The Rothschilds

Chapter VIII.

BARON SALOMON VON ROTHSCHILD.

THE VIENNA FIRM.

HE importance Vienna enjoyed from its being the capital of the Empire and the residence of the Emperor and his Court, as well as from the large commerce carried on there, was no doubt the reason which led to the establishment of a separate house of the Rothschilds in the Austrian dominions.

The Jews for centuries played a very distinguished part in the affairs of Austria, and in Vienna especially were to be found in the highest circles of society, possessing not only large influence, but holding also prominent positions among the leading public men. The great consideration and authority they commanded were due simply to their money,, for the finances of the country and the Court had.

got so dreadfully embarrassed and confused that the money of the Jews was as a consequence eagerly sought for and demanded. In spite of the wealth of the aristocracy, the assistance of the accommodating Israelites was continually found necessary, and borrowing and lending were the order of the day. Even in the time of Ferdinand II. the Jews were on intimate relations with the Imperial Court, although they were at that time subject to a poll-tax, and compelled to wear pointed hats and a yellow patch on their left arm, that they might be at once distinguished from the Christian citizens. They were not even allowed to live where they pleased, but were cut off from the Christians and forced to dwell in a particular part of the city, the Leopolds- vorstadt. None the less they were readily tolerated, for they were extremely useful, not to say indispensable, to the Court. They also enjoyed very considerable privileges, and were under the direct protection of the Government. They knew how to amass fortunes by evil as well as honest means, for in the Frankfort Relationen of 1667 it was stated that " Hirschel Mayer had been arrested for having defrauded the Emperor during a period of twenty- three years of no less a sum than two million two

hundred thousand guldens, contributions of his coreligionists.“He was sentenced to life banishment from Vienna, and to the payment of a penalty of seventy thousand guldens. In 1670 the Jews and the students of Vienna had a collision, which terminated in rioting and other excesses, causing the Jews to be driven out and compelled to quit the Judenstadt, or, as it is now called, the Leopoldstadt, whilst their synagogue was converted into a Catholic church. However, it was not long ere the President of the Chamber, Von Sinzendorf, granted them permission to return to their homes. All the financial business with the Court was placed in the hands of the” Court-Factor," Samuel Oppenheimer, a privilege which secured him the deadly hatred of the whole commercial body. This bitter feeling vented itself in 1700, and again in 1706, in a violent tumult, during which his house was attacked and sacked, money and valuables stolen, letters and account-books torn to pieces. The rich Israelite had even some difficulty in escaping alive with his family. Still the lucrative relations he had held with the Court were resumed as before, notwithstanding that his firm became bankrupt in the interval between the two riots. In 1706, however, his affairs were again reviving, as he had secured the contract for supplying the army in Italy during the war of the Spanish succession.

Joseph II., in 1783, astonished, if he did not scandalize, the Christian world, by creating the first Jewish Baron in the person of the banker Joseph Michael Arnstein, whose wife, Fanny Itzig, of Berlin, was a special favourite of the Emperor. During the Congress of Vienna the families of the sovereigns of the money market, Arnstein and Eskeles, were conspicuous above all in the festivals and carnivals which then took place. The wives of both these financiers were natives of Berlin, being daughters of the rich Jewish banker Itzig, a well-known personage during the reign of Frederick the Great. The Austrian Government, not only before, but after the Congress, arranged many important financial operations with these two firms, as well as with several others.

The house of Rothschild, however, after establishing a house of business in Vienna to co-operate with those already existing in Frankfort and London, soon eclipsed all competitors by their enormous wealth and magnificent receptions. With the formation of this new establishment a fresh page opens in the history of the finances and money market of the Austrian empire, owing to the influence and sway exercised by Baron Salomon von Rothschild.

The Austrian empire, consisting as it does of a union of numerous and varied kingdoms and provinces, is one of the greatest confederations of people and nationalities in the world. Under the rule of its distinguished sovereigns Maria Theresa and Joseph II., its importance and power grew in all directions; its revenues and tax-paying capabilities increased and its finances assumed a flourishing aspect. Many of its loans were arranged through the Dutch bankers, Hope and Goll, and through the well-known firm of Bethmann Brothers, in Frankfort. The Austrian funds were in great favour with the public, and generally saleable at par. It was only when the political sky of Austria became overclouded, and when its financial schemes were exhausted that these foreign banking houses withdrew, and in their places appeared the Vienna firms of Fries and Co., Arnstein and Eskeles, Geymiiller and Co., and Steiner and Co. By the agency of these four firms Austria, during the period of the war of the French revolution, and her struggle with Napoleon, contracted a number of loans on terms far less

favourable than formerly. So low indeed had the credit of the empire been brought by the misfortunes and the sufferings incidental to its protracted efforts to oppose the ambition of the French, that the syndicate of the four bankers above named would consent to take up the five percent. loan of 1809 only at a discount of forty percent., and with the State domains pledged to them as security. After having amassed millions by their participation in the various Government loans, as well as through large and lucrative bill business on Augsburg for the Government account, the firm of Steiner and Co. were content to rest on their laurels, and withdrew from the syndicate. Little did Steiner, the head of the firm, a discreet and shrewd man, anticipate that within a few years of his death the millions he had bequeathed his heirs would be all lost or squandered away.

The place formerly occupied in the syndicate by Steiner and Co. was now filled by the firm of Roth- schild, who brought with them new schemes on which to conduct the Government loans. The scheme adopted was the lottery plan, which at once became popular with the public. The amount produced by the loans was soon exhausted, owing to the yearly drawings which formed the leading feature of the innovation. The consequence was that the loans brought out on this plan were constantly being renewed. This the contractors by no means regretted, seeing that their profits were necessarily multiplied, and Stock Exchange speculation promoted. After the overthrow of Napoleon, the Rothschilds acted on principles directly opposed to those on which they had always hitherto proceeded. Their object was apparently to reverse all that they had previously done, and so, whereas they had formerly striven to depreciate the Government funds, they now did their best to force them up in the market. Steadily and by degrees the prices recovered, so that the five percent. loan, which we have said was issued at a loss of forty percent., was eventually redeemed at 106 to 109. The difference between these two prices was not at all a bad profit for the Rothschilds to realize as the result of their operations. Not so fortunate was the firm of Fries and Co. in its association with the Government loans. Although the only son, Count Fries, inherited some six or eight million guldens and through his bill business gained a hundred thousand annually, he was nevertheless forced in 1824 to abandon the Court and Vienna, and fly to Paris, where he soon afterwards died. By this catastrophe the remaining members of the syndicate were reduced to the firms of Geymiiller, Arnstein and Eskeles, and Rothschild. Later on they admitted into their ranks the Vienna millionaire and banker Baron Simon George Sina, and these four firms continued to undertake the frequent and endless loans which the Government were forced to solicit from its subjects. The two brothers Geymiiller, by whom the business was founded, had already retired and were living on the fortunes they had gained. The sole head of the firm after their retirement was their nephew Falkner, who subsequently assumed the name Von Geymuller, and whom they had brought up and adopted as a son. He possessed a capital of one million thalers, which, however, he soon ran through, and then made off one night without leaving any clue as to his destination. On the 12th February, 1843, nineteen months after the failure of the firm, a warrant was issued and published for the arrest of the fugitive on a charge of embezzlement. In like manner the brothers Schickh, Steiner's heirs, were advertised, arrested, and brought to trial. At that time nearly all the business firms were imperilled, and shaken to their foundations. The Rothschilds alone met the shock unmoved, deriving additional power and strength from the trials they had so successfully encountered.

Besides this Government business, the Vienna house of the Rothschilds, at the head of which was Baron Salomon von Rothschild, the second son of old Mayer Amschel, was ever ready to embark in enterprise of any sort which promised to prove lucrative. For Prince Esterhazy and many other members of the high Austrian nobility he issued in conjunction with the house in Frankfort many loans, of which we gave particulars in a previous page. He also established a Fire Insurance Company, the shares of which he was able to sell at a handsome premium. In addition to all these enterprises he had his immense bill business, which brought him in a regular and unfailing profit.

In 1836 the firm took over from the Austrian Government the contract for the construction of the railway from Vienna to Bochnia, and before even a sod had been turned or a shovel used the whole of the tw«lve million shares were sold at a premium of fifteen percent. The shares in 1841 had already fallen from 115 to 62, and the Government were compelled to assist the undertaking by an advance

SALOMON VOV ROTHSCHILD.

of five millions, but before the end of the year they took into their own hands the completion of the line.

As in all other countries where the Rothschilds were domiciled, so in Vienna, the money market was. completely under the control of the house established there. The prices of the funds and other securities rose or fell according to the pressure or support they received at the hands of Baron Salomon. Every day, from the opening of the Bourse at twelve o'clock to its close at four, he was besieged by brokers and stockjobbers anxious to give him reports of the tendency of the market, and eager to receive a.nd execute his commissions. Speculation in stocks was, however, far from confined to these hours, as long before and long after the Bourse was open the speculators were in the habit of congregating in the well-known caf£ in the Griinangergasse, which establishment was rented by the Stock Exchange folk, and free to the public. Here the dealings and speculations in stocks were carried on without intermission till late at night, for the prices of the funds and shares of every sort were quoted and dealt in as regularly as on the Bourse itself. The transactions were indeed far larger on this unofficial market than on the privileged and recognized Bourse. Rothschild had in his service a stockjobber at a fixed salary of 12,000 guldens, irrespective of his immense commissions. This person used to wait upon Rothschild early every morning, when together they concerted the plans for the day's operations. The stockjobber had his clients and customers not only on the Bourse but also in the “Panduren-Lager,” with whom he concluded his purchases and sales. He kept a number of runners in his employ, whose sole duty it was to run backwards and forwards from him to Rothschild's with reports of all the fluctuations in prices and the disposition of the markets, and to return with orders to be carried out for the purpose of raising or depressing prices as circumstances or convenience dictated. Naturally those speculators and gamblers who were not initiated into his plans fared badly, and were frequently ruined by Rothschild's manipulations. This factotum of Baron Salomon was a poor man when he first became acquainted with the great financier, but it was not long ere he also joined the ranks of the millionaires. So strong were the faith and confidence placed in him, that he was entrusted with the control of affairs and the procuration signature whenever Baron Salomon left Vienna on business or pleasure.

The house of Rothschild played a prominent part in nearly all the great Austrian financial operations. Most of the loans have passed through its hands, and on more than one occasion was the head of the firm consulted with respect to the private fortune of the Imperial family. He was a trusted counsellor with whom family secrets were perfectly safe, and he had always free access to the ministerial Cabinet. Councillor Brentano, of the Finance Department, had indeed formerly been the agent in Trieste of the Frankfort house for its money transactions with the East, but its present agents there are Messrs. Morpurgo and Parente. The energies and influence of the firm were not by any means confined to purely financial matters, for it was known to have been interested in the success of several mining and industrial adventures. It is no secret that the large quicksilver mines of Almaden in Spain are mortgaged to the Rothschilds. These mines are the only rivals worthy of the name with which the Austrian mines in Idria, producing some 3,000 centners annually, have to contend. To prevent any injurious competition between the Spanish and the Austrian mines, an understanding was effected through the all-powerful influence of the Rothschilds. By this understanding the price of both quicksilver and cinnabar was kept up at a certain figure, which was not to be altered unless both parties consented to the change. The agreement, however, has for some years past been null and ineffective, owing to the discovery of immense quicksilver deposits in America—a discovery which has put an end to a uniform price being maintained for any length of time in Europe.

The city of Vienna derived many direct and indirect benefits from the presence of Baron Salomon, as, independently of his noble beneficence and liberality, its general prosperity must have been increased by the immense business introduced by his firm. A very pleasing recognition of his great services was made him in 1843, when the Mayor of Vienna, accompanied by the Austrian ministers von Kolowrat and Hardegg, handed him as a New Year's gift the diploma or deed stating that he had been elected an honorary freeman of the city, as he was prevented by his nationality and religious persuasion from ever becoming a free citizen. This document stated that he had been elected an honorary freeman not only “on account of his services to the monarchy in general, but more especially in recognition of his great and praiseworthy exertions on behalf of the welfare of the city, by means of his quiet and unobtrusive charity, which had won him universal respect and esteem.”

An amusing tale is related of Baron Salomon with reference to a certain Cabby, who it is to be presumed was generally employed by his son,—a great patronizer of cabs, and a very liberal man with his money. It was nothing unusual for him to give the drivers four or five times the amount of their legal fare. On one occasion Baron Salomon after alighting paid the man the legal faro, not a penny more nor less. The Jehu regarded the coin in his open palm with a significant glance, which caused the Baron to inquire whether it was not correct. “Quite correct, and I am much obliged; but your son would have given me three, four, or six times as much.” “Indeed, would he? Well, he has a rich father. I have not.”

