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    ;^j4 *g a E li E A I> fe ft. [N& 290; iS...

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    Our French Partner's Monev Matters. Ave ...

    we repeat at present , for the purpose of pronouncing- judgment on Napoleon ' s St . Simonian projects , but for really placing ourselves in a condition to estimate those institutions , and still more to understand the interests of ¦ our own country in the progress of events . The interests involved in . this subject , future as well as present , nre so vast and so momentous , that no prejudice against the man should bias our observation .

    In describing the character of the Societe de Credit Mobilier and its congenens , last ¦ week , we pointed out how the economical policy of the French Government furnishes a key to the political policy of Napoleon ; ~ now in establishing a connexion which ^ amounted to solidarity between the different industrial and commercial enterprises of France , bringing the "whole under the concentrated power of his one hand , he furnished a working model of the plan upon which he has constructed an alliance , including this country and Sardinia , and probably to include other states . " We now have the workinsr of

    these principles as they affect the monetary state of Europe , and , therefore , of England , « nd we may be assured that monetary projects are not excluded from the scope of Napoleon ' s views or operations . On the contrary , he is himself , through his Ministers , directly acting upon the money market of Europe . " We say he is doing so , because not only

    do we find his personal adherents , such as Deoityk ide Lhttts and De Mornt , amongst the governing bodies of the credit societiesnot only do we know that a Pebjeike could not have carried out his projects into the vast institutions which have been established , and have extended under State patronage for two or three years , if he had not had the positive active assistance of Napoleon- —but we also

    find that the Governor and two Deputy-Governors of the Bank of Prance are appointed by the State ; to say nothing of the fact that the whole condition of France and of the metropolis compel all men who have the opportunity of taking an active part in public affairs to subordinate their action to the will of the Empkboh , who carries in his pocket the gigantic " Yes" and " No " of the whole empire . " When , therefore , we find the Bank of France purchasing the 4 , 000 , 000 ? . sterling of bullion to sustain the public credit , and continuing to purchase , we must understand

    that it is acting under the approval or the expressed orders of Napoleon ; and indeed that grand decree regulating the monetary tide is as manifestly a Napoleonic decree as anytiSBrtTwe have read in the great characters , 3 # *^ ractical e vents . The state . of France , ^ therefore , monetary as well as commercial and political , is Napoleonic . Let us , however , not ascribe too much to Napoleon . The drain of gold which has been exhausting the bullion of our Bank of England does not originate in France ; nor does the stream terminate in France . Paris

    is not the bottom of the great abyss into which the stream is running . The bullion in the Bank of England , which stood at 17 , 500 , 0007 . in June last , has since dropped to 13 000 , 000 ? . But the bullion of tho Bank of France , which stood at 17 , 600 , 000 / . in March , Tins nw dropped to 10 , 000 , 000 / . Here , therefore , ia a lower level in Paris , a more rapid stream . The gold then flows

    further on : whither r In part the ultimate direction of the current is well known . Speaking generally , we may describe the circulation thus . London ia the great reservoir towards ¦ Which , as towards the-most open mart with the most liberal prices , the gold of America and Australia flows ; here then we might expect to ' fttid the highest level of the collected stream , * ' & buI ' thence , from London it flows in a stream

    which forks as it leaves our shores towards the Ettst by in any minor channels , to supply the wants of the war , to supply also the requirement of an increasing commerce in that quarter ; and to supply , thirdly , a preference given for the Eng lish sovereign as a medium for circulation throughout the Mediterranean and the Levant , because it is so well minted , and so well trusted . The next branch of the stream flows , no doubt , into Paris , and thus percolates to many parts of the country where

    speculation has been fostering the outlay of capital—to the innumerable joint-stock companies and private associations which have been assisted by the credit companies in Paris . And the chief of these companies , in its dealing with Austrian railways , Ebro canalisation schemes , and other foreign projects , has ended in sending gold out of France . With Austria it has been beg , bepr , beg , and borrow , borrow , borrow , except during the very brief period when she enjoyed the credit of an alliance with the powers ,

    and she was enabled to plan and hypothecate her Bohemian and Hungarian railways . l ? ussia is borrowing , and our impression that she is doing so by some covert if not private channel in many quarters at once , imitating , as it were , secretly , the great public loan of France , is confirmed by various circumstances , and by the disposition of commercial men to think that there maybe something of that kind at work . It will be observed that many of these demands for gold are not strictly ascribable to Napoleox , but that we and he have to furnish for the

    time the war expenses of the enemy . The plan of ramified connexion , amounting to solidarity , which Napoleon has carried out , however , has contributed to render France a percolator through which tho stream of gold is with some facility conveyed towards Russia . Wo . do not for a moment , indeed , suppose that it would be possible , if it were desirable , to arrest the stream . Free trade is as essential in money as much in other articles that be

