Sonia Cafieri
email: sonia.cafieri@enac.fr

Pierre Hansen
email: pierre.hansen@gerad.ca

Modularity Clustering on Trees

Keywords: clustering, tree, network, modularity maximization, dynamic programming

Introduction

Network (or graphs) are often used to represent complex systems in a variety of fields. Tipically, the set of vertices of the graph corresponds to the set of entities under study and the edges represent relations holding for pairs of vertices. The analysis of networks is so gaining more and more attention, specially the analysis devoted to the detection of clusters, or communities. Clusters correspond in fact to subgroups of entities among which strong relations exist. In this paper we are particularly interested in clustering problems in which the underlying graph is a tree T = (V, E). Trees are undirected graphs in which any two vertices are connected by exactly one simple path. Clustering on trees [START_REF] Maravalle | Clustering on Trees[END_REF] arises in a variety of applications, such as phylogenetic analysis in biological classification and the analysis of communication or distribution networks which exibit a tree-like structure.

Graph clustering is usually formulated as an optimization problem, where the objective function expresses a given clustering criterion. Newman and Girvan [START_REF] Newman | Finding and evaluating community structure in networks[END_REF] introduced the concept of modularity, which is currently a widely used criterion. It has been introduced for general graphs and is defined as the sum for all clusters of the difference between the fraction of edges they contain and the expected fraction of edges they would contain if all edges were drawn at random, keeping the same degree distribution. Maximizing modularity gives an optimal partition with its optimal number of clusters. Many heuristics have been developed to maximize modularity. They rely upon agglomerative and divisive hierarchical clustering, and partitioning schemes based on simulated annealing, genetic search, and a variety of other approaches (see [START_REF] Fortunato | Community detection in graphs[END_REF] for an in-depth survey). Exact algorithms have been proposed only in a few papers (see [START_REF] Aloise | Column generation algorithms for exact modularity maximization in networks[END_REF] for recently proposed algorithms based on column generation). In this paper we present a new algorithm for modularity maximization, specialized for trees. The next section outlines the main features of this algorithm.

An algorithm for modularity maximization on trees

The proposed algorithm is based on dynamic programming and proceeds by bottom-up computations. First, in a preprocessing step, the algorithm proceeds to labeling of its vertices and edges. To that effect, a center of the tree is found. Then, vertices are given a level equal to the distance to the center and labeled accordingly beginning at the lowest level ; edges are labeled with the same label as their lower vertex. Then, to proceed with bottom-up computations, lists of triplets associated with edges are generated. They characterize the situation relative to the edges they are associated with and to the subtree rooted at their lower vertices. A triplet (m s , d s , q s ) has the following meaning : m s is equal to the number of edges in the connected component containing the upper vertex v of the edge with which the triplet is associated ; d s is the sum of degrees of this subtree and q s is the sum of modularities of the clusters within the subtree and not containing v. Two operations are considered to update the set of triplets : extension and merging. Extension considers the effect of adding or not an edge (u, v) to the subtree rooted at v. It applies to the current list of triplets associated with the edge (u, v). Merging considers the effect of combining two at a time, in increasing order of labels, two subtrees rooted at the same vertex v.

Several dominance rules allow elimination of a large number of triplets. First, one can note that all pendent edges must belong to all optimal solutions. Then, triplets within the same list may be dominated by other triplets. Furthermore, any cut edge induces a subtree not containing the root with maximum (local) modularity, i.e. this modularity can be optimized regardless of the other subtrees. This implies that in the list of triplets corresponding to cut edges only the triplet with maximum modularity needs to be kept.

To obtain the final solution, one has just to observe that the set of cut edges is complementary to the set of connected subtrees, i.e., the optimal partition is given by the connected subtrees induced by all cut edges.

We present numerical results on a set of randomly generated instances, which show the efficiency of the proposed algorithm.


José Riquelme Prudencio

Perea

Encarnación Ruiz Casanova

ACTION-RESEARCH IN ANALYSING WORKING CONDITIONS IN HOUSEHOLD LABOUR MARKET OF IMMIGRANT WOMEN IN MURCIA CITY

Keywords: Immigrant women, non profit entities, domestic work, working conditions

The massive of immigrant women in recent decades, has resulted in social and labour insertion of these effectively enforced through the domestic sector, but in which conditions? The aim of this research is to show working conditions of this job (wages, working week, social insurance, tasks performed, etc.) through the information getting to several Spanish families who were seeking to immigrant household workers to work in their homes in Murcia City. Given the difficulty of obtaining data showing with any precision the object of the research, we resorted to the assistance of various non-profit entities to gather information necessary to conduct the study developed.

Introduction: Domestic Work

Domestic work, understood as a set of tasks aimed at maintaining and organizing home plus attention and care of people, has suffered significant discrimination in employment and social field. There are several characteristics applicable to this type of activity, but if we try to synthesize, it is possible to summarize it in two: this is a highly feminized activity and it is socially invisible. One of the main reasons for this phenomenon is that domestic work has been performed and continues to play in the private sector or, in other words, this job did not exceed the limits of home [START_REF] Parella | Mujer, inmigrante y trabajadora. La triple discriminación[END_REF]. Unlike others activities such as agriculture or crafts, in that time especially since the industrial revolution, were integrated into the production system and markets, domestic work was anchored to the household and reproductive work.

Is true that working from home is discredited, but not less necessary. In fact, in recent decades and Spanish families demand different services in their homes, due to social change about in our society and to the limited Spanish Welfare State [START_REF] García | Inmigrantes en el Servicio Doméstico[END_REF] which cannot cope with the situation. We are referring to two relatively new phenomena for Spanish society: the progressive aging of population and the incorporation of women into labour market. If the obligations of the home were covered by women (without any help from the state nor from male counterpart), this new situation generates a new need and Spanish women are now less willing to give coverage. Immigrant women now help to cope with the "vacancy" generated in the Spanish homes [START_REF] Benlloch | Esto es trabajo de mujeres: dos generaciones en el sector doméstico[END_REF]Garcia, Santos and Valencia, 2012).