As we have already mentioned, the Vienna house issued, now alone, now in conjunction with other firms, several loans on behalf of the Austrian Government. The first of these loans was that of 1820 for twenty million eight hundred thousand guldens, undertaken by the Rothschilds and David Parisch in Vienna. This was issued in tickets of one hundred guldens each, bearing premiums, and was paid off in the regular course of time by the end of 1840, by means of yearly drawings. The success of this loan was due mainly to the great inducement held out to the public in the shape of the large prizes to be won.

The same two firms contracted for the second loan of 1821, amounting to thirty-seven and a half millions, in bonds of 250 guldens, and redeemed by means of fourteen drawings by the end of 1841.

At the close of 1823, Austria opened a loan of twenty-five million guldens with Rothschild, Baring Brothers and Irving and Co., in London. This loan was required to provide the payment of the subsidies of two and a half millions sterling due to England for her defence of Belgium.

Again, on the 1st December, 1829, a loan of twenty-five millions, required to payoff treasury bills, was concluded with Rothschild, Geymiiller and Co., Arnstein and Eskeles, and Sina. In 1834 a further loan of twenty-five millions was issued by these four allied firms, and was followed in 1839 by one of thirty millions. Both these loans were issued on far more favourable terms to the Government than had been the case on previous occasions, the interest payable on the first being five, and on the second four percent.

In 1842 Austria was again forced to seek the assistance of Rothschild and his colleagues, the result being a loan of forty. million guldens, on which the contracting bankers are estimated to have made four millions clear profit.

After the death of Baron Salomon, the business passed into the hands of his son Baron Anselm von Rothschild, who retained the direction until his .death in 1879, when his three sons Ferdinand, Nathan, and Salomon Albert, succeeded him. The two first-named have never taken any active share in its control, preferring to leave the helm wholly and solely in the hands of their youngest brother, Salomon Albert. They were not anxious to face .the worry and responsibility attaching to the management of the firm. Quite satisfied with the possession of a handsome fortune, they, like wise jnen, determined to rest content with what they had and to retire to the enjoyment of the pleasures of society. Baron Ferdinand has long ceased to be an Austrian, having for many years past been an Englishman by the process of naturalization. He married Evelina, the daughter of Baron Lionel do Rothschild, but lost her after one short year of wedded life. Her loss was a severe blow to him, for he was most fondly attached to his young wife. Of late years he has figured prominently as one of the leaders of society. His country house at Waddesdon is the scene, during the summer months, of the most brilliant reunions and garden parties. Scarcely a day passes by without the arrival of parties of distinguished visitors, often including royalty and members of the diplomatic body, who are received and entertained in a truly princely style. Balls, fetes, shooting parties, follow in rapid succession, until the winter season approaches, when Baron Ferdinand returns to his palatial residence in the Rothschild quarter of Mayfair. He now represents the Aylesbury division of Buckinghamshire in Parliament.

Chapter IX.

BARON JAMBS DE ROTHSCHILD.

THE PARIS FIRM.

RANGE for nearly seventy years possessed no permanent form of government; each successive government was of a temporary and provisional character. After the fall of the monarchy attempts of various kinds were made in the way of forming a representative government, and following one upon the other in rapid succession came the Legislative Assembly with an interim government, the Convention with the Reign of Terror, the Directory, the 18th Brumaire with the Three Consuls, Buonaparte and his Consulate, Napoleon I. and the Empire, the first restoration of the Bourbons under Louis XVIII., Napoleon's one hundred days, the second restoration under Charles X., the July dynasty of the Orleans with its immutable ideas, its fall through the revolution of February, the Republic, the Presidency of Lonis Napoleon, Napoleon III., Emperor. Such is the list of the many forms of government to which France has been subjected, varying from the most unbridled despotism to the most extreme licentiousness.

In order to realize the condition of France at the beginning of the present century, and to appreciate fully the boldness and sagacity which led Baron James de Rothschild to found his house in Paris, it will be well to give a few particulars regarding the finances of the country at that time. The first budget proclaimed by Napoleon was that of his Consulate, and it amounted to nearly 600 million francs. On the 20th May, 1804, he was elected under the title of Napoleon I. Emperor of the French, the succession to the imperial purple being limited to his descendants and those of Joseph and Louis Buonaparte. With the exception of some sixteen marshals, one hundred members of the Senate, and the judges, Napoleon could dispose at pleasure of all other appointments, so that it is not surprising that with the army at his back he should have been able to get the crown voted to him by

some three and a half million citizens. In a few years he made himself master of the European continent, thanks to his skill not only in annihilating armies but in overreaching and deceiving cabinets and ministers, thereby preventing any country from arming itself and taking effective measures to resist his progress. When, however, Spain, with Austria and Russia, and at last Prussia and Germany, combined against him, his star of fortune and destiny began to wane. By arbitrary and violent methods he enlarged the limits of the French Empire, denying and destroying the worldly power of the Pope by declaring the Papal States a portion of France, depriving his brother Louis of Brabant, Zealand, and Guelderland, in order to make the valley of the Rhine the frontier line in that direction; then he annexed Holland to France, and finally, on the 10th December, 1810, declared the necessity of extending the empire to the Baltic, and, accordingly, all the sea-coast north of an arbitrary line drawn from the junction of the Lippe with the Rhine to Travemund became French territory. From the Pyrenees to the Baltic, from Texel to Terracina, the great empire reached, while in Spain, Switzerland, Denmark, and Sicily he had

vassals and allies who trembled beneath his sway. In Sweden the succession to the throne had been conferred on a French marshal; Prussia was exhausted; Austria appeared fettered by family ties; only two European Powers withstood and defied the power of France—Russia and England.

However greatly the fame and dominion of the empire had grown abroad, the condition of the country itself was of the worst possible description. The imperial subjects'were burdened and oppressed by all sorts of tyrannical impositions, by taxes which steadily grew in amount, and by a budget yielding a revenue considerably exceeded by the expenditure. In 1804, when France became an empire, the country was by the decree of the 23rd February called upon to face a budget in which the expenditure amounted to no less than 700 million francs. This was for a war year. For a peace year 79 millions would have to be deducted, so that 621 millions would still weigh on the country. In addition must be reckoned the Emperor's civil list, which, with the domains left at his disposal, the appanage of his brothers, and the pay of the grand officers of the Crown, amounted to 30 millions. Included in this, however, were 7 millions for the Emperor's household, so that to the 621 millions we have really to add another 23 millions, to which we must still add the expenses of the Departments, 79 millions; the cost of maintaining the roads, 15; the expense of collecting, 80; the secret police, 5; so that the total expenditure for a peace year may be put down at 823 million francs, or about 376 millions more than under the monarchy. Year by year the budget grew, being estimated in 1809 and 1810 at 740 millions, whilst in the following year it was reckoned at 954 millions. The preparations for the campaign against Russia—the most gigantic military expedition of modern times—swallowed up million after million.

" Napoleon had collected the most powerful army the world ever saw; from all parts of the Continent had he summoned his forces for the struggle; every variety of blood, of complexion, of language, of dress and arms, were to be found in its ranks. The auxiliaries from whole provinces were led through kingdoms that respected his arms; the artillery of entire fortresses ploughed across the fields; cattle from a thousand hills were collected for the support of myriads who spread themselves like a plague across the plains of eastern Europe, where blood flowed in streams, and where the earth became blanched with the men's bodies. But this gigantic expedition, although successful, gained no object, since the enemy was vanquished, but the conqueror in vain tried to secure peace. The ancient capital of the Czars in Moscow was in his power, but the capture was profitless to him, owing to the refusal of the enemy to come to peaceful terms, and the barrenness of the neighbourhood. The burning of Moscow in one night began Napoleon's downfall, which the frost of a second completed. Upon all the pomp and material of numerous warriors, upon their cavalry, their cannons, their magazines, and their baggage fell thickly and steadily the snow- flakes of a northern night; the retreat of the armed hordes was cut off, and their destruction as effectually achieved as if it had been on the battle-field. All Napoleon's endeavours to regain his lost power were never able to remedy the effect of that Russian night. The fire of his genius still burned as brightly as ever; in two campaigns his efforts were superhuman; his resources were even more remarkable than before; his courage deserved the reward and prize of victory for which he played—but all was in vain. The weapons remained only a short time longer in his hand; his army was scattered to the winds; his opponents no longer bowed beneath his superior nature, for they discovered that he, like themselves, could be conquered, and they in their turn became bold. Such was the great captain, and such the destiny into which he plunged.

" A mighty genius of the first rank; one of the greatest masters in the art of war, he occupies a place among the generals of the highest class. His genius, however, was not confined to war. In the circumstances of government he showed himself equally sharp—as quick in deciding his procedure in politics as in the field. But with all these qualities he was a conqueror, he was a tyrant.

“In order to appease his thirst for power, in order to satisfy his ambition for empire—an ambition no conquest could still—he trod freedom beneath his feet. He enveloped the world in flames, which the blood of millions was unable to extinguish. Honesty, truth, pity, and sense of duty were cast aside by him, who pursued a single and selfish policy. Enghien's death, Wright's horrible sufferings, Pichegru's mysterious death, Palm's punishment, Toussaint's martyrdom, are all blots on his fame.”

Equally characteristic is the opinion of Lord Brougham concerning him:—“He sacrificed to his ambition three milliards in money as the acknowledged cost of the wars of 1802-1814 to France alone, and five-sixths of three million men, who were called out for active service.”

Following upon his memorable campaign against Russia and his disastrous retreat came his dethronement and banishment to Elba, whence he issued to try his fortune once more against the whole of Europe. The sequel to this attempt is too well known to need repetition, leading as it did to his final overthrow, and to the restoration of Bourbon rule in France, with a constitutional government, under Louis XVIII.

When the Chambers met for the first time after the restoration, Montesquieu laid before them a report of the condition of the country, describing in very striking language the evils arising from the imperial form of government. Still more gloomy was the picture painted by the Minister of Finance of the State's finances and requirements. The arrears amounted to more than 1,308 millions, which, however, were afterwards reduced to 759. The funded debt amounted to only 93 millions. To provide means to discharge these liabilities, it was decided to sell the domain forests and common lands. The abnormal and provisional budget of 1814, and the normal budget of 1815, estimating the receipts at 618 million francs, and the expenditure at 547 millions, were passed on the 23rd September, 1814; the civil list of 33 millions, and an additional vote of 30 millions for the debts incurred by the Bourbons abroad since their expulsion, were likewise voted.

Then came Napoleon's sensational return, with his brief enjoyment of power, cut short by the efforts of the allied forces. Nearly a million foreign troops entered the French territory, and demanded an indemnity of 100 million francs at the expiration of the one hundred days. The budget for 1816 estimated the ordinary expenditure at 548 millions, and the extraordinary expenditure at 290 millions, in addition to that for the Consolidated Fund of 125,500,000 francs. Taken all in all, the expenditure amounted to 1,069,261,826 francs as given in the law of the 25th March, 1817. The indemnity of a milliard francs claimed by the emigrants, and the war indemnity of 700 millions claimed by the Allied Powers, were enormous items in the State accounts, in addition to the cost of maintaining the foreign army of occupation for five years.

In the following years both the receipts and the expenditure rose and fell. In 1824 the Chambers put the civil list for the King at 25 millions, and that for the Princes at 7 millions. The budget grew steadily under the different ministries until the July revolution. Under Martignac in 1828 the expenditure was estimated at 980 million francs, whilst the receipts reached only 986 millions. During the reign of the Orleans family the State finances, in spite of the enormous receipts, were far from flourishing. The indirect taxes exceeded a total of 12 milliard francs, whilst the yearly expenditure amounted to from 1,000 to 1,200 millions. The chief cause of this lay in the lasting “armed peace.” In 1841 a deficit of 1,000 millions was declared. The system followed by Louis Philippe had already brought the country to the verge of a financial crisis. The city of Paris was burdened with a debt, now considerably increased, of 12 millions, and the State budget with a rente of 600,000 francs. The distress among the working classes was fearful; in commercial circles bankruptcy was the order of the day. Under the fraudulent system then generally prevailing persons had carried on business without any capital at their backs, by means of credit, ill-deserved but too readily obtained. The revolution came without any warning to complete the feeling of anxiety and uncertainty prevailing at the time. A provisional government was placed at the head of affairs, and issued decrees one after the other dealing with all subjects, from the abolition of the monarchy down to the assignment of the millions of the civil list to the relief of the working classes. The indebtedness of the State was fearful; the financial disorder unlimited. Even without the revolution a State loan of 600 millions would have been absolutely necessary. There were but two means of saving the newly-created republic—a dictatorship, or in other words, exaction, or credit. If the State had displayed the slightest hesitation in meeting its engagements the word bankruptcy would have been on every lip. Goud- chaux, the Finance Minister, resigned; he felt himself unequal to the difficulties of the situation. A man of ability, capable of manfully grappling with and mastering the dangers of the impending crisis, was above all things required. Garnier-Pages succeeded Goudchaux as Finance Minister. One of his first proceedings, after his accession to office, was to sell the forests belonging to the old civil list. Ha decreed a voluntary loan, but, as the coffers remained empty, he had recourse to the most pitiable of all financial measures: he laid an additional 45 centimes on the four instalments of the direct taxes, a measure which severely hit the already heavily- burdened peasants and the small landowners. The expenditure amounted to 1,700 million francs, and the State debts, which had increased by nearly a million in seven years, to 5 milliards 170 millions. The additional tax brought in 150 millions, whilst the Bank advanced 230 millions upon the State forests. By these means the State was saved from bankruptcy.

