“Once they tried to quiz me, Blondet. I told them a long-winded story that lasted from nine o’clock till midnight, one tale inside another. I had just brought my twenty-ninth personage upon the scene (the newspapers have plagiarized with their ‘continued in our next’), when old Matifat, who as host still held out, snored like the rest, after blinking for five minutes. Next day they all complimented me upon the ending of my tale!
“These tradespeople’s society consisted of M. and Mme. Cochin, Mme. Desroches, and a young Popinot, still in the drug business, who used to bring them news of the Rue des Lombards. (You know him, Finot.) Mme. Matifat loved the arts; she bought lithographs, chromo-lithographs, and colored prints, — all the cheapest things she could lay her hands on. The Sieur Matifat amused himself by looking into new business speculations, investing a little capital now and again for the sake of the excitement. Florine had cured him of his taste for the Regency style of thing. One saying of his will give you some idea of the depths in my Matifat. ‘Art thou going to bed, my nieces?’ he used to say when he wished them good-night, because (as he explained) he was afraid of hurting their feelings with the more formal ‘you.’
“The daughter was a girl with no manner at all. She looked rather like a superior sort of housemaid. She could get through a sonata, she wrote a pretty English hand, knew French grammar and orthography — a complete commercial education, in short. She was impatient enough to be married and leave the paternal roof, finding it as dull at home as a lieutenant finds the nightwatch at sea; at the same time, it should be said that her watch lasted through the whole twenty-four hours. Desroches or Cochin junior, a notary or a lifeguardsman, or a sham English lord, — any husband would have suited her. As she so obviously knew nothing of life, I took pity upon her, I determined to reveal the great secret of it. But, pooh! the Matifats shut their doors on me. The bourgeois and I shall never understand each other.”
“She married General Gouraud,” said Finot.
“In forty-eight hours, Godefroid de Beaudenord, late of the diplomatic corps, saw through the Matifats and their nefarious designs,” resumed Bixiou. “Rastignac happened to be chatting with the frivolous Baroness when Godefroid came in to give his report to Malvina. A word here and there reached his ear; he guessed the matter on foot, more particularly from Malvina’s look of satisfaction that it was as she had suspected. Then Rastignac actually stopped on till two o’clock in the morning. And yet there are those that call him selfish! Beaudenord took his departure when the Baroness went to bed.
“As soon as Rastignac was left alone with Malvina, he spoke in a fatherly, good-humored fashion. ‘Dear child, please to bear in mind that a poor fellow, heavy with sleep, has been drinking tea to keep himself awake till two o’clock in the morning, all for a chance of saying a solemn word of advice to you — Marry! Do not be too particular; do not brood over your feelings; never mind the sordid schemes of men that have one foot here and another in the Matifats’ house; do not stop to think at all: Marry! — When a girl marries, it means that the man whom she marries undertakes to maintain her in a more or less good position in life, and at any rate her comfort is assured. I know the world. Girls, mammas, and grandmammas are all of them hypocrites when they fly off into sentiment over a question of marriage. Nobody really thinks of anything but a good position. If a mother marries her daughter well, she says that she has made an excellent bargain.’ Here Rastignac unfolded his theory of marriage, which to his way of thinking is a business arrangement, with a view to making life tolerable; and ended up with, ‘I do not ask to know your secret, Malvina; I know it already. Men talk things over among themselves, just as you women talk after you leave the dinner-table. This is all I have to say: Marry. If you do not, remember that I begged you to marry, here, in this room, this evening!’
“There was a certain ring in Rastignac’s voice which compelled, not attention, but reflection. There was something startling in his insistence; something that went, as Rastignac meant that it should, to the quick of Malvina’s intelligence. She thought over the counsel again next day, and vainly asked herself why it had been given.”
Couture broke in. “In all these tops that you have set spinning, I see nothing at all like the beginnings of Rastignac’s fortune,” said he. “You apparently take us for Matifats multiplied by half-a-dozen bottles of champagne.”
“We are just coming to it,” returned Bixiou. “You have followed the course of all the rivulets which make up that forty thousand livres a year which so many people envy. By this time Rastignac held the threads of all these lives in his hand.”
“Desroches, the Matifats, Beaudenord, the d’Aldriggers, d’Aiglemont?”
“Yes, and a hundred others,” assented Bixiou.
“Oh, come now, how?” cried Finot. “I know a few things, but I cannot see a glimpse of an answer to this riddle.”