Migration in Region of Murcia

For Murcia Region, the massive of immigration, especially of women (Table 1), has caused social and labour insertion of these, effectively enforced through employment in the household work market, which result in a very high volume of household word performed by immigrant women. They have participated in the care of the needs generated in the tertiary sector especially in home services such as housework, child care, elderly, sick and disable [START_REF] Colino | La Economía Sumergida en la Región de Murcia[END_REF].

Conditions of Employment Applied

As any job, the working conditions of a person employed in home care are established by a legal framework that regulates them. Depending on the nature of employment generated, we apply a kind law or another. The peculiarity of this regimen -that is one way of fraud and precariousness of this job-is established because it varies depending on the legal status of the contractor and the hours worked. For example, if the worker is employed by a public legal person (Social Services belonging to local authorities) or private (home help company), the employment relationship would be governed by the Workers Statute (E.T)3 and therefore the General Scheme of Social Security is applied, whereas if he is hired by a family (which corresponds to employer) the Labour Relationship Service of Special Character family Home4 with its own Social Security Scheme would apply. 5 frequently applied. As any working relationship, these two special laws regulate the components of labour conditions, such as: the employment contract, the tasks to be performed, the working hours, the weekly rest, the holidays and day off, the annual holidays, the wages, the social security obligations and the termination of the contract, dismissal or withdrawal.

Non Profit Entities and Immigrant Women

The routes of immigrant women working in the area of home care pass from personal contacts (though friends and family) to press advertisements or on the street. But after residing for a while in a given area, they make new contacts, among which their own employers and nonprofit entities to form part of their social and labour insertion. It is difficult to know with any precision the characteristics of this type of job given de high degree of statistical invisibility of this activity. Hence, to carry out this research, we used information generated by various nonprofit organizations in their mediation activity. These are entities that register a large number of immigrants (in legal and illegal situation in Spain) to brief them on their training programs; programs for the labour market through training and employment exchange in the area of home (household work) to put at their disposal.

Below is a list of some organizations working with immigrant people and offering a series of actions aimed at social inclusion and employment for them: activities as the provision of job opportunities are open to women in legal or illegal situation. Its area of action is the municipality of Murcia. Within these programs some are exclusively directed towards the social and professional integration of immigrant women through home help, which fosters continuous contact with Spanish families looking for immigrant women to cover their needs. Thanks to these entities we have been able to contact with a significant number of families wishing to employ immigrant women. Using information provided by these entities has been possible to draw out a description of the working conditions of immigrant women and the characteristics of the labour market within Murcia City. Obviously the results are partial (we cannot survey all the immigrant women working in household labour market) and we cannot establish a complete representative sample. However, despite these limitations, given the high number of respondents, the results provide very useful information to acknowledge the reality of these workers.

a)

Working Conditions Analysis: Methodology

Given the difficulty of obtaining data showing with any precision the object of our study, we resorted to the assistance of various non-profit entities to gather information necessary to conduct the research. Thanks to these entities we were able to contact 154 families, 108 of which have agreed to be surveyed. The survey records the profile of the supply such as the work week, hours, wages, tasks and Social Security pay. Note that all the data collected is of 2010 and belong to Murcia City. Using the data obtained, we developed a database, which allowed us to analyse these services partially.

Working Conditions Analysis: Profiles of employment in household work offered by families

In this section we describe the characteristics of different jobs in the field of household work, depending on the type of position offered: Internal (if the employee resides in the home where she works), External (the worker does not sleep in the home where she works) and Hourly or Per Hour (to work four hours maximum per day). Table 2 provides information on the type of rank offered, which corresponds to 47% internal, followed by 31% external position and finally the 20% per hours. As for the work week, we see that 41% of household requires a person from Monday to Friday, 49% from Friday to Saturday, 6% from Monday to Sunday and 4% individual days. In the case of internal work, 77% are looking for someone Monday to Saturday, 8% from Monday to Friday and 10% Monday to Sunday.

Table 2. Offers Features: Total and type of job. Working conditions (%)

For the external position it is observed that 68% of the offers are work from Monday to Friday and 32% from Monday to Saturday. As for the offers to work per hours, we see that 76% of the offers are work from Monday to Friday, 5% from Monday to Sunday and 10% for single days work. If we analyze the overall distribution of types of contracts we see that families are looking for job stable, since 82% want a person to work indefinitely, while 11% on a temporary basis. If we disaggregate the information by the type of job (internal, external and hourly), we note that it generally agrees with the results of all tenders. The estimated average salary is EUR 601 (3.77 Euros/Hour) per month, with an average of 44 working hours per week. These entities determine this through negotiation in order to raise families on minimum wage to be paid. These organizations make it clear to the engaging party that you cannot deduct Social Security of the worker's minimum wage (633 Euros per month in 2010), as the trend of most families is paid below the minimum justified by the fact they do not have enough money. The data telling us about Social Security are very interesting, simply because 32% of the families are not willing to pay it; this fact shows that 32% of the offers of the sample are left in the economy. The employers compromise to the employees to pay their Social Security, but in reality those employers do not pay, therefore the employees are the one paying the full amount of their Social Security (EUR 167 per month in the year 2010). In the long run, they decide not to pay it due to the high amount, causing their job to remain in the underground economy. Since the entities responsible for carrying out mediation, insist that families must pay Social Security, the extra pay and vacation in these cases that are covered by the legislation. This point is very important because without improved working conditions, the need for these families to look for cover in their house, will not be covered in a stable manner, because these women, while working improperly, end up looking for another job with better conditions. The results discussed above refer to the characteristics of all jobs, but the data do not reflect the same depending on the type of job. For example, there are also differences in the number of weekly working hours, because to become an intern nearly 60 hours a week (57 hours), while the legal maximum is 40 hours per week. The minimum weekly rest condition is often difficult to accept and respect by the families, who in many cases are looking for someone to work continuously seven days a week. The average salary offered is of EUR 706 (2.54 Euros/Hour) per month, which is disproportionate in terms of the number of hours worked by the woman On this point, the various responsible of the job boards (in non-profit entities) agree that in many cases families of poor working conditions do not have enough income to meet all expenditures. On Social Security we see that 21% of households do not pay Social Security, including failure to pay the extra pay and vacation. This it's the reason why the majority of immigrant women with residence and work permit are not willing to work internally, but those who do not own and have just arrived in Spain are more willing to do so, even though they would rather work externally. Nevertheless they accept their situation as such.