Under the Presidency of the Republic, which ere long was converted into the Empire, the indebtedness of the State continued to increase steadily. The war with Russia required one sacrifice after the other. In April, 1856, the State expenditure, the revenues and the State debts were estimated by the Minister of Finance to be as follows:—

“The regular expenditure amounts to 1,598 million francs. The first portion of this consists of the interest on the debt, which takes 342 millions for the dividends, and the redemption of the consolidated debt; lOf millions for the interest on the special loan for canals; oof millions for the interest on the floating debt, the guarantees, and finally 68 millions dette viagere, together 455 million francs. The supplies are 25 millions for the Emperor; If millions for the Princes and Princesses of the Imperial house; 6f millions for the Senate; 2f millions for the Legislative Body, and 3f millions for the Legion of Honour; making in all 38£ millions. The collection of the taxes costs 165 millions; 4 million francs are set apart for the completion of the Louvre.” In a word, taking the population of France at 35 millions, the average contribution per head to the State treasury was about 46 francs for the year 1856.

The fortunes amassed by individuals—bankers and financiers, more particularly—resident in France, or rather in Paris, cannot be described nor estimated. In June, 1848, when the proposed decree for the conversion of the floating debt into a consolidated debt was brought before the National Assembly, a Paris paper, published under the title of “The Organization of Labour,” gave the following details respecting the wealth of the leading houses in Paris:“The firms Laffitte Frere and Delamarre are estimated at 10 millions; Baudon at 12; Rougemont and Lafond at 15; Dourand, De- lessert, Aquirrevengon and Halphen, each at 20; Hottinger and Pellaprat each at 25; Fould at 30; Hoop at 40; Baron Gressulhe at 100; Rothschild at 600 million francs.” The King was put down as worth 800; the Due d'Aumale and Madame Adelaide each at 70; and the Due de Montpensier at 20 millions. According to this estimate the combined wealth of the above well-known banking-houses amounted only to 362 millions, a total which Rothschild exceeded by no less than 238 millions. It was by means of this immense capital at their command that the Rothschilds gained that consideration and influence which no other firm has ever yet equalled or approached.

“Involuntarily,” wrote the “Augsburger Allge- meine Zeitung,” “one is forced to ask the question how it was that the house of Rothschild managed to maintain its distinguished position undisturbed throughout the manifold changes of government in France? The explanation is easy,” continued the .writer: " the house belonged to no political party; the Rothschilds are the friends of the kingdom, of law and of peace, and as such could maintain their preponderating influence equally as well under the heterogeneous ministries of a Decazes, Villele, Martignac, or Polignac, as under the government of Louis Philippe/'

When we remember the disturbed state of Europe in 1812, and how much the Rothschild family had suffered at the hands of Napoleon, we cannot but wonder what could have been the reasons which induced Baron James de Rothschild to determine opening a branch house in the French capital. That he did so in spite of the unpropitious aspect of affairs speaks volumes for both his boldness and foresight. It may have been that he had already made sure of his prospects by having rendered the Emperor some services, for few had more need of financial assistance than Napoleon I., and Baron James, we may presume, was not unwilling to secure himself substantial advantages at the expense of the French nation. This is, of course, all surmise on our part, but, when we recollect that the supplies entrusted by the British Government to Nathan Mayer Rothschild for the army in Spain were conveyed to their destination through France,

The Rothschilds: the financial rulers of nations

it does not seem altogether improbable that Baron James must by some means or other have obtained a certain degree of influence with the French Government, or he could never have executed the business with such success. Money is proverbially all-powerful, and in this case certainly did not belie its reputation. A more favourable period, as events proved, could hardly have been chosen for establishing the new firm in Paris. It was started in 1812. In 1815 Napoleon was deposed and business at once poured in upon Baron James de Rothschild. Thanks to the influence and warm recommendations of the Elector of Hesse, Baron James de Rothschild was empowered to receive the milliard of francs war expenses claimed by the Allied Powers when they entered Paris. In the same way the two milliards war indemnity passed through his hands, and we may feel sure that the transaction was most profitable. For some years afterwards we do not find him engaged in any great financial operation; indeed until 1823 his name is altogether lost sight of. In that year, however, he took up the whole of the French loan at the price of 89 fr. 55 cent., and the “Gentleman's Magazine” in chronicling the occurrence testifies to the confidence and influence enjoyed by the firm, by stating that the immediate effect on the French Rentes was that they rose to 90 frs. 25 cent.

In 1824, the Marquis de Villele, the Minister of Finance at that time, projected the conversion of the whole of the French Five percent. debt into a Three percent. debt. Those who were so disposed could exchange the old Five percent. stock into bonds of the new Three percent. stock by accepting the exchange at the rate of 100 francs new stock for every 75 francs of the old. The whole debt amounted to 3,066,783,560 francs, and it was estimated that perhaps only one-third of the stockholders would accept the conversion; consequently, to satisfy the State creditors, no less than 1,055,556,720 francs would have to be paid them in cash. In order to collect this immense sum, the assistance of all the great financiers on the English, Dutch, and French markets was sought. Subscriptions were received in Paris, London, and Amsterdam by the firms of Baring Brothers, J. Laffitte and Co., and N. M. Rothschild and Sons. A committee under the presidency of Alexander Baring, with Baron James de Rothschild and Jacques Laffitte as his colleagues, was then formed to determine the

z

conditions to be made with the Minister, on which they would provide the cash required for the redemption of the old Five percent. bonds. Their plan was to sell the new Three percent. stock, as soon as created, at the price of eighty. At this price purchasers would receive 3f percent. interest on their money, and if the paid off debt could only be replaced by bonds of the Three percent. stock purchased at 80, it necessarily followed that the Five percent. stock, before the proposed conversion, would be relatively worth 106.66, in order to yield a corresponding rate of interest.

Operations based on this calculation were accordingly made on the three markets. The capital required in Paris for the conversion was estimated at 1,000 millions. The speculators, thinking that the contractors would not put the new Three percent. stock into circulation under 80, bought in Amsterdam and Frankfort at 81—83^, whilst at the same time immense sales of the French Five percent. debt at the relative price of 106.67 to 110 were effected. Higher prices than these could not be obtained.

Villele's project in order to become law required the sanction of the two Chambers. After a very stormy debate, it passed the Chamber of Deputies by a Ministerial majority of 68. In the Chamber of Peers it encountered a vigorous opposition, secretly promoted by the Viscount de Chateaubriand, who harboured a private grudge against Villele. By a majority of 12 votes the proposal was rejected. The Five percents., which the day before were quoted at 106, fell at once to 98, and an extraordinary excitement ruled on the stock markets. Chateaubriand resigned, and the day following at the opening of the market the Five percent. Rentes were dealt in at 104; then they receded again to 98, and remained for some time stationary.

The rejection of the Finance Minister's scheme was a severe blow to speculators, who had operated freely in the anticipation of the conversion being accepted. Those who had bought largely for the settlement were compelled to sell out again at a loss. Baring and Laffitte were severely hit; the Rothschilds, however, emerged from the fray uninjured, owing to their having confined their operations to selling simultaneously large amounts of the new Three percents. and of the old Five percents. As the Three percent. debt was not to be created, none of this stock could be delivered, whilst the Five percent. stock, which they had sold at 104 or more, could be bought in again at 98.

In 1830 the well-known banker, P. J. Ouvrard, in Paris, obtained trustworthy information, a week before their publication, of the coming decrees of the Polignac Ministry, decrees, as is well known, resulting in the July revolution and the fall of the Bourbon dynasty. No sooner was Ouvrard certain of his information, than he summoned to his confidence several bankers and bill brokers, and then hastened to London. On reaching that capital he at once began to effect such heavy sales of stock at ever falling prices that the Rothschilds, who, being among the first purchasers, were interested in the maintenance of the prices, became quite alarmed, and immediately despatched a courier to Paris to learn the real reason of the immense sales that had taken place. The Paris house, however, were no better informed than the London house, and were unable to give the key to the enigma. Baron James, who a few months previously had contracted for the last Government loan of Four percent. Rente at the price of 102 francs 7 cents., at once betook himself, in a state of violent excitement, to Polignac, and requested the Minister to enlighten him as to the real state of affairs. The possibility of the Ministerial decrees being issued had already become a subject of discussion on the Stock Exchange, but no one could speak with any certainty on the matter. When the Baron returned from his interview with the Prime Minister, he made no secret of the fact that the latter had given him his word of honour that the decrees were nothing but an empty scheme which had never been seriously considered, and which would now remain a dream. The next day it became known that they had been signed by Charles X. after mass, and the following day they appeared in print in the columns of the “Moniteur.”

The immediate effect of their publication was that the house of Rothschild and its partners in the transactions found themselves saddled with the whole loan of 78,373,750 francs, which fell to a discount of 20 or 30 percent. For a long time afterwards this stock remained in such bad odour that buyers were difficult to find. The business, however, was far more prejudicial to Rothschild's partners than to Baron James himself, as the bulk of the stock had already been taken off his hands. He was severely reproached at the time for the part he had borne in the business, as it was generally held that he had abandoned his friends and left them helpless; still it must not be forgotten that till the time of the July revolution he had always shared his enormous gains with his partners. That event came quite unawares upon them, and at once changed what had promised to be a most profitable undertaking into a most costly and ruinous one.

Ouvrard had at a stroke won an immense sum, which his broker Amet set down at 2 million francs. As soon as he had carried out his successful combination, he returned from London to Paris and commenced operations. They were all calculated for the fall. As the Rente, even after Casimir Perier joined the Ministry, fell to 52, and in February, 1831, to 48, some slight estimate may be formed of the extraordinary profits Ouvrard must have realized.

It was mainly by the influence of the house of Rothschild that the fall of M. Thiers in 1840 was brought about. Whether right or wrong, Thiers thought he was acting as beseemed a Frenchman, whose only object was to uphold the honour of his country. This consideration, however, never troubled the Rothschilds; for they supported no nationality. They are—although by some the assertion may be opposed.—cosmopolitan, or at least European, neither German, French, English, Italian, Turkish, nor Russian, and, as they possess immense influence in diplomatic circles, they help to maintain peace at the expense of all princes. In his opposition to Thiers Rothschild bore himself as king of the Stock Exchange, and Austrian Consul- General. Thiers in the columns of the “Consti- tutionnel” pointedly asked Rothschild, of what concern was the honour of France to him, seeing that he was a German? Baron James replied, in a letter which he had published in all the papers, that, if he were a German, so must his brother Frenchmen be Germans. However, it was in the interests of Germany that he acted in the matter of the Rhine frontiers, then under discussion. Thiers resigned, and was succeeded by Guizot, whose proceedings were always of a somewhat cosmopolitan, anti- national character, so that it was not altogether inappropriate when his Ministry was nicknamed the Ministere de I'Etranger. It was naturally under the monarchy, where power centred in one person, that the influence possessed by the Rothschilds displayed itself most conspicuously and undeniably. Few were the public men who did not feel and own that influence. The majority of the deputies, we may say, without fear of contradiction, were more or less under obligations to the firm, and ready to assist in promoting its interests and views. Still, although in diplomatic circles Baron James de Rothschild was a personage of such importance that his opinions could never be altogether disregarded, it was upon the Stock Exchange that his rule was most powerfully felt and universally recognized. Nor did he hesitate to use the sovereignty he possessed to further his purposes, as he could raise or depress prices at his pleasure. His sway was indeed despotic, and none were found bold or rash enough to dispute or oppose his arbitrary edicts, as the gigantic nature of his operations effectually prevented anything like systematic opposition being offered, and induced others to lend him their co-operation by following in his steps. It cannot be denied that the Stock Exchange can boast of intellects which in diplomatic skill and artifice would do credit to a Talleyrand, and it is equally certain that for boldness in conceiving and for vigour in carrying out a plan none could excel Baron James, whose operations were the talk and wonder of Europe. Seeing the facility with which at a stroke fortunes may be won on the Stock Exchange, it is not surprising that speculation should have a strange fascination over the public, nor that the Stock Exchange should become a training school for the development of every kind of trickery and deceit, the centre of genuine business, and of endless swindling.

