-BRITAIN WINS OVER OUR REFINERS AND BANKERS.
the signature of the Armistice, Britain set to work to acquire all the oil fields possessed or controlled by France.
It was not, indeed, a question of despoiling faithful and trusted allies, but of concluding with them a contract of co operation under which France furnished the capital and Britain the equipment and organisation, and all concessions were henceforward reserved for the new group, and therefore closed to Americans.
To attain this end, diplomatic pressure could be brought to bear on the French Government. But in France—as our friends are well aware—a Prime Minister is only an advocate employed to plead before Parliament and the public the cases for which he is briefed by the oligarchy. The first step, therefore, was to conciliate the vested interests in the shape of the group of refiners and the banks. London business men understand perfectly the strength and the weakness of their Parisian colleagues. The game was not difficult for them, but they played it with masterly skill.
With the cartel the task was particularly easy. Our ten so-called refiners have never had any desire to produce oil. What was the use of putting oneself to the trouble of soliciting concessions in Algeria and Madagascar, or recruiting prospectors from abroad, or sinking capital in experimental borings, or constructing pipe lines, when so much money could be made without the least exertion ? Solidly protected against all foreign competition by the pro hibitive tariff of 1893—maintained by the law of 3oth August, 1919, as regards crude oil, petrol and lubri cating oil—and, thanks to their powerful distributive organisation, certain of being indispensable agents to any productive undertaking, they were quite ready to abandon to foreign companies all our colonial or foreign oil fields, provided that their trading monopoly in the home market was not interfered with. The British trust, absorbed, for its part, in finding an adequate outlet for its increasing production, had every interest in keeping on good terms with a customer of such importance. Moreover, it had the advantage over the cartel in that practically all the latter's tankers fly the British flag. On this side, then, no resis tance was to be feared.
It remained to win the banks. It has already been seen how many Russian, Rumanian and Galician companies they have floated in France. Their interest in oil has been
stimulated by the chance which victory gave them of acquiring a part of the German concessions. There could be no question of depriving them of their share of the booty.
Furthermore, the discovery of oil fields in France and her colonies may lead to the creation of numerous companies which will issue shares and bonds by the million for years to come with underwriting, commissions, speculations and profits of all sorts in perspective.
At the idea that all this might pass into the hands of a British trust, all the feverish world which swarms around the commercial banks, the issuing houses, the Bourse, and the financial press, could not fail to raise an uproar. In the name of patriotism they would accuse of treason a minister who dared hand over to the foreigner so rich an opportunity for diverse speculations ; and as all these people have powerful influence with Parliament and the press, insurmountable opposition might be encountered.
Fortunately, the British group knows admirably these circles where its agents have worked for twenty years, and it knew what precautions to take.
What do our financiers and stockbrokers really desire at bottom ? Not to produce and sell oil, but to produce and sell shares. That is their essential function and main source of profit. Very well. They can be given shares in British oil companies to sell. The trust will gain by freeing to some extent the London market, which grows saturated by the repeated issues of its numerous associated companies.
Then, as though at a signal, the shares of the Shell Trans port and Royal Dutch began to filter from London and Amsterdam to Paris. The sale was easy, for the War, by increasing the need for liquid fuel, had allowed these companies to accumulate enormous profits. The Shell Transport Company in 1919 declared a dividend of 35 per cent., and since the Armistice, the price per gallon, as well as the quantity produced, has continually increased. What prudent capitalist would have hesitated to profit by such a chance of enriching himself ? And who, in the presence of these magnificent balance sheets, would have given a thought to the poor French colonial companies yet to be born?