Rothschilds. They were completely against the new joint stock banks. They separated more and more from their allies in order to follow resolutely an independent course. The collapse of the Crédit Mobilier in 1867 and the death of the baron James de Rothschild in 1868 may have played a part in these rather dramatic changes. When in July 1871, the Rothschilds of Paris and London effectively monopolized the placement of the first French indemnity loan, Banque de Paris, the NCDB and a number of other banks formed an alliance to strengthen their position in future issues. Shortly afterwards the two banks announced their plan to merge, which was very much welcomed by the Parisian financial community42. Through Henri Bamberger, the two banks knew each other well, as they had cooperated in several syndicates.

The Banque de Paris had been capitalised by 2,500 shares with a par value of FFR 10,000 each, on which 40 percent was still to be paid. Their shareholders were first obliged to pay their shares in full. Subsequently, each share was then exchanged into 20 shares of Banque de Paris et des Pays-Bas, with 50 percent paid. Shareholders of the NCDB were offered two options. They owned 40,000 shares in their bank with a nominal value of FFR 500. For each share of the NCDB they could subscribe to one share of Banque de Paris et des Pays-Bas, with 50 percent paid. Alternatively, those who were not willing to participate in the new bank would receive for each share in cash its par value plus a premium of FFR 100. This actually proved later to be an attractive proposal. As it turned out, the shareholder, who had accepted the exchange offer, not only received a share in the new bank (par value of FFR 1,000 with the obligation to pay on demand the remaining 50 percent), but on top of that, he would receive another FFR 420 as his part in the liquidation surplus of the NCDB. With the creation of the Banque de Paris et des Pays-Bas, the role of the Dutch in the bank had come to an end. Surprisingly Louis-Raphaël Bischoffsheim did not join the board, although he probably had the intention to do so43. Did he feel too old? He would die the following year at the age of 73.

The 1st February 1872 Banque de Paris et des Pays-Bas was operational, and the former head office of the NCDB became the branch of the Paris bank. Soon after the merger, Banque de Paris et des Pays-Bas made its first acquisition, the stockbroker Holjé & Boissevain. The partner of this firm, Mijnhart. J. Boissevain, was appointed as the third managing director.

The main business in Amsterdam remained the introduction of foreign securities in Amsterdam in conjunction with the head office in Paris. In 1884, the government ceased to place directly its bond issues in the market. Together with the Nederlandsche Handel- Maatschappij44 and the Amsterdamsche Bank, Banque de Paris et des Pays-Bas formed the first consortium to underwrite a new governmental bond issue.

42. Ferguson, House of Rothschild, II, p. 213; E. Bussière, Paribas, Europe and the World, 1872-1992, pp. 25-29.

43. This can be concluded by comparing the notices in the De Nederlandsche Financier of 9 November 1871 and 24 February 1872.

44. Nederlandsche Handel-Maatschappij: the Netherlands Trading Society (see Annexe 1).

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