To live we require the necessary means, and it is the fate and calling of everyone to strive after the acquisition of wealth, and, when he has succeeded, to use the utmost care and thought in the preservation of his gains. There are many ways of attaining this object, since it is possible to acquire riches either by labour, industry, or speculation. Naturally everyone, being more or less anxious to become wealthy, prefers the way which leads most directly and with least trouble towards the goal. The outcome of this innate desire to grow rich speedily and without effort was the invention of games of chance, which have been in vogue from the earliest ages; the dice were as familiar to the Greeks and Romans as they are to us in the nineteenth century. It was the desire for gain which led the people of the Middle Ages to place such faith in the black arts, and in the power of the divining rod. The in- fatnated and ignorant belief that many had in the boasted powers of the alchymists and astrologers was owing to the latter taking advantage of the cupidity of their dopes, who, in the anticipation of becoming suddenly rich, were ready and willing to place implicit reliance in their mysterious advisers. But the philosopher's stone and all such trash are now discarded, and instead of it we have speculation, stock-jobbing, gambling and swindling; all being different modes of attaining the same object, —the acquisition of wealth with the least possible tronble or exertion.

Real gain is that which arises from industry backed up by capital and credit, the latter of which is proportionate to the industry and capital combined. In many countries credit is the basis of all business, which is facilitated and developed by its means. According to the estimate entertained of the credit and character of the individual, the credit of a State is formed; this in earlier times was so slight that oppressive measures had to be resorted to in urgent cases to procure the necessary funds to meet the State's requirements. For the same purpose recourse was often had to the reduction of theinterest on the debt, and to the issue of base money. As years rolled on the evils arising from these practices were recognized, and sounder principles of finance and administration were, by degrees, adopted. Thenceforward the public were induced to confide in the Government, and invest their money in the purchase of the Government stocks, which became at once the basis of a speculation similar to that in private shares. The funded debts of a State, especially of one whose credit has decayed, are, in disturbed times, the most prolific source of that species of gambling for the differences in the quotations, which is known in England as stockjobbing. In every country the Government stocks are used as the means of gambling. The Stock Exchanges of London, Paris, Frankfort and Vienna are crowded with persons who have neither stock to sell, nor money to pay for their purchases, but who yet embark in large speculations for the rise or fall, hoping to pocket, before the settling day, a handsome profit by the difference that takes place between the prices at which they buy and those at which they sell.

The usual mode of conducting speculation on the Stock Exchange is by means of “time-bargains,” i.e., bargains which are not settled before a certain day, usually termed the “account/' or settling, day. Naturally during the interval between the closing of a bargain and the account day, prices may experience considerable fluctuations, on which speculators greatly rely for the success of their dealings. For instance, a person may sell an amount of stock for the”account," and owing to a fall of prices may be able to buy that amount in again at a considerably lower price, thereby pocketing a handsome profit in the shape of the difference between the two prices. On the other hand it frequently happens that the market disappoints the expectations of speculators, who are consequently unable to settle their transactions by delivering the stock they have sold, or by paying over the cost of their purchases; in such cases the transactions are usually arranged by the defaulters paying the differences between the prices at which the bargains were struck and those ruling on the account day. From this explanation it will be at once seen how speculation is encouraged, since it is possible for persons without capital or stock to embark in speculations for large amounts, and these speculations, if luck attends them, return fabulous and easily earned profits.

No wonder that this sort of business has its fascinations. It is, indeed, neither more nor less than gambling pure and simple, and is so considered by the law. There can bo no doubt that this gigantic system of speculation is prejudicial to the public interests, as it seduces business men from their own legitimate business, which they neglect in the hope of gaining larger profits, with greater ease, on the Stock Exchange. Were this system of buying and selling for future delivery confined to the Stock Exchange there would be less reason to complain; but, unfortunately, it is practised upon all our produce markets, where panics are by its means created with far too great a frequency. The public are the greatest sufferers in such cases, as the prices of commodities which they require, and with which they can ill dispense, such as corn, tea, coffee, etc., are often forced up to an extraordinary height by the efforts of unscrupulous and greedy schemers.

The want of principle and the readiness of speculators to attain their ends at all hazards, is shown by the many artifices they employ to effect a reaction on the market. It often happens that the market, contrary to their sanguine expectations, makes a movement which if maintained is sure to

The Rothschilds: the financial rulers of nations

bring about their ruin; consequently they strenuously endeavour to remedy the evil by the fabrication and circulation of false news, by the publication of lying statements in the newspapers, and by any other dishonest means which appear likely to produce the desired result. These tricks are bad and objectionable enough, but in more than one instance ruined speculators have as a last resource tried to reestablish their shattered fortunes by forgery and other fraudulent means. In 1803, when the greatest anxiety prevailed in London as to the result of the negotiations then pending between the French Republic and the English Government, the whole city became elated and joyous owing to a statement contained in a letter, posted in a prominent position on the Mansion House, to the effect that: “the negotiations were brought to an amicable conclusion.” As this letter purported to be written by Lord Hawkesbury, implicit faith was at first placed in its genuineness, especially as it seemed to enjoy the sanction of the Lord Mayor. The Funds rose at once with a bound. Presently, however, when the matter was quietly considered, grave doubts began to be entertained as to the authenticity of the letter. Many (and among them perhaps the authors) boldly declared it fictitious: a reaction forthwith set in, and was intensified when the forgery was exposed. A similar incident occurred only a year or two ago when a letter pretending to be written by Lord Granville's authority, and stating that the settlement of the bondholders' claims against Chili had been satisfactorily arranged, was placed in a prominent position on the Stock Exchange. It is needless to say that this likewise was a hoax, or rather a forgery. Nor is the pernicious practice of fabricating false news by any means confined to the members of the Stock Exchange; all who operate in the Funds and are interested in bringing about a certain movement in the quotations resort to these objectionable devices. Members of Parliament are not above stooping to such meanness; indeed more than one Stock Exchange scandal has originated in the dishonest practices of honourable members. Few trials created greater sensation in England than those of Mr Walsh, M.P., and Mr Cochrane John- stone, M.P., at the beginning of the present century. Impelled by their fatal love of speculation Cabinet Ministers and other persons holding high official rank have been known to take advantage of their position and turn to profitable account the information which has reached them through official channels. Nothing shows more clearly the baneful effects attending the mania for speculation than the deplorable fact that ministers have been led by its influence to abuse the confidence placed in them, and subordinate the public interests to their own. Take for instance the case of the Count de Guisne, the French ambassador in London at the early part of the present century. Profiting by intelligence received in virtue of his office, he speculated in the Funds with great success for a time, but afterwards his good fortune deserted him, and he was unable to meet his engagements. As long as he was lucky he was willing to acknowledge the contracts made with his broker, but when his luck changed he disowned all knowledge of the transactions, refused to pay the balance due, and quitted the country. Apart from the evils directly traceable to speculation, the amount of bribery and corruption it engenders cannot be estimated. In order to obtain the earliest information of all that passes in political circles, speculators spare neither trouble nor expense. By means best known to themselves, but which may be expressed by the conventional term “value received,” they

BARON JAMES VON ROTHSCHILD.

manage to obtain from subordinate officials and court attendants early and reliable reports of all that it concerns their interests to know. The famous Duke of Marlborough is indeed said to have so far forgotten his station as to have accepted an annuity from the great speculator Medina, who found the outlay extremely remunerative, as it enabled him to have the exclusive privilege of forwarding from the field of battle reports of those great successes which fired the spirit of the nation with enthusiasm and joy. Formerly the advantage of possessing reliable information of any important event, such as the declaration of war, the resignation of a cabinet, the illness of a sovereign, was very considerable, since, owing to the slowness of communication, the truth or falsehood of the reports promulgated by speculators could not be ascertained until they had affected the market and brought about the movement in prices which inevitably filled the pockets of those who were in the secret. Thanks to the invention of the telegraph, these lying rumours are now exposed almost as soon as circulated, but twenty or forty years ago it would have taken days or weeks to ascertain how true or false they were.

The year 1847 was a most evil year both for t

commerce and State finance, especially in England and France. So severe, indeed, were the financial pressure and the scarcity of money in England, that during the month of October bills drawn upon and accepted by first-class firms, with only a week to run, were discounted at the rate of 13 percent. per annum. The banks in Liverpool and Newcastle, owing to a run of unprofitable business, were forced to suspend payment, thereby causing ruin and distress in every direction. The pressure arose more from want of confidence than from any other cause. Everyone had more or less caught the speculation fever raging for railways and corn, and had become liable for sums far beyond his ability to pay; consequently the value of all railway securities fell rapidly, whilst vast amounts were lost in the corn speculations.

During the following months the prices of the Government stocks rose in a strange fashion, despite the well-known scarcity of money prevailing at the time. Chance and an unlooked-for auccession of various causes, rather than the powerful manipulation of the Rothschilds, brought about this unusual phenomenon. Extensive dealings had taken place in the Three percent. Rentes, and it was found on settling-day that those securities were greatly over-sold. A large portion which remained uncovered figured in the names of the Rothschilds. Since the latter had endeavoured to force prices to take a certain path, this amount had been considerably augmented, and, according to estimate made, it was thought that the average price would work out about 75 francs 50 cents. From the systematic sales effected by the Rothschilds, it seemed that their principal object was to maintain this quotation, and that their speculations would prove unprofitable were the prices to rise beyond 75.75, which to all appearances was their limit. The great herd of speculators who faithfully followed all the movements of Baron James, whose actions inspired all their operations, were now placed in an awkward position. They had sold very heavily for the account, but when settling-day arrived stock proved exceedingly scarce, and it became an easy matter for the “Bulls” to raise the price to 76 francs 40 cents., as they were assisted in their efforts by the absence of fresh sellers, the scarcity of stock, and the readiness of persons to buy. Shortly afterwards the price rose to 77 francs, apparently quite contrary to the interest of the house of Rothschild and to the desire of all well-wishers of the new project for a State loan of 250 million francs. Then there ensued an unexpected revival of confidence among the public, similar to that which had occurred 'the year before; the public entered into the speculation, wrested the sceptre of power from the hands of the Rothschilds, and showed them that at times the public is able to set a limit to their rule. In order to counteract the influence brought to bear upon the market, Baron James determined suddenly to unload on it some 450,000 francs Three percent. Rente, which he had borrowed from the three great insurance companies, the Compagnie Generale, the Royale, and the Union, against the deposit of 500,000 francs Five percent. Rente. Apparently his object was by this sudden delivery for cash to beat down the price to his old limit, but in this calculation he was mistaken, as means were found to relieve the market of all this stock, and so the operation failed. The “Bulls,” who had hardly dared to expect the disappearance of so large an amount of stock, took heart of grace, and kept the quotation up almost to 77 francs. Unwittingly they had helped Baron James to win his game. Dealing in the new loan first took place at 76 francs 50, then the price sank 1 franc, or 75 cents., about the price at which Baron James contracted for the loan in November, 1847, namely, 75 francs. Baron James had scored another victory over the whole financial world in Paris. Directly he undertook the loan he issued a circular calling upon all subscribers to pay an immediate instalment of 5 francs upon every 100 allotted to them, failing which their applications would be disregarded. Speculation had been so rife that Baron James may have decided upon this measure from mistrust of the subscribers' ability to fulfil their obligations; or his object may have been to increase the firmness of the new loan on the market.

While Louis Philippe occupied the throne, money was supreme; riches alone ruled in the land which was credited with possessing—thanks to the system of so-called popular representation bestowed upon it—all the blessings and advantages supposed to attend a constitutional monarchy. In the Chamber of Peers the interests and aims of every class had representatives, the second Chamber, elected under a high census, being the reflection of the rich bourgeoisie. Such an Assembly of representatives was, however, as regards the people, a fiction. Moreover, Stock Exchange speculation formed the chief occupation of the rich bourgeoisie, while Louis Philippe and his Prime Minister Thiers led the van in this playing with fortune. The financial situation was for ever growing worse in consequence of the rapid spread of corruption, especially in the practice of buying votes. The demands of those who allowed their votes to be bought kept becoming more and more exorbitant, but, as the means at the command of the corrupting parties did not increase in the same proportion, the court favourites had to make free with the State treasures to supply the deficiencies. Fearful scandals were brought to light, until the feelings and good sense of the nation could suffer the evil no longer. Stronger and stronger waxed the cry of corruption with which the Guizot Ministry was assailed. In spite of all that he had done for them, by degrees even the bourgeoisie began to desert Louis Philippe, and united in the demand for a reform of the electoral system. The whole tone and manners of society were affected by the universal corruption, and to what a depth of vice and degradation the public morality had fallen was shown by the revelations that took place. So far had many persons gone that the Government were forced to disown them and their practices. Like shipwrecked mariners, the Government consulted their own safety by sacrificing their weaker comrades, and prosecuted numbers who had high rank, and were at the same time friends or relations of the King; such persons, for instance, were Teste, formerly in the Ministry, and Cubieres, an old Court favourite, both of whom had either made away with the State moneys or had allowed themselves to be bribed; lastly came Praslin, an old friend of the King.

