The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-06-24
The Bakers and Bread Trade ofPaxls.


The attempt to maintain the price Of bread in Paris
and its 0nvrons at low and invariabe rate has proved,
anticipated failure. They who have studied pc.
teal economy. even specifically, must be well
hat legislative enactments have ever succeeded in
rovdng substitute for the natural effects Of the law OF
upply and demand, In maintaining an artificial album
tance in the face Of real scarcity In no country per-
APPS, has the failure Of those attempts been garns
han in Franco during the present century Tee comb-
alton which has been for two years and half under
trial. which il is now necessary to modify and which We
IRE convinced must eventually be abandoned, Is inge-
NOUS but being based upon principle radically unsound
must also prove failure
The price of bread in Paris has for years past been
fixed every Wednesday for the ensuing week. the basis
Of the averages Of the preceding fortnight but in
december 1853 the deficiency OF the harvest threatened
to raise the price Of provisions excessively and I'm
peral decree established the Casse de In BCulangerie
Bakers Bank. The bakers being ordered 70 sell their
bread of the first quality at 4Oc the kogranne
what less than Id for the two pound loaf
sary, this in reality selling at loss, TO provide
them with COMPENSATION Inc baker purchased his
warding to the Caisse certificate of the ransaction
and the Casse undertook to pay the baker lodging
what may be termed the flour warrant" But as the
baker compelen to sell this -four when manufac-
tured into bread at something lower than the primo
cost the Caisse only required him to repay much OF
the sum advanced as represented the cost Of the flour
when bread could be sold under ordinary circumstances
at 4Oc the kilogramme. The balance being the ad
vanced by the Casse beyond that amoont carried
the bakers debit, and was not liable to be repaid by HIM
in cash. but to be extingushed by contrary opera
ton The bakers and ners compelled 10 settle all
their dealings through the Caisse therefore, when the
price Of flour fell and the baker would be able, were it,
sell the loaf than 400 kil0
gramme the Casse still reqnires him TO pay 10 il the same
price for the flour before credng him with the differ
ence between that price and the amount which paid
TO the miller. In short the Caisse practically buys tho
-four at the market price, resellng it To the baker at
one fixed and invarable rate on the assumption that
if the baker paid less than its value in q time OF
scarcity he would compensate for the difference by
paying than its value in periods Of abundance The
result Is that after an existence or two years and hail.
the Caissc is in debt than two millions sterling It.
has, therefore, not only been necessary 70 raise the
price Of bread first to 45c then to Soc the kIogramme
but also to ask the government to furnish capital Of
twenty millions of francs gratis, and the department Of
the Seine to raise another twenty millions by way ct
deficiency should there be abundant harvests du
ring the next five years The pretext for continuing the
Casse is that by opening credits for bakers on the de-
post of -four warrants other security it enables them
to maintain their stocks Of flour at higher level than the
law requires them to do but the main object was To
keep the h. loaf at the nvarabe price Of 40c in the
department Of the Seine.
The defects Of the plan obvious. In the first place.
the antagonstc interests of the buyer and seller are
abolished for the baker has no longer motive for OBJ
tanning his flour at the lowest fair price, Whatever may
be the nominal rate at which he purchases IL from the
miller he in reality pays only the arbitrary price fixed by
the Casse to enable him TO sell the loaf at certain
fixed in relation to that artificial price Of our instead OF
the real one. The miller also has check upon his
natural efforts to obtain the highest possible price for his
merchandise, beyond that arising from composition With
his fellow traders who have the object In view
himself-namely, make the public through the Caisse
pay the highest aainabe price for -four Secondly, the
public in addition to the necessity Of eventually paying Me
difference between the natural and artificial price OF
bread has also TO pay heavy amount OF interest on that
difference.
The necessary for the operations Of the Casse
raised by obligations redeemabc at short dates and
bearing such rate of interest might tempt those with
spare capital to hold them. This debt and interest
largely increased of course by the expenses Of manage
ment have amounted in thirty months 10 81 600 000,
or e. $50 900. After acknowledging that the opera
tons were based upon erroneous Calculations and thas
series of years of abundance would fail TO extln-
gush the debt in the mode originally proposed the
administrators take credit for having preserved the
peace Of Paris by this clumsy operation. This,
HOur1ShnQ q.
counts Of the prosperity and pacific disposition Of the
working classes Of Paris The outlay Of millions pub
lie works the wonderfully elaborate system OF police and
the presence Of large army are acknowledged to be in
sufficient enable the classes Of Paris to pass
through time OF dearth without peril to the State and
patiently and hcrocally those of country
have done. Bread riots may, or may not, have been
prevented by the artciay low price thus established
but the Caissc de In Bouangere undoubtedly failure
II would have been more economical in the first instance
to have aided directly those whose did MOI enable
them pay the increased price of food instead Of estab
fishing system which relieved the rich as well as tho,
poor, and which taxes all classes alike TO make good
the loss which has been incurred.