91

87

85

77

49

43

37

responding reduction in the loans and York. the bank of England, caused a cor- specie payments by the banks in New increased rate of interest charged by don, and the fruitless effort to continue be seen that the loss of specie and the pressure of the bank screw in Lonof the bank loans in New York, it will then occurred, were produced by the diagram, illustrating the diminution whelming commercial losses, which ion in the bank of England with the the values of property and the overthe fluctuation in the quantity of bull- and that the fearful depreciation in By comparing the diagram, showing discounts in the banks of New York,

CHAPTER XX.

THE "MONEY MERCHANTS" OF EUROPE.

WE E have spoken of the proposals enterprise of his subjects, and the effect issued by Russia for a loan of throughout France is great. Any traveller two hundred and fifty millions of dol- in the most outlying provinces perceives a lars for the purpose of building a rail- remarkable change in the aspect, action, and condition of the people. The trading road from Moscow to the Amoor river.

I quote from the London Spectator of the 11th April, 1857, the following notice of that loan:

THE NEW POWER IN EUROPE.

class, as well as the industrious classes, are

animated by a spirit of energy hitherto unknown to the Celtic population. They have learned not only to employ their time with more vigor, but employ their savings to venture that which they once "The present state of affairs on the Con- hoarded. In that economical sense France tinent suggests the existence of some in- was almost a virgin soil, and the effect is fluence which is not generally recognized, described by the traveller as marvellous. though its power must be overruling and its Thus far a blessed change. But look beoperation universal. It is not seen, yet it yond. The very capitalists who fostered if reverses the councils of governments which they did not implant the idea in the Impeappear to be supreme; it disregards equally rial mind, have seized the same opportunipublic opinion and the interests of the ty to project movements for the further states in which it has its agents. The development of capital, its power and promonetary condition of France and of North- ductivity. The great speculator in this ern Europe draws attention once more to the irregular and dangerous speculation which the most powerful man in Europe tries in vain to curb; it would seem that there is some greater power than he, irresponsible, and absolute; and when we turn to ascertain the fact, we are not long in discovering at least to create uneasiness and to demand scrutiny. We perceive the individual trader in this merchandise will be some corroborative proof that such an in- instigated by the desire principally to grasp fluence does exist, that its power is becoming large and prompt profits. He is not a safe supreme, that it is now doing mischief, and councillor for those who have in charge the that it may become dangerous alike to the permanent interests of states. For the welmaterial condition, the political independence, fare of a community, immensely accumuand the domestic order of states. Nor are we lated wealth, hoards of gold, are not so speaking of any imaginary or mere 'moral' essential as well-diffused supplies of the influence; we speak of a powerful com- necessaries of life and its enjoyments. bination more than political, more personal But the same movement which gave than a congress of diplomatists or princes. an impulse to the commercial spirit în "The Emperor Napoleon has long been France made the largest opening that engaged in the endeavor to draw out the the world has ever seen for a forward.

sense differs in some degree from the ordinary trader. The money merchant obtains his profit entirely from the simple act of exchange, and he does so equally whether the original holders are profiting in the transaction or not. He may be the broker between two communities who are ruining each other; and build his fortune upon their downfall. And

movement of great capitalists; and they in every capital: S. Gwyer, member of the have snatched it. Alarmed at the vast Council of Commerce, Earnest Sillem, a proportions which these joint-stock com- partner in the house of Pope & Co., at binations have attained in France, the Amsterdam; Guillaume Borski, banker in Emperor and his political ministers have Amsterdam;) Francis Baring, banker in issued their protest against excesses in London; Henri Hottinguer, banker in that direction; they have followed up prot-Paris; Isaac Pereire, administrator of the ests with restrictive imposts; but still the movement goes on.

deserts; while the actual state of the whole world-of Europe, England, America, and the far East-proves that we cannot spare that forty-five millions, nor even the first instalment of it. Yet these few gentlemen, who rule the world at present, have determined that it shall be taken, despite the Emperor of the French, the bank of England, or the commercial public of this country.

