Fli nn.—The financial crisis in France has ended in a constitu-

tional change. The Emperor, alarmed by the reports laid before him, summoned M. Fould, the financier, and the latter, on the 12th of November, prepared a programme. In this document, which is of some length, he demonstrated facts which he has himself summarized thus : "To meet these expenses recourse has been had to every form of credit, and with the assent of the public powers the resources of special establish- ments under the direction of the State have been utilized. The loans ne- gotiated 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 Dotution Fund, which had received 135 millions, saw all its assets absorbed by the Treasury, which gave inscriptions of Bente for them. Lastly, re- course has been bad to a new mode of loan, the Trentenary Obligations, of which 182 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 the develop- ment of the national credit.

," The state of credit ought the more to attract your Majesty's attention from the fact that the situation of the finances preoccupies everybody. In the last discussion of the Budget, it was calculated that the deficits (deconeerta)must amount at the end of the year nearly 1,000,000,000f., 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 openly :

" The complaints made against the administration of our finances, and the experience of the last few years, have not changed my views. I de- aired in 1852, as I desire now, the suppression of extraordinary and sup- plementary credits apart from the vote of the Legislature, for your Majesty 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 decreeing ex- penses without the control of the Legislative power ; and as has been justly said, nothing is more difficult than to struggle against the most legitimate of desires—that of making useful expenses."

M. Fould held this renunciation also essential to remove the distrust of neighbouring nations :

" With regard to foreign relations, if the power 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 of danger. The apprehensions which it inspires in all its neighbours 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 of Europe, whom their institutions and their interests would tend to separate. There is no absurd calumny which will not be believed, no sinister projects which will not find credit among them.

" Your Majesty, by spontaneously relinquishing this power—more appa- rent than real, more threatening than effective—would therefore not only restore confidence to France, but you would allay the apprehensions of Europe, and remove all pretext for hostile infentions. When it should be seen that the expenditure of the army and the navy are submitted to the regular vote of the Legislature, it would be impossible for any Power to fancy itself in danger of a sudden and unforeseen attack ; governments would no longer be inclined to those ruinous struggles which impel them, in mutual rivalry, to military armaments and preparations ; the populations would no longer witness the annual increase of their burdens, which excites them against France, and the odium of which it is attempted to throw on the Emperor."

The Emperor, in the following letter to the Minister of State, accepted this programme, and in a subsequent one appointed M. Fould Minister of Finance. It will be observed that his Majesty promises further changes :

"The Emperor to Count Waimea "Palace of Compiegne, 12th Nov. "Monsieur le Ministre,—The opinion expressed this morning on our financial situation by M. Fould, in the sitting of the Privy Council and of the Council of Ministers, has my full approbation.

" For some time past, as you are aware, my great desire has been to con- fine the Budget within stated limits, and often, when presiding over the Council of State, I have expressed my desire to that effect.

" Unfortunately, unforeseen circumstances and ever-increasing necessities have prevented me from securing that result. The only effectual means of attaining the end in view is resolutely to abandon the faculty which belongs to me of opening new credits in the absence of the Chambers. That system

will work without prejudice to the State, if, after an attentive examination I of possible economies, a candid explanation of the real requirements of the Administration persuades the Legislative Body of the necessity of properly providing for the different services.

"I now therefore inform you of my intention to oenvolie the Senate on the 2nd December, to inform it of my determination 'of relinquishing the power of opening, in the interval between the -sessions, supplementary or extraordinary credits. That resolution will form part of a Senatus-Con- sultum, which, according to my promise, will regulate by great sections the vote of the Budget of the different Ministries.

" In renouncing the right, which was also even that of the constitutional sovereigns who preceded me, I think I am resolving on a course useful to the good management of our finances. Faithful to my origin, I cannot regard the prerogatives of the Crown either as a sacred deposit which cannot be touched, or as an inheritance from my fathers which must be transmitted intact to my son. As the Elect of the people, and representing their interests, I shall always abandon without regret any prerogative useless to the public welfare, in the same way as I shall preserve unshak- able in my hands all power indispensable to the tranquillity and prosperity of the country.

"On this, Monsieur le Ministre, I pray God to have yon in his holy

All other intelligence from France has become insignificant by the side of this, which is the sole topic of discussion. The funds rose per cent. on the publication of the letters, and the Moniteur officially denies that a loan formed part of M. Fould's programme.