When we speak of "the situation" we are referring to women newly arrived in Spain and in this study, more specifically in Murcia, and seeking to work in the domestic and internally because they manage a property which does not lead to any expense. This way, they can send the money to their country, while they remain in Spain with the minimum necessary. To finish the job description, Table 3 shows information about the main tasks requested by the employee. The data reveal that 87% of the families require cleaning job, 79% ironing and 76% work in the kitchen. As for the attention of people, 54% for child care and 40% for elderly care.

Table 3. Offers Features: Total and type of job. Tasks requested (%)

Conclusions

Domestic work is presented as one of the most important ways to achieve social and professional integration of immigrant women. Among the various resources that these women possess to achieve their integration, there is the support given by various non-profit organizations which through training and employment exchanges available to immigrants (in this case for immigrant women) achieve greater inclusion of them in the Spanish society. We know that household work is an activity that it is most often covered by immigrant women, but under what conditions? To improve the working conditions of those employed in the household work is a very complex task, given the necessary interaction of the actors in this area (local government, unions, businesses and non-profit entities). It is true that in the early 90´s, this activity was presented as an area of high potential for job creation, but in practice it has become a precarious area where immigrant women are the main path of integration, and for families a quick way to meet their needs (at least temporarily) and for administration in a job that exists, but remains in the shadow economy. Today these women have been found in non-profit entities a channel (at least "informal") which allows them to represent their professional reality, hence that we consider that these intermediary organizations can not only play a role with local families, but also with the other entities (local government, business home help, Social Security Treasury, etc..) to improve working conditions effectively. These entities have the information and trading tools to influence change, inspiring the administrative authority for the legal management of the labor market, leaving the informal situation in which these entities are to act as mediators in a job remaining in the economy.

Table 1 . Evolution of foreign registration certificate (1999-2009) by sex in the Region of Murcia

 1

Source: Statistical Yearbook of Immigration, Ministry of Immigration and Emigration (Anuario estadístico de Inmigración, Secretaría de Estado de Inmigración y Emigración).

  Guidance andCounselling of immigrants in obtaining and maintaining the residence and work permit. Job opportunities for immigrants. Its area of action is the Region of Murcia. Training actions aimed at the territorial, labor law and issues of immigrant women. Its area of action is the Region of Murcia.

	c) Religious Entities
	-Congregation Sisters of Mary Immaculate (Congregación Hermanas de María
	Inmaculada): helps immigrant women or not (also Spanish women), in training them in
	domestic work, diverting them to families wishing to hire them in their homes. Both the training

Private Entities -Red Cross (Cruz Roja): Develops training programs and job opportunities for immigrants with residence permits and work. Its area of action is the Region of Murcia. -Caritas (Cáritas): Conducts training courses (nursing, cooking, job search techniques) and provision of job opportunities for immigrants. Its area of action is the Region of Murcia. -Columbares: Develops training courses (in labor and leisure) and job opportunities for immigrants. Its scope is the region of Murcia. -FADE Foundation (Fundación FADE): Provides immigrants with a series of training courses, as well as an employment agency. Its area of action is the municipality of Murcia. -CEPAIM: Training courses and job opportunities for immigrants with residence permits and work. Its area of action is the Region of Murcia. -Radio Ecca Foundation (Fundación Radio Ecca): Delivery of training and job opportunities for immigrants with residence permits and work. The performance area is the municipality of Murcia. -Murcia Welcomes (Murcia Acoge): Offers training (social skills, greater care, food handling) and job opportunities for immigrants. The performance area is the region of Murcia. b) Unions -General Union of Workers (Unión General de Trabajadores UGT): -Workers' Commissions (Comisiones Obreras, CCOO): jobs" like household work, and was amended by "Ley 27/2011 de 1 de Agosto sobre Actualización y Modernización del Sistema de Seguridad Social.

  Once they have saved enough money to rent a room and get a residence permit and work, they seek to work outside the family and to enlist in Social Security. As for the families, they initially want to hire a person with residence and work permit to work in domestic, but when it is impossible to find someone, they risk hiring someone in illegal situation, which logically cannot be registered in the Social System. If we focus on the external set type, we see that the number of hours they work each week, it corresponds to 42, with an average salary of EUR 617 (3.79 Euros/Hour) per month. In the figure of foreign worker, we observed that 9% of the families are not willing to pay Social Security, while 88% do, but sometimes have to be the worker herself who is just met. In terms of working per hours, the average weekly working hours is 17 hours and the average wage EUR 330 (5.80 Euros/Hour) per month. Note that a work per hours does not necessarily means that you sign up for Social Security to the worker (as stated in the legislation referred to the Special Employment Relationship for Domestic Employees R.D 1424/1985, described above), which is why 95% of the families who offered this job do not pay.

Workers Statute translation into Spanish "Estatuto de los Trabajadores" (E.T) and this law in Spanish is: "Ley 8/1980 de 20 de marzo del Estatuto de los Trabajadores". It is the general labour law in Spain.

