An unprecedented financial and political scandal
The Panama Canal Affair remains one of the greatest scandals of the French Third Republic. Between corruption, resounding bankruptcy, and the involvement of leading political figures, this affair deeply marked the political history of France in the 1890s.
The Universal Interoceanic Canal Company
In 1879, Ferdinand de Lesseps, crowned with his success with the Suez Canal, launched a pharaonic project: to cut a canal through the Isthmus of Panama to connect the Atlantic to the Pacific. The Universal Interoceanic Canal Company was created and raised considerable funds from hundreds of thousands of French savers.
But the project faced insurmountable technical difficulties, yellow fever that decimated the workers, and disastrous financial management. In 1889, the company went bankrupt, swallowing the savings of more than 800,000 shareholders.
The scandal breaks out: corruption and political complicity
The investigation quickly revealed that the company had distributed millions of francs to parliamentarians, journalists, and influential personalities to obtain authorizations and silence criticism. More than 150 deputies and senators were suspected of having received bribes.
The affair became a major political crisis. The press raged, public opinion was outraged, and several high-profile trials took place between 1892 and 1893.
Clemenceau at the heart of the storm
Georges Clemenceau, then a radical deputy and rising figure of the Republic, found himself tainted by the scandal. Accused by his political opponents of being involved in the malpractices, he had to face a defamation campaign orchestrated notably by journalist Ernest Judet.
This dark period of his career nearly shattered his political ambitions for good. Defeated in the 1893 elections, Clemenceau went through a long desert crossing before returning to the political forefront at the beginning of the 20th century.
For further reading: The Real Clemenceau by Ernest Judet
To deeply understand this troubled period and Clemenceau's controversial role in the Panama Canal Affair, we recommend reading The Real Clemenceau by Ernest Judet.
Published in 1920, this work offers a direct and uncompromising testimony about the "Tiger," written by one of his fiercest opponents. Beyond the controversy, Judet provides a detailed analysis of the shadowy areas of Clemenceau's career, notably during the Panama Canal Affair.
An essential historical document for anyone interested in this pivotal period of the Third Republic and the complex personality of Georges Clemenceau.