last, country or an individual must come, whose
annual expenditure, regularly and continually ex-
,ceeds its annual income.
M Passy proposes to adopt vigorous measures
TO augment the incomings, and thus diminish or
extinguish the deficit. What taxes are to be
imposed have notyet been announced, farther than
're-establishing the duty drinks, which was
abolished by the late Assembly. 1t is well UNDER
stood that the chief expedient Of the Finance
Minister ID an income tax.
But to return to the present condition Of affairs.
The loan Of two hundred mllions-supposing II to
be conceded and obtained, which no doubt 1t will
be-wil cover two hundred millions out of FIVE
hundred and fifty millions Of deficit Of this year.
There will still be three hundred and fifty millions
of francs to be provided for, by adding that
amount to the floating debt. in the shape of trea-
sury bills. Such are, in few words, the circum-
stances laid before the country and the Assembly
by the Minister Of Finance.
Meanwhile, the reports Of the commercial condi-
lion of the country, which come from the manufac-
turing districts, are rather more favorable. heard
yesterday, an eminent manufacturer and Capitalist
of St. Quentin declare that there was not hand
an that place unemployed, and that all the
establishments were working full tune. The ac-
counts from Lyons are also very favorable Still
il must be acknowledged that the commerce of
Pans is depressed beyond all precedent, and de-
spair Is visible In every visage. The great Maya
suns, with which you are familiar at the west end
OF the town, such the Vile de Paris, the Viles
de France, the Trois Quarters, the establishment
an the Rue Chaussce d'Antin, and others of the
same class, are literally idle Each Of these esta-
blshmens employs usually from 100 to 200 persons.
A large portion Of them have been discharged, and
those that remain have nothing to do but cdussr
all the long day. Not soul 10 ever seen entering
the establishments
Although much of this must be ascrbed to the
absence Of foreigners frsm Paris yet not little Is
20 be explained by the of the wealthy among
the French themselves. All have contracted their
expenditures from vague fears OF changes and OF
positive reyelution must tell you, that the gene
raj mpre salon among the best Informed persons
here, although they are not very ready to express
II is, that many bad days still reserved for the
county, and that II has not yet seen the end
the worst Of its disasters. commercial or political;
but what the next coup de theatre ~ likely to
be, no one seems abe TO predict
Ii IL most unfortunate for trade that the public,
in general cannot be brought to regard the present
state OF things IN any other heht than as provisional
one; and need not cay, that while this Impression
prevails confidence Can never revive, and without
confidence, commerce must languish, and prosperity
cannot be re-established.
In my report Of the Bourse and money market
you will see that heavy fall took place immediate
fy on the announcement Of the loan. A reaction,
however, has since occurred, which Is partly as
cribed to report which Is circulated that govern
rncnt 10 about 10 relieve itself oi the responsibility
of the Lyons railway. mentioned this rumor IN
my last Bourse report, but II has since acquired
much more consistency. have inquired IN well
informed quarters as to n, and have ascertained
skxs s quite true that EQUATION ~ Ia progress
between the government and some large capitalists
here, who are understood TO be In relation with
certain English capitalists. for the purpose OF taking
the Lyons line oil the hands of me government;
The terms are not yet settled but II Is understood
,th.r3hey will be something of this sort The go.
vprnment will rellnqnish Its claim on one hundred
and fifty millions already expended on the line,
and will, moreover, guarantee 10 the new company
interest at five per upon the capital, which th.y
will extend under certain prescribed MAJOR limits,
thia limit being the estimate made OF the expenses
Of completing the line by the government engl-
neers. Thus, n the line should cost more IN
completing IL than this estimate, the govern
ment will be emily responsible for per cent
on the amount Of the estimate, but II IT should be
below this, and that the traffic should only pay
per cent government must make ny the diffrf-
ence OF per cent There is no doubt that on
these terms capitalists will easily be found to un-
dertske the enterprIze; they will have the same se.
curity tor per cent on iher cap TAI as my Woulu
plus proceeds of the road, on which, as have
observed, 100 millions OF capital have been already
expended, Of which the company will have the
benefit II is proposed to grant, on these terms,
lease of 100 years to the company IL Is very pro-
babe that nay BE- able to announce. in nv next,
the favorable issue of this negotiation. BY this
arrangement, You will see that the report men
..u..I lost xveet hetny circulated. that the