Foreign Intelligence.

New Zealand Spectator and Cook's Strait Guardian, Volume XVII, Issue 1722, 1 February 1862, Page 3

Foreign Intelligence.

FRANCE. FINANCIAL CRISIS. APPOINTMENT OF M. FOULD AS MINISTER OF FINANCE. The great event of the month in France has been the announcement bv the government of its financial difficulties. The existence of those difficulties was long perfectly well known, but the curiously frank manner in which they have been avowed took every one by surprise. The deficit acknowkdged.is no less than £40.000,000 sterling. Our readers will perceive from what

follows that the emperor surrenders for the future the p’eronative of controlling the finances of tho State.

Ihe Moniteur of November 14 contained decrees nominatin'' M. Fould as Minister of I’tuanre, and M. EorCade de Laroquette, pre. x’lit Minii-icr of Finance, to the post of Senator.

1 he hloiiltrur at the same time * a letter addres-'u! by the emperor to P’ewski, Minkler of Slate, wherein his majesty approved of a financial programme drawn up by M. Fould, and acknowledged the necessity of confining tne budget within invariable limits. The empyo r continued : — I he only etncacious means to attain this •'nd is to resolutely abmdon the faculty which apin-nains to of opening a fresh credit in the of the Clumber.

* I am to introduce changes, and the Eenntus Con suitum, which wil* be presented to the Senate on the 2nd Decer next, will contain this resolution, and detern ; your budget and those of tiie dtfi'etent minivers by large

‘‘Li renouncing a right which equally appertained io the sovereigns—even constitutional ones who have preceded me, may Ido a useful ihintf towards insuring the right administration of the finances.

faithful to my origin, I neither regard my prerogatives as a sacred deposit which cannot be touchfcil nor as a heritage from my ancestors which must be transmuted intact to my son. ** E’ected by the people, and representing their interes s, I shall always abandon wi.’hout regret every prerogative useless for the good of the public, as I shall likewise preserve unshaken in my In rids all pewer which is indispensable for the tranquillity and prosperity of the country.” The Moniteur published likewise a letter from the emperor to M. Fould, approving of his financial programme, and charging him with the carrying out of the same.

Hie Mon'iteur also published M. Fould’s programme, which demonstrates the necessity for the suppression of extraordinary credits, and examines the financial situation”. In this document M. Fouid says:—

“ lo meet various expenses recourse has been lud to every form of credit, and with the assent of the public powers the resources of special establishments under the direction of the State have been utilised. The loans negotiated in 1854, 1855, and 1859 amount to no less than 2000 millions. When the bank privilege was renewed, the treasury absorbed the 100 millions of additional capital imposed on that establishment. The Army Dotation Fund, which lud received 135 millions, saw all its assets absorbed by the treasury, which gave inscriptions of Rente for them. Lastly, recourse has been bad to a new mode of loan, the Trentenary Obligations, of which 132 millions have been issued this year.

“The public has subscribed to these loans with great eagerness, but it would be indulging dangerous illusions to rely indefinitely on toe development of the .national credit. “ 1 be state of credit ought the more to attract your majesty's attention from the fact that the situation of the finances pre-occupies everybody. In the last discussion of the budget, it was calculated that the deficits (decouvertsj must amount at the end of the year to nearly 1,600,000,0001'., and that figure is certainly not exaggerated.”

The only remedy is to have every credit voted by the Chamber, and to abolish the emperor’s power of raising money, which M. Fould attacks very openlv ;— “ The complaints made against the administration of our finances and the experience of the last few years, have not changed my views. I desired in 1852, as I desire now, the suppression ol extraordinary and supplementary credits apart from the vote of the Legislaiure, for your ma. jesty will permit me to say on this subject all I think. The real danger for our finances is in the liberty which the government possesses of decieeiug expenses without the control of the Legislative power ; and as has been justly said, nothing is more difficult than to struggle against the most legitimate cf desiret—ibat of making useful expenses.” M. Fould holds this renunciation also essential to remove the distrust of neighbouring nations :—

“ With regard to foreign lelations, >f the powet of disposing at a given moment and without intermediary of all the resources of a great nation be a criterion of strength, it is assuredly also o: danger. The apprehensions which it inspires in all its neigbbeurs obliges them to keep up immense armaments. They are only reassured by collecting forces superior to those by which they fancy themselves threatened, and which their alarm exaggerates. This fear also is, perhaps, now the only bond which still unites in one common sentiment the populations cf Europe, whom tbeir institutions and their interests would tend to separate. There is no absurd calumny which will not be believed, no sinister projec's which will not find credit among them.

