1805.
Depreciation of the Bank paper—Ouvrard—His great discretion—
Bonaparte's opinion of the rich—Ouvrard's imprisonment—His
partnership with the King of Spain—His connection with Waalenberghe
and Desprez—Bonaparte's return to Paris after the campaign of
Vienna—Hasty dismissal of M. Barbe Marbois.
At the moment when the Emperor had reason to hope that the news of his extraordinary success would animate public spirit he was informed that considerable disquietude prevailed, and that the Bank of France was assailed by demands for the payment of its paper, which had fallen, more than 5 per cent. I was not ignorant of the cause of this decline. I had been made acquainted, through the commercial correspondence between Hamburg and Paris, with a great financial operation, planned by M. Ouvrard, in consequence of which he was to obtain piastres from Spanish America at a price much below the real value; and I had learned that he was obliged to support this enterprise by the funds which he and his partners previously employed in victualling the forces. A fresh investment of capital was therefore necessary for this service, which, when on a large scale, requires extensive advances, and the tardy payment of the Treasury at that period was well known.
I was well acquainted with M. Ouvrard, and in what I am about to say I do not think there will be found anything offensive or disagreeable to him. I observed the greater number of the facts to which I shall refer in their origin, and the rest I learned from M. Ouvrard himself, who, when he visited Hamburg in 1808, communicated to me a variety of details respecting his immense transaction with the King of Spain. Among other things I recollect he told me that before the 18th Brumaire he was possessed of 60,000,000, without owing a franc to any person.
This celebrated financier has been the object of great public attention. The prodigious variations of fortune which he has experienced, the activity of his life, the immense commercial operations in which he has been engaged; the extent and the boldness of his enterprises, render it necessary, in forming a judgment of M. Ouvrard, to examine his conduct with due care and deliberation. The son of a stationer, who was able merely through his own resources to play so remarkable a part, could be no ordinary man. It may be said of M. Ouvrard what Beaumarchais said of himself, that his life was really a combat. I have known him long, and I saw much of him in his relations with Josephine. He always appeared to me to possess great knowledge of the world, accompanied by honourable principles, and a high degree of generosity, which added greatly to the value of his prudence and discretion. No human power, no consideration, not even the ingratitude of those whom he had obliged, could induce him to disclose any sacrifice which he had made at the time when, under the Directory, the public revenue may be said to have been always at the disposal of the highest bidder, and when no business could be brought to a conclusion except by him who set about it with his hands full of money. To this security, with which M. Ouvrard impressed all official persons who rendered him services, I attribute the facility with which he obtained the direction of the numerous enterprises in which he engaged, and which produced so many changes in his fortune. The discretion of M. Ouvrard was not quite agreeable to the First Consul, who found it impossible to extract from him the information he wanted. He tried every method to obtain from him the names of persons to whom he had given those kind of subsidies which in vulgar language are called sops in the pan, and by ladies pin money. Often have I seen Bonaparte resort to every possible contrivance to gain his object. He would sometimes endeavour to alarm M. Ouvrard by menaces, and at other times to flatter him by promises, but he was in no instance successful.
While we were at the Luxembourg, on, as I recollect, the 25th of January 1800, Bonaparte said to me during breakfast, "Bourrienne, my resolution is taken. I shall have Ouvrard arrested."—"General, have you proofs against him?"—"Proofs, indeed! He is a money-dealer, a monopoliser; we must make him disgorge. All the contractors, the provision agents, are rogues. How have they made their fortunes? At the expense of the country, to be sure. I will not suffer such doings. They possess millions, they roll in an insolent luxury, while my soldiers have neither bread nor shoes! I will have no more of that! I intend to speak on the business to-day in the Council, and we shall see what can be done."
I waited with impatience for his return from the Council to know what had passed. "Well, General?" said I "The order is given." On hearing this I became anxious about the fate of M. Ouvrard, who was thus to be treated more like a subject of the Grand Turk than a citizen of the Republic; but I soon learned that the order had not been executed because he could not be found.
