NOTEBOOK “γ” (“GAMMA”)

LYSIS, AGAINST THE FINANCIAL OLIGARCHY IN FRANCE [1]

Lysis, Against the Financial Oligarchy in France , 5th ed., Paris, 1908 (260 pp.). The chapters are dated November 1, 1906; December 15, 1906; February 1, 1907; May 1, 1907; November 15, 1907.

In the preface, Jean Finot states that the British press has confirmed the fact reported by Lysis (first in La Revue ): A certain person made 12 million francs (p. vii) out of the 1906 Russian loan, besides “a hundred million” (ibidem) in commissions !!

| Date?? | | | | This was discussed at a sitting of the Chamber of Deputies (two days) (when?). |

Four banks have an “absolute monopoly” (p. 11) (not a relative one)—in all bond issues.

| “a trust of the big banks” (p. 12) | ⎧ ⎪ ⎨ ⎪ ⎩ | Crédit Lyonnais |
| --- | --- | --- |
| Société Générale |
| Comptoir d’Escompte + | Banque de Paris |
| | et des Pays- Bas |
| Crédit Industriel |
| et Commercial |

The borrowing country receives 90 per cent of the sum of the loan (10 per cent goes to the banks, “distributing” and “guarantee” syndicates, etc.)—p. 26 .

| Russo-Chinese loan | 400 | million | francs. | Profit | about | 8% |
| --- | --- | --- | --- | --- | --- | --- |
| Russian | |
| (1904) | 800 | ” | ” | ” | ” | 10% |
| Moroccan | |
| (1904) | 62.5 | ” | ” | ” | ” | 18 ¾% | “The French are the usurers of Europe” (29)....

“The financial press almost always enjoys subsidies” (35).

The Egyptian Sugar Refineries Affair: the public lost 90-100 million francs (39). The Société Générale issued 64,000 shares of this company; the price on issue was about 150 per cent (!!).... The company’s dividends were “ fictitious ” (39)....

| “One of the Société Générale directors was a director of Egyptian Sugar Refineries” (39). | | | | !!! |

Fifty persons, representing eight million francs, control 2,000 million francs in these four banks (40)....

What is to be done? “Return to competition” (42)....

“The French Republic is a financial monarchy” (48)....

The 1906 Russian loan: Mr. X , “an intermediary of the banks”, made 12 million (49).

It is impossible to understand anything from the reports and balance-sheets....

“1,750 million in three lines” (57)....

What is the source of bank profits? Stock issues . This is concealed.

“An example: without a prospectus, without publicity, secretly , by the muffled and hidden work of its ‘cashiers’ and ‘business agents’, the Crédit Lyonnais sold 874 million francs worth (nominal value) of Russian Nobility Land Bank bonds. At an average price of 96.80. The market price at present is 66. The loss to the public: 269 million francs !” (pp. 75-76)....

“Alarming export of French capital” (p. 93 et seq.).

France is the “world’s usurer” (119).

The fall in the market price of Russian bonds (as against the price of issue) is such that out of 14,000 million francs, 3,000-4,000 million are lost by the public: that is what the public pays the banks!!!

And endless wailing about the banks not supporting French industry.... Germany is advancing, we are marking time (187 and passim)... “anti-national policy”, etc.

Chapter V is headed:

“Complete Domination of the Financial Oligarchy; Its Hold over the Press and the Government”....

The banks’ means of pressure on the government: lowering the rate of
interest... (!!)

| secret subsidies: |
| --- |
| 1 million to a Minister | } ! |
| ¼ million to an ambassador (p. 212) |
| bribes to the press... | (Has used only newspaper articles, nothing else).

Author’s conclusions: regulation of banking separation of banks of deposit from
banks of issue(d’affaires)
control....
((A commonplace philistine))

---
Notes:
[1] See present edition, Vol. 22, pp. 233-34, Vol. 24, p. 403. Vol. 23, p. 197.— Ed .