pitals of the world. But the people
did not come, and the dwellings remained empty. Moreover, the buildings
erected by the companies were too large and costly for the average
investor inclined to put his money into house property. Heredity had
acted, the builders had planned things on too huge a scale, raising a
series of magnificent piles whose purpose was to dwarf those of all other
ages; but, as it happened, they were fated to remain lifeless and
deserted, testifying with wondrous eloquence to the impotence of pride.

So there was no private capital that dared or could take the place of
that of the companies. Elsewhere, in Paris for instance, new districts
have been erected and embellishments have been carried out with the
capital of the country--the money saved by dint of thrift. But in Rome
all was built on the credit system, either by means of bills of exchange
at ninety days, or--and this was chiefly the case--by borrowing money
abroad. The huge sum sunk in these enterprises is estimated at a
milliard, four-fifths of which was French money. The bankers did
everything; the French ones lent to the Italian bankers at 3 1-2 or 4 per
cent.; and the Italian bankers accommodated the speculators, the Roman
builders, at 6, 7, and even 8 per cent. And thus the disaster was great
indeed when France, learning of Italy's alliance with Germany, withdrew
her 800,000,000 francs in less than two years. The Italian banks were
drained of their specie, and the land and building companies, being
likewise compelled to reimburse their loans, were compelled to apply to
the banks of issue, those privileged to issue notes. At the same time
they intimidated the Government, threatening to stop all work and throw
40,000 artisans and labourers starving on the pavement of Rome if it did
not compel the banks of issue to lend them the five or six millions of
paper which they needed. And this the Government at last did, appalled by
the possibility of universal bankruptcy. Naturally, however, the five or
six millions could not be paid back at maturity, as the newly built
houses found neither purchasers nor tenants; and so the great fall began,
and continued with a rush, heaping ruin upon ruin. The petty speculators
fell on the builders, the builders on the land companies, the land
companies on the banks of issue, and the latter on the public credit,
ruining the nation. And that was how a mere municipal crisis became a
frightful disaster: a whole mi