Next day I learned that a person, whom I shall not name, who was present at the Council, and who probably was under obligations to Ouvrard, wrote him a note in pencil to inform him of the vote for his arrest carried by the First Consul. This individual stepped out for a moment and despatched his servant with the note to Ouvrard. Having thus escaped the writ of arrest, Ouvrard, after a few days had passed over, reappeared, and surrendered himself prisoner. Bonaparte was at first furious on learning that he had got out of the way; but on hearing that Ouvrard had surrendered himself he said to me, "The fool! he does not know what is awaiting him! He wishes to make the public believe that he has nothing to fear; that his hands are clean. But he is playing a bad game; he will gain nothing in that way with me. All talking is nonsense. You may be sure, Bourrienne, that when a man has so much money he cannot have got it honestly, and then all those fellows are dangerous with their fortunes. In times of revolution no man ought to have more than 3,000,000 francs, and that is a great deal too much."
Before going to prison Ouvrard took care to secure against all the searches of the police any of his papers which might have committed persons with whom he had dealings; and I believe that there were individuals connected with the police itself who had good reason for not regretting the opportunity which M. Ouvrard had taken for exercising this precaution. Seals, however, were put upon his papers; but on examining them none of the information Bonaparte so much desired to obtain was found. Nevertheless on one point his curiosity was satisfied, for on looking over the documents he found from some of them that Madame Bonaparte had been borrowing money from Ouvrard.
As Ouvrard had a great number of friends they bestirred themselves to get some person of influence to speak to the First Consul in his favour. But this was a commission no one was willing to undertake; because, prejudiced as Bonaparte was, the least hint of the kind would have appeared to him to be dictated by private interest. Berthier was very earnestly urged to interfere, but he replied, "That is impossible. He would say that it was underhand work to get money for Madame Visconti."
I do not recollect to what circumstance Ouvrard was indebted for his liberty, but it is certain that his captivity did not last long. Sometime after he had left his prison Bonaparte asked him for 12,000,000, which M. Ouvrard refused.
On his accession to the Consulate Bonaparte found M. Ouvrard contractor for supplying the Spanish fleet under the command of Admiral Massaredo. This business introduced him to a correspondence with the famous Godoy, Prince of the Peace. The contract lasted three years, and M. Ouvrard gained by it a net profit of 15,000,000. The money was payable in piastres, at the rate of 3 francs and some centimes each, though the piastre was really worth 5 francs 40 centimes. But to recover it at this value it was necessary for M. Ouvrard to go and get the money in Mexico. This he was much inclined to do, but he apprehended some obstacle on the part of the First Consul, and, notwithstanding his habitual shrewdness, he became the victim of his over-precaution. On his application M. de Talleyrand undertook to ask the First Consul for authority to give him a passport. I was in the cabinet at the time, and I think I still hear the dry and decided "No," which was all the answer M. de Talleyrand obtained. When we were alone the First Consul said to me, "Do you not see, Bourrienne, this Ouvrard must have made a good thing of his business with the Prince of the Peace? But the fool! Why did he get Talleyrand to ask me for a passport? That is the very thing that raised my suspicion. Why did he not apply for a passport as every one else does? Have I the giving of them? He is an ass; so much the worse for him."
I was sorry for Ouvrard's disappointment, and I own none the less so because he had intimated his willingness to give me a share in the business he was to transact its Spain; and which was likely to be very profitable. His brother went to Mexico in his stead.
In 1802 a dreadful scarcity afflicted France. M. Ouvrard took upon himself, in concert with Wanlerberghe, the task of importing foreign grain to prevent the troubles which might otherwise have been expected. In payment of the grain the foreign houses who sent it drew upon Ouvrard and Wanlerberghe for 26,000,000 francs in Treasury bills, which, according to the agreement with the Government, were to be paid. But when the bills of the foreign houses became due there was no money in the Treasury, and payment was refused. After six months had elapsed payment was offered, but on condition that the Government should retain half the profit of the commission! This Ouvrard and Wanlerberghe refused, upon which the Treasury thought it most economical to pay nothing, and the debt remained unsettled. Notwithstanding this transaction Ouvrard and Wanlerberghe engaged to victual the navy, which they supplied for six years and three months. After the completion of these different services the debt due to them amounted to 68,000,000.
In consequence of the long delay of, payment by the Treasury the disbursements for supplies of grain amounted at least to more than 40,000,000; and the difficulties which arose had a serious effect on the credit of the principal dealers with those persons who supplied them. The discredit spread and gradually reached the Treasury, the embarrassments of which augmented with the general alarm. Ouvrard, Wanlerberghe, and Seguin were the persons whose capital and credit rendered them most capable of relieving the Treasury, and they agreed to advance for that purpose 102,000,000, in return for which they were allowed bonds of the Receivers-General to the amount of 150,000,000. M. Desprez undertook to be the medium through which the 102,000,000 were to be paid into the Treasury, and the three partners transferred the bands to him.
