partial execution of the scheme for beautifying the city had destroyed
great numbers of dwellings in the most thickly populated parts, and more
house-room was needed to compensate the loss of habitations, while
extensive lots of land were suddenly set free and offered for sale upon
easy conditions in all parts of the town.

Those who availed themselves of these opportunities before the general
rush began, realised immense profits, especially when they had some
capital of their own to begin with. But capital was not indispensable. A
man could buy his lot on credit; the banks were ready to advance him
money on notes of hand, in small amounts at high interest, wherewith to
build his house or houses. When the building was finished the bank took
a first mortgage upon the property, the owner let the house, paid the
interest on the mortgage out of the rent and pocketed the difference, as
clear gain. In the majority of eases it was the bank itself which sold
the lot of land to the speculator. It is clear therefore that the only
money which actually changed hands was that advanced in small sums by
the bank itself.

As the speculation increased, the banks could not of course afford to
lock up all the small notes of hand they received from various quarters.
This paper became a circulating medium as far as Vienna, Paris and even
London. The crash came when Vienna, Paris and London lost faith in the
paper, owing, in the first instance, to one or two small failures, and
returned it upon Rome; the banks, unable to obtain cash for it at any
price, and being short of ready money, could then no longer discount the
speculator's further notes of hand; so that the speculator found himself
with half-built houses upon his hands which he could neither let, nor
finish, nor sell, and owing money upon bills which he had expected to
meet by giving the bank a mortgage on the now valueless property.