The question was, how to speak to the king at once. In the midst of the conference Monsieur de Vandenesse was announced; and the duke exclaimed, "Here is our support!"

Madame Birotteau was not unknown to this young man, who had been to her shop two or three times in search of those trifles which are sometimes of more importance than greater things. The duke explained Monsieur de la Billardiere's wishes. As soon as he learned the misfortune which had overtaken the G.o.dson of the Marquise d'Uxelles, Vandenesse went at once, accompanied by Monsieur de la Billardiere, to the Comte de Fontaine, begging Madame Birotteau to wait their return. Monsieur le Comte de Fontaine was, like Monsieur de la Billardiere, one of those fine provincial gentlemen, the heroes, almost unknown, who made "la Vendee."

Birotteau was not a stranger to him, for he had seen him in the old days at "The Queen of Roses." Men who had shed their blood for the royal cause enjoyed at this time certain privileges, which the king kept secret, so as not to give umbrage to the Liberals.

Monsieur de Fontaine, always a favorite with Louis XVIII., was thought to be wholly in his confidence. Not only did the count positively promise a place, but he returned with the two gentlemen to the Duc de Lenoncourt, and asked him to procure for him an audience that very evening; and also to obtain for Billardiere an audience with MONSIEUR, who was greatly attached to the old Vendeen diplomatist.

The same evening, the Comte de Fontaine came from the Tuileries to "The Queen of Roses," and announced to Madame Birotteau that as soon as the proceedings in bankruptcy were over, her husband would be officially appointed to a situation in the Sinking-fund Office, with a salary of two thousand five hundred francs,--all the functions in the household of the king being overcrowded with n.o.ble supernumeraries to whom promises had already been made.

This success was but one part of the task before Madame Birotteau.

The poor woman now went to the "Maison du Chat-qui-pelote," in the Rue Saint-Denis, to find Joseph Lebas. As she walked along she met Madame Roguin in a brilliant equipage, apparently making purchases. Their eyes met; and the shame which the rich woman could not hide as she looked at the ruined woman, gave Constance fresh courage.

"Never will I roll in a carriage bought with the money of others," she said to herself.

Joseph Lebas received her kindly, and she begged him to obtain a place for Cesarine in some respectable commercial establishment. Lebas made no promises; but eight days later Cesarine had board, lodging, and a salary of three thousand francs from one of the largest linen-drapers in Paris, who was about to open a branch establishment in the quartier des Italiens. Cesarine was put in charge of the desk, and the superintendence of the new shop was entrusted to her; she filled, in fact, a position above that of forewoman, and supplied the place of both master and mistress.

Madame Cesar went from the "Chat-qui-pelote" to the Rue des Cinq-Diamants, and asked Popinot to let her take charge of his accounts and do his writing, and also manage his household. Popinot felt that his was the only house where Cesar's wife could meet with the respect that was due to her, and find employment without humiliation. The n.o.ble lad gave her three thousand francs a year, her board, and his own room; going himself into an attic occupied by one of his clerks. Thus it happened that the beautiful woman, after one month's enjoyment of her sumptuous home, came to live in the wretched chamber looking into a damp, dark court, where Gaudissart, Anselme, and Finot had inaugurated Cephalic Oil.

When Molineux, appointed agent by the Court of Commerce, came to take possession of Cesar Birotteau's a.s.sets, Madame Birotteau, aided by Celestin, went over the inventory with him. Then the mother and daughter, plainly dressed, left the house on foot and went to their uncle Pillerault's, without once turning their heads to look at the home where they had pa.s.sed the greater part of their lives. They walked in silence to the Rue des Bourdonnais, where they were to dine with Cesar for the first time since their separation. It was a sad dinner. Each had had time for reflection,--time to weigh the duties before them, and sound the depths of their courage. All three were like sailors ready to face foul weather, but not deceived as to their danger. Birotteau gathered courage as he was told of the interest people in high places had taken in finding employment for him, but he wept when he heard what his daughter was to become. Then he held out his hand to his wife, as he saw the courage with which she had returned to labor. Old Pillerault's eyes were wet, for the last time in his life, as he looked at these three beings folded together in one embrace; from the centre of which Birotteau, feeblest of the three and the most stricken, raised his hands, saying:--

"Let us have hope!"

"You shall live with me," said Pillerault, "for the sake of economy; you shall have my chamber, and share my bread. I have long been lonely; you shall replace the poor child I lost. From my house it is but a step to your office in the Rue de l'Oratoire."

"G.o.d of mercy!" exclaimed Birotteau; "in the worst of a storm a star guides me."