Spain had concluded a treaty with France, by which she was bound to pay a subsidy of 72,000,000 francs, and 32,000,000 had become due without any payment being made: It was thought advisable that Ouvrard should be sent to Madrid to obtain a settlement, but he was afraid that his business in Paris would suffer during his absence, and especially the transaction in which he was engaged with Desprez. The Treasury satisfied him on this point by agreeing to sanction the bargain with Desprez, and Ouvrard proceeded to Madrid. It was on this occasion he entered into the immense speculation for trading with Spanish America.
Spain wished to pay the 32,000,000 which were due to France as soon as possible, but her coffers were empty, and goodwill does not ensure ability; besides, in addition to the distress of the Government, there was a dreadful famine in Spain. In this state of things Ouvrard proposed to the Spanish Government to pay the debt due to France, to import a supply of corn, and to advance funds for the relief of the Spanish Treasury. For this he required two conditions. (1.) The exclusive right of trading with America. (2.) The right of bringing from America on his own account all the specie belonging to the Crown, with the power of making loans guaranteed and payable by the Spanish Treasuries.
About the end of July 1805 the embarrassment which sometime before had begun to be felt in the finances of Europe was alarmingly augmented. Under these circumstances it was obviously the interest of Ouvrard to procure payment as soon as possible of the 32,000,000 which he had advanced for Spain to the French Treasury. He therefore redoubled his efforts to bring his negotiation to a favourable issue, and at last succeeded in getting a deed of partnership between himself and Charles IV. which contained the following stipulation:—"Ouvrard and Company are authorised to introduce into the ports of the New World every kind of merchandise and production necessary for the consumption of those countries, and to export from the Spanish Colonies, during the continuance of the war with England; all the productions and all specie derivable from them." This treaty was only to be in force during the war with England, and it was stipulated that the profits arising from the transactions of the Company should be equally divided between Charles IV. and the rest of the Company; that is to say, one-half to the King and the other half to his partners.
The consequences of this extraordinary partnership between a King and a private individual remain to be stated. On the signing of the deed Ouvrard received drafts from the Treasury of Madrid to the extent of 52,500,000 piastres; making 262,500,000 francs; but the piastres were to be brought from America, while the terms of the treaty required that the urgent wants of the Spanish Government should be immediately supplied, and, above all, the progress of the famine checked. To accomplish this object fresh advances to an enormous amount were necessary, for M. Ouvrard had to begin by furnishing 2,000,000 of quintals of grain at the rate of 26 francs the quintal. Besides all this, before he could realise a profit and be reimbursed for the advances he had made to the Treasury of Paris, he had to get the piastres conveyed from America to Europe. After some difficulty the English Government consented to facilitate the execution of the transaction by furnishing four frigates for the conveyance of the piastres.
Ouvrard had scarcely completed the outline of his extraordinary enterprise when the Emperor suddenly broke up his camp at Boulogne to march to Germany. It will readily be conceived that Ouvrard's interests then imperatively required his presence at Madrid; but he was recalled to Paris by the Minister of the Treasury, who wished to adjust his accounts. The Emperor wanted money for the war on which he was entering, and to procure it for the Treasury Ouvrard was sent to Amsterdam to negotiate with the House of Hope. He succeeded, and Mr. David Parish became the Company's agent.
Having concluded this business Ouvrard returned in all haste to Madrid; but in the midst of the most flattering hopes and most gigantic enterprises he suddenly found himself threatened with a dreadful crisis. M. Desprez, as has been stated, had, with the concurrence of the Treasury, been allowed to take upon himself all the risk of executing the treaty, by which 150,000,000 were to be advanced for the year 1804, and 400,000,000 for the year 1805. Under the circumstances which had arisen the Minister of the Treasury considered himself entitled to call upon Ouvrard to place at his disposal 10,000,000 of the piastres which he had received from Spain. The Minister at the same time informed him that he had made arrangements on the faith of this advance, which he thought could not be refused at so urgent a moment.
The embarrassment of the Treasury, and the well-known integrity of the Minister, M. de Barbe Marbois, induced Ouvrard to remit the 10,000,000 piastres. But a few days after he had forwarded the money a Commissioner of the Treasury arrived at Madrid with a ministerial despatch, in which Ouvrard was requested to deliver to the Commissioner all the assets he could command, and to return immediately to Paris.