“Blondet has roughly given you the account of Nucingen’s first two suspensions of payment; now for the third, with full details. — After the peace of 1815, Nucingen grasped an idea which some of us only fully understood later, to wit, that capital is a power only when you are very much richer than other people. In his own mind, he was jealous of the Rothschilds. He had five millions of francs, he wanted ten. He knew a way to make thirty millions with ten, while with five he could only make fifteen. So he made up his mind to operate a third suspension of payment. About that time, the great man hit on the idea of indemnifying his creditors with paper of purely fictitious value and keeping their coin. On the market, a great idea of this sort is not expressed in precisely this cut-and-dried way. Such an arrangement consists in giving a lot of grown-up children a small pie in exchange for a gold piece; and, like children of a smaller growth, they prefer the pie to the gold piece, not suspecting that they might have a couple of hundred pies for it.”
“What is this all about, Bixiou?” cried Couture. “Nothing more bona fide. Not a week passes but pies are offered to the public for a louis. But who compels the public to take them? Are they not perfectly free to make inquiries?”
“You would rather have it made compulsory to take up shares, would you?” asked Blondet.
“No,” said Finot. “Where would the talent come in?”
“Very good for Finot.”
“Who put him up to it?” asked Couture.
“The fact was,” continued Bixiou, “that Nucingen had twice had the luck to present the public (quite unintentionally) with a pie that turned out to be worth more than the money he received for it. That unlucky good luck gave him qualms of conscience. A course of such luck is fatal to a man in the long run. This time he meant to make no mistake of this sort; he waited ten years for an opportunity of issuing negotiable securities which should seem on the face of it to be worth something, while as a matter of fact — — ”
“But if you look at banking in that light,” broke in Couture, “no sort of business would be possible. More than one bona fide banker, backed up by a bona fide government, has induced the hardest-headed men on ‘Change to take up stock which is bound to fall within a given time. You have seen better than that. Have you not seen stock created with the concurrence of a government to pay the interest upon older stock, so as to keep things going and tide over the difficulty? These operations were more or less like Nucingen’s settlements.”
“The thing may look queer on a small scale,” said Blondet, “but on a large we call it finance. There are high-handed proceedings criminal between man and man that amount to nothing when spread out over any number of men, much as a drop of prussic acid becomes harmless in a pail of water. You take a man’s life, you are guillotined. But if, for any political conviction whatsoever, you take five hundred lives, political crimes are respected. You take five thousand francs out of my desk; to the hulks you go. But with a sop cleverly pushed into the jaws of a thousand speculators, you can cram the stock of any bankrupt republic or monarchy down their throats; even if the loan has been floated, as Couture says, to pay the interest
on that very same national debt. Nobody can complain. These are the real principles of the present Golden Age.”
“When the stage machinery is so huge,” continued Bixiou, “a good many puppets are required. In the first place, Nucingen had purposely and with his eyes open invested his five millions in an American investment, foreseeing that the profits would not come in until it was too late. The firm of Nucingen deliberately emptied its coffers. Any liquidation ought to be brought about naturally. In deposits belonging to private individuals and other investments, the firm possessed about six millions of capital altogether. Among those private individuals was the Baroness d’Aldrigger with her three hundred thousand francs, Beaudenord with four hundred thousand, d’Aiglemont with a million, Matifat with three hundred thousand, Charles Grandet (who married Mlle. d’Aubrion) with half a million, and so forth, and so forth.
“Now, if Nucingen had himself brought out a joint-stock company, with the shares of which he proposed to indemnify his creditors after more or less ingenious manoeuvring, he might perhaps have been suspected. He set about it more cunningly than that. He made some one else put up the machinery that was to play the part of the Mississippi scheme in Law’s system. Nucingen can make the longest-headed men work out schemes for him without confiding a word to them; it is his peculiar talent. Nucingen just let fall a hint to du Tillet of the pyramidal, triumphant notion of bringing out a joint-stock enterprise with capital sufficient to pay very high dividends for a time. Tried for the first time, in days when noodles with capital were plentiful, the plan was pretty sure to end in a run upon the shares, and consequently in a profit for the banker that issued them. You must remember that this happened in 1826.
“Du Tillet, struck through he was by an idea both pregnant and ingenious, naturally bethought himself that if the enterprise failed, the blame must fall upon somebody. For which reason, it occurred to him to put forward a figurehead director in charge of his commercial machinery. At this day you know the secret of the firm of Claparon and Company, founded by du Tillet, one of the finest inventions — — ”
“Yes,” said Blondet, “the responsible editor in business matters, the instigator, and scapegoat; but we know better than that nowadays. We put, ‘Apply at the offices of the Company, such and such a number, such and such a street,’ where the public find a staff of clerks in green caps, about as pleasing to behold as broker’s men.”
