The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-03-28

Never at any time since the bursting of JOHN
LAWS famous Mississippi Bubble, in 1920, has the
rage for stock gambling been so prevalent in
France as since the accession of NAPOLEON Ill 10
the throne of that Empire Within less than a
year after his bold and successful assumption of
supreme power, the well known joint stock COM
pany, the Credit lobiIier, was sanctioned by a
decree of the Government and went into operation
with capital of sixty millions of francs, and
with authority to issue bonds to the amount
of six hundred millions. The osteusible object
for which the Credit N0bilier was established was
"for the purpose of aiding the progress of public
"works, promoting the development Of national
"industry, and of consolidating into a common
'tstock the shares and bonds of trading COM
"panes." project so vast and all-embracng
was regarded by English capitalists as so visionary
and impracticable as to be certain to involve in
ruinous losses all who invested their means in the
bonds of the company. 1t captivated, however,
the fancy of the French people. 1t promised the
realization of the French idea of the power of ac-
cumulated capital. The necessary funds were
therefore promptly furnished to put the
scheme into practical operation. For several years
the success of the company was most extraordi-
nary. In 1853 its net profits amounted TO three
millions five hundred thousand francs; in 1854
they had risen to nine thousand eight huadred; in
1855 they were increased to twenty-eight mil
lions, or nearly one half of the capital invested.
Under such circumstances the most extravaganza
visions of wealth appeared about to be real
lied, and the bonds of the Credit .NoJilier
were eagerly sought for and purchased at
almost fabulous prices. 1t had already sue
ceeded in consolidating the Gas and Omnibus
Companies of Paris; it had founded the company
of the grand hotel du Louvre in the rue RicoE.
maritime company of clipper built vessels, and
independently of its loans to French Railway
Companies, amounting in the aggregate to fifteen
hundred millions Of francs-three hundred mil
lions of dollars-had extended the sphere of IFS
operations into Spain, Russia, Switzerland and
Austria. In 1856 the tide turned The exhibit
of December of that year showed net profit of
only fifteen millions, being decrease of thirteen
millions of francs as compared with the profits Of
the year preceding. The market value of its
bonds became correspondingly depressed. Other
and more serious losses followed. Many of the
Railway specuatons resulted disastrousy, and
In 1857 the net profits of the company dwindled
down to about four millions of francs. Since
1901 Tue profits have been at an equally low
inquire, ana now that the MIREs' affair has still
further weakened public confidence in these spec
ulative companies 1t is believed that an In yestiqa
ton into the present condition of tho Cre5t
Mobilier would result in confirming the om;nous
predictions Of English capitalists, and wor,d
establish the truth of the charge which vro.
brought against it by NJ. BERRYER, who declared
emphatically that its Banking establishment was
"the greatest gambling house which the world
"has ever SEEM" 1t has been a matter of sur
prise to many persons, that the losses which have
been incurred in France by the depreciation in
the value of the bonds of the Credit Nobilier, did
not produce most injurious effects upon the mate
rial prosperity of the country, during the financial
crisis of 1857. But one of the most remarkable
facts connected with the speculative epoch to