The Treasury was then in the greatest difficulty, and a general alarm prevailed. This serious financial distress was occasioned by the following circumstances. The Treasury had, by a circular, notified to the Receivers-General that Desprez was the holder of their bonds. They were also authorised to transmit to him all their disposable funds, to be placed to their credit in an account current. Perhaps the giving of this authority was a great error; but, be that as it may, Desprez, encouraged by the complaisance of the Treasury, desired the Receivers-General to transmit to him all the sums they could procure for payment of interest under 8 per cent., promising to allow them a higher rate of interest. As the credit of the house of Desprez stood high, it may be easily conceived that on such conditions the Receivers-General, who were besides secured by the authority of the Treasury, would enter eagerly into the proposed plan. In short, the Receivers-General soon transmitted very considerable sums. Chests of money arrived daily from every point of France. Intoxicated by this success, Desprez engaged in speculations which in his situation were extremely imprudent. He lent more than 50,000,000 to the merchants of Paris, which left him no command of specie. Being obliged to raise money, he deposited with the Bank the bonds of the Receivers-General which had been consigned to him, but which were already discharged by the sums transmitted to their credit in the account current. The Bank, wishing to be reimbursed for the money advanced to Desprez, applied to the Receivers-General whose bonds were held an security. This proceeding had become necessary on the part of the Bank, as Desprez, instead of making his payments in specie, sent in his acceptances. The Directors of the Bank, who conducted that establishment with great integrity and discretion, began to be alarmed, and required Desprez to explain the state of his affairs. The suspicions of the Directors became daily stronger, and were soon shared by the public. At last the Bank was obliged to stop payment, and its notes were soon at a discount of 12 per cent.
The Minister of the Treasury, dismayed, as well may be supposed, at such a state of things during the Emperor's absence, convoked a Council, at which Joseph Bonaparte presided, and to which Desprez and Wanlerberghe were summoned. Ouvrard being informed of this financial convulsion made all possible haste from Madrid, and on his arrival at Paris sought assistance from Amsterdam. Hope's house offered to take 15,000,000 piastres at the rate of 3 francs 75 centimes each. Ouvrard having engaged to pay the Spanish Government only 3 francs, would very willingly have parted with them at that rate, but his hasty departure from Madrid, and the financial events at Paris, affected his relations with the Spanish Treasury, and rendered it impossible for him to afford any support to the Treasury of France; thus the alarm continued, until the news of the battle of Austerlitz and the consequent hope of peace tranquillised the public mind. The bankruptcy of Desprez was dreadful; it was followed by the failure of many houses, the credit of which was previously undoubted.
To temper the exultation which victory was calculated to excite, the news of the desperate situation of the Treasury and the Bank reached the Emperor on the day after the battle of Austerlitz. The alarming accounts which he received hastened his return to France; and on the very evening on which he arrived in Paris he pronounced, while ascending the stairs of the Tuileries, the dismissal of M. de Barbs Marbois. This Minister had made numerous enemies by the strict discharge of his duty, and yet, notwithstanding his rigid probity, he sunk under the accusation of having endangered the safety of the State by weakness of character. At this period even Madame de Stael said, in a party where the firmness of M. Barbs Marbois was the topic of conversation—"What, he inflexible? He is only a reed bronzed!" But whatever may be the opinion entertained of the character of this Minister, it is certain that Napoleon's rage against him was unbounded. Such was the financial catastrophe which occurred during the campaign of Vienna; but all was not over with Ouvrard, and in so great a confusion of affairs it was not to be expected that the Imperial hand, which was not always the hand of justice, should not make itself somewhere felt.
In the course of the month of February 1806 the Emperor issued two decrees, in which he declared Ouvrard, Wanlerberghe, and Michel, contractors for the service of 1804, and Desprez their agent, debtors to the amount of 87,000,000, which they had misapplied in private speculations, and in transactions with Spain "for their personal interests." Who would not suppose from this phrase that Napoleon had taken no part whatever in the great financial operation between Spain and South America? He was, however, intimately acquainted with it, and was himself really and personally interested. But whenever any enterprise was unsuccessful he always wished to deny all connection with it. Possessed of title-deeds made up by himself—that is to say, his own decrees—the Emperor seized all the piastres and other property belonging to the Company, and derived from the transaction great pecuniary advantage,—though such advantage never could be regarded by a sovereign as any compensation for the dreadful state into which the public credit had been brought.