The monopoly of the State loans which the house of Rothschild had in the course of time secured to itself, and which afforded strong evidence of the immense financial power at its command, has, in consequence of the new principles of finance by which the Government has been guided since 1848, come to an end. At one time it would have been thought a piece of madness to oppose or compete with the Rothschilds in their operations, but now, owing to the powerful and active coalitions formed among many of the leading banking and financial houses, the power and influence of the Rothschilds have received a severe check. They are no longer the all-puissant despotic firm they once were; younger and equally energetic rivals have forced them to descend from the platform they once occupied alone, and they now stand on the same footing as other financial houses. Their influence is of course still immense and powerful, but it no longer secures them the precedence they so long held in monied circles. The effect of the new principles of finance upon the privileges and influence of the house of Rothschild was clearly shown in 1855 when the national loan was issued. The Rothschilds were no longer allowed to pocket, by contracting for the whole loan, all the profits attending the issue; they were forced to subscribe on an equal footing with every other citizen for whatever share they wished to obtain. The policy and wisdom of the Government in taking this bold measure cannot be doubted, as it enabled the public to share in the profit attending the issue—a profit which on previous occasions the contractors had exclusively enjoyed. The loan was issued to subscribers at 63 francs 27 cents, but long before the allotments took place it was dealt in on the Exchange at 65 francs 90 cents. In addition to the Government business, as we may call it, Baron James engaged in many commercial and industrial undertakings. To him France is in a great measure indebted for the construction of most of her principal railroads. He may indeed be called the “Railway King” of France, as Hudson was the “Railway King” of England. To quote the “Augsburger Allgemeine Zeitung” once more:

“When during the last few years the speculative mania turned towards industrial enterprises, and railways became a necessity on the Continent, the Rothschilds took the initiative and placed themselves at the head of the movement. The Versailles Railway on the right bank of the Seine is their creation, and in Austria they gave the first impulse to enterprise of this description by building the magnificent Northern Railway.”

The greatest of Baron James's railway undertakings was perhaps the construction of the Northern Railway of France, which was attended by so many scandals and productive of such widespread speculation that some description of it may not be out of place. In order to secure the country all the benefits supposed to result from unlimited competition, a law had been passed by which it was decreed that the construction of railways in France was not to be effected by granting concessions to particular persons, but was to be confided to those companies whose tenders proved most acceptable. In the case of the Northern Railway, these prudent precautions proved unavailing, as Baron James secured beforehand the co-operation of all who might have been his rivals, and, his being the only tender, there was no alternative but to accept it. The capital of the company consisted of 300,000 shares of 500 francs each. Baron James had no sooner got his company fairly started than he inaugurated a wholesale speculation in the said shares. Every trick and artifice known was employed to force them up to a fabulous price; they were given away broadcast to the newspapers, in order that the praiaes of the latter might be won for the undertaking, or their opposition at least silenced. There was scarcely a person of any importance but received a present of a number of shares, in some cases five, in others fifty, and often more. Ministers, deputies, journalists, everyone, in fact, of any note was bribed to lend his support to the new railway. Naturally the shares soon rose to an enormous premium, and the ignorant and infatuated public, gulled by the reports of the enormous sums already won, and still to be won, hastened to participate in the speculation. The premium on the shares was at one time as much as 348 francs, when Baron James thought it time to realize the profit arising from the operation, and accordingly began to sell out the shares he held. By selling heavily he forced the prices down, ruining the ignorant persons who had purchased the shares at a high premium. He was thus enabled to buy in at a price which left him a handsome profit on the shares he had sold. And so the speculation went on, Baron James, backed up by the immense support he had secured, raising and depressing the market by his manoeuvres just as it suited his purpose. His gains were set down by popular estimate at 140 million francs, but that may be an exaggeration. On the 15th June, 1846, the line was opened with great pomp, and amidst universal rejoicings. Amiens on that day presented a grand spectacle, crowded as it was with princes of the royal family, marshals and generals, deputies, peers, members of the bar, and others who had been invited to take part in the opening ceremony. Unhappily the line inaugurated under such brilliant auspices was, a month or two later, the scene of a terrible accident, by which some thirty persons lost their lives, and an equal number were more or less injured.

The great success and immense fortune gained by Baron James could not fail to win for him a large amount of jealousy and envy, which displayed itself in the combinations formed by rival firms, all anxious to deprive him of some portion of the large profits attending his operations. Among the many formidable rivals with whom he had to contend, none perhaps proved himself so capable and dangerous as Emile Pereire, the head of the firm of that name. So bitter was the rivalry between the two that neither lost a chance of damaging or spiting the other; indeed, so far did matters go that Baron James and Pereire allowed their rivalry in business to grow into a personal enmity, which displayed itself on every possible occasion. Neither hesitated stooping to enter into any intrigue or doing any mean trick if he thought he could thereby damage his rival, either in reputation or pocket. As Pereire's means alone would have been insufficient to attain the objects he had in view and compete with the influence and fortune of the Rothschilds, he sought the co-operation of other influential firms, not only in Paris but in other great capitals. So powerful was the coalition thus organized that even the vast influence of the Rothschilds was ineffectual in the attempt to procure its overthrow. Some idea of the strong opposition with which Baron James had to contend may be formed from the credit and capital possessed by the coalition, which included such well-known and wealthy firms as Barings of London, Hope and Co. of Amsterdam, Stieglitz of St Petersburg, and many others. The rivalry between Rothschild and Pe"- reire was carried on vigorously, and with ever- increasing bitterness and warmth. Rothschild on the one hand was jealous and annoyed by the young upstart Pereire, whilst the latter, conscious of his exceptional energy and abilities, was anxious to force the wealthy and despotic Rothschild to abdicate the lofty position he had gained on the Paris money market. On more than one occasion Baron James exerted himself to the utmost to crush and annihilate his young rival, but Pereire's strong will and financial skill were more than a match for the ability of Rothschild and his millions. In these contests for supremacy it was not always Pereire who had to yield. More than once Baron James found himself out-mano2uvred, and compelled to retire from the arena. In 1856, for instance, Pereire, in conjunction with Hottinger Thurneysser in Paris, and Stieglitz in St Petersburg, succeeded, in spite of all the frantic efforts and the immense and varied influence brought into play by Baron James, in gaining a concession for the construction, during a period of eighty-five years, of a network of railways throughout the Russian empire. This enterprise is certainly one of the greatest and most lucrative of the present century.

Having been thus defeated in his endeavours to secure the concession for the Russian railways, Baron James revenged himself by founding the Vienna Credit Bank. The different offers that were laid before the Austrian Ministry of Finance resolved themselves into two groups, at the head of which stood the Rothschilds on the one hand, and Pereire on the other. In the position it held on the European money market each of these two great houses possessed material advantages, which brought out prominently its individual character. The name of Rothschild had about it a sound of historic fame, of well-merited popularity, and of world-wide wealth which carried with it immense weight, whilst, in addition, its interests and business were looked after by the different members of the family residing in all the great capitals of Europe. The house of Pereire, on the other hand, had in its favour the greater energy, the higher administrative ability, and the superior capacity of its chief. Both houses were all powerful on the great European markets, and for the sake of the new institution it was eminently desirable that the rivalry between the two should cease and a fusion of interests take place. This to all appearances was the opinion of the Finance Minister, who wished to give no decision as to the merits of the two proposals until every effort to secure the alliance of the rival firms had been exhausted. There seemed to be some probability of the much-desired union being consummated, but Pereire, in a letter from Paris, declared he would not undertake the establishment of the new bank in conjunction with Rothschild, unless the latter promised to abandon his opposition to the Credit Mobilier, another of Rothschild's powerful rivals. Baron James positively refused to give the promise, and the negotiations fell through, the ultimate result being that the establishment of the new bank was, as we have said, entrusted to the house of Rothschild.

That Baron James was not successful, in spite of iis most careful calculations and circumspection, in all his enterprises, the reader knows. Unforeseen circumstances will crop up at times to mar the best- laid plans, and the Baron, like others, was not exempt from Fortune's freaks. Great as his winnings were, his losses were on a correspondingly large scale whenever his usual luck deserted him; the amounts he lost at a single stroke were indeed so enormous that they can scarcely be credited. One of his heaviest losses was undoubtedly that caused by the frauds of Carpentier, the accountant or cashier of the North of France Railway. The particulars of this gigantic robbery, without a parallel in the history of crime, were published in one of the papers, and were as follows:—

" The mystery surrounding the theft from the Northern Railway is by degrees being cleared up. The directors try to furnish as few details aa possible regarding this event, which does poor credit to their prudence and watchfulness. They at first desired to give no publicity at all to it; the Paris press had been won over, but, as the foreign journals would not allow the occurrence to be buried in silence, the Northern Railway was forced to step forward with its explanation, in which the losses were set down at six million francs. This estimate is, however, far from correct; it speaks only of the theft of shares, whilst the thieves also emptied the safes of all the money they contained. It has not been ascertained what is the exact loss the Railway will have to suffer; indeed it is a matter of some difficulty to discover the extent of the frauds, as the thieves have destroyed nearly all the papers which could help to elucidate the precise nature of their proceedings. The amount stolen is estimated to amount to from 30 to 32 millions. The loss will not fall on the Northern Railway alone, as Messrs Rothschild, Andre', and De Moray will have to bear their share. Carpentier, Grellet, and their accomplices must have been planning the execution of their project for a long time past, for they had already previous to their flight realized large sums, and six months ago purchased a steamer in England for 1,800,000 francs. From papers discovered after their flight it would appear that they have bought a house in New York, which is, perhaps, the reason why they have left England for America. How far back the embezzlements extend is not yet known, although it has been discovered that the fugitives have been selling shares on the money market here for a long time past. In order to be able to produce

z

the proper number of shares when an examination of those left in their care took place, they adopted a very clever artifice. The shares deposited with the administration were kept tied up in packets of 1,000 each, and the thieves with the assistance of some of the subordinate officials, who were all more or less in the swim, abstracted from each of these packets 200 or 300 shares and tied the packets up again. When the examination, which to all appearances was very superficial, took place, the full number of shares was seemingly forthcoming, and the embezzlement remained undetected. In this way the thieves were able to realize a considerable sum before they carried out their grand and final stroke. Carpentier was the first to quit Paris; he had solicited leave of absence for four days from Rothschild, who readily granted the favour. On this occasion Carpentier had a long conversaticn with Rothschild, with whom it is well known he was a great favourite. Baron James had just done a, fine stroke of business and told Carpentier that Ms winnings amounted to some five millions. 'If/ continued the rich banker, ' my Algerian Railway speculation turns out all right, I hope to add three more millions to my five/ ' Will you put them before or after your five millions?' asked Carpentier; ' will you pocket thirty-five or fifty-three millions? Put them in front, and hand me your five millions, you will still have a nice little sum left for yourself.' Rothschild laughed at the joke, but would not surrender his five millions. ' I cannot give you my five millions, but here, take my chain; it may serve as a friendly souvenir of this day, which has brought me so much pleasure and profit.' The chain was, we need hardly say, of great value, and Carpentier, although he had already provided himself with far greater wealth, did not despise the offer, and sent the chain as a present to his brother before leaving Paris. From the above conversation, which Rothschild communicated to his friends, it will be seen that he and Carpentier were on the most confidential terms. It was Rothschild who had obtained Carpentier his appointment as chief cashier in the Northern Railway Company, and his rage and fury on learning how his protege" had misconducted himself were terrible. He tried every possible means to secure the capture of his ungrateful and dishonest favourite, and when, accompanied by detectives, Monsieur T of the

Northern Railway started off in pursuit of Carpentier, Rothschild opened an unlimited credit in his agent's favour, saying he was to hesitate at neither expense nor means—that he, Rothschild, would readily give ten millions to get Carpentier in his power. From Paris Carpentier proceeded direct to London, and thence to Liverpool, where the steamer he had purchased was lying. He had her got ready at once and gained the high seas. He there waited for his accomplices to join him. During Carpentier's absence Grellet was placed in charge of the cash. On the day the clerks and workmen of the railway were to be paid, he was not at his post. Information was sent to Rothschild that he had not appeared. Rothschild, who had no suspicions of anything wrong, proceeded to the offices of the Company, and by means of the duplicate keys in his possession opened all the safes, in order to give out the sums required for the payment of the workmen. He opened the small safe, only to find it quite empty. His suspicions were at once aroused, and he ordered the manager to observe strict secrecy, as he would bear all responsibility; he then opened the large safe; that was likewise empty. The loss of shares was not discovered till later. Measures were at once taken to procure the arrest of the thieves, but they had got so good a start that Grellet was able to join Carpentier unmolested. With Grellet and Carpentier, four subordinate officials disappeared; Carpentier likewise took with him his mistress, a Mademoiselle Georgette, who had been living in Paris in a very extravagant style. Carpentier and Grellet are still very young men; the former is fair, looks exceedingly delicate and pale, and appears to be in a consumption. Grellet belongs to a very good family, and has a large private fortune, said to amount to 500,000 francs. The statement that he and Carpentier were driven to their crime by losses on the Stock Exchange and fast living is false; both, on the contrary, led very regular and quiet lives, and, if they lately have been spending money freely, that is only a consequence of their criminal conduct. They were in no way driven to crime; they simply plunged headlong into guilt."