Resignation is the last stage of man's misfortune. From this moment Cesar's downfall was accomplished; he accepted it, and strength returned to him.

VI

After admitting his insolvency and filing his schedule, a merchant should find some retired spot in France, or in foreign countries, where he may live without taking part in life, like the child that he is; for the law declares him a minor, and not competent for any legal action as a citizen. This, however, is never done. Before reappearing he obtains a safe-conduct, which neither judge nor creditor ever refuses to give; for if the debtor were found without this _exeat_ he would be put in prison, while with it he pa.s.ses safely, as with a flag of truce, through the enemy's camp,--not by way of curiosity, but for the purpose of defeating the severe intention of the laws relating to bankruptcy. The effect of all laws which touch private interests is to develop, enormously, the knavery of men's minds. The object of a bankrupt, like that of other persons whose interests are thwarted by any law, is to make void the law in his particular case.

The status of civil death in which the bankrupt remains a chrysalis lasts for about three months,--a period required by formalities which precede a conference at which the creditors and their debtor sign a treaty of peace, by which the bankrupt is allowed the ability to make payments, and receives a bankrupt's certificate. This transaction is called the _concordat_,--a word implying, perhaps, that peace reigns after the storm and stress of interests violently in opposition.

As soon as the insolvent's schedule is filed, the Court of commerce appoints a judge-commissioner, whose duty it is to look after the interests of the still unknown body of creditors, and also to protect the insolvent against the vexatious measures of angry creditors,--a double office, which might be n.o.bly magnified if the judges had time to attend to it. The commissioner, however, delegates an agent to take possession of the property, the securities, and the merchandise, and to verify the schedule; when this is done, the court appoints a day for a meeting of the creditors, notice of which is trumpeted forth in the newspapers. The creditors, real or pretended, are expected to be present and choose the provisional a.s.signees, who are to supersede the agent, step into the insolvent's shoes, became by a fiction of law the insolvent himself, and are authorized to liquidate the business, negotiate all transactions, sell the property,--in short, recast everything in the interest of the creditors, provided the bankrupt makes no opposition. The majority of Parisian failures stop short at this point, and the reason is as follows:

The appointment of one or more permanent a.s.signees is an act which gives opportunity for the bitterest action on the part of creditors who are thirsting for vengeance, who have been tricked, baffled, cozened, trapped, duped, robbed, and cheated. Although, as a general thing, all creditors are cheated, robbed, duped, trapped, cozened, tricked, and baffled, yet there is not in all Paris a commercial pa.s.sion able to keep itself alive for ninety days. The paper of commerce alone maintains its vitality, and rises, athirst for payment, in three months. Before ninety days are over, the creditors, worn out by coming and going, by the marches and countermarches which a failure entails, are asleep at the side of their excellent little wives. This may help a stranger to understand why it is that the provisional in France is so often the definitive: out of every thousand provisional a.s.signees, not more than five ever become permanent. The subsidence of pa.s.sions stirred up by failures is thus accounted for.

But here it becomes necessary to explain to persons who have not had the happiness to be in business the whole drama of bankruptcy, so as to make them understand how it const.i.tutes in Paris a monstrous legal farce; and also how the bankruptcy of Cesar Birotteau was a signal exception to the general rule.

This fine commercial drama is in three distinct acts,--the agent's act, the a.s.signee's act, the _concordat_, or certificate-of-bankruptcy act.

Like all theatrical performances, it is played with a double-intent: it is put upon the stage for the public eye, but it also has a hidden purpose; there is one performance for the pit, and another for the side-scenes. Posted in the side-scenes are the bankrupt and his solicitor, the attorney of the creditors, the a.s.signees, the agent, and the judge-commissioner himself. No one out of Paris knows, and no one in Paris does not know, that a judge of the commercial courts is the most extraordinary magistrate that society ever allowed itself to create.

This judge may live in dread of his own justice at any moment. Paris has seen the president of her courts of commerce file his own schedule.

Instead of being an experienced retired merchant, to whom the magistracy might properly be made the reward of a pure life, this judge is a trader, bending under the weight of enormous enterprises, and at the head of some large commercial house. The _sine qua non_ condition in the election of this functionary, whose business it is to pa.s.s judgment on the avalanche of commercial suits incessantly rolling through the courts, is that he shall have the greatest difficulty in managing his own affairs. This commercial tribunal, far from being made a useful means of transition whereby a merchant might rise, without ridicule, into the ranks of the n.o.bility, is in point of fact made up of traders who are trading, and who are liable to suffer for their judgments when they next meet with dissatisfied parties,--very much as Birotteau was now punished by du Tillet.