“ Your majesty, by spontaneously relinquishing this power-—more apparent than real, more threatening than effective—would therefore not only restore confidence lo France, but you would allay the apprehensions of Europe, and remove all pretext ior hostile intentions. When it should be seen that the expenditure of the army and the navy are submitted to the regular vole of the legislature, it would be impossible for any power to fancy itself in danger cf a sudden and unforeseen attack ; governments would no longer be inclined lo those ruinous struggles which impel them, in mutual rivalry, to military armaments and preparations ; the populations would no longer witness the annual increase of tbeir burdens, which excites them against France, and tbe odium ot which it is attempted to throw on the emperor.”

The Paris journals have all been occupied with speculations on ihe measures that M, Fould will report to in older to meet the great financial deficiency. Seeing that the army expenditure has been clearly the prime cause of the deficit, attention is naturally directed to it as the quarter in which the greatest economy could be effected, and accordingly the Conslilutionncl hints at a reduction in the forces, asserting that M. de Persigny has submitted to the emperor a project for disarmament, but which would maintain the actual organisation. If, however, a disarmament does take place, it will only be in consequence of an understanding between France and the other Great Powers who are themselves armed. Meanwhile, in order to show what credit we are to attach to such reports, an order has just been istued for the constiuelion of another ironplat ed frigate. The only new taxes spoken of are those on stamps, pianos, and lucifer-matches! But the people clearly see what is looming in the distance in the shape of heavy taxation and a large loan. Under the circumstances, it impossible to understand how a loan can be dispensed with, and accordingly we find that people are beginning to talk of it as a matter <>f necessity. The only question is as to its J amount, it being variously stated at from 750

to 1000 millions of francs; and whether thd government will be able to do without a further supply of funds in the shape of ektraordinary crediKuutil the meeting of the Corps Le-islahf. On all sides it is confessed that the difficulties against which M. Fould has to contend are immense, and that if he succeeds in placing the financial administration on a good footing, he will be entitled to the gratitude of Europe as well as France. What is to be feared is that his aid is called in merely to patch up the rotten edifice of French finance, and that once achieved the former system will be resorted to. Ills plan, however, has this advantage, that it can only be carried out hy a free Chamber and a free press, and if the papers and the Legislature are not placed under a wholly different regime his efforts must necessarily fail. It remains to be seen whetlrer Imperialism can stand this strong dose of liberty, and whether, once the Chamber has got the control of the purse-strings, theempite will not be made to suffer for the 10 years of silence and oppression which have led the country to the verge of bankruptcy.

The Italian policy of the French government has continued during the past month to be as actively discussed as ever. A few weeks ago a visit was paid to the emperor by M. Ratuzzi,President of the Turin Chamber of Deputies, and leader of an important section of Italian politicians understood to be opposed on several points to the premier, Ricasoli. Ricasoli, we may mention, is accused of retarding the developement of the Italian question by the attitude of suspicious reserve which he maintains towards France. On the other hand it is affi'med that Ratazzi is the right man to be placed at the head of the Italian ministry, us the mere fact of his frank and firm reliance on the Emperor of the French would give a strong impulse to the movement for a united Italy. The value to be attached to these views will soon be made apparent in the course of the debates which have just been opened at Turin. Meanwhile we may here state the results of Ratazzi’s interview with the Emperor Napoleon. These results were recently communicated to the government of Victor Emmanuel, and we cannot but think they will raise up increased difficulties when they shall become generally known to the Italian people. Napoleon 111. states that he will be only too glad to withdraw his troops from Rome, lie says tie has never ceased to indulge the hope that Pius IX. will enter into an amicable arrangement with King Victor Emmanuel, and consent to remain in Rome on such conditions as, whilst guaranteeing the spiritual independence of the Papacy, may satisfy the patriotic aspirations of the Italian people. But the Pope turns a deaf ear to all advise and remonstrance, to all entreaty and to all menace. Whenever the emperor hints that he may be compelled to withdraw from Rome, he is coolly informed, he says, that the sooner he goes the better. The evacuation of the city by his troops will become, it is added, tbe immediate signal for summoning to the rescue of the Papzcy, Austrians, Bavarians, and Spaniards ; all in short, in whom Popish fanaticism is strong enough to make them believe that in fighting for the revenues of Cardinal Antonelli and his brethren of the Sacred College, they are doing battle in defence of their cbm ch’s freedom and Tbe French emperor, we are told, does not wish to encounter the hazards of a purely religious war, which would keep alive a moral contest in each department of his own dominions. Such are the grounds upon which Napoleon 111. defends his prolonged and involuntary occupation of Rome.