Louis-Napoleon and Fould

Our readers will remember that in our last issue we demonstrated how the financial aristocracy in France has come to power again. On that occasion we pointed to the association of Louis-Napoleon and Fould for the purpose of carrying out profitable stock exchange coups. It has already been noticed that since Fould’s entry into the ministry, Louis-Napoleon’s incessant demands for money from the Legislative Assembly suddenly ceased. Since the last elections, however, facts have come to light which cast a very glaring light on the sources of income of President Bonaparte. Just one example.

In our account we shall mainly refer to "La Patrie", the respectable paper of the Union électorale, whose proprietor, the banker Delamarre, is himself one of the most important Paris stockjobbers.

On the elections of March 10 a great speculation à la hausse <for a rise in stock exchange prices> was organised. Mr. Fould was at the head of the intrigue, the leading friends of order took part in it, the camarilla of Mr. Bonaparte as well as himself were interested with substantial sums.

On March 7 the 3% rose by 5 centimes and the 5% by 15 centimes; for "La Patrie" had announced the result of the preliminary election of the friends of order. This rise was, however, too slight for our speculators; the market had to be “heated”. "La Patrie" of March 8, issued the evening before, accordingly announces in its Stock Exchange bulletin that there is not the remotest doubt as to the victory of the party of order. It says, among other things:

“We shall certainly not blame the reserve of the capitalists; yet if there are circumstances in which doubt is impermissible, it is here, after the result obtained in the preliminary election.”

In order to appreciate the influence of the Stock Exchange bulletin and the communications of "La Patrie" on the Bourse in general, one must know that it is the real Moniteur of the present government and receives official news before the "Moniteur". On this occasion, however, the coup fails.

On the 8th some votes in the army favourable to the red party become known, and immediately prices fall. A panicky terror seems to take hold of the speculators; now every means must be resorted to. The Stock Exchange bulletin of "La Patrie" holds its post; all the journals of the Union électorale are ordered into the fire; a few inaccuracies in insignificant votes are debated with emphasis; one journal publishes at its top the votes of a regiment which voted monarchist; finally the republican journals are compelled to carry some official denials, which a few days later prove to be so many lies.

On the 9th these combined efforts succeed in bringing about a small rise in government securities at the opening of the Bourse, which, however, does not last long. The price remains fairly low until 2 1/4; from that moment it rises continuously until the close of the Bourse. The causes of this sudden reversal "La Patrie" itself blabs out as follows:

“It is asserted that some speculators very interested in the rise made considerable purchases towards the close of the Bourse, in order to put the minds in the provinces in a good humour at the moment of the election and, through the confidence that would take hold of the provinces, to call forth new purchases, which were bound to drive prices up still further.”

This operation amounted to several millions, its success was that the 3% rose by 40 centimes and the 5% by 60 centimes.

So much, then, is clear: There were speculators who were interested in the rise and who therefore made new substantial purchases at the decisive moment in order to bring about a new rise. Who were these speculators? Let the facts reply.

On March 11 a fall on the Bourse. All the attempts of the speculators are powerless in face of the fluctuation of the election result.

On March 12 a new, significant fall, since the election result is almost known, and it is as good as certain that the three socialist candidates have an imposing majority. The speculators à la hausse now make a desperate attempt. "La Patrie" and the "Moniteur du Soir" publish, under the title of official telegraphic despatches, election results from the provinces that were pure inventions. The manoeuvre succeeds. In the evening, at Tortoni’s, a slight rise in prices. All that remains, then, is to “heat” further. "La Patrie" prints the following news:

“According to the votes known up to now, citizen de Flotte has a majority of only 34 votes over citizen J. Foy. This election result can still be decided by the votes of the mobile gendarmerie in favour of our candidate. – It is asserted that the government will tomorrow lay before the Assembly two laws on the press and on the electoral assemblies and will demand urgency for them.”

The second piece of news was false; only after long hesitation, protracted consultations with the chiefs of the party of order, and a ministerial change did the government resolve to present these laws. The first piece of news was an even more shameless lie; at the very moment it was published in "La Patrie", the government sent a telegraphic despatch to the departments stating that de Flotte was elected.

Nevertheless, the coup succeeded; the securities rose by 1 franc 35 centimes, and the gentlemen speculators realised between 3 and 4 million. One can certainly not blame the “friends of property” if, in the interest of order and society, they seek to get hold of as much as possible of their fetish.

As a result of this successful dodge <Kniff>, the gentlemen speculators became so overweening that they immediately undertook new purchases on the most grandiose scale and thereby induced a multitude of other capitalists likewise to buy. The rigging was so pronounced that even the prospective profits on this transaction were already being traded again on the Bourse. Then on the morning of the 15th came the shattering blow, the proclamation of Carnot, de Flotte and Vidal as representatives of the people; prices fell suddenly and inexorably, and the defeat of our speculators could no longer be checked by any fabricated news and telegraphic inventions.