The Industrial Bankers In The French Second Empire

As a latecomer of the industrial revolution compared to England,France had a strong wish to catch up from the early 19th century.Under the influence of Saint-Simonism,an ideology which emphasis the importance of banks in accelerating the economic development,France has experienced a series of institutional innovation in bank sector,and commenced to play the role of "banker of Europe" in the period of the Second Empire.The Credit Mobilier,founded by the Pereire brothers,was one of the most eminent practices in this process.By introducing epoch-making new models,this bank has made crucial contributions to the construction of railway,the most remarkable economic event in Europe at that time,and the large-scale rebuilding proects in Paris and Marseille.The model of universal bank in Germany,which was based on the model of the Credit Mobilier,also become one significant form in modern financial system.However,the Credit Mobilier was also a great speculator.Its speculations,especially those on the immovable properties such as lands and buildings,has immobilized its capital instead of accelerating the circulation of it,and therefore,turned the bank to the opposite direction of its own name.This speculation driven by the massive debts not only helped fueling the economic bubbles,but also triggered the bankruptcy of this bank itself in 1867,leaving the bourse in shock.These two paradoxical sides of the practices of this bank are exactly the reason why Karl Marx once described the Pereire brothers as "charlatan and prophet at the same time".This thesis will illustrate the financial thoughts of the Pereire brother and the double influence of the Credit Mobilier's practices from the perspective of their double identity:"charlatan" and "prophet",and then try to analyst the historical background on which these double identities has formed.