"Real Decreto (R.D 1424[START_REF] España | Real Decreto 1424/1985, de 1 de Agosto, que regula la Relación Laboral de Carácter Especial del Servicio del Hogar Familiar[END_REF], de 1 de Agosto, que regula la Relación Laboral de Carácter Especial del Servicio del Hogar Familiar". This law was applied between 1985-2011, and was amended by "R.D 1620/2011 de 14 de Noviembre".

Law regulating Social Security Scheme (to household workers) in Spain: "Decreto 2346/1968 de 25 de septiembre que regula el Régimen de Seguridad Social Específico de Empleados de Hogar". This law is also specific to "special 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Women


The political revolution of 1848 resulting in the fall of the July Monarchy and the advent of the Second Republic may be regarded as the starting point of the banking revolution in France. Initially, the credit crisis which accompanied these events underlined the failings of a banking system which, until then, had been highly unstable and deficient. The upper echelons of the system admittedly stood up reasonably well, even though operations were reduced: the Banque de France continued to fulfil its role as bank of issue and discount house but under very restrictive conditions; the major banking-house system (haute banque), comprising private banks -which stood apart by way of age, respectability and mutual recognitionmanaged the accounts of a wealthy clientele and were responsible for major business (State loans and mining and railway investments). At the lower echelons, however, the lower-ranked regional and local banks -inadequate for the needs of small and medium businesses as well as of ordinary clients even before 1848 -were unable to withstand the crisis and left a gap which was unfavourable to recovery of business 1 .

It was in this context that the Comptoir national d'escompte de Paris was established, as a matter of urgency, in March 1848. It was the starting point of a banking revolution which flourished under the Second Empire (1852 -1870) with the establishment of Crédit foncier (1852) and the Pereire brothers' Crédit mobilier (1852), followed by the foundation of the major deposit banks, the Crédit industriel et commercial (or CIC, 1859), Crédit lyonnais (1863) and Société générale (1864). This revolution continued at the beginning of the Third Republic with the creation of the investment banks -Paribas (1872) and the Banque de 1 On the financial crisis of 1848 see A.J. TUDESQ, « La crise de 1847 vue par les milieux d'affaires parisiens », Aspects de la crise et de la dépression de l'économie française au milieu du XIX e siècle (1846-1851), Bibliothèque de la révolution de 1848 , 1956, vol The new banking system which was then set up, was very different from the old. The latter comprised simple or limited partnerships whose directors invested their own capital and were liable for their acts to the extent of their entire fortunes; the former were limited liability companies run by managers who were accountable to their shareholders and sometimes to the State, should they have been appointed by the latter. The banking revolution therefore took place at two levels: it renewed the banking offer by allowing banks to use clients' deposits on a large scale and diversify the distribution of credit and it drastically modified banking management practices by appointing salaried directors to head the new establishments.

In his famous article, David Landes pointed out that this divergence should not be exaggerated 3 ; despite appearances, in particular the conflict between the Rothschilds and the Pereires, the new banking system was not created to compete with the old, but to exist alongside it. The heads of the major banking houses (Fould, Bischoffsheim, Blount, d'Eichthal, Mirabaud, Seillière etc.) made a considerable contribution to the foundation of the new establishments. The prosopographic study on the patrons of the Second Empire 4 , applied to Parisian financiers and bankers 5 , enables us to study this question and compare the directors of the old and the new banks, or, if one prefers, of the private 6 and joint-stock banks. Do they differ in their cultural and sociological characteristics, their professional attitudes or in their banking practices?

I. Two types of banker…

The first fact to emerge from the study is that each of these banking categories had its own distinct type of banker:

-The private Parisian bank was multi-confessional and cosmopolitan but fairly homogenous in its social origins. There were three main branches: the first, native French, comprised Catholics (Davillier, Laffitte, Perier, Seillière), Protestants (André, Neuflize) and Jews (Fould); the second, was made up of a sizeable contingent of Swiss bankers of reformed religion who began to establish themselves in France at the beginning of the 18 th century (Mallet) and continued up until the Restoration (1815-1830); most came from Geneva and its surrounding districts (Dassier, Delessert, Hentsch, Mirabaud, Vernes), with a few from Zurich (Hottinguer) or Bern (Marcuard). Finally, the most recent branch, who settled in France between the beginning of the century and the war of 1870, were German Jewish bankers from the Rhineland (Bischoffsheim, Cahen d'Anvers, Erlanger, Rothschild, Stern) or Bavaria (d'Eichthal, Koenigswarter). A few personalities such as the English Catholic Edward Blount or the Savoyard Frederic Pillet-Will completed this heterogeneous picture. This remarkable cultural diversity was partly attenuated by mutual professional experience; these bankers usually belonged to families who had been engaged in business trading, and often even in banking7 , for so long that at the time of the Second Empire they represented the second, third or -as in the case of Adolphe d'Eichthal, a fifth generation banker -even later generations in banking.

The new managers' profile was exactly the reverse, culturally homogenous but sociologically diverse; with the exception of the Italian Cernuschi, co-founder of the Banque de Paris in 1869, they were French and mainly Catholic. Yet, almost all of them were new men on the scene, not only to banking but also to commerce, which was not usually part of their family background. In this group we find a significant contingent of noblemen who thus Their professional careers were equally varied; those who had experience of banking were a minority; they included Emile Pereire, who was employed by the Rothschilds for a long time and Pinard, a partner at a small banking house since 1840. Some started out as lawyers, others as industrialists and still others acquired considerable experience sitting on Boards of Directors before becoming directors. Yet the most frequent and remarkable career path -at the origin of a particularly French tradition -was via the civil service. At the outset, the government became obsessed with the dilution of responsibility in limited companies; this obsession led the Conseil d'Etat to refuse all requests for authorization from limited companies until 1848 and to accept them in dribs and drabs thereafter, coupling them with restrictive conditions, ostensibly for the protection of shareholders, until the enactment of liberal laws which ended the control procedures for companies with a capital of less than twenty million francs in 1863, and then for all companies in 1867. These restrictions included the government's right to appoint the directors of credit establishments or at least to approve their appointment. The presence of senior civil servants at the head of the major credit establishments was justified by the need to establish confidence, no longer based on the solvency of a director who was liable to the full extent of his fortune but on recognized competence and a residual authority inherited from the exercise of public responsibility. Thus, when France's first deposit bank, the CIC, was created in 1859, the State insisted on The careers of these new bankers bore no resemblance to those of a Rothschild, a Hottinguer or a Seillière. There was Louis Frémy (1805 -1891), born in the little commune of the Yonne department where his father had been mayor, and orphaned at the age of two;

