Eve and David. Honore de Balzac

of banking will be as interesting as any chapter of foreign travel. When a tradesman living in one town gives a bill to another tradesman elsewhere (as David was supposed to have done for Lucien’s benefit), the transaction ceases to be a simple promissory note, given in the way of business by one tradesman to another in the same place, and becomes in some sort a letter of exchange. When, therefore, Metivier accepted Lucien’s three bills, he was obliged to send them for collection to his correspondents in Angouleme – to Cointet Brothers, that is to say. Hence, likewise, a certain initial loss for Lucien in exchange on Angouleme, taking the practical shape of an abatement of so much per cent over and above the discount. In this way Sechard’s bills had passed into circulation in the bank. You would not believe how greatly the quality of banker, united with the august title of creditor, changes the debtor’s position. For instance, when a bill has been passed through the bank (please note that expression), and transferred from the money market in Paris to the financial world of Angouleme, if that bill is protested, then the bankers in Angouleme must draw up a detailed account of the expenses of protest and return; ‘tis a duty which they owe to themselves. Joking apart, no account of the most romantic adventure could be more mildly improbable than this of the journey made by a bill. Behold a certain article in the Code of commerce authorizing the most ingenious pleasantries after Mascarille’s manner, and the interpretation thereof shall make apparent manifold atrocities lurking beneath the formidable word “legal.”

      Master Doublon registered the protest and went himself with it to MM. Cointet Brothers. The firm had a standing account with their bailiff; he gave them six months’ credit; and the lynxes of Angouleme practically took a twelvemonth, though tall Cointet would say month by month to the lynxes’ jackal, “Do you want any money, Doublon?” Nor was this all. Doublon gave the influential house a rebate upon every transaction; it was the merest trifle, one franc fifty centimes on a protest, for instance.

      Tall Cointet quietly sat himself down at his desk and took out a small sheet of paper with a thirty-five centime stamp upon it, chatting as he did so with Doublon as to the standing of some of the local tradesmen.

      “Well, are you satisfied with young Gannerac?”

      “He is not doing badly. Lord, a carrier drives a trade – ”

      “Drives a trade, yes; but, as a matter of fact, his expenses are a heavy pull on him; his wife spends a good deal, so they tell me – ”

      “Of his money?” asked Doublon, with a knowing look.

      The lynx meanwhile had finished ruling his sheet of paper, and now proceeded to trace the ominous words at the head of the following account in bold characters: —

ACCOUNT OF EXPENSES OF PROTEST AND RETURN

      To one bill for one thousand francs, bearing date of February the tenth, eighteen hundred and twenty-two, drawn by Sechard junior of Angouleme, to order of Lucien Chardon, otherwise de Rubempre, endorsed to order of Metivier, and finally to our order, matured the thirtieth of April last, protested by Doublon, process-server, on the first of May, eighteen hundred and twenty-two. fr. c.

      One thousand and thirty-seven francs forty-five centimes, for which we repay ourselves by our draft at sight upon M. Metivier, Rue Serpente, Paris, payable to order of M. Gannerac of L’Houmeau.

ANGOULEME, May 2, 1822 COINTET BROTHERS.

      At the foot of this little memorandum, drafted with the ease that comes of long practice (for the writer chatted with Doublon as he wrote), there appeared the subjoined form of declaration: —

      “We, the undersigned, Postel of L’Houmeau, pharmaceutical chemist, and Gannerac, forwarding agent, merchant of this town, hereby certify that the present rate of exchange on Paris is one and a quarter per cent.

“ANGOULEME, May 2, 1822.”

      “Here, Doublon, be so good as to step round and ask Postel and Gannerac to put their names to this declaration, and bring it back with you to-morrow morning.”

      And Doublon, quite accustomed as he was to these instruments of torture, forthwith went, as if it were the simplest thing in the world. Evidently the protest might have been sent in an envelope, as in Paris, and even so all Angouleme was sure to hear of the poor Sechards’ unlucky predicament. How they all blamed his want of business energy! His excessive fondness for his wife had been the ruin of him, according to some; others maintained that it was his affection for his brother-in-law; and what shocking conclusions did they not draw from these premises! A man ought never to embrace the interests of his kith and kin. Old Sechard’s hard-hearted conduct met with approval, and people admired him for his treatment of his son!

      And now, all you who for any reason whatsoever should forget to “honor your engagements,” look well into the methods of the banking business, by which one thousand francs may be made to pay interest at the rate of twenty-eight francs in ten minutes, without breaking the law of the land.

      The thousand francs, the one incontestable item in the account, comes first.

      The second item is shared between the bailiff and the Inland Revenue Department. The six francs due to the State for providing a piece of stamped paper, and putting the debtor’s mortification on record, will probably ensure a long life to this abuse; and as you already know, one franc fifty centimes from this item found its way into the banker’s pockets in the shape of Doublon’s rebate.

      “Bank charges one-half per cent,” runs the third item, which appears upon the ingenious plea that if a banker has not received payment, he has for all practical purposes discounted a bill. And although the contrary may be the case, if you fail to receive a thousand francs, it seems to be very much the same thing as if you had paid them away. Everybody who has discounted a bill knows that he has to pay more than the six per cent fixed by law; for a small percentage appears under the humble title of “charges,” representing a premium on the financial genius and skill with which the capitalist puts his money out to interest. The more money he makes out of you, the more he asks. Wherefore it would be undoubtedly cheaper to discount a bill with a fool, if fools there be in the profession of bill-discounting.

      The law requires the banker to obtain a stock-broker’s certificate for the rate of exchange. When a place is so unlucky as to boast no stock exchange, two merchants act instead. This is the significance of the item “brokerage”; it is a fixed charge of a quarter per cent on the amount of the protested bill. The custom is to consider the amount as paid to the merchants who act for the stock-broker, and the banker quietly puts the money into his cash-box. So much for the third item in this delightful account.

      The fourth includes the cost of the piece of stamped paper on which the account itself appears, as well as the cost of the stamp for re-draft, as it is ingeniously named, viz., the banker’s draft upon his colleague in Paris.

      The fifth is a charge for postage and the legal interest due upon the amount for the time that it may happen to be absent from the banker’s strong box.

      The final item, the exchange, is the object for which the bank exists, which is to say, for the transmission of sums of money from one place to another.

      Now, sift this account thoroughly, and what do you find? The method of calculation closely resembles Polichinelle’s arithmetic in Lablache’s Neapolitan song, “fifteen and five make twenty-two.” The signatures of Messieurs Postel and Gannerac were obviously given to oblige in the way of business; the Cointets would act at need for Gannerac as Gannerac acted for the Cointets. It was a practical application of the well-known proverb, “Reach me the rhubarb and I will pass you the senna.” Cointet Brothers, moreover, kept a standing account with Metivier; there was no need of a re-draft, and no re-draft was made. A returned bill between the two firms simply meant a debit or credit entry and another line in a ledger.

      This highly-colored account, therefore, is reduced to the one thousand francs, with an additional thirteen francs for expenses of protest, and half per cent for a month’s delay, one thousand and eighteen francs it may be in all.

      Suppose that in a large banking-house a bill for a thousand francs is daily protested on an average, then the banker receives twenty-eight