The commissioner is of necessity a personage before whom much is said; who listens, recollecting all the while his own interests, and leaves the cause to the a.s.signees and the attorneys,--except, possibly, in a few strange and unusual cases where dishonesty is accompanied by peculiar circ.u.mstances, when the judge usually observes that the debtor, or the creditors, as it may happen, are clever people. This personage, set up in the drama like the royal bust in a public audience-chamber, may be found early in the morning at his wood-yard, if he sells wood; in his shop, if, like Birotteau, he is a perfumer; or, in the evenings, at his dessert after dinner,--always, it should be added, in a terrible hurry; as a general thing he is silent. Let us, however, do justice to the law: the legislation that governs his functions, and which was pushed through in haste, has tied the hands of this commissioner; and it sometimes happens that he sanctions fraud which he cannot hinder,--as the reader will shortly see.

The agent to whom the judge delegates the first proceedings, instead of serving the creditors, may become if he please a tool of the debtor.

Every one hopes to swell his own gains by getting on the right side of the debtor, who is always supposed to keep back a hidden treasure. The agent may make himself useful to both parties; on the one hand by not laying the bankrupt's business in ashes, on the other by s.n.a.t.c.hing a few morsels for men of influence,--in short, he runs with the hare and holds with the hounds. A clever agent has frequently arrested judgment by buying up the debts and then releasing the merchant, who then rebounds like an india-rubber ball. The agent chooses the best-stocked crib, whether it leads him to cover the largest creditors and shear the debtor, or to sacrifice the creditors for the future prosperity of the restored merchant. The action of the agent is decisive. This man, together with the bankrupt's solicitor, plays the utility role in the drama, where it may be said neither the one nor the other would accept a part if not sure of their fees. Taking the average of a thousand failures, an agent would be found nine hundred and fifty times on the side of the bankrupt. At the period of our history, the solicitors frequently sought the judge with the request that he would appoint an agent whom they proposed to him,--a man, as they said, to whom the affairs of the bankrupt were well-known, who would know how to reconcile the interests of the whole body of creditors with those of a man honorably overtaken by misfortune. For some years past the best judges have sought the advice of the solicitors in this matter for the purpose of not taking it, endeavoring to appoint some other agent _quasi_ virtuous.

During this act of the drama the creditors, real or pretended, come forward to select the provisional a.s.signees, who are often, as we have said, the final ones. In this electoral a.s.sembly all creditors have the right to vote, whether the sum owing to them is fifty sous, or fifty thousand francs. This a.s.sembly, in which are found pretended creditors introduced by the bankrupt,--the only electors who never fail to come to the meeting,--proposes the whole body of creditors as candidates from among whom the commissioner, a president without power, is supposed to select the a.s.signees. Thus it happens that the judge almost always appoints as a.s.signees those creditors whom it suits the bankrupt to have,--another abuse which makes the catastrophe of bankruptcy one of the most burlesque dramas to which justice ever lent her name.

The honorable bankrupt overtaken by misfortune is then master of the situation, and proceeds to legalize the theft he premeditated. As a rule, the petty trades of Paris are guiltless in this respect. When a shopkeeper gets as far as making an a.s.signment, the worthy man has usually sold his wife's shawl, p.a.w.ned his plate, left no stone unturned, and succ.u.mbs at last with empty hands, ruined, and without enough money to pay his attorney, who in consequence cares little for him.

The law requires that the _concordat_, at which is granted the bankrupt's certificate that remits to the merchant a portion of his debt, and restores to him the right of managing his affairs, shall be attended by a majority of the creditors, and also that they shall represent a certain proportion of the debt. This important action brings out much clever diplomacy, on the part of the bankrupt, his a.s.signees, and his solicitor, among the contending interests which cross and jostle each other. A usual and very common manoeuvre is to offer to that section of the creditors who make up in number and amount the majority required by law certain premiums, which the debtor consents to pay over and above the dividend publicly agreed upon. This monstrous fraud is without remedy. The thirty commercial courts which up to the present time have followed one after the other, have each known of it, for all have practised it. Enlightened by experience, they have lately tried to render void such fraudulent agreements; and as the bankrupts have reason to complain of the extortion, the judges had some hope of reforming to that extent the system of bankruptcy. The attempt, however, will end in producing something still more immoral; for the creditors will devise other rascally methods, which the judges will condemn as judges, but by which they will profit as merchants.

