Finance and Politics in France, Britain and the Netherlands During the Age of Revolution, 1789-1812
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Private interest and the public sphere: finance and politics in France, Britain and The Netherlands during the Age of Revolution, 1789-1812 Niccolò Valmori Thesis submitted for assessment with a view to obtaining the degree of Doctor of History and Civilization of the European University Institute Florence, 15 November 2016 European University Institute Department of History and Civilization Private interest and the public sphere: finance and politics in France, Britain and The Netherlands during the Age of Revolution, 1789-1812 Niccolò Valmori Thesis submitted for assessment with a view to obtaining the degree of Doctor of History and Civilization of the European University Institute Examining Board Professor Youssef Cassis, EUI/Supervisor Professor Regina Grafe, EUI/ Second Reader. Professor Lynn Hunt, UCLA Professor Allan Potofsky, Paris VII Diderot. © Niccolo’ Valmori, 2016 No part of this thesis may be copied, reproduced or transmitted without prior permission of the author Abstract This work aims to explore the interactions between finance and politics in the ‘Age of Revolution’. The analysis of the financial world concerns bankers and merchants active in the cities of Amsterdam, London and Paris. In particular, the focus is on three aspects: the social status, the economic power, and the political influence of bankers during this period of high uncertainty. Through a study of press debates emerges the different situations of bankers in England and France: whereas in England bankers intervened actively in public debate and even offered their expertise at the service of the government, in France, suspicion and distrust marked the general attitude towards the world of banking and trading. During the period of the French Revolutionary Wars and the Napoleonic Empire, bankers faced growing uncertainty and higher risks in running their business. Notwithstanding these unfavourable conditions, bankers like Francis Baring and Henry Hope found a safe refuge by investing in the American securities market. In England the 1797 credit crisis led some important banks like Charles Hoare & Co. and Coutts & Co. to restrain lending to their most important and eminent clients. In 1802 the short interlude between wars offered opportunities to launch risky business, such as diamond acquisitions, as tried by Baring in Paris. The outbreak of new hostilities did not prevent Dutch bankers from keeping their capital invested in French loans. The growing financial needs of nations did not always give bankers the upper hand with governments. In England, Thomas Coutts struggled to see his closest friends and relatives appointed to public offices. In France, the precarious autonomy of the Banque de France did not outlast the 1805 crisis that led Napoleon to intervene and change the charter of the bank, making it almost a branch of the administration. The monitoring activities of the government were not only a sign of persisting distrust towards market actors: police reports on the Paris Stock Exchange give a better understanding of market trends and of its independency with respect to political events. The ever-shifting relations between finance and politics during the Age of Revolution led some bankers to take risks in far-away markets, while others attempted to run business as before the outbreak of the Revolutionary Wars. Under the pressure of war, governments imposed new rules and constraints on bankers, but this tendency also caused an improvement in the understanding of the market and its inherent laws. Acknowledgements All historical research creates a dialogue between a researcher and the historical characters active in the period of the past he or she chooses to study. During these four years of research I have been working on the trajectories of a group of merchants and bankers who lived again in my writings as well as in my worst nightmares. When I arrived at the European University Institute I knew that the work of historian is a solitary endeavour struggling with scarce sources, desperate hours spent in the archives and entire days wasted in drafting few lines to be deleted the next day. However, I discovered that historical research could not rely on the efforts of a single person. These few lines are a small sign of my gratitude towards all people who helped me during those years. The European Institute offered me an incredible working environment. The outstanding work of librarians made my research easier even when I did not have my sources to work on. I am particularly grateful to Serge Noiret and his extraordinary job of sending all the calls for papers and positions as well as of purchasing new books for historians. I was particularly lucky to take part into the seminar led by Professor Joseph Weiler on the critical reading of the Bible. Even if such a topic was so distant from my research interest, I truly enjoyed the way of challenging and discussing a text so rich as the Bible. This seminar was a source of inspiration and a formidable reminder to “look beyond” every word. At the European Institute I had the great opportunity to work under the supervision of Professor Youssef Cassis who has always been ready to listen my ideas, doubts and hypotheses during all these four years. I largely owe to him the structure of this work which changed at the end of my first year of research. Beyond his crucial suggestions to improve my work, I learnt from him that a great scholar is not just an intellectual focused on his research but a person who cares about all good small things that make life a great adventure worth living. Talking with him in a café at Fiesole or in a cocktail bar in London, research was the main argument of our discussion but he always cared to know what I was doing beyond my work. Professor Regina Grafe greatly helped me to extend knowledge of the current historiographic debates related to my research. I hope that the engaging discussions I had with her helped me to improve this work. During my research missions in Paris I had the chance to meet Professor Allan Potofsky who generously helped me becoming my external advisor. Walking through the marché at Belleville or drinking un verre in the surroundings of the Buttes Chaumont, I profited from his suggestions and wide knowledge of scholars working on the French Revolution on both sides of the Atlantic. Sometimes the unexpected meeting happened where we did not look for them. I met Professor Lynn Hunt after she had come to give the inaugural lecture at the Institute in September 2014. She was so kind to agree to have breakfast with me at the Giubbe Rosse where we talked about my research for two hours. Then our paths crossed again in Paris and then in California at UCLA where she invited me to work with her for three months. She always managed to meet me weekly to discuss the bumpy development of this work. Whenever we met she always paid attention to my research as well as to my settling in in Los Angeles. In Florence I had the chance to live with great people in the very crowded via Poliziano. Whenever I mentioned the fact that I had seven or ten flatmates people thought I was kidding. It was sometimes hard to live all together but it was definitely enriching and funny. I gained a new nickname, learnt something of classical music and piano (thanks to the maestri Michele and Chilly), improved my knowledge of sports (thanks to Checco). The last year I was lucky to share the flat with Christoph and I fully profited from his talents of chef and I really enjoyed our long discussions (it is always better speaking than working on the thesis) on movies, politics and finance. A great thank goes to the EUI Rowing club and its wonderful captains: you made me discover a great sport and I had the chance to live Florence from another prospective. The Vogalonga was a wonderful experience that I lived with the Rowing Club for three years. I already miss rowing and all of you guys! Even if his back did not let him row, I met Jurek at the aperitivo of the club and I thank him for showing me how to love Tuscany (first, wine, and then the countryside and again wine). I thank Sabine for her patience in our unsuccessful tandem: we became friends and this counts more than a language (even though I regret that I failed to learn such a nice language as German). Thanks to Jurek and Sabine I gained a minimum knowledge of some parts of Tuscany outside Florence and they were always ready to support me during those years whenever I needed it. Thanks to Cynthia: we went together through crazy times and we both grew up (even though I made all efforts to obstruct your learning of Italian but I failed because you speak un ottimo italiano). A big thanks to all the Florentine friends: Andrea, Matteo, Lapo, Teresa, Teresa, Bianca, Mariella, Ema. You made me feel at home in Dante’s city notwithstanding my Milanese roots. During those four years I did not spend enough time in Florence but you were always there whenever I was back from my research missions and for this I am enormously grateful to all of you. Away from my city I learnt to enjoy Milan even more whenever I was back. For this I want to thank you all my friends that made my small pit-stops in Milan unique: Tea, Polvia and Beppe (Portogallo travel band never ends), zia Benni, Fiacca, Carletto, Cuneo, Toffa, Bue (before leaving for Lugano), Riky, Magnus, Mary, Dagu (who introduced me to the great enchanted world of cocktail clubs and speakeasies in London).