The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-11-12

FRENCH FINANCIAL AFFARs.-The circum-
stance OF the arrest in this city, at the close of
September, of several individuals charged with
defraudiDg the great fnancier and speculator,
Rothschild, of q million dollars worth Of shares
has given rise to q series Of most important and
interesting disclosures. We have, from time to
time, within the last six or seven weeks, publish
ed statements perfectly reliable, showing how the
Bourse- the great stock jobbing institution Of
Paris--has been converted into political ma
chine in the State; how the highest offices of the
government found in it a mine to supply their
extravaganza; how flnanciers and others admit
ted to the secrets of the management realized ia
bulous fortunes; and how the French people
the great mass of small dabblers in stocks and
public securities-have been duped and defraud-
ed. To-day we give condensed account of
these disclosures, together with some new de-
velopements, particularly as to the grand and
petty money making tricks of the Baron Roths-
child.
No person can read this page Of cotemporane-
GUS history without being forced to connect it
with the present alarming state of fnan-
cial affairs in France 1t follows as
logically as consequence follows cause. A
credit system, exorbitantly inflated, was inau-
gurated in France ON the establishment OF the
present Empire. 1t has been maintained, as we
have shown, mainly by the system of stock job
biDg operations set in motion by the Credit
Mobilier, Rothschild, Fould, and other great ca
pitalists, in which they were the only gamers
and the people at large were the chief losers
But its career was necessarily limited in time
The scheme has been played out. The trades
men and small merchants of Paris and the Pro-
vinces, who, having little money to spare,
we're inveigled by this ignis Jotuus, and lost it,
have had their eyes opened to the system Of de
ception and fraud by which they were victimized;
and now public confidence is shattered, credit is
destroyed and the country seems to be on the
very verge Of grand social, financial and poll
teal revulsion.
We have had in our own history counter
part, to some extent, of the present condition Of
France. Some twenty years ago. the removal of
the public deposits from the United States Bank,
and the veto by General jackson Of the renewal
Of the charter of that institution was followed by
an enormous expansion Of the banking system
and an unlimited imitation of all kinds of credits.
This, in its turn was followed or accompanied
by a corresponding extravaganza in style Of
living and by wild spirit Of speculation. But
in 1887 the collapse came: pubic credit was for
time destroyed, thousands Of families were
ruined, and the effects of the crash were to be
sean FIR voars affcrwarda
We are afraid that France has to 60 through
similar ordeal. Like causes produce like effects.
There, as here in 1867. the credit system has
been expanded far beyond healthful limits, and
extravaganza and speculation have run wanton.
Already the effects are being felt. The money
market is exceedingly stringent, and the Bank
Of France has asked and been refused leave to
suspend specie payments and Issue post notes
Financial revolutions in France are more dan
gerous than they are here, for there they are
generally accompanied by political revolutions.
We trust that the ordeal will be passed through
in comparative safety; but at the same time, the
French people must be warned by the experience
Of the last few years. and learn to steer clear of
the financial tricksters whose operations on the
Bourse we have been exposing.