“Nucingen,” pursued Bixiou, “had supported the firm of Charles Claparon and Company with all his credit. There were markets in which you might safely put a million francs’ worth of Claparon’s paper. So du Tillet proposed to bring his firm of Claparon to the fore. So said, so done. In 1825 the shareholder was still an unsophisticated being. There was no such thing as cash lying at call. Managing directors did not pledge themselves not to put their own shares upon the market; they kept no deposit with the Bank of France; they guaranteed nothing. They did not even condescend to explain to shareholders the exact limits of their liabilities when they informed them that the directors in their goodness, refrained from asking any more than a thousand, or five hundred, or even two hundred and fifty francs. It was not given out that the experiment in aere publico was not meant to last for more than seven, five, or even three years, so that shareholders would not have long to wait for the catastrophe. It was in the childhood of the art. Promoters did not even publish the gigantic prospectuses with which they stimulate the imagination, and at the same time make demands for money of all and sundry.”
“That only comes when nobody wishes to part with money,” said Couture.
“In short, there was no competition in investments,” continued Bixiou. “Paper-mache manufacturers, cotton printers, zinc-rollers, theatres, and newspapers as yet did not hurl themselves like hunting dogs upon their quarry — the expiring shareholder. ‘Nice things in shares,’ as Couture says, put thus artlessly before the public, and backed up by the opinions of experts (‘the princes of science’), were negotiated shamefacedly in the silence and shadow of the Bourse. Lynx-eyed speculators used to execute (financially speaking) the air Calumny out of The Barber of Seville. They went about piano, piano, making known the merits of the concern through the medium of stock-exchange gossip. They could only exploit the victim in his own house, on the Bourse, or in company; so they reached him by means of the skilfully created rumor which grew till it reached a tutti of a quotation in four figures — — ”
“And as we can say anything among ourselves,” said Couture, “I will go back to the last subject.”
“Vous etes orfevre, Monsieur Josse!” cried Finot.
“Finot will always be classic, constitutional, and pedantic,” commented Blondet.
“Yes,” rejoined Couture, on whose account Cerizet had just been condemned on a criminal charge. “I maintain that the new way is infinitely less fraudulent, less ruinous, more straightforward than the old. Publicity means time for reflection and inquiry. If here and there a shareholder is taken in, he has himself to blame, nobody sells him a pig in a poke. The manufacturing industry — — ”
“Ah!” exclaimed Bixiou, “here comes industry — — ”
“ — — is a gainer by it,” continued Couture, taking no notice of the interruption. “Every government that meddles with commerce and cannot leave it free, sets about an expensive piece of folly; State interference ends in a maximum or a monopoly. To my thinking, few things can be more in conformity with the principles of free trade than joint-stock companies. State interference means that you try to regulate the relations of principal and interest, which is absurd. In business, generally speaking, the profits are in proportion to the risks. What does it matter to the State how money is set circulating, provided that it is always in circulation? What does it matter who is rich or who is poor, provided that there is a constant quantity of rich people to be taxed? Joint-stock companies, limited liability companies, every sort of enterprise that pays a dividend, has been carried on for twenty years in England, commercially the first country in the world. Nothing passes unchallenged there; the Houses of Parliament hatch some twelve hundred laws every session, yet no member of Parliament has ever yet raised an objection to the system — — ”
“A cure for plethora of the strong box. Purely vegetable remedy,” put in Bixiou, “les carottes” (gambling speculation).
“Look here!” cried Couture, firing up at this. “You have ten thousand francs. You invest it in ten shares of a thousand francs each in ten different enterprises. You are swindled nine times out of the ten — as a matter of fact you are not, the public is a match for anybody, but say that you are swindled, and only one affair turns out well (by accident! — oh, granted! — it was not done on purpose — there, chaff away!). Very well, the punter that has the sense to divide up his stakes in this way hits on a splendid investment, like those who took shares in the Wortschin mines. Gentlemen, let us admit among ourselves that those who call out are hypocrites, desperately vexed because they have no good ideas of their own, and neither power to advertise nor skill to exploit a business. You will not have long to wait for proof. In a very short time you will see the aristocracy, the court, and public men descend into speculation in serried columns; you will see that their claws are longer, their morality more crooked than ours, while they have not our good points. What a head a man must have if he has to found a business in times when the shareholder is as covetous and keen as the inventor! What a great magnetizer must he be that can create a Claparon and hit upon expedients never tried before! Do you know the moral of it all? Our age is no better than we are; we live in an era of greed; no one troubles himself about the intrinsic value of a thing if he can only make a profit on it by selling it to somebody else; so he passes it on to his neighbor. The shareholder that thinks he sees a chance of making money is just as covetous as the founder that offers him the opportunity of making it.”
