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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.

CHAPTER V

1805-1806.

Declaration of Louis XVIII.—Dumouriez watched—News of a spy— Remarkable trait of courage and presence of mind—Necessity of vigilance at Hamburg—The King of Sweden—His bulletins—Doctor Gall —Prussia covets Hamburg—Projects on Holland—Negotiations for peace—Mr. Fox at the head of the British Cabinet—Intended assassination of Napoleon—Propositions made through Lord Yarmouth —Proposed protection of the Hanse towns—Their state— Aggrandisement of the Imperial family—Neither peace nor war— Sebastiani's mission to Constantinople—Lord Lauderdale at Paris, and failure of the negotiations—Austria despoiled—Emigrant pensions—Dumouriez's intrigues—Prince of Mecklenburg-Schwerin— Loizeau.

I have been somewhat diffuse respecting the vast enterprises of M. Ouvrard, and on the disastrous state of the finances during the campaign of Vienna. Now, if I may so express myself, I shall return to the Minister Plenipotentiary's cabinet, where several curious transactions occurred. The facts will not always be given in a connected series, because there was no more relation between the reports which I received on a great variety of subjects than there is in the pleading of the barristers who succeed each other in a court of justice.

On the 2d of January 1806 I learned that many houses in Hamburg had received by post packets, each containing four copies of a declaration of Louis XVIII. Dumouriez had his carriage filled with copies of this declaration when he passed through Brunswick; and in that small town alone more than 3000 were distributed. The size of this declaration rendered its transmission by post very easy, even in France.

All my letters from the Minister recommended that I should keep a strict watch over the motions of Dumouriez; but his name was now as seldom mentioned as if he had ceased to exist. The part he acted seemed to be limited to disseminating pamphlets more or less insignificant.

It is difficult to conceive the great courage and presence of mind sometimes found in men so degraded as are the wretches who fill the office of spies. I had an agent amongst the Swedo-Russians, named Chefneux, whom I had always found extremely clever and correct. Having for a long time received no intelligence from him I became very anxious,—an anxiety which was not without foundation. He had, in fact, been arrested at Lauenburg, and conducted, bound, tied hand and foot, by some Cossacks to Luneburg. There was found on him a bulletin which he was about to transmit to me, and he only escaped certain death by having in his possession a letter of recommendation from a Hamburg merchant well known to M. Alopaeus, the Russian Minister in that city. This precaution, which I had taken before he set out, saved his life. M. Alopaeus replied to the merchant that, in consequence of his recommendation the spy should be sent back safe and sound, but that another time neither the recommended nor the recommender should escape so easily. Notwithstanding this, Chefneux would certainly have paid with his head for the dangerous business in which he was embarked but for the inconceivable coolness he displayed under the most trying circumstances. Though the bulletin which was found upon him was addressed to M. Schramm, merchant, they strongly suspected that it was intended for me. They demanded of the prisoner whether he knew me; to which he boldly replied that he had never seen me. They endeavoured, by every possible means, to extort a confession from him, but without success. His repeated denials, joined to the name of M. Schramm, created doubts in the minds of his interrogators; they hesitated lest they should condemn an innocent man. They, however, resolved to make a last effort to discover the truth, and Chefneux, condemned to be shot, was conducted to the plain of Luneburg. His eyes were bandaged, and he heard the command of preparation given to the platoon, which was to fire upon him; at that moment a man approaching him whispered in his ear, in a tone of friendship and compassion, "They are going to fire; but I am your friend; only acknowledge that you know M. de Bourrienne and you are safe."—"No," replied Chefneux in a firm tone; "if I said so I should tell a falsehood." Immediately the bandage was removed from his eyes, and he was set at liberty. It would be difficult to cite a more extraordinary instance of presence of mind.

Much as I execrate the system of espionage I am nevertheless compelled to admit that the Emperor was under the necessity of maintaining the most unremitting vigilance amidst the intrigues which were going forward in the neighbourhood of Hamburg, especially when the English, Swedes, and Russians were in arms, and there were the strongest grounds for suspecting the sincerity of Prussia.

On the 5th of January 1806 the King of Sweden arrived before the gates of Hamburg. The Senate of that city, surrounded on all sides by English, Swedish, and Russian troops, determined to send a deputation to congratulate the Swedish monarch, who, however, hesitated so long about receiving this homage that fears were entertained lest his refusal should be followed by some act of aggression. At length, however, the deputies were admitted, and they returned sufficiently well satisfied with their reception.

The King of Sweden then officially declared, "That all the arrangements entered into with relation to Hanover had no reference to hint, as the Swedish army was under the immediate command of its august sovereign."

The King, with his 6000 men, seemed inclined to play the part of the restorer of Germany, and to make himself the Don Quixote of the treaty of Westphalia. He threatened the Senate of Hamburg with the whole weight of his anger, because on my application the colours which used to be suspended over the door of the house for receiving Austrian recruits had been removed. The poor Senate of Hamburg was kept in constant alarm by so dangerous a neighbour.

The King of Sweden had his headquarters at Boetzenburg, on the northern bank of the Elbe. In order to amuse himself he sent for Dr. Gall, who was at Hamburg, where he delivered lectures on his system of phrenology, which was rejected in the beginning by false science and prejudice, and afterwards adopted in consequence of arguments, in my opinion, unanswerable. I had the pleasure of living some time with Dr. Gall, and I owe to the intimacy which subsisted between us the honour he conferred on me by the dedication of one of his works. I said to him, when he departed for the headquarters of the King of Sweden, "My dear doctor, you will certainly discover the bump of vanity." The truth is, that had the doctor at that period been permitted to examine the heads of the sovereigns of Europe they would have afforded very curious craniological studies.

It was not the King of Sweden alone who gave uneasiness to Hamburg; the King of Prussia threatened to seize upon that city, and his Minister publicly declared that it would very soon belong to his master. The Hamburgers were deeply afflicted at this threat; in fact, next to the loss of their independence, their greatest misfortune would have been to fall under the dominion of Prussia, as the niggardly fiscal system of the Prussian Government at that time would have proved extremely detrimental to a commercial city. Hanover, being evacuated by the French troops, had become a kind of recruiting mart for the British army, where every man who presented himself was enrolled, to complete the Hanoverian legion which was then about to be embodied. The English scattered gold by handfuls. One hundred and fifty carriages, each with six horses, were employed in this service, which confirmed me in the belief I had previously entertained, that the English were to join with the Russians in an expedition against Holland. The aim of the Anglo-Russians was to make a diversion which might disconcert the movements of the French armies in Germany, the allies being at that time unacquainted with the peace concluded at Presburg. Not a moment was therefore to be lost in uniting the whole of our disposable force for the defence of Holland; but it is not of this expedition that I mean to speak at present. I only mention it to afford some idea of our situation at Hamburg, surrounded, as we then were, by Swedish, English, and Russian troops. At this period the Russian Minister at Hamburg, M. Forshmann, became completely insane; his conduct had been more injurious than advantageous to his Government. He was replaced by M. Alopcous, the Russian Minister at Berlin; and they could not have exchanged a fool for a more judicious and able diplomatist.

I often received from the Minister of Marine letters said packets to transmit to the Isle of France,(Mauritius) of which the Emperor was extremely anxious to retain possession; and I had much trouble in finding any vessels prepared for that colony by which I could forward the Minister's communications. The death of Pitt and the appointment of Fox as his successor had created a hope of peace. It was universally known that Mr. Fox, in succeeding to his office, did not inherit the furious hatred of the deceased Minister against France and her Emperor. There moreover existed between Napoleon and Mr. Fox a reciprocal esteem, and the latter had shown himself really disposed to treat. The possibility of concluding a peace had always been maintained by that statesman when he was in opposition to Mr. Pitt; and Bonaparte himself might have been induced, from the high esteem he felt for Mr. Fox, to make concessions from which he would before have recoiled. But there were two obstacles, I may say almost insurmountable ones. The first was the conviction on the part of England that any peace which might be made would only be a truce, and that Bonaparte would never seriously relinquish his desire of universal dominion. On the other side, it was believed that Napoleon had formed the design of invading England. Had he been able to do so it would have been less with the view of striking a blow at her commerce and destroying her maritime power, than of annihilating the liberty of the press, which he had extinguished in his own dominions. The spectacle of a free people, separated only by six leagues of sea, was, according to him, a seductive example to the French, especially to those among them who bent unwillingly under his yoke.

At an early period of Mr. Fox's ministry a Frenchman made the proposition to him of assassinating the Emperor, of which information was immediately transmitted to M. de Talleyrand. In this despatch the Minister said that, though the laws of England did not authorise the permanent detention of any individual not convicted of a crime, he had on this occasion taken it on himself to secure the miscreant till such time as the French Government could be put on its guard against his attempts. Mr. Fox said in his letter that he had at first done this individual "the honour to take him for a spy," a phrase which sufficiently indicated the disgust with which the British Minister viewed him.

This information was the key which opened the door to new negotiations. M. de Talleyrand was ordered to express, in reply to the communication of Mr. Fox, that the Emperor was sensibly affected at the index it afforded of the principles by which the British Cabinet was actuated. Napoleon did not limit himself to this diplomatic courtesy; he deemed it a favourable occasion to create a belief that he was actuated by a sincere love of peace. He summoned to Paris Lord Yarmouth, one of the most distinguished amongst the English who had been so unjustly detained prisoners at Verdun on the rupture of the peace of Amiens. He gave his lordship instructions to propose to the British Government a new form of negotiations, offering to guarantee to England the Cape of Good Hope and Malta. Some have been inclined from this concession to praise the moderation of Bonaparte; others to blame him for offering to resign these two places, as if the Cape and Malta could be put in competition with the title of Emperor, the foundation of the Kingdom of Italy, the acquisition of Genoa and of all the Venetian States, the dethronement of the King of Naples and the gift of his kingdom to Joseph, and finally, the new partition of Germany. These transactions, of which Bonaparte said not a word, and from which he certainly had no intention of departing, were all long after the treaty of Amiens.

Every day brought with it fresh proofs of insatiable ambition. In fact, Napoleon longed to obtain possession of the Hanse Towns. I was, however, in the first place, merely charged to make overtures to the Senates of each of these towns, and to point out the advantages they would derive from the protection of Napoleon in exchange for the small sacrifice of 6,000,000 francs in his favour. I had on this subject numerous conferences with the magistrates: they thought the sum too great, representing, to me that the city was not so rich as formerly, because their commerce had been much curtailed by the war; in short, the Senate declared that, with the utmost goodwill, their circumstances would not permit them to accept the "generous proposal" of the Emperor.

I was myself, indeed, at a loss to conceive how the absurdity of employing me to make such a proposition was overlooked, for I had, really no advantage to offer in return to the Hanse Towns. Against whom did Bonaparte propose to protect them? The truth is, Napoleon then wished to seize these towns by direct aggression, which, however, he was not able to accomplish until four years afterwards.

During five years I witnessed the commercial importance of these cities, and especially of Hamburg. Its geographical situation, on a great river navigable by large vessels to the city, thirty leagues from the mouth of the Elbe; the complete independence it enjoyed; its municipal regulations and paternal government, were a few amongst the many causes which had raised Hamburg to its enviable height of prosperity. What, in fact, was the population of these remnants of the grand Hanseatic League of the Middle Ages? The population of Hamburg when I was there amounted to 90,000, and that of its small surrounding territory to 25,000. Bremen had 36,000 inhabitants, and 9000 in its territory; the city of Lübeck, which is smaller and its territory a little more extensive than that of Bremen, contained a population of 24,000 souls within and 16,000 without the walls. Thus the total population of the Hanse Towns amounted to only 200,000 individuals; and yet this handful of men carried on an extensive commerce, and their ships ploughed every sea, from the shores of India to the frozen regions of Greenland.

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