Paris and Lyons s Railway; Baron Seillere, banker in Paris; M. Auguste Thurneyssen, "The commercial activity directed to the administrator of the West of France Raildevelopment of real trade would with as way; and M. Louis Fould, brother of the much steadiness as rapidity increase the well-known state financier. Some of those available means of the French people; are the names we so constantly encounter in would make them more independent of the that comparatively small list of men who are casualties of the seasons-would make administering the greatest financial opérations them more comfortable, more orderly, more in Paris, Vienna, St. Petersburg, Amsterdam, capable of supporting their ruler, more and London. The object of this company obedient to his decrees. It is easily to be is to take forty-five millions of capitalunderstood why the Emperor Napoleon de-sum which could easily be raised for resires to add that element of English order productive purposes, but which they intend to the military capabilities and energy of to sink in railways through the Russian the French. He has in great part succeeded. But the excess of speculation involved by those who have stood ready to take advantage of the impulse, bas, again in the present moment, as it did in the autumn of last year, threatened to defeat the improvement by overdoing it; and we in England are under the same commercial pressure which visited us in the autumn. At the same time there appears to be no suspense in developing, extending, and mul- "It is said that the, position of M. de tiplying the immense joint stock combina- Morny is not satisfactory either to the tions which the French Emperor has en- Emperor of all the Russias or to the Emdeavored to restrain; though at such a time peror of the French; but M. de Morny is such operations ought to be entirely sus- fulfilling a corner which has become independed. We see on the stocks the new pendent of Emperors. He has attached International Society of Commercial Credit, himself to the Grand Council of the Inwhose founders are connected with the ternational Finance, and it is that Grand great money corporations in every capital Council at present which arranges the of Europe the banks of France, England, affairs of the world by the power of the Amsterdam, &c. The list of the Council purse, let potentates and parliaments think of Administration of the great company what they may. The Emperor of the lies before us. Of the great Russian Rail- French is at present engaged in attempting way Company half of the members short to restrain the use of fictitious titles of one are Russians, and the greater num- counties, vis-counties, and baronies-bauber in that half are Councillors of State bles at which the aristocracy of wealth may and officers in the service of the Emperor laugh. The power of that order, which is the Alexander, In that Russian half, how-more powerful, because its members “are comever, we see the name of "Thomas Baring, paratively limited, proceeds in its action indebanker, in London." The other half con- pendently of those ordinary political movesists of men whose names are well known ments, and shows itself pursuing its course

uninterrupted, undiverted, whatever may be the an army which would crush the people of state of the commercial world, whatever may any one empire mutinying against any one be the mood of the Imperial mind, whatever of the five. But this grand council of millionmay be the action of ordinary statesmen.

naires has proved that it is superior to the "We are not considering the diversion political administration of the separate counof capital, the dangers that may arise from tries. It is at once alien to the aristocracy of over-speculation, the ruin that may visit any country, and yet becoming more powershareholders in these huge joint stock com- ful, and therefore more respected, than any panies, from which the directors always one aristocracy. Unlike any order which we withdraw before the crash. We are not have yet seen, it has its home equally in considering the commercial disturbance Paris, Berlin, Vienna, Amsterdam, St. created by the necessity which is forced Petersburg, or London. It is republican, upon Europe just at present, of undergoing but of the aristocratic, republic, more close a high rate of interest for ordinary com- than the Grand Council of Venice, infinitely mercial accommodation, while millions are more arbitrary. Like that commercial relavished upon the fancies or the schemes of public, kings bow down to it; but the kings those millionnaire statesmen. We are simply that now bend are the giant emperors of our considering the magnitude and the inde-day, not the brawling leaders of the middle pendence of that power of combined mill-ages. The debates of this council are not reions. It is a new order, a new adminis-ported; its constitution is as yet unascertration in the world. The names most contained and undetermined. We feel its powspicuous in it are remarkable for certain er before we can define it. It is independent characteristics. Read them again-Rothschild, of political councils, higher than political Baring, Steiglitz, Pereire, Hottinguer, and responsibilities, ignorant of constitutional Fould; with a second order, comprising the checks. It stands confessed in the actual Weguelins, the Hopes, and the Sellieres. events of the present week; and in its inThey form a grand council of small numbers, dependence, perhaps disregard of the inthat could all be assembled in a dining-room. They are remarkable for being closely connected with the governments of all the principal states in the world, while at the same time "they are not closely connected with the states under those governments. You would not accept a Baring as being peculiarly repreI have marked parts of this article sentative of England; you must choose in italics, and quote it thus at length, many other names before it the Russels, because it is conclusive proof not only the Stanleys, the Salts, the Crawshays, of the existence of that.... Cobdens, and Tyrells. France would certainly not be represented by Pereire, no

"

country by a Rothschild; a Steiglitz is by

terests which it overrides, it extorts from us the question whether any account has yet been taken of the immense institution that has sprung up while emperors and common politicians were thinking to settle the world with armies and treaties."

J.

COMBINATION OF

MONEY BROKERS,"

no means exclusively Russian, any more To which I have referred, but is a than Fould is French. The class is alien to graphic description of that combinaany particular country, and yet is deeply tion, and of their purpose and mode of rooted in the administration of each coun- action; and proves, not only that try. It can command not only a mass of France and England are in accord as capital enough to determine the financial to the measures and policy by which operations of a government, the success or they seek to promote their own manufailure of a state loan, but it can influence, factures, as the source of their "fubeneficially or fatally, the course of trade, by turning upon any one branch the combined tue prosperity," but that this "NEW mass of capitals from states elsewhere, just POWER" is in accord with them, and is as the five potentates of Europe can muster one of the most potent agents through