The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-05-20
The Credit MOblIler.

quiet legal and constitutional manner these trea-
sonable attempts against their liberties.
The Credit MobiIser.
We recently published an abstract of the an
nual report Of the French Credit Mobilier pre-
sented to the stockholders late last month II is,
in one sense, the most wonderful document of
the kind ever published
II starts with the assumption that the Credit
Mobilicr has another object in life than the
making of MONEY. Its duty had been at FIRST"
it says, "to encourage the industrial develope-
ment Of the country" but in 1866, the country
having gone ahead too fast or fast enough, its
task was rather to restrain than to urge for.
ward" Whether this peculiar guardianship OF
the general interests Of France was voluntarily
assumed by the company, or formally conferred
upon II by its charter, Is not apparent the fact
speaks volumes for the political economy In use
In that country. The duties" Of the Credit
seem to be multifarious 1t takes credit for the
aid it gave the government by subscription of
$4,000, 900 to the new loan, and also for pur-
chases Of government stocks made with a view to
sustain the market price, amounting at one time
to 90, 100000 francs II refers with pride to the
total Of 703000,000 francs advanced during the
year on railway securites and winds up the
list Of its " duties fulfilled" by referring to the
provision Il made for the wants OF oil the rail-
way companies" and Of the Bank Of France
How they manage in France to support a
moneyed institution which seems TO assume the re-
sponsibilty Of seeing that everything goes right,
not only in public but in private financial circles
In the industrial, financial, commercial and bank.
ing world, Is problem which we hand for solu.
ton TO our Wall street solons; assuredly this
community is not strong enough to maiutain any
such incubus-eny more than il could tolerate
the despotism which Governor King is attempt
Ing to establlsh on the model Of tho centralized
government Of Louis Napoleon.
Nothing like the Credit Moblier for universe.
lity Of scope and vas'ness Of purpose has ever
been known Ia tho world. II builds railways in
France, Turkey and Russia; It owns omnibuses
In London; il establishes banks at Madrid; II
manages hotels and makes gas at Paris; /.
builds telegraphs across the continent Of L Irope:
ID sets op foot lines Of transatlantic steamers
II Is alike the banker Of the Emperor and OF
gurcoas DE- cqf5. 1t has hand 10 every mans en-
terprise and In every mans pocheL II is the
soul and the life Of the whole commercial and
financial movement Of Europe.
And now for the results The total profit, of
last year were We are told, Is 249 9slG. or
something over s3,OOO,Ooo, which. after all
deductions, amounts to % per cent per share
II II quite certain that no commercial os fnan.
clal business at present prosecuted In France
pays dividends anything like this Seven,
eight and ten per cent are very unusual dividends
for o financial enterprise on the European CONT
nent TO pay: twenty-three per cent-and this
falling of from the past two on three years-is
something wholly Unprecedented. The principle
upon which the French account for these enor.
nous dividends IL that capital, aggregated into
one large sum, IL more valuable than when used
In several small sums This principle contains
enough theoretical truth 70 make Il pass muster;
and few persons remember that the advantage OF
the association Is more than counterbalanced nv
the lack Of individual energy and vigilance
which Is involved by the fusion of the property
Of individuals into one common mass
There may be some who believe that the Credit
Mobilier really earns the money II pays in dlyl-
dends But We desire to be counted out of that
party. A brief railroad experience In this coun-
Try teaches that dividends may be paid without
being earned; and when q concern with a capital
Of sixty has the right 10 issue bonds for Elk hun
drcd millions the case with which funds can be
supplied for the payment Of unearned dividends
must be a great temptation We have no doubt
but this, like the other dividend, is merely paid
out Of the capital Of the cotcern, In order 10
sustain the market value Of the stock.