[Paris, after 18 September 1846] 

...7, they should change the §§ on the sharing of dividends into 
§§ on the sharing of losses, for, failing ail this, they would go 
bankrupt already as a result of the celebrated principle of bearing 

a The London leaders of the League of the Just (K. Schapper, J. Moll and 
H. Bauer). - > See this volume, p. 64. -° (K. L. Bernays,] Rothschild. Ein Ur- 
theilsspruch vom menschlichen Standpunkte aus. - 4 (K. L. Bernays,] Jugement rendu contre 
J. Rothschild et Georges Dairnvaell, auteur de l’Histoire de Rothschild 1 par le Tribunal de 
la Seine. 

the whole loss but sharing the profit. They would therefore have 
to do twice as much business as any other publisher in order to 
keep going—but the fact remains that hitherto all publishers 
dealing exclusively, or merely for preference, in banned works— 
Frébel, Wigand, Leske—have, in the long run, been ruined: 1. by 
confiscation, 2. by being excluded from markets, which + always 
happens, 3. by sharp practice on the part of commission agents 
and retail dealers, 4. by police threats, prosecution, etc., 5. by 
competition from publishers who only occasionally print some- 
thing objectionable, who are therefore less subject to police 
interference and who, moreover, also have a better chance of 
obtaining manuscripts that will appeal, whereas the above- 
mentioned stereotypes are left holding the rubbish and books that 
do not appeal. The book trade’s struggle with the police can be 
waged with profit only if large numbers of publishers take part in 
it; it is essentiellement guerrilla warfare, and one can only make 
money if one seldom takes such a risk. The market is not large 
enough to make a spécialité of the article. 

For the rest it makes no difference whether the company is 
ruined, for ruined it will be no matter what kind of start it makes; 
but where there’s a guarantee, it will be ruined too quickly, a high 
fever being induced with three crises, of which the third is cer- 
tainly fatal. In view of the not over-copious supply of manuscripts 
to be expected, a mild consumption would be more appropriate. 
It’s only regrettable that too big a hole is made in its capital if it 
does its own printing. It ought to have sufficient to enable it to 
print for about 1 '/. years; for supposing a capital of 3,000 talers ex- 
pended in the first year, the Eastertide settlement would, given prof- 
itable trading, produce approx. 7/3, or a minimum of 2,000 talers. 
Hence for the second year it ought to have at least 1,000 talers 
over and above those 3,000 talers. Thus '/3-’/, of the capital is 
permanently tied up in remainders, bad payers, etc. It might be 
possible to raise this amount by inducing the shareholders to sub- 
scribe an additional loan repayable over a period. It is essential, 
by the way, to consult a publisher first, in order to find out 
exactly how much of the capital employed remains tied up at the 
end of the first year, or how much time it takes to turn the total 
capital over once. I am not sure about it myself, but I have reason 
to believe that in the above calculations I have underestimated 
rather than overestimated the capital permanently tied up. 

With his 20 per cent of the profits the manager will grow rich. 
Even if 10 per cent of any losses are passed to the reserve fund, 
there will be a handsome deficit.