national debt, the new system greatly improved the national credit and strengthened the conservative element in France. It was computed that in 1830 there were at the utmost not more than 125,000 persons in France holding portions of the national debt. In 1869 the number had probably risen to between 700,000 and 800,000, and in 1881 it is believed to have been more than 4,000,000. Either in this way or as owners of land the great majority of the heads of families in France had a direct interest in the prosperity of the State.'

The system of government under the Second Empire, and especially in its first ten or twelve years, deserves more careful and impartial examination than it is likely to receive from the generation which witnessed the catastrophes of the Franco-German War. It was a government with no real constitutional freedom, no liberty of the press, no liberty of public meeting. It sheltered or produced great corruption, and repressed with arbitrary and tyrannical violence political opponents. It was detested by the educated classes, by the minority of the population who seriously cared for political freedom, and, in spite of the enormous sums that were expended in public works in Paris, it never succeeded in winning the affections of the Parisian workmen. On the other hand, the theory of paternal government exercised in a thoroughly democratic spirit had probably never before been carried out with equal energy and intelligence. The Emperor continually looked for his support to the great inarticulate masses of his people. To promote their immediate material well-being was the first object of his policy.

1 Leroy-Beaulieu, La Science des Finances, ii. 564–70.

No preceding Government had done so much to stimulate industry in all its forms, to develop latent resources, and to provide constant and remunerative employment. For many years he succeeded in an eminent degree,' and there is very little doubt that the last plebiscite which sanctioned his rule reflected the real feelings of the numerical majority of Frenchmen. If 100,000 more French soldiers had been present on the field of Wörth, and if the French commander had happened to be a man of genius, it is very possible that the Empire might have existed to the present day.

M. Leroy-Beaulieu calculates that in the beginning of 1870- the year of the war-the interest of the consolidated debt was about 129 millions of francs, or about 5,160,000 pounds sterling more than it had been in 1852, when the Emperor ascended the throne. The whole debt-charge was 360 millions of francs. It represented a nominal capital of rather less than twelve milliards of francs, or 480 millions of pounds; and there was in addition a floating debt, which at the beginning of 1870 had been recently reduced to somewhat less than thirty-two millions of pounds.2

But the Empire bequeathed to the Republic which followed it an appalling legacy. France was compelled to pay Germany an indemnity of 200 millions of pounds, and her own war expenses were only a very few millions below that sum. Nearly the whole of these colos

'Full particulars about the industrial and financial history of the first ten years of the Empire will be found in a very able book, published in 1862, called Ten Years of Imperialism in France, by A Flâneur.'

The writer had evidently access to the best sources of information.

Leroy-Beaulieu, La Science des Finances, ii. 570; Chaudordy, La France en 1889, pp. 52-53.

sal sums were raised by loans between 1870 and 1874, and added to the permanent capital of the debt.

The French debt had now greatly outstripped the English one. In the early years of the Republic, and especially during the ascendency of M. Thiers, French finances appear to have been managed with economy and skill. But in 1878 a new system of prodigality began which far exceeded that of the Second Empire, and which appears to have continued to the present time. A few plain figures will place the situation before the reader. The nominal value of the debt of France according to the Budget of 1892 was about thirty-two milliards of francs, or 1,280 millions of pounds. The annual debt-charge was about 1,000,250,000 francs, or fifty million pounds-about double the present interest of the debt of Great Britain; and in the twelve years of perfect peace from 1881 to 1892 France increased her debt by more than five milliards of francs, or 200 millions of pounds-a sum equal to the whole war indemnity which she had been obliged to pay to Germany after the war of 1870.' And this debt is irrespective of the large and rapidly growing debts of the communes and municipalities.

A great part of it was, no doubt, incurred for military purposes. The creation of a magnificent army; the fortification of a country which the loss of Strasburg and Metz had left very vulnerable, and the formation of a vast and costly navy, which was probably intended to intimidate Italy and overbalance the power of England in the Mediterranean, account for much. Much, too, was due to the great energy with which the French

'Leroy-Beaulieu, La Science des Finances, ii. 578-81; see, too, Martin's Statesman's Year-Book, 1893 (France).

Republic has pushed on the work of national education; and the expense of this work was enormously increased by the anti-ecclesiastical spirit which insisted on building fresh schoolhouses where ecclesiastical schools were abundantly supplied, and which refused to make any use of the great voluntary institutions established by the Church. But, in addition to these things, there has been another great source of expense, on which the best French economists dilate with unfeigned alarm. It is the enormous and wasteful expenditure on public works which are, for the most part, unremunerative; which are intended, by giving employment, to conciliate the working-classes, and which are extended to every department, almost to every commune, as a reward for supporting the Government. Much of this kind was done-especially at Paris-under the Second Empire, but the system never acquired the enormous extension and extravagance that it has assumed under the Republic. The name of M. de Freycinet is specially attached to this great development of public works; but, as might be expected, it soon far outgrew the proportions which its author had originally assigned to it, though his first idea was to spend four milliards of francs, or 160 millions of pounds, on railways alone. Very naturally, such a system of artificial employment having been started, it was found impossible to abandon it. Very naturally, every locality desired its share of the beneficence of the Government. Countless millions were squandered, either in purely Government work, or in trebling or quadrupling local subventions, or in rendering gratuitous public services which had once paid their expenses, or in multiplying inordinately Government posts. And the result was that, at a time when severe economy was imperiously required, the Republic added

to its debt a sum which was little, if at all, less than the expense of the war of 1870.1

We can hardly have a more impressive illustration of the truth that universal suffrage wholly fails to represent the best qualities of a nation. No people in their private capacities are more distinguished than the French for their business talent, for their combination of intelligent industry with great parsimony, for the courage with which in times of difficulty they retrench their expenditure. Yet few Governments have been more lavishly and criminally extravagant than those which have emanated from universal suffrage in France.

The forms of corruption which are practised in a pure democracy are in general far more detrimental to the prosperity of nations than those which existed in other days. Sinecures, and corrupt pensions, and Court favours, and small jobs, and the purchase of seats of Parliament, may all be carried very far without seriously burdening the national revenues. A millionaire may squander with reckless profusion his shillings and his pence, but as long as the main lines of his expenditure are wisely ordered he will find no great difference at the end of the year. There are, it is true, occasional instances in which the extravagance of an individual or of a Court may have ruined a nation. The most amazing modern example has been that of Ismail Pasha, who, in the thirteen years between 1863 and 1876, raised the Egyptian debt from a little over three millions of pounds to eighty-nine millions, and who, mainly through his personal extrava

1 See on this subject, Scherer, La Démocratie et la France, pp. 29-33; Leroy-Beaulieu, L'Etat et ses Fonctions, pp. 137-74; Le

roy-Beaulieu, La Science des Finances, ii. 277-78; Chaudordy, La France en 1889, pp. 54-62.