    as , so " money' properly defined and constituted . But Napoi / eox has also fostered an artificial demand for money . 3 To has developed schemes for commercial activity , designed to promote the apparent well-being of the middle classes . He has set going works not properly of a reproductive kind , to keep the working classes employed and contented . And , carrying out his gnkling principle , lit 1 has thus effected a solidarity between the

    commercial progress of France and Iuh own political position . To keep up a state commerce of this kind , however , is expensive , and ifc demands peculiar devices to control it . It gives the appearance at once of safety and vigour in the commonwealth , but it alno affords enormous opportunity for jobbing by persons who can lend their hands in carrying out so grand a scheme . Men whom we hoc ia the direction of tho great credit eompunieH will probably retire at the end with immensefortunes ; we have yet to conjecture what may become of nil tho shares and shareholders . But the moat remarkable

    consequence of tho scheme is , that it has , to a certain extent , placed foreign countries in a condition of partnership , for many purposes , with tho joint-stock associations of France . All Europe has a common money-cheat , in which the coins are spun round slower or faster in proportion to the demands rather than the menus of the many partner * who dip thonr hands into that chest . No effectual barrier can interpose between tho grout money-box of Franco and that of England ; nnd while we cannot in any manner estimate the unfathomable nature and extent of operation of French credit , wo nre compelled to share with it tho common stock of gold .

    The partnership is not one by "which this country can profit . On the contrary , this country can be raoBt useful to France by remaining in an independent position . The commercial state of the two communities is entirely different ; their principles of action arc different . AVe have already described the

    condition of French commerce . Our own was never in a state more perfectly intelligible , less speculative , or sounder . Sonio few years ago , large advances were made upon goods to be sent from India , and India remained disastrously indebted to our trade ; while heavy consignments from thia country huno- on hand ia all the Indian markets ! .

    That has been pretty well cleared oft " . "When the gold discoveries were first made in Australia , immense speculative consignments by our merchants were attended by the novelty of direct consignments from the manufacturers ; and the Australian markets were loaded with English property , rendering prices ruinously low by competition , aud yet constantly arriving after the supply of demands from the other side . That also has

    now been cleared off ; and the arrivals ot Australian gold and produce in this country are effectually restoring the balance . Soim ; time since there were great speculations in railways . "When the war broke out , a Liverpool " merchant , speculating in , freights , bought up an enormous fleet which he could not keep going , and he " smashed . " Tho American merchants habitually trade upon calculations which nre safe enough if everv

    post and every ship performs its destined course in tho shortest possible time . Liverpool and London were largely engaged in American business , and when the crop failed , last year , with the smash of high speculators who had mingled fraud with gambling , there were disastrous consequences botli to London and Liverpool . That is wow corrected , and America will repay us handsomely in corn . Something else has been corrected : our merchants have not lavished

    speculative consignments ; our manufacturers have not been making on speculation ; there are , therefore , no back stocks to beat down the market all over tho world , and transactions are generally effected at a genuine profit . Kven the raising ot bank discount — should it take- place next week as it was expected this—would not materially influence proiits , except through unintelligent interpretations it were to cause a panic , and then it would contract dealings , and so render exist ing stocks cheap in tho market . Our commerce with sill

    parts of tho world — quite uninterrupted by war—has been so extensive , has moved so steadily , and must return such genuine profit , that dealers on a largo scale nre not likely to bo moved by a mere rise in the price of money in the Bank . One or two per cent , discount can mako little difference in the large profits of first traders as between country and country ; nnd the prosperity is

    of our trade , independentl y considered , not , theroibro , merely »> ndnn # erud by the inconvenience of a somewhat short supply of tho circulating medium . On tho contrary , tho riao of price , by directing tlio gold current townrdn this country , will keep us perfectly safe . It will co-operate , and ought to co-operate , with other mentmreH ia drawing a strong line of demarcation bufcwoon 12 n # liah and French commerce . This tho Bank

    directors will of course have in view , and prevent thorn from unduly delaying tliodefeimivo enhancement of discount . Let ufi liavo as many dealings aa possible ; let -us nsaiBfc each other as much as possible ; but lot Hhiglnnd ntniul firm upon her own ground , nnd then , while she Buffers loss from any vngnriea in a neighbouring country , she will bo able to reader

    ;^J4 *G A E Li E A I> Fe Ft. [N& 290; Is...

    ;^ j 4 * g a E li E A I > fe ft . [ N & 290 ; iSajmeekpay ,

• Citation
  • Leader (1850-1860), Oct. 13, 1855, page 12, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/cld_13101855/page/12/