The Panama Scandal of 1893
The Panama Canal Scandal marked a notorious episode within the French Third Republic, resulting in significant losses for many investors. In 1893, the revelation of corruption involving prominent political and financial figures within the Panama Canal Company led to a distressing period where some publishers unjustly scapegoated Jewish individuals. This came on the heels of the Dreyfus Affair which erupted a year later.On February 4, 1889, the Tribunal Civil de la Seine issued an order for the liquidation of the Panama Canal Company in Paris. Work on the Panama Canal project came to a halt, and a court-appointed liquidator undertook the task of preserving the existing infrastructure, tools, and machinery. Over the following years, substantial losses were incurred due to the humid and warm climate of the Panama area. The French government, reluctant to accept takeover offers from various American companies it deemed inadequate, prolonged the liquidation process.
The extent of the bankruptcy became evident by 1892, leaving approximately 800,000 French citizens in financial ruin. These citizens had invested in the company's stocks, bonds, and shares.
In 1893, numerous ministers faced allegations from French nationalists, accusing them of accepting bribes from Ferdinand de Lesseps in 1888 to facilitate the stock issuance. This led to a corruption trial against Lesseps and his son Charles. Members of parliament were implicated in receiving bribes from the Panama Canal Company to conceal its true financial status.
This scandal left an indelible mark on the development of French antisemitism, as it involved two individuals of German-Jewish heritage, Baron Jacques Reinach and Cornelius Herz. While they were not part of the bribed Parliament members or the company's board, they were entrusted with the distribution of the bribe funds. Reinach operated covertly as a financial adviser to the government and managed its interactions with the Panama Company. Herz, on the other hand, was Reinach's contact within the radical faction, but his duplicitous dealings and blackmail ultimately drove Reinach to take his own life. Source: https://en.wikipedia.org/wiki/Panama_scandals
Deltiology
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Publisher: The Grand Orient de France (GODF), Lyon, France
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Date: Circa 1900
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