Another much-used stratagem, and one to which we owe the term "serious and legitimate creditor," is that of creating creditors,--just as du Tillet created a banker and a banking-house,--and introducing a certain quant.i.ty of Claparons under whose skin the bankrupt hides, diminishing by just so much the dividends of the true creditors, and laying up for the honest man a store for the future; always, however, providing a sufficient majority of votes and debts to secure the pa.s.sage of his certificate. The "gay and illegitimate creditors" are like false electors admitted into the electoral college. What chance has the "serious and legitimate creditor" against the "gay and illegitimate creditor?" Shall he get rid of him by attacking him? How can he do it?

To drive out the intruder the legitimate creditor must sacrifice his time, his own business, and pay an attorney to help him; while the said attorney, making little out of it, prefers to manage the bankruptcy in another capacity, and therefore works for the genuine credit without vigor.

To dislodge the illegitimate creditor it is necessary to thread the labyrinth of proceedings in bankruptcy, search among past events, ransack accounts, obtain by injunction the books of the false creditors, show the improbability of the fiction of their existence, prove it to the judges, sue for justice, go and come, and stir up sympathy; and, finally, to charge like Don Quixote upon each "gay and illegitimate creditor," who if convicted of "gaiety" withdraws from court, saying with a bow to the judges, "Excuse me, you are mistaken, I am very 'serious.'" All this without prejudice to the rights of the bankrupt, who may carry Don Quixote and his remonstrance to the upper courts; during which time Don Quixote's own business is suffering, and he is liable to become a bankrupt himself.

The upshot of all this is, that in point of fact the debtor appoints his a.s.signees, audits his own accounts, and draws up the certificate of bankruptcy himself.

Given these premises, it is easy to imagine the devices of Frontin, the trickeries of Sganarelle, the lies of Mascarille, and the empty bags of Scapin which such a system develops. There has never been a failure which did not generate enough matter to fill the fourteen volumes of "Clarissa Harlowe," if an author could be found to describe them. A single example will suffice. The ill.u.s.trious Gobseck,--ruler of Palma, Gigonnet, Werbrust, Keller, Nucingen, and the like,--being concerned in a failure where he attempted to roughly handle the insolvent, who had managed to get the better of him, obtained notes from his debtor for an amount which together with the declared dividend made up the sum total of his loss. These notes were to fall due after the _concordat_. Gobseck then brought about a settlement in the _concordat_ by which sixty-five per cent was remitted to the bankrupt. Thus the creditors were swindled in the interests of Gobseck. But the bankrupt had signed the illicit notes with the name of his insolvent firm, and he was therefore able to bring them under the reduction of sixty-five per cent. Gobseck, the great Gobseck, received scarcely fifty per cent on his loss. From that day forth he bowed to his debtor with ironical respect.

As all operations undertaken by an insolvent within ten days before his failure can be impeached, prudent men are careful to enter upon certain affairs with a certain number of creditors whose interest, like that of the bankrupt, is to arrive at the _concordat_ as fast as possible.

Skilful creditors will approach dull creditors or very busy ones, give an ugly look into the failure, and buy up their claims at half what they are worth at the liquidation; in this way they get back their money partly by the dividend on their own claims, partly from the half, or third, or fourth, gained on these purchased claims.

A failure is the closer, more or less hermetically tight, of a house where pillage has left a few remaining bags of silver. Lucky the man who can get in at a window, slide down a chimney, creep in through a cellar or through a hole, and seize a bag to swell his share! In the general rout, the _sauve qui peut_ of Beresina is pa.s.sed from mouth to mouth; all is legal and illegal, false and true, honest and dishonest. A man is admired if he "covers" himself. To "cover" himself means that he seizes securities to the detriment of the other creditors. France has lately rung with the discussion of an immense failure that took place in a town where one of the upper courts holds its sittings, and where the judges, having current accounts with the bankrupts, wore such heavy india-rubber mantles that the mantle of justice was rubbed into holes. It was absolutely necessary, in order to avert legitimate suspicion, to send the case for judgment in another court. There was neither judge nor agent nor supreme court in the region where the failure took place that could be trusted.

This alarming commercial tangle is so well understood in Paris, that unless a merchant is involved to a large amount he accepts a failure as total shipwreck without insurance, pa.s.ses it to his profit-and-loss account, and does not commit the folly of wasting time upon it; he contents himself with brewing his own malt. As to the petty trader, worried about his monthly payments, busied in pushing the chariot of his little fortunes, a long and costly legal process terrifies him. He gives up trying to see his way, imitates the substantial merchant, bows his head, and accepts his loss.

The wholesale merchants seldom fail, nowadays; they make friendly liquidations; the creditors take what is given to them, and hand in their receipts. In this way many things are avoided,--dishonor, judicial delays, fees to lawyers, and the depreciation of merchandise.