nevertheless he was able to study law, to begin his career as a lawyer and then to enter the Conseil d'Etat as an auditor. He became sous-préfet of Domfront in 1835 and of Gien in 1837 and was appointed to the Railways Management Commission, where he established relations with many of the investors who shared the railway concessions. He also had political connections, among others with Léon Faucher who took him as departmental head at the Ministry of the Interior in 1848, with Persigny, a faithful ally of Louis-Napoleon Bonaparte and Baron Haussmann, future préfet of Paris under the Second Empire. These multiple connections enabled him to start a banking career in 1857 at the age of fifty-two, when he was appointed Governor of Crédit foncier. When he resigned in 1877, he was managing credits of the order of two billion francs, significantly greater than those of any other major banking house.

The French language makes no distinction between the various categories of financial professionals, who are all included in the generic term 'banker', but there are doubtless several historical reasons for this lack of precision.

II. Of those who mixed the genres…

When we mention the passages of arms between James de Rothschild and Emile Pereire we usually forget to specify that the latter was not a banker in the strict sense of the term: under the Second Empire he chaired the Compagnie des chemins de fer du Midi, the Compagnie immobilière de Paris, the Compagnie générale Transatlantique and several other insurance or service companies, but he always sufficed himself with a simple administrative position in the board of the Crédit mobilier, headed by his brother Isaac after Benoît Fould resigned in December 1854. However, in the eyes of his contemporaries and of historians, Crédit mobilier was very similar to a Pereire bank and almost the equal of a major banking house. Admittedly, the Pereire and Fould families subscribed 28.6% of the capital in November 1852 and therefore held a majority of the original capital9 ; they brought men such as Ernest André, Adolphe d'Eichthal, the Duke de Galliera, Charles Mallet and Achille Seillière onto the Board of Directors -these men, imbued with major banking, brought the caution of the old bank to the new. When Crédit mobilier was in difficulties in 1867, the Banque de France was only prepared to help on condition that the Pereire brothers resigned and personally deposited ten million francs by way of guarantee10 .

The personalization of the management of limited companies may come as no surprise to an observer at the beginning of the twenty-first century, but contemporaries such as the economist Alfred Neymarck found it much more striking; in 1880 he wrote 'In France we have a very fine group of first rank credit institutions (which are) huge associations, vast aggregates of interest, which are limited companies (sociétés anonymes) according to the law and their articles of association. Well, well! In reality they are far from 'limited' (anonymes).

What one sees in them, and sometimes above them, is the name of a talented founder, an experienced administrator, a competent and approved director, a noted and well-known organizer11 ».

Stable management was probably a significant factor in this identification. Biesta and Pinard remained at the head of the Comptoir d'escompte from 1848 to 1870-1871, Frémy and Soubeyran at Crédit foncier from 1860 to 1877-1878, Henri Germain at Crédit lyonnais from its foundation in 1863 until his death in 1905. From here to regarding the company as personal property was just one step that some people give the impression of having take. At any rate they felt that they were omnipotent and untouchable. This development was When the shares were subscribed he took 16 000 for the Comptoir and 7 450 for his own account -a capital investment of 3 725 000 francs 14 . The Comptoir specialized in French foreign loan business from 1864 onward and Pinard 'gambled' recklessly with the company's money and with his own. Rumour had it that the Comptoir had 15 million francs' worth of its director's discounted bills in its portfolio! Pinard was under attack -from shareholders at general meetings, in lampoons and in the press. He was accused of betraying the Comptoir's original mission, of scarcifying money in France, of using the company for his own personal ends, of getting rich at the shareholders' expense and on the backs of the investors who subscribed to the Comptoir's 'rotten' loans 15 . All of this was probably true, but Pinard could count on his political protectors and take refuge behind the excellent results of his establishment which paid out a dividend in excess of 10% from 1864 to 1868.

-At Crédit foncier 16 , Frémy and Soubeyran did not draw a very clear line between their public function and their private affairs either: Fremy, for example, chaired a number of companies whose activities would clash with those of the establishment of which he was Governor. When Crédit foncier was in difficulties following the Egyptian bankruptcy of April 1875, Soubeyran behaved like a major banking house patron: he placed a governors' guarantee of sixteen million francs on the table, fifteen million of which he provided himself.

When the Government revoked his appointment in August 1878, to the amazement of his fellow colleagues, who had stood in admiration of his competence, Soubeyran at least had the satisfaction of seeing the Egyptian operation -which could have been disastrous -finally settled, with a gross profit of thirty-eight million for Crédit Foncier 17 ; however, he was never able to recover his fifteen-million-franc guarantee deposit and the major part of his will, drafted in January 1890, was devoted to enjoining his heirs to continue fighting for its restitution 18 . Several times he had occasion to explain why he had acted in such a manner; he believed that bankers, even in limited liability companies, should put their personal fortune on the line in order to inspire confidence in their partners and their clients, their wealth being the ultimate proof of their competence. As far as his opponents were concerned (among them the Pereires and the Republican left), his success was proof of his dishonesty.

Private bankers, on the other hand, took the opposite path, as we have seen in the case of the Pereires and the Comptoir d'Escompte: they agreed to commit part of their fortune to the 'vast interest aggregates' and to lend their name and reputation to the new companies.

