on a principle of limited liability, its initial investments came from large industrialists, but its capital was vastly increased by accepting investments from the general public. In 1854, it subscribed largely to the war loan of the French government, raised during the Crimean War, to the Grand Central Railway Company, to the General Omnibus Company of Paris, and to various other important projects. The dividend declared for 1854 was 12%. In 1855, it lent two sums to the government—the one of 250,000,000 and the other of 375,000,000 francs. Its operations were vast during this year, and the net dividend declared amounted to 40%. The directors then proposed to avail themselves of their privilege of issuing their own obligations, and thought to issue two kinds of notes – the one at short dates, the other at long dates, and redeemable by installments. The proposed issue was to amount to 240,000,000 francs, but the public became alarmed at the prospect of so vast an issue of paper money, and in March 1856, the French government deemed it necessary to prohibit the proposed scheme. The prohibition was a severe blow to the institution. In 1856, its dividends did not exceed 22%; in 1857, they were only 5%. Several attempts to resuscitate its credit failed, and finally, in November 1871, it was reorganized with a new board of management. In 1877, its assets were 77,000,000 francs, but its shares, the par value of which was 500 francs, sold for 200 francs only. During 1878–79, the capital was first reduced to 32,000,000 francs, and then increased to 40,000,000. In 1884, it was for a second time reduced to 30,000,000 francs, but the company never regained its losses. Later history In 1902, a group of investors led by Jacques de Lapisse acquired control of the Crédit Mobilier from the Pereire family and merged it with the Office des Rentiers, adopting the name (CMF) for the merged entity. The CMF was initially headquartered at 3-5, rue Saint-Georges in the former seat of the , and moved in 1912 to a larger building at 30-32, rue Taitbout and 26, boulevard Haussmann, which is now the seat of the . The CMF was acquired in 1922 by the Banque de l'Union Parisienne. See also Saint-Simonianism References Further reading Cameron, Rondo E. "The Crédit Mobilier and the economic development of Europe." Journal of Political Economy (1953): 461-488. in JSTOR External