also dreamt of making large profits amidst the
continuous, fictitious rise brought about by the growing fever of
agiotage. And the worst was that the petty speculators, the middle-class
people, the inexperienced shop-keepers without capital, were crazy enough
to build in their turn by borrowing of the banks or applying to the
companies which had sold them the land for sufficient cash to enable them
to complete their structures. As a general rule, to avoid the loss of
everything, the companies were one day compelled to take back both land
and buildings, incomplete though the latter might be, and from the
congestion which resulted they were bound to perish. If the expected
million of people had arrived to occupy the dwellings prepared for them
the gains would have been fabulous, and in ten years Rome might have
become one of the most flourishing capitals 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 p