Frédéric Pillet-Will was an exception; he distanced himself from all the financial groups of his time and constantly demonstrated his hostility to the new joint-stock banks. Among his fellow bankers, the prospect of profit took precedence over respect for outmoded principles:

David Landes is correct in declaring that "the joint-stock banks promised to be profitable businesses which, far from clashing with the established framework of their activities, seemed to be in perfect harmony with it". 19 The first to understand this and to declare himself in The absence of a definite dividing line between private and public money, private and public business or between business and politics is altogether typical of the climate of political racketeering (affairisme) which reigned under the Second Empire and at the beginning of the Third Republic. It has often been denounced as immoral. Its economic effectiveness remains to be seen.

III. For a brief period of euphoria

If we may judge by the international spread of French capitalism in the third quarter of the nineteenth century, it must be recognised that the banking system established from 1850 onward was particularly effective 21 . It was as if French savings were a dormant nest egg which only needed to be called upon in order to reveal its full potential. The phenomenon was explosive, particularly under the aegis of the Pereire brothers and Credit mobilier, who multiplied their major international operations between 1853 and 1856; they included the cofoundation of the Darmstädter Bank (1853), financing the Mines and foundries of the Vieille Montagne in Belgium (1853), founding the Austrian State Railway (1854), the Crédit mobilier espagnol (1855), the Russian Railway Great Company (1856) [START_REF] Cameron | The Credit Mobilier and the Economic Development of Europe[END_REF] , etc. Rivalry with the Rothschilds was a further stimulant to this expansion in which other French groups took part, particularly after 1860: French capital was dominant in Spain, Italy, Austria, the Ottoman Empire, Egypt and Tunisia etc. When Bismarck imposed an indemnity of five billion francs on France under the Treaty of Frankfurt, everyone was amazed at the ease with which the territorial liberation loans were raised in 1872-1873. We may wonder whether this remarkable efficiency is to be attributed to political racketeering -if, in other words, the mixture of genres observed in the bankers' behaviour also extended to banking practices.

To answer this question we should start with the private Parisian bank, and in particular its elite, the major banking houses. Unlike the London exchange, with its specialized establishments, each with very specific functions 23 , the major banking houses were nonspecific: the same houses undertook classic banking operations (exchange, discount, recoveries), financial operations (issuing loans and company shares), as well as international trade and direct investment (railways, mines, heavy industry, real estate) [START_REF] Landes | Vieille banque…[END_REF] . Admittedly, we can discern certain orientations which reveal very precise strategies; thus the Seillière bank was very active in financing the European steel industry, granting sizeable advances to Schneider, Wendel and Krupp; the Hottinguers had a solid position in transatlantic commerce and the Marcuard-Andrés main interests were in the Mediterranean. Yet this kind of specialization did not lead to a sharing of markets or to a real division of labour. On the contrary, the activity of a Charles Lafitte, striking by way of its sectorial and geographical eclecticism, was doubtless more representative of this all-purpose bank, a bank for all types of business, which first and foremost kept an open mind in seeking the best opportunities for making a profit, as soon as the opportunity arose: under the Second Empire, Lafitte was chairman of the Victor-Emmanuel Railway Company (Piedmont-Sardinia), obtained the concession for Cordova-Seville, speculated in the Bois de Boulogne land at the gates of Paris, financed a canned-food company at Meaux, issued an Egyptian loan, took a passing interest in an Ottoman bank creation project, set up the Compagnie des lits militaires and administered the Maubeuge blast furnaces.

The banking revolution should have established some order in these practices by setting up a specialized, hierarchic banking system. This was also the main concern of the Pereire brothers who, as good disciples of the Count de Saint-Simon, wanted to end the anarchy of liberal capitalism, damaging both to entrepreneurs and to workers, and to replace it with harmonious organisation of production 25 . The Pereire brothers were already very much involved in the creation of the Comptoir d'escompte and Crédit foncier and they believed they could achieve their objectives through Crédit mobilier: the basic idea was to centralise the financing of major enterprises by issuing debentures which would attract dormant savings and replace the multitude of certificates on the market with a single bond -an 'omnium' bondwhich would distribute credit throughout the French economy. This centralisation would be the prelude to a progressive merging of all enterprises in the same sector into a single company. The process knew no apparent limits: in 1855, Isaac Pereire not only explained the need to create similar establishments abroad, but also envisaged the issue of a European credit bond which would eliminate the differences in interest and exchange rates in the various financial markets. The Pereire brothers were visionaries who came up against powerful opponents: the Rothschilds, who denounced their hegemonic ambitions, but above all the State, which prohibited Crédit mobilier from increasing its resources by issuing short-or long-term debentures; they were never able to realize their ambitions and their failure to gain acceptance for their ideas was at least as great as the failure of their business enterprise.

Whilst the interventionism of the Bonapartist State initially got the better of the school of Saint-Simon, the liberal turning point of the 1860s was the heyday of 'capitalist anarchy'. even when this was not their original intention: Armand Donon, for example, championed the notion, in France, of the distribution of banking tasks and a deposit bank along English lines, in which the assets were as liquid as their liabilities, concentrating solely on short-term credit 27 . Yet he did not strictly adhere to his own beliefs when he created a multifunctional group; although it was made up of separate companies, these were financially interconnected for better or -as was finally the case -for worse. The new managers not only aligned themselves to the behaviour of traditional bankers but they also constantly competed with them on their own territory and shared the best sources of profit with them. The scope of the banking revolution was thereby greatly reduced; it applied to obtaining resources but it made few innovations in respect of utilisation of same. The new bank did not strike out in new directions, but extended the old system, of which it was the culmination. Its effect was quantitative rather than qualitative: it was content to merely deliver a solid boost to French capitalism. However, the euphoria was of short duration and the aftermath was like the painful hangover which follows one drink too many. The Great Depression provided the necessary toxic agent and the effect was maximised when Republican politicians settled a few accounts with bankers who were regarded as creatures from the Second Empire. Most of these new managers, as we have already seen, had generally allowed their private and public interests to overlap and were sanctioned one after another by the government or by the market:

-At Crédit foncier, as we have seen, Frémy was obliged to resign in January 1877 following the Egyptian bankruptcy and Soubeyran was dismissed in August 1878. . from this chain of disasters, though his was a particular case 28 .

