1805.
Depreciation of the Bank paper--Ouvrard--His great discretion--
Bonaparte'e 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 be
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 bunging 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, be 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.