“Isn’t he fine, our Couture? Isn’t he fine?” exclaimed Bixiou, turning to Blondet. “He will ask us next to erec
t statues to him as a benefactor of the species.”
“It would lead people to conclude that the fool’s money is the wise man’s patrimony by divine right,” said Blondet.
“Gentlemen,” cried Couture, “let us have our laugh out here to make up for all the times when we must listen gravely to solemn nonsense justifying laws passed on the spur of the moment.”
“He is right,” said Blondet. “What times we live in, gentlemen! When the fire of intelligence appears among us, it is promptly quenched by haphazard legislation. Almost all our lawgivers come up from little parishes where they studied human nature through the medium of the newspapers; forthwith they shut down the safety-valve, and when the machinery blows up there is weeping and gnashing of teeth! We do nothing nowadays but pass penal laws and levy taxes. Will you have the sum of it all! — There is no religion left in the State!”
“Oh, bravo, Blondet!” cried Bixiou, “thou hast set thy finger on the weak spot. Meddlesome taxation has lost us more victories here in France than the vexatious chances of war. I once spent seven years in the hulks of a government department, chained with bourgeois to my bench. There was a clerk in the office, a man with a head on his shoulders; he had set his mind upon making a sweeping reform of the whole fiscal system — ah, well, we took the conceit out of him nicely. France might have been too prosperous, you know she might have amused herself by conquering Europe again; we acted in the interests of the peace of nations. I slew Rabourdin with a caricature.”[*]
[*] See Les Employes [The Government Clerks aka Bureaucracy].
“By religion I do not mean cant; I use the word in its wide political sense,” rejoined Blondet.
“Explain your meaning,” said Finot.
“Here it is,” returned Blondet. “There has been a good deal said about affairs at Lyons; about the Republic cannonaded in the streets; well, there was not a word of truth in it all. The Republic took up the riots, just as an insurgent snatches up a rifle. The truth is queer and profound, I can tell you. The Lyons trade is a soulless trade. They will not weave a yard of silk unless they have the order and are sure of payment. If orders fall off; the workmen may starve; they can scarcely earn a living, convicts are better off. After the Revolution of July, the distress reached such a pitch that the Lyons weavers — the canuts, as they call them — hoisted the flag, ‘Bread or Death!’ a proclamation of a kind which compels the attention of a government. It was really brought about by the cost of living at Lyons; Lyons must build theatres and become a metropolis, forsooth, and the octroi duties accordingly were insanely high. The Republicans got wind of this bread riot, they organized the canuts in two camps, and fought among themselves. Lyons had her Three Days, but order was restored, and the silk weavers went back to their dens. Hitherto the canut had been honest; the silk for his work was weighed out to him in hanks, and he brought back the same weight of woven tissue; now he made up his mind that the silk merchants were oppressing him; he put honesty out at the door and rubbed oil on his fingers. He still brought back weight for weight, but he sold the silk represented by the oil; and the French silk trade has suffered from a plague of ‘greased silks,’ which might have ruined Lyons and a whole branch of French commerce. The masters and the government, instead of removing the causes of the evil, simply drove it in with a violent external application. They ought to have sent a clever man to Lyons, one of those men that are said to have no principle, an Abbe Terray; but they looked at the affair from a military point of view. The result of the troubles is a gros de Naples at forty sous per yard; the silk is sold at this day, I dare say, and the masters no doubt have hit upon some new check upon the men. This method of manufacturing without looking ahead ought never to have existed in the country where one of the greatest citizens that France has ever known ruined himself to keep six thousand weavers in work without orders. Richard Lenoir fed them, and the government was thickheaded enough to allow him to suffer from the fall of the prices of textile fabrics brought about by the Revolution of 1814. Richard Lenoir is the one case of a merchant that deserves a statue. And yet the subscription set on foot for him has no subscribers, while the fund for General Foy’s children reached a million francs. Lyons has drawn her own conclusions; she knows France, she knows that there is no religion left. The story of Richard Lenoir is one of those blunders which Fouche condemned as worse than a crime.”
Works of Honore De Balzac Page 602