-Guillaume Denière, however, as Chairman of the Société générale from 1868 and Regent Banque de France, was both an eminent player in the banking revolution and a pure product of Second-Empire racketeering: he received, for example, rent from the Société Générale branch which occupied premises in the Parisian building he owned. In 1866 he was dismissed after revelations about bribes which he had demanded for bringing the Société générale into the Peruvian guano business and accusations that he had placed his private interests before those of the company. -In 1891, the depositors of the Société de dépôts et de comptes courants (chaired by Armand Donon) made a run on the company which duly succumbed as it was unable to realise its assets. The company was liquidated, with heavy losses for the shareholders, for some of the administrators, who paid out 20 million francs to cover part of the debt, and for Armand Donon, who served six months in prison and went totally bankrupt.

-Finally, Soubeyran, who had set up a powerful financial group combining a investment bank, mortgage company and a real estate and insurance company, was forced into bankruptcy in 1894.

These repeated failures marked the death throes of the mixed bank in France and, with it, that of the conduct inherited from the Second Empire. The joint-stock bank, arising from the ashes of a totally defective banking system in 1848 and carried by new men, never really succeeded in establishing its autonomy. It remained immature and was caught up by the old system which eventually imposed its own conduct and methods. The new managers acted as if they owned the capital and took a great many liberties with their shareholders and the articles of association which they were supposed to respect. While the economic and political environment remained favourable they met with financial success but the spectre of failure darkened the horizon at the end of the 1870s. The few that managed to escape disaster were either those who had already died or those who had been more far-sighted and above all more prudent. As Jean Bouvier demonstrated, Henri Germain, Chairman of Crédit lyonnais, felt the wind change and in the 1870s he adapted his establishment to the new economic and political 28 Cf. J. BOUVIER, Le krach de l'Union générale, 1878-1885, 1960, 308

From

  the private bank to the joint-stock bank: the case of France (second half of the 19th century) by Nicolas Stoskopf, CRESAT, University of Haute-Alsace, F-Mulhouse

  accomplished a spectacular aggiornamento to the capitalist economy. They included the Count de Germiny, governor of Crédit foncier from 1854 to 1857 and of the Banque de France from 1857 to 1863 and of Crédit mobilier, which he liquidated; the Marquis d'Audiffret, Chairman of the CIC from 1859 until his death in 1878; the Marquis de Ploeüc, Managing Director of the Imperial Ottoman Bank from 1863 to 1867 and then Sub-Governor of the Banque de France from 1867 to 1878 and Baron de Soubeyran, Sub-Governor of Crédit foncier from 1860 to 1878. Their colleagues were drawn from a wide social spectrum, ranging from the Delahante brothers, born of a general farming family (fermiers généraux) notorious for their wealth and their role as tax collectors under the Ancien Régime, and thus part of the financial upper middle class, to Alphonse Pinard, Sub-director of the Comptoir d'escompte de Paris from 1848 to 1870, the son of a secondary school teacher.

  appointing the 73-year-old Marquis d'Audiffret, Grand Officier of the Légion d'Honneur, Chairman of the Cour des Comptes, senator and French specialist in public finance. Many civil servants, and in particular the finance inspectors, were attracted by the notion of pantouflage 8 ('crossing the floor' from the public to the private sector): Ploeüc, for example, tried to enter Crédit mobilier in 1853 and gave up because the salary was insufficient, but he 'crossed the floor' in 1863, when he accepted the directorship of the Imperial Ottoman Bank. Several of his colleagues, including Adrien Delahante, the first director of the Société générale, forsook the service of the State and the Prince to serve the shareholder and the client.

  particularly noticeable at the Comptoir d'escompte de Paris and at Crédit foncier after 1860, the starting point of a liberal revolution inaugurated by the Franco-British commerce treaty. -Though the Comptoir d'escompte had been created to meet commercial needs in Paris, it was under governmental pressure to finance external business, particularly overseas and in the colonies 12 . This new orientation was orchestrated by its sub-director, Alphonse Pinard, who was closely associated with Chasseloup-Laubat, the Minister for the Colonies: he was so committed to it that in October 1860 he personally subscribed 4.7% of the capital of Crédit colonial, established under the patronage of the Comptoir d'escompte, of which he became Chairman 13 . He formed an alliance with Louis Bischoffsheim and Edouard Hentsch, two major bank heavyweights, to found the Banque de dépôt et de crédit des Pays-Bas, the forerunner of Paribas, in March 1863 and the Société générale in May of the following year.

  favour was Benoît Fould, co-founder and short-term Chairman of Crédit mobilier, before attacks of insanity forced him to resign. He had many imitators, including Louis Bischoffsheim, Chairman of the Banque franco-égyptienne (1870-1873), Edouard Hentsch, Chairman of the Comptoir d'escompte (1873-1889) and Edward Blount, Chairman of the Société générale (1886-1901), etc. The latter was an exception, having liquidated his personal businesses, but the rule was to combine the management of a private bank and one or two joint-stock banks. In this respect Armand Donon and his associates Maurice Aubry and Jules Gautier were typical: their private bank Donon, Aubry, Gautier & Co, founded in 1851, immediately took its place among the leaders in the market, acting as a small-scale Crédit mobilier and investing the deposits of several large clients such as the Count de Morny, the Emperor's half-brother, in France and overseas. Donon joined up with William Gladstone -of the London bank J. Thomson, T. Bonar & Co. -a cousin of the English statesman of the same name, in promoting joint-stock banking on the English model in France. Their efforts resulted in the foundation in 1859 of the CIC -of which they subsequently lost control 20 -and of the Société de dépôts et de comptes courants in 1863, of which Donon was appointed Chairman.Subsequently, they linked up with the CIC to found similar establishments in the provinces in Lyon, Lille, Marseille and Bordeaux, with more specialized real estate and investment banking companies in Paris (Société financière de Paris) or even popular banks (Caisse centrale populaire). In every case, Donon and his personal associates in Donon, Aubry, Gautier & Co, and the other companies in the group subscribed a significant part of the new company's capital. In the end Donon controlled a large group of companies, built around a private bank of which the partners, their families and their friends in the political and financial worlds were directors of many limited companies.