All parties think that bankruptcy will give less in the end than liquidation. There are now more liquidations than bankruptcies in Paris.

The a.s.signee's act in the drama is intended to prove that every a.s.signee is incorruptible, and that no collusion has ever existed between any of them and the bankrupt. The pit--which has all, more or less, been a.s.signee in its day--knows very well that every a.s.signee is a "covered"

merchant. It listens, and believes as it likes. After three months employed in auditing the debtor and creditor accounts, the time comes for the _concordat_. The provisional a.s.signees make a little report at the meeting, of which the following is the usual formula:--

Messieurs,--There is owing to the whole of us, in bulk, about a million. We have dismantled our man like a condemned frigate. The nails, iron, wood, and copper will bring about three hundred thousand francs. We shall thus get about thirty per cent of our money. Happy in obtaining this amount, when our debtor might have left us only one hundred thousand, we hereby declare him an Aristides; we vote him a premium and crown of encouragement, and propose to leave him to manage his a.s.sets, giving him ten or twelve years in which to pay us the fifty per cent which he has been so good as to offer us. Here is the certificate of bankruptcy; have the goodness to walk up to the desk and sign it.

At this speech, all the fortune creditors congratulate each other and shake hands. After the ratification of the certificate, the bankrupt becomes once more a merchant, precisely such as he was before; he receives back his securities, he continues his business, he is not deprived of the power to fail again, on the promised dividend,--an additional little failure which often occurs, like the birth of a child nine months after the mother has married her daughter.

If the certificate of bankruptcy is not granted, the creditors then select the permanent a.s.signees, take extreme measures, and form an a.s.sociation to get possession of the whole property and the business of their debtor, seizing everything that he has or ever will have,--his inheritance from his father, his mother, his aunt, _et caetera_.

This stern measure can only be carried through by an a.s.sociation of creditors.

There are therefore two sorts of failures,--the failure of the merchant who means to repossess himself of his business, and the failure of the merchant who has fallen into the water and is willing to sink to the bottom. Pillerault knew the difference. It was, to his thinking and to that of Ragon, as hard to come out pure from the first as to come out safe from the second. After advising Cesar to abandon everything to his creditors, he went to the most honorable solicitor in such matters, that immediate steps might be taken to liquidate the failure and put everything at once at the disposition of the creditors. The law requires that while the drama is being acted, the creditors shall provide for the support of the bankrupt and his family. Pillerault notified the commissioner that he would himself supply the wants of his niece and nephew.

Du Tillet had worked all things together to make the failure a prolonged agony for his old master; and this is how he did it. Time is so precious in Paris that it is customary, when two a.s.signees are appointed, for only one to attend to the affair: the duty of the other is merely formal,--he approves and signs, like the second notary in notarial deeds. By this means, the largest failures in Paris are so vigorously handled that, in spite of the law's delays, they are adjusted, settled, and secured with such rapidity that within a hundred days the judge can echo the atrocious saying of the Minister,--"Order reigns in Warsaw."

Du Tillet meant to compa.s.s Cesar's commercial death. The names of the a.s.signees selected through the influence of du Tillet were very significant to Pillerault. Monsieur Bidault, called Gigonnet,--the princ.i.p.al creditor,--was the one to take no active part; and Molineux, the mischievous old man who lost nothing by the failure, was to manage everything. Du Tillet flung the n.o.ble commercial carca.s.s to the little jackal, that he might torment it as he devoured it. After the meeting at which the creditors appointed the a.s.signees, little Molineux returned home "honored," so he said, "by the suffrages of his fellow-citizens"; happy in the prospect of hectoring Birotteau, just as a child delights in having an insect to maltreat. The landlord, astride of his hobby,--the law,--begged du Tillet to favor him with his ideas; and he bought a copy of the commercial Code. Happily, Joseph Lebas, cautioned by Pillerault, had already requested the president of the Board of Commerce to select a sagacious and well-meaning commissioner.

Gobenheim-Keller, whom du Tillet hoped to have, found himself displaced by Monsieur Camusot, a subst.i.tute-judge,--a rich silk-merchant, Liberal in politics, and the owner of the house in which Pillerault lived; a man counted honorable.

One of the cruellest scenes of Cesar's life was his forced conference with little Molineux,--the being he had once regarded as a nonent.i.ty, who now by a fiction of law had become Cesar Birotteau. He was compelled to go to the Cour Batave, to mount the six flights, and re-enter the miserable appartement of the old man, now his custodian, his _quasi_ judge,--the representative of his creditors. Pillerault accompanied him.