The immense services rendered by Baron James de Kothschild to the State were recognized and rewarded by the Government, who showered upon him titles and decorations of every description. During the reign of Louis XVIII., when the proud aristocracy had its own way in everything, the Baron was not on the most friendly terms with the Government, owing to a slight which he received at their hands. It is said that, as a modest reward for his services, he asked that his wife might be introduced at Court; but, when the haughty Duchesse d'Angouleme was consulted, the favour was refused, as she declared that she was quite scandalized at the suggestion. “It must not be thought of,” said she; “you must not forget that the King of France is the most Christian King.” However, Baron James punished this narrow- minded prejudice in his own way: during the remainder of the reign he withdrew his support from the King, and quietly declined to aid either financially or by advice a Government swayed by such mean and paltry principles. The revolution of 1830 made amends for the slight he had suffered. He welcomed the new Government, which he supported with all his influence and money, and became on the most intimate and friendly terms with the new Court. He dined regularly every week at the Palais Royal, and the King's sons never failed to be present at the soirees held in the Rue Laffitte. During the reign of Louis Philippe the influence of Baron James was all-powerful; the reign has been called the reign of stock-jobbing and speculation. It was no longer Baron James who had to solicit favours from the aristocracy; it was the aristocracy who sought the patronage and aid of the rich banker. The splendour and luxury of the entertainments given in the Chausse'e d'Antin were never equalled by any given by the Court. The banker's house on such occasions was thronged with a crowd of persons distinguished in the diplomatic and financial worlds. To procure an invitation from Baron James was almost more highly thought of and sought for than a presentation at Court. Smarting, perhaps, under the recollection of the snub once given him, Baron James took a delight in humiliating those who now cringed to him. His roughness of manner, and his blunt if not coarse mode of speaking were well known, and many anecdotes of his utter disregard of politeness have been published. The higher the rank of the victim the greater the pleasure Baron James derived from the confusion and pain caused by what he regarded as his blunt and outspoken manners. Sometimes he met his match, and would receive a severe rebuff, but even that only disconcerted him for a moment. Amongst his guests at the Rue Laffitte on one occasion was Prince Paul of Wiirtem- berg, who had honoured him by accepting an invitation for dinner, during which Baron James persisted in disregarding all etiquette and in addressing the Prince in a most annoyingly familiar tone. At first the Prince treated his host's conduct with contemptuous silence, but, as that proved insufficient, he at last rose from the table and left.

A Conservative deputy met Baron James at the Opera, and inquired how he was. “Not so bad.” “And the Baroness?” “What concern is that of yours?” replied the Baron, turning his back roughly on the speaker.

Those who suffered most from this objectionable practice of Baron James were artists, journalists, and others, who, being indebted to him for his patrona.ge, hardly felt bold enough to rebuke his unmannerly behaviour. Jadin was painting some frescoes in the dining-room belonging to Baron Salomon de Rothschild, when Baron James entered and caught him accompanying himself in his work by singing and whistling different airs.

“Holloa! you workman with the decoration, come down a bit; I want to speak to you.”

Jadin gave no reply, shrugged his shoulders to show his indifference, and continued his singing.

This behaviour naturally created for Baron James many bitter enemies, who lost no opportunity of holding him up to ridicule in the press. No doubt much that was printed to his disadvantage had no better authority than the writer's imagination, but still Baron James's character offered many opportunities of attack to those who wished to irritate and annoy the great banker. There was in Baron James's character a peculiar combination of seemingly opposite and antagonistic qualities. On the one side there was the shrewd man of business, ready to sacrifice thousands, if by so doing he could gain millions; while, on the other, stood his well-known benevolence and charity. True to his keen business instincts, Baron James showed in the most trivial matters an anxiety and a determination always to obtain as cheaply as possible what he bargained for. This niggardly spirit was naturally ridiculed by his calumniators in the press. The story of the gardener Paquet is not unworthy of reproduction here.

By a process little known at that time, but common enough now, Paquet succeeded in obtaining three magnificent peaches in the month of January. All interested in horticulture hastened to inspect such a marvellous proof of his skill, and among the visitors was Baron James. The following conversation then took place between the great gardener and the great millionaire. The story reads so much better in French, that we may be excused for printing it in that language:—

“Fraiment, Monsieur le chartinier,” dit-il, “vos baches sent atmiraples. Gombien en vonlez-vous?”

“Qninze cents francs, Monsieur le Baron.”

“Barexemble!”

“C'est tout an juste,” dit Paqnet. “Je ne vou- drais pas vous snrfaire.”

“Drois beches, qninze cents vrancs, Ifein Gott! Et drois beches qui bent-etre ne falent rien.”

“Oh! pour cela,jevous arrSte,” dit 1'horticnl- tenr pique1. “Vous allez avoir immediatement la preuve dn contraire.”

He at once plucked one of the peaches, cut it in two, and offered one half to the Baron, whilst he ate the other himself.

“Qu'en dites-vous, Monsieur le Baron? Vous etes connaisseur; je m'en rapporte a la finesse de votre palais.”

“Dres-ponne! Telicieuse !” dit Rothschild cro- quant la peche.

“Oui, c'est de la meilleure espece. Chair ferme, saveur exquise. En plein air, cette espece-lti ne murit qu'au commencement de Septembre.”

“Foyons, Monsieur le chartinier, ce n'est has fotre ternier brix?”

“Pardonnez-moi. Quinze cents francs, comme j'ai eu 1'honneur de vous le dire.”

“Eh,” s'e'cria le juif, “blaisantez-vous? II y a une beche te moins !”

“N'importe, c'est toujours quinze cents francs— pour vous, Monsieur le Baron. Ce sont lei des fruits de millionaire; je n'en rabattrai pas un centime.”

Rothschild finally bought the peaches, when the meaning of the gardener's conduct became clear to him.

The well-known anecdote of Vernet the painter did not end so pleasantly for the Baron. When he called and inquired how much the painter would charge to execute his portrait, he was told—

“For you, Monsieur le Baron, it will be four thousand francs.”

“The devil! It will cost you only two or three hasty strokes from your brush. Come, now, that strikes me as being rather dear.”

“Ah, you deal in the arts, do you?” exclaimed the artist, with a shrug of his shoulders. “Ah, well, it will be four thousand francs, not a centime less.” And, when Rothschild manifested his surprise, the painter continued: “If you add another word it will be three times the sum. Am I to paint it or not?”

Baron James hastened to quit the studio, apparently alarmed at being in company with one who was, he believed, perfectly mad.

“Wait a moment!” cried the artist after him, “I will do your portrait for nothing.”

And he kept his word. In his picture called “La Smala” can be seen a hideous-looking Jew, running away with a casket of jewels and money, his face expressive of the most sordid avarice and ill-concealed fright. That portrait is a gross caricature of Baron James de Rothschild.

However illiberal he was in matters of business, Baron James could display bounteous liberality on occasions when his business instincts were not touched. But even his immense and well-known beneficence was misconstrued and attributed to interested motives, owing to the belief that a man could not be so lavish in hia gifts who was known to be so close in his every-day conduct. For many years the greatest suspicion and disbelief of the purely disinterested nature of the Baron's charity prevailed among the public, and this opinion was fostered and encouraged by the vile calumnies printed in the press. In 1847, Baron James, foreseeing the distress and want likely to result from the poor harvest of 1846, took energetic measures to provide a remedy for the evil. He bought, in the European and American markets, prodigious quantities of corn, which he afterwards sold at an immense loss in Paris. An enormous bakery was started in the Chapelle Saint-Denis, where the starving poor were able to procure bread at a large reduction. But the most generous plans, the most charitable projects, prove abortive when they emanate from the brain of a man in bad odour with the public. No trust was put in the good nature of the great Jew; the most violent diatribes appeared in the papers every day, telling the public to be on its guard; that his bread was not bread at all; that his flour was not flour. It was bran; it was plaster, mixed with arsenic. Others asserted that Baron James had bought large quantities of damaged flour and that he concealed its bad quality by mixing with it sweet almonds, his calumniators quietly ignoring the fact that sweet almonds are far more costly than the best flour. In addition to the enormous sacrifices made in supplying corn to the distressed population, Baron James, in 1848, subscribed no leas than fifty thousand francs in aid of the wounded and the unemployed workmen. This was certainly a display of the most liberal generosity, seeing that he had himself much to fear from the excesses of the excited populace during the outbreak of the revolution. It must have been an anxious time for him as he learnt of the excesses of the mob, every moment expecting it would be his turn to receive a visit from them. But among those having influence and control over them was Marc Caussidiere, who was not unmindful of the charitable munificence of Baron James. By his orders guards were stationed not only round the hotel, but also round the suburban villas of Baron James, whose anxiety was relieved by the grateful thoughtfulness of the citizen. Less than a year after, Baron James proved that he was capable of appreciating the admirable conduct of Caussidiere, who, when he reached London, an exile and a beggar, received the following note from Paris:—

" SlE,

" Allow me to place at your disposal the sum of thirty thousand francs. This little capital will enable you to start some business in the hard land of exile. You may return it to me in ten, twenty, or any number of years you please. It is a feeble testimony of my gratitude for the great services you have rendered the country.

" I am, &c. &c.,

“Rothschild.”

Even this display of gratitude was reported to be owing to prudential and selfish motives, for it is asserted the Baron said: “The devil is never conquered; who knows but that he may return?” It is, however, satisfactory to learn that these thirty thousand francs paved the way to Caussidiere's fortune, as he started a wine and brandy business, which eventually proved Tery lucrative.

If all the stories related of him be true, Baron James displayed remarkable skill in being charitable at the expense of others. He was frequently reproached with his disregard of, and want of sympathy with, his co-religionists in misfortune, and it was suggested to him that he might at least give them the benefit of some Stock Exchange operation. The hint was taken: a manoeuvre was carried out one fine morning to effect a rise in the market and was followed almost immediately by a fall which enabled the Baron to make a profit of 850,000 francs, which sum he devoted to the construction of the Jewish Home in the Rue Picpus.

On another occasion he granted an interview to

Felix S , a man of considerable talent, who

laid before him the plan of a vast undertaking, which as Baron James acknowledged appeared both novel and ingenious as well as possessed of every quality necessary to secure its success. But, although entertaining so favourable an opinion of the scheme, he positively declined to embark any money to float it. He said, however, “Follow me, and the capital will soon be forthcoming.” He then made his visitor enter his carriage and drove to the Bourse, where they walked up and down, arm in arm, together. They had scarcely separated ere several capitalists hastened to surround the man honoured with the friendship of the king of finance, and after an explanation they assured him of their readiness to support him both by their influence and their capital.

Heine, in referring to his friend and patron, thus described Baron James de Rothschild: “He was a remarkable personage, whose financial abilities I do not pretend to analyze, but they must have been considerable, if their results are any criterion to go by. He possessed the peculiar gift or instinct of observation, by which he was enabled to discover the capacities of other people in every sphere of life. Many persons have on this account compared him to Louis XIV., and truly, in contrast to his colleagues who surround themselves with a generality of mediocrity, Baron James was always to be seen on the most intimate footing with the notabilities of every rank and station. He always knew who was the best man in any business, even if that business was a mystery to him. Though he probably possessed little knowledge of music, Rossini was his constant companion; Ary Schefier was his family painter; Care'me was his cook. He certainly understood not a word of Greek, and yet the Hellenist Latrone was the scholar whom he favoured mostly. His physician was the genial Dupuytren, and the most brotherly affection existed between them. At an early date he duly appreciated the worth and ability of Cremieux, whom he found to be a trusty advocate. At the very outset he recognized the political abilities of Louis Philippe, and was always on confidential terms with that great master of the arts of diplomacy.”