  compete with Crédit foncier when necessary, Frémy also distanced himself from his obligations under the treaty with the State, which was signed in May 1865: instead of undertaking works in Algeria on behalf of the State and supplying the necessary funding, he turned the company's resources to more directly and rapidly profitable operations such as the territorial liberation loans of 1872 -1873, advances to the Spanish Treasury and the Spanish Mortgage Bank and other foreign loans. At the beginning of the Third Republic, it was common knowledge that the Hôtel d'Evreux, the residence of the Governor of Crédit foncier, was the place where all major business was shared out among the Parisian bankers.The example of Frémy and Crédit foncier was indicative of a marked trend in the French banking system, i.e. the progressive slide of specialist establishments towards mixed banking, the all-purpose bank which was undifferentiated and modelled upon the private bank. They were joined by the deposit banks established in the 1860s (Crédit lyonnais, Société générale),

-

  1882 was marked by the most famous crash of the era, that of the Union générale, a Catholic bank, founded in 1877 and directed by Eugene Bontoux, who cannot be omitted27 He defended these positions at the Study into the principles and general facts governing fiduciary and monetary circulation (Enquête sur les principes et les faits généraux qui régissent la circulation monétaire et fiduciaire), 1867-1869, t. I.

-

  In 1889, Edouard Hentsch, Chairman of the Comptoir d'escompte, paid dearly for his lack of vigilance regarding the imprudence of his Director, Eugène Denfert-Rochereau, the son-in-law of Alphonse Pinard, who involved the Comptoir in a disastrous speculation in copper 29 . It proved fatal for the Comptoir d'escompte, the private bank Hentsch Frères & Co and for the Hentsch family 30 .

  . XIX, p. 29 ; A. ROWLEY, « Deux crises économiques modernes : 1846 et 1848 ? », 1848, révolution et mutations au XIX e siècle, n° 2, 1986, p. 86 ; N. STOSKOPF, « La fondation du Comptoir d'escompte de Paris, banque révolutionnaire », Histoire, Economie, Société, sept. 2002.

  The apparent specialisation of the major credit establishments such as Crédit foncier or the Comptoir d'escompte was progressively diminished either by changes in the articles of association or by the creation of subsidiaries with more liberal articles. Thus in 1860, Frémy, the Governor of Crédit foncier, founded the Crédit agricole and managed to ensure that the new establishment could operate in ways which were prohibited at Crédit foncier. His resources were partly diverted through his Marseilles branch to highly remunerative unsecured short-term investments in Turkey, Russia, and Tunisia and above all in Egypt 26 . As Chairman, in a private capacity, of the Société générale Algérienne, a company which could 25 B. GILLE, La banque en France au XIX e siècle,, Geneva-Paris, 1970, pp. 15-143 and 163-183.

26

A. GUESLIN, Les origines du Crédit agricole,

Nancy, 1978, p. 110-115.

  p. 29 E. KAUFMANN, op. cit. , pp 243-247; C. Jannet, op. cit., p 320-331. 30 R. HENTSCH, Hentsch, banquiers à Genève et à Paris au XIXe siècle,, Paris, 1996, p. 286-303.

Only the most important establishments are mentioned here. For the full list see P. DUPONT-FERRIER, Le marché financier de Paris sous le Second Empire,, Paris, 1925, p. 245 ; R. BIGO, Les banques françaises au cours du XIX e siècle, Paris, 1947,

p. 3 D. S. LANDES, « Vieille banque et banque nouvelle: la révolution financière du XIX e siècle », Revue d'histoire moderne et contemporaine,, III, 1956, p. 204-222 4 Les patrons du Second Empire, Paris, Picard-Cenomane, 6 volumes published: 1. Normandy, Maine, Anjou; 2. Burgundy; 3. Franche-Comté ; 4. Alsace ; 5. Marseille ; 6. Bordeaux. 5 It covers 93 bankers or financiers. Cf. N. STOSKOPF, les patrons du Second Empire, 7, , Banquiers et financiers parisiens, Paris,Picard, 2002. We refer to this work for bibliographic references on bankers' biographies; with a few exceptions these cannot be printed in the context of this article, given their extreme dispersal.6 The expression "private bank" is not altogether satisfactory since the joint-stock bank is also privately owned; however, the term is used here for lack of a better expression and in accordance with common practice.

It is for this reason that D. Landes prefers to refer to them by the English term merchant banker.

The term pantouflage, which means leaving public service for employment in the private sector, appeared in 1878, according to A. REY, Dictionnaire historique de la langue française, Paris, Le Robert, 1992.

Bulletin des lois, partie supplémentaire, 1852, t. 2.

Crédit mobilier general meetings, Centre des archives du monde du travail (Working World Archive Centre) (CAMT, Roubaix), 65 AQ A 949-1.

Cited by C. JANNET, Le capital, la spéculation et la finance au XIXe siècle, 1880, p. 177.

Articles of Association and General Meeting Minutes, Comptoir d'escompte de Paris, BNF 4 Wz 3159 et 4324.

D. LANDES, op. cit., p. 217.

G. BEAUJOUAN and E. LEBÉE, «La fondation du Crédit industriel et commercial », Histoire des entreprises, 6, November 1960, p. 5-40.