Life of Being a Crown Prince in France - Chapter 1482 - 1388: Financial Freedom
Chapter 1482: Chapter 1388: Financial Freedom
Just as the president of the Chamber of Commerce said, if the payment cycle for international transactions is shortened from one or two months to a week, trade volume might increase by one third, or even more, in a short time!
Baron Lucian nodded and was about to announce the discussion on the specific matters of joining the European Settlement Bank when Fovorno, the owner of the largest discount bank in Parma, stood up and said coldly:
“I think everyone is being too optimistic.
“This settlement system does indeed bring convenience, but it will subject our banks and trade to the control of the European Settlement Bank!
“If one day they threaten us by stopping the transit settlement application…”
Palmeiri immediately waved his hand and pointed to the “plan book”, saying: “It’s clearly written here on page two — 45% of the seats on the board of the European Settlement Bank will belong to our country, and major decisions on daily business require the agreement of 80% of the directors.”
Joