So far, so much agreement. It was clear that all present – who represented some of the most powerful financial institutions in France – were prepared to put their weight behind the request that France assist the Bank of England. But it was equally clear that none of them would do so unless that request was going to be accepted.
'For myself,' said Alphonse de Rothschild, 'I am prepared to commit half a million of gold to the general defence of the banking system; I have already cabled my cousin to inform him that I will transfer the money to his house today.'
Netscher smiled. 'That safeguards the Rothschild family, my dear Alphonse,' he observed. 'It does little else.'
'You cannot expect any more of me as yet,' Rothschild retorted. 'Not until there is an overall agreement. Remember, if there is a run on the banks in England, it could well trigger a panic here as well. We cannot afford to dismantle our own defences.'
'Bank of France or nothing. Is that right?' I commented.
They all nodded.
'I do not know the Governor,' I said.
'M. Magnin,' Netscher said. 'A good man. Started as an ironmaster, curiously enough. Still a bit of the peasant about him, but solid. He is a man who fully appreciates the value of sound money. And he understands how weakness in the credit markets can affect industry. That is the trouble, in fact.'
'Why?'
'Because I would have expected him to have responded already. All his instincts, I feel sure, would be to bolster London. It is neighbourly and it is good business. He has not done so. Which suggests he is acting under instruction. He is not a free man, you know. The Bank of France is not a private company like the Bank of England. Its sole shareholder is the Government, and ultimately M. Magnin must do as he is told.'
'So we are talking about government policy here, are we?'
Netscher sighed. 'I do not think so. Believe me, Mr Cort, I am – we all are, I am sure – trying to find out. But so far I have discovered nothing.'
Here Rothschild smiled in a superior fashion. 'Fortunately, the magic of the house of Rothschild still has some life in it,' he said quietly. 'In fact, I do believe I can say what is taking place. This policy was sold to Rouvier about six months ago. The Foreign Ministry is standing by, as it considers it foolish not to take advantage of any weakness which Britain might display. The trouble at Barings has been brewing for several months, and the Foreign Ministry has been quietly preparing the ground. It all developed out of the blunder by Bismarck three years ago when he denied Russia access to the Berlin credit markets. Paris took up the role, and has advanced large sums of money to the Russian Government. This, naturally, has created a bond of friendship, not to say a common interest. I would even venture to surmise that some sort of military understanding might come to pass in due course. Obviously, in that case, a weakening of Great Britain would be mutually beneficial.'
'But Russia needs investment desperately. Unless it gets credit, its army is back in the seventeenth century. How can destroying the credit markets help?'
'A question so good I am afraid I cannot answer it. I have approached the Russian Embassy, but they refused to speak to me.' The pained surprise was obvious. No one refused to talk to a Rothschild.
'However, they have agreed to talk to the British Government. Which in itself indicates how very much is riding on this matter. And how well prepared they are.'
'But that would be Sir Edward Merson.'
'I did point this out, and they have no desire to talk to Sir Edward at all, as he would not understand what was being said. No. You have to produce someone more senior and authoritative than that. I would suggest Goschen. He can make a deal and he has the authority to persuade the Prime Minister to accept.'
'You expect the Chancellor of the Exchequer to grovel in public?'
'I would expect him to arrive so silently and quietly that no one is ever aware of his presence in Paris.'
'To talk to . . . ?'
'The head of the Bank of France, obviously. By merest coincidence, no doubt, the deputy head of the Bank of Moscow is in Paris, visiting his relations. And Rouvier, of course. I and M. Netscher would be happy to attend as well, I am sure.'
'Where?'
'Somewhere they will not be noticed.'