Baron James de Rothschild died on the 15th November, 1868.

The present head of the firm in Paris is Baron Alphonse de Rothschild, the eldest son of Baron James. He inherits much of his father's financial talent, and is acknowledged by the rest of his relatives as the shrewdest and most able man of business among them. He is the head of the family not only on account of his ability, but also on account of his seniority, as he is the oldest of Mayer Amschel Rothschild's grandsons. For some years before his father's death he took an active part in the conduct of the firm's business, whence we may infer that he is indebted to the careful training he then received for much of the remarkable skill he has since displayed in operations of the greatest magnitude. All grand international loans, i.e., loans issued on behalf of a particular Government in several countries simultaneously,— are invariably submitted first to Baron Alphonse, as he is known to be the best judge of the time and conditions most conducive to the success of such undertakings. The number of loans issued under Baron Alphonse's management is large and embraces almost every nationality in Europe. The good fortune attending these financial operations is proved by the numerous decorations and orders which he has received from the hands of monarchs anxious to recognize the obligations they feel they owe to the head of the Rothschild family. The business of the Paris firm is by far the largest and most extensive of all the Rothschild firms; it embraces not only loan operations, but commercial speculations and undertakings of every description. Its banking business is enormous, and in this respect it differs from its colleagues in London, Frankfort, and Vienna, whose business is more purely mercantile, or limited to bill discounting and Stock Exchange operations. The most responsible undertaking of the Paris firm under Baron Alphonse's management was the payment of the indemnities to Germany at the conclusion of the Franco-German War. This immense operation called into play all the resources and energies of the Rothschild family and its allies. The mere anxiety and mental labour connected with this vast undertaking would have prostrated any man of inferior calibre. For months Baron Alphonse and his clerks worked incessantly day after day, Sundays included, to almost midnight. The strain on the brain and the constitution was fearful; many even now feel the effects of this trying period. Great as was the anxiety connected with this business, Baron Alphonse no doubt considered it nothing in comparison with that which the lawlessness and violence of the Commune inspired. To curry favour with the mob, Baron Alphonse was compelled to serve, as he had done in 1848, as a volunteer on the ramparts. But even that did not render the property of his family secure from the attacks of the petrolists. More than one of the mansions belonging to members of the family were invaded and despoiled by bands of those wretched fanatics. In one instance the house had been besmeared and sprinkled with petroleum with a view to its being set on fire, but the presence of mind displayed by the butler averted this catastrophe. He hinted to the unwelcome visitors that the cellars contained a large stock of the finest wines; the hint was acted upon at once, and ere long the butler had the satisfaction of seeing the whole of the ruffianly crew in a state of intoxication. He then sent to the military for aid, the result being that the petrolists were all carried off to pay the penalty of their wanton deeds. Baron Alphonse, in common with his fellow citizens, found that much greater harm was to be expected from the enemies of order living within the walls of Paris than they had ever reason to dread from the shells of the invading Germans. During the siege, the Rothschilds felt no very serious apprehension, seeing that they had secured the safety of the bulk of their property by transferring it to the care of their relatives in London or elsewhere. To them even the privations of the siege were mitigated, as they were able, thanks to their influence with both the German and French staff, to pass convoys of provisions through the lines. It is well known that the utmost care was taken by the Germans that no injury should be done to Baron Alphonse's chateau at Ferrieres. This chateau was made the German head-quarters. It was here that Jules Ferry came to arrange the terms of the capitulation with Prince Bismarck and the Prussian generals. The strictest orders were given respecting the preservation of the building. None of the furniture, nor any of the valuable paintings and sculptures were allowed to be displaced or removed. It was even forbidden to shoot any of the game in the park without special permission. This act of favour gave rise to a certain amount of grumbling and heartburning among the German soldiers. Provisions, especially meat, were none too plentiful in the German lines, and it was not considered just to let the troops want, simply to confer a favour on one whom all regarded as an enemy. In their advance to Paris the soldiers had been allowed to seize cattle and sheep, but now, with the prospect of a long siege, they were to suffer hunger when plenty was before their mouths. Nothing could demonstrate more clearly the immense influence commanded by the Rothschilds, than this scrupulous regard shown by the Germans in preventing the spoliation of their property. But, however safe his property outside Paris may have been, it was different with that inside, and Baron Alphonse knew little peace of mind as long as the siege and the Commune lasted. So intense was the anxiety he suffered during this trying period, that his hair, from being jet-black, was turned to grey in a single night. Since the war France has been blessed with peace, which has greatly contributed to the re-establishment of her fallen fortunes. How long this will continue we cannot say, as she seems ordained to suffer from internal troubles at certain intervals.

Chapter X.

ROTHSCHILDIANA.

the foregoing pages we have endeavoured to present the reader with a clear insight into the characters of the heads of the different firms by means of a number of anecdotes which are both more effective and more entertaining than mere description. The anecdotes already given we have good reason to consider authentic, but there are many others which are undoubtedly the creation of lively imaginations, and have little foundation in fact. The Rothschilds have so long held a prominent place in public affairs, their sayings and doings have been so closely watched and reported, that it is not surprising to find that innumerable tales have been published about them. A large number of the anecdotes are, as we have stated, quite unreliable, still there are some so highly characteristic, that it is difficult to believe them entirely devoid of truth. This state of things was somewhat embarrassing. We were at first inclined to omit all anecdotes about the authenticity of which we did not feel confident, but, as their perusal is pretty sure to afford some amusement, we have, on second thoughts, deemed it our duty to bring them together in a separate chapter, without pledging ourselves in any way for their truthfulness. With this reservation we submit the following stories to our readers, who can decide whether we were justified or not in our course of procedure.

Baron Anselm von Rothschild on one occasion lost a ring which he prized very highly, not on account of its intrinsic value, but because it had been given him by the Emperor of Austria in recognition of the valuable services rendered by the family to the imperial monarchy. The Baron offered a reward of three hundred and fifty florins a year to the person who should restore the cherished ring. The daughter of a humble publican proved to be the lucky individual. She presented herself with great humility at the residence of the wealthy financier, who recognized the article with demonstrations of the liveliest pleasure, and caused five hundred florins to be paid the girl in advance, though that was something beyond the amount of the annuity. He also gave instructions for a bond to be drawn up to secure the regular payment of the allowance in future. Having received her recompense, the girl ran home to her parents, in order that they might share in her happiness and good fortune. The old people could scarcely believe that their daughter had received so handsome a reward for the discovery of an article of such little value. After some consideration they concluded that, rather than wait for the annual allowance, it would be more advantageous to obtain a lump sum down, as they might thereby be enabled to purchase the house in which they lived. The girl returned to Rothschild, who received her very affably, and, having learnt her object, was pleased to give her the sum of seven thousand florins in ready money in lieu of the promised annuity.

Dr Busch, the biographer of Prince Bismarck, records, in his well-known work “Our Chancellor,” an amusing anecdote of Baron Anselm, which deserves reproduction in these pages. He says:— “At dinner, at which were Marshal of the Household Perponcher, and a Herr von Thadden, who was designated as a member of the administration in Rheims, the Chief told several good anecdotes of Baron Rothschild in Frankfort. On one occasion he had spoken in his presence with a corn merchant about a sale of wheat, when the merchant said to Rothschild, that being so rich a man he would never think it necessary to put the highest price on his wheat. ' What rich man do you mean?' replied the old gentleman; ' is my wheat worth less because I am a rich man?' He used to give dinners sometimes which were quite worthy of his great riches. I remember once when the present King was in Frankfort I invited him to dinner. Later in the day Rothschild also asked His Majesty to dine with him, to which His Majesty replied, that he must settle matters with me; for his own part he did not care with which of us he dined. The Baron now came and proposed that I should cede His Majesty to him, and that I should join them at dinner. I refused this, and he had the naivete to suggest that his dinner might be sent to my house, although he could not eat with us, as he partook of only strictly Jewish fare. This proposal also I begged leave to decline—naturally, though his dinner, doubtless, was better than mine.—Old Metternich, who, by the way, was very kind to me, told me that once when he had been visiting Rothschild, the Baron gave him some luncheon to eat on the way back to Johannisberg. With the luncheon were packed six bottles of Johannisberg wine. When Johannisberg (Metternich's estate) was reached, these bottles were taken out unopened. The Prince then sent for his wine steward and inquired how much that wine cost him a bottle. ' Twelve guldens/ was the answer. ' Well, take these bottles, and the next order you get from Baron Rothschild, send them back to him, but charge him fifteen guldens, for they will then be older. '”

Dining on one occasion with Baron James de Rothschild of Paris, Eugene Delacroix kept his eyes turned upon his host in so marked a manner that when the company rose to leave the dining- room Baron James could not help asking his guest what it was that so attracted his attention. The painter confessed that for some time past he had vainly sought a head to serve as a model for that of a beggar he intended to hold a prominent position in a painting on which he was then engaged, and that, as he gazed at his host's features, the idea suddenly struck him that the very head he so much desired was there before him. With this explanation, he ventured to ask whether the Baron would do him the favour to sit to him as a beggar. Rothschild, being a great admirer of the art in all its forms, and pleased to be considered one of its chief patrons, readily consented to sit in a character probably never before assumed by a millionaire. The next day found him at the painter's studio. Delacroix placed a tunic round his shoulders, put a stout staff in his hand, and made him pose as if he were resting on the steps of an ancient Roman temple. In this attitude he was discovered by one of the artist's favourite pupils, who alone had free access to the studio at all times. Struck by the life-like excellence of the model, the newcomer congratulated his master at having at last found exactly what he wanted. Naturally concluding the model had only just been brought in from some church porch, and never dreaming the character assumed by him was far from his true one, he seized an opportunity when his master's eyes were turned to slip a piece of money into the beggar's hand. Rothschild thanked him with a look, and kept the money. The pupil soon quitted the studio. In answer to inquiries made, Delacroix stated that the young man possessed great talent but no means; that he had, in fact, to earn his livelihood by giving lessons in painting and drawing. Shortly afterwards the young fellow received a letter stating that charity bears interest, and that the accumulated interest on the amount he had so generously given to one whom he supposed to be a beggar was represented by the sum of 10,000 francs, which were lying at his disposal at the office in the Rue Laffitte. Amongst the endless number of rich and handsome articles Baron James had diligently collected, his guests seldom failed to be struck with admiration by a magnificent porcelain service, of singular beauty and design, and remarkable for the superb paintings which adorned its exterior. The history attached to the acquisition of this service is as singular as its beauty. One day an old man, feeble, decrepit, and to all appearance on the verge of the grave, solicited an interview with the Baron. At the very outset the old man's careworn looks and destitute condition awoke the latter'a lively sympathy, and this sympathy was strengthened on learning that his visitor was a co-religionist. The old man produced from a bag a plate of such exquiBite design and finish, that Baron James, with the instinctive envy of a virtuoso, felt he must at any cost become the owner of such an artistic treasure. After stating he was in a most destitute condition, the visitor proceeded to say that want had compelled him to part with many articles which he had regarded as heirlooms. The plate, he declared, belonged to a service which he had reserved to the last, hoping against hope that necessity would never compel him to part with it, but alas! the time had come when the claims of his starving family could be stopped only by relinquishing possession of this, the last resource against famine.

“I come to offer this service to you, M. le Baron, thinking that so beautiful a work of art can find a fitting resting-place only in the midst of your well- known collection. Will you buy it?”

“It is indeed beautiful; what do you ask for it?”

“Look you, sir,” said his visitor, " I am now an old man, bowed down with years, and have not long to live. I am poor, but I wish if possible to end the few remaining years of my life as comfortably as I can. Will you, in exchange for this valuable porcelain service, give me an allowance for life of one hundred francs a month? It is a trifle to you, and

I am so old !"

The Baron reflected a moment, examined the

plate afresh, and at length answered: " Well, be it

so; here is the first payment; send me the service,

and leave me your name and address, that the money

may be sent to you regularly."

The porcelain service was duly delivered. A

month later, as the Baron was sitting in his office, a

man entered, and claimed payment of the allowance

then due. The new-comer was young, stoutly

made, of a vigorous constitution, and likely to live

for another fifty years.

" But you are not the man to whom I promised

the allowance !" said the Baron.

“Excuse me, I am indeed the man.”

“But he was at least eighty yeara of age.”

“You are mistaken, I am but thirty.”

" But your aged appearance and careworn looks

were certainly unmistakable."

" Thanks to your great generosity, my recovery

has been rapid and surprising."

The Baron smiled at the remark, and gave orders

for the payment of the money, exclaiming as he did

so:—

“Ah! you are an excellent comedian, and have taken me in completely.”

“You flatter me; I am probably the first who has done Bo,” answered the Jew, politely bowing to the millionaire.

Strange as were the circumstances and terms on which the service was bought, Baron James had little reason to repent of his bargain.

This reference to objects of art reminds us of another anecdote, of which, if we remember rightly, Baron Alphonse was the subject. On one occasion he started out for a walk, and presently found himself in the district immediately behind the Pantheon. As the neighbourhood was quite strange to him, he soon lost himself. No cabs or omnibus were to be seen anywhere, nor did anyone pass of whom he could inquire his way. At first the situation rendered him somewhat nervous, but presently, when he thought of the strange novelty such a predicament was to him, he became reassured, and laughed in anticipation at the amusement the adventure would afford him. He therefore continued to walk on without troubling himself as to his whereabouts. Presently he passed a shop for the sale of second-hand goods, and his quick eye

B B

caught sight among the rubbish of an article which struck him as worth inspection. It proved to be an antique barometer of the time of Louis XVI. It bore no trace of its original gilding, although the carving was still in a perfect state of preservation. Being a good judge of such things, and an ardent collector, the Baron determined to buy it. The price asked was ten francs, and the Baron congratulated himself on having secured so great a bargain. On putting his hand into his pocket, he discovered that in his hurry he had forgotten to bring his purse with him. It was a day of accidents.

“Well, it does not matter; I will take the barometer at all events,” he said to the shopkeeper. “Send it up to my hotel; I am Baron Rothschild; you will receive the money when you deliver the barometer.”

“I do not know either your name or address, sir, nor do I ever send things out that are not previously paid for.”

This was a startling rebuff for Baron Rothschild. It was a perfectly novel experience to meet with anyone ignorant of his great name. Being, however, in a good humour and regarding it as part of the day's adventure, he was only the more amused. He was about to explain who and what he was, when he happened to notice a porter passing on the opposite side of the road. Beckoning to the man, he asked him: “Have you ever heard of Baron Rothschild?”

“Well, that is a queer question ! Heard of Baron Rothschild? Of course I have; but why do you inquire?” said the man, somewhat crossly, as if he suspected his interlocutor was jesting.

“Because madame here has just refused to trust him for ten francs,” was the reply.

“Is that really true, Madame Duclos?” said the porter, in great astonishment.

“Yes, to be sure, Monsieur Pierre; one cannot know everybody,” answered the shopwoman with a shrug, “but I know you, and if you will become guarantee”

At these words the Baron interrupted the woman with such a hearty burst of laughter that it was some minutes before he could recover himself.

“Well, Monsieur Pierre,” he said, still laughing, “if you will kindly become surety for me, will you go and call a cab, and then we can take the barometer home.”

The porter required no second bidding; he hastened off and soon returned with the cab. They then drove to the Baron's house, where the porter received a handsome reward for his exertions.

Attempts to ruin the Rothschilds as well as to frustrate and wreck the operations undertaken by them have frequently been made by persons jealous of their extraordinary success. It is needless to say that all such attempts have signally failed. At the outset luck has sometimes favoured these bold but reckless opponents, but it has been owing to the sufferance of the Rothschilds, who, conscious of the enormous power at their command, knew they could crush their upstart rivals at any moment they pleased. Such attempts would be more common were it not known that the only chance of rendering them successful would be to operate on as extensive a scale as that habitually adopted by the great financiers. One of the boldest of these

would-be rivals was a Mr James H , who

bought and sold enormous amounts of stock in a very brief period, and, so far from imitating the secrecy marking Rothschild's operations, deemed it essential to the success of his scheme that all his dealings should be done as publicly as possible. He was the son of a wealthy country banker, and at the time he commenced speculating on 'Change had £50,000 stock inscribed in his name, though the stock was really his father's. The reputation of owning so large an amount of stock was very useful on 'Change, as it conferred upon him and his transactions an importance which would otherwise have been wanting. After some time had elapsed the stock was transferred back into his father's name. At the outset, and until he had perfectly mastered all the rules and usages of the House, he acted with the greatest prudence and discretion, confining himself to transactions of a very humble nature. Gradually he enlarged his operations, and the “natives,” as the members of the House were called, began to look upon the boldness of his dealings with mingled surprise and admiration. Success attending his speculations, he was watched and followed in them by a crowd of persons such as will always hang about a successful man. He became a power on 'Change; bulls and bears alike dreaded him, for he was as independent in his dealings as Rothschild himself.

Consols, at the time of which we are writing, were quoted at about 96. A few months later symptoms of a panic set in, and the unfavourable tendency of the market was aggravated by the fulminations hurled, for reasons best known to himself, by a well-known writer on money matters against the Bank of England. In spite, however, of these adverse circumstances, prices showed a

decided unwillingness to fall. Mr H studied

the state of the market closely, and, being convinced in his own mind that a leader alone was wanted to carry on a successful war against the Rothschilds, determined that he himself would be that leader. He at once began his attack by selling out £200,000 Consols at 96. This operation concluded, he advertised it well, and made known his willingness to sell £1,000,000 more. Purchasers were found for the whole at prices varying from 94 to 90, at which price Consols closed for the day. The next day he resumed his tactics to depress the market, and so successful were they that Consols closed at about 84. As might have been expected, a run on the Bank of England took place, simultaneously with this sudden and unlooked-for fall in the price of Consols. He then repurchased so largely that when a reaction set in and prices recovered, his gains amounted to more than £100,000. But the rivalry of Mr H did not long continue to trouble Rothschild. Emboldened by the success of his first effort, he tried to repeat his attack two years later, and even on a larger scale. Rothschild, however, had his eyes about him, and, divining his rival's plans, laid a trap into which that rival fell.

The result was that Mr H was utterly ruined.

He was declared a defaulter and his name stuck up on the black board of the Stock Exchange. Then, and not till then, was it discovered that the £50,000 stock was not his own, as had been supposed, but his father's.

At a charitable sale, held in 1858, at the Hotel Lambert in Paris, by the Princess Czartariska, in favour of the distressed Poles, an incident took place between Georges Sand and Baron Rothschild. Madame Dudevant (Georges Sand) had a stall on the occasion, and displayed a number of fancy articles for sale. Baron Rothschild happened to pass, and the fair saleswoman addressed him with the usual request to buy something. “What am I to buy?” said the Baron; “you have nothing at all suitable for me. But stay—an idea strikes me. Give me your autograph. Sell me that.” Madame Dudevant took a sheet of paper and wrote upon it as follows:—“Received from Baron Rothscliilfl the sum of one thousand francs, for the benefit of the distressed Poles.—Georges Sand.” Baron Rothschild read it, thanked her, and, handing her a note for the amount named, went away highly gratified.

It is well known that the life-long ambition of all true Americans is to do Europe before they die, and none can vie with them in the thoroughness with which they do do the sights and places of interest they may happen to visit. Their curiosity is insatiable, and is only equalled by their irresistible determination to satisfy it at all costs. No false modesty deters them from questioning strangers. They will accost the first man they meet, if they think he can remove their doubts or add to their knowledge. The following account, written by an American, confirms our statement, and explains itself:—

"When I arrived in England I set myself to work to accomplish the object of my journey—to see all that I could; and in doing so I attracted much attention. I made many acquaintances, and was told by them that I was the best representative of my nation they had ever seen. In curiosity, and a determination to gratify that feeling I think I was. I spared no pains to see all the sights and hear all the gossip that came in my way. This characteristic at last brought me into an awkward predicament, which I purpose to describe in the following anecdote. One morning, while I was in London, I started out for a walk. I had heard a great deal about the famous place which the Rothschilds were building, and I sallied forth on this particular morning for the purpose of seeing it. I soon reached it; and through the kindness of the master builder was shown over it. I had finished my inspection, and was standing on the side walk gazing at it with undisguised admiration, when I noticed a gentleman a few feet from me, watching the building. He was a fat, portly old fellow, with a good-humoured face, in spite of his haughty look, and I thought from his appearance he might be the contractor for the work, so I determined to accost him and gain what information I could.

"' Good morning, sir/ I said, approaching him. He bowed politely, but without speaking.

"' I am a stranger here/ I went on; ' I have been looking over this building, and I would like to ask you for some information concerning it.'

"' I shall be happy to oblige you/ said he, politely. He was very kind in telling me much that was of interest. At last I said, abruptly,

" ' I suppose you have seen Rothschild, sir?'

" ' Which one? ' he asked.

"' The old cock/ I replied.

"' I see the old cock every day/ he answered, giving me a strange glance.

" ' By George/ I went on,' I should like to have a look at him ! People say he is a gay old chap, and lives high. I wish I had him in my power— I'd not let him get away until he had shelled out a pile of his money.'

" The old gentleman burst out into a laugh.

"' Baron Rothschild had to work for his money, and deserves to enjoy it/ he said, at length, when he had got over his merriment.

" ' May be so/ I remarked; ' but I reckon he did a heap of squeezing to get it.'

" The old man's face flushed.

"' I never heard the honesty of the house called in question/ he said, stiffly.

"' Didn't you? Well, to tell you the truth, neither have I. But I wouldn't be surprised if I'm right, after all.' The old man's. face grew as black as a thunder-cloud, and he bit his lip without speaking.

"' People tell me/ I continued, not heeding this, for I thought it natural that the old fellow should be annoyed at anything said against his employers, 'people tell me the Rothschilds have made two fortunes. Now, as most people can make only one, I feel somewhat interested to learn the manner in which this was done. Can you tell me, sir?'

"The old man's face brightened instantly, and he replied, smilingly, with more politeness than he had as yet manifested:—

"' Certainly, sir. People do say the house of Rothschilds made one fortune by being careful to mind their own business, and the other by letting that of others alone. Good morning, sir.'

" With an elegant bow he turned and left me staring at him in blank amazement. I began to smell a rat, and I looked for someone of whom to ask the old gentleman's name. He had stopped at the upper end of the building, and was giving some directions to a workman. I saw a handsome man of about thirty standing a short distance off. He, too, was looking at the building. I liked his face and went up to him.

"' Excuse me for troubling you, sir/ I said,' but I am a stranger in this country, and would like to ask you a question.'

"' I shall be happy to give you any information in my power/ he said, politely.

"' Then can you tell me the name of that old gentleman/ I asked, pointing to my sarcastic acquaintance.

"' Certainly/ he replied. ' That is Baron Rothschild, the head of the house of that name.'

" ' Whew!' I exclaimed in astonishment, ' I've got myself into a scrape then.'

"' What is the matter?' asked my friend, curiously.

" I told him what had occurred between the Baron and myself. He laughed heartily, and remarked pleasantly when I had concluded:

"' That was awkward.'

"' He's a crusty old chap/ I said, considerably vexed; ' he's as cross as a bear.'

"' Oh, that's only his way/ replied my companion. ' He is a good, kind-hearted man, but is rather eccentric.'

"' I should say so/ I replied.

" The gentleman asked me a great many questions concerning America, and seemed interested and amused by my answers.

"' Do you know Baron Rothschild?' I inquired, at length.

"' I have met him several times/ was the reply, ' and I have an appointment to wait upon him today.'

"' Then I wish you'd say to him,' I went on,' that I did not know to whom I was talking this morning, or I would not have said so much; and that he need not have been so huffish about it.'

"'I will do so/ said my acquaintance, laughing. ' You must not mind him. He was a little nettled at it, but will be the first to laugh at the adventure when he recovers his good humour. Good morning.'

" With a bow and a pleasant smile he left me. Just then a workman passed by. I stopped him and asked if he could tell me the name of the gentleman who had just left me.

"' That was one of the younger Rothschilds,' he said, ' and '

“I waited to hear no more, but, pulling my hat down over my eyes, set off at once for my lodgings. I was absolutely afraid to speak to a stranger for a week, for fear he might be a Rothschild.”

PREFACE

Should the following pages prove fortunate enough to be favourably received by the public, they will owe it entirely to their subject-matter. To this, and not to vigour of language or lucidity of style, must be attributed whatever interest they may possess. The Author makes no pretensions to the character of a practised writer and feels that the subject is worthy of a more able and experienced hand; he therefore ventures to solicit the indulgence he so sorely needs for his literary shortcomings, of which no one can feel more conscious than himself. On the other hand, he boldly and frankly claims for his work the merit of perfect and impartial truthfulness; and, in the worda of Montaigne, he conscientiously asserts, with perhaps justifiable pride: “C'est icy un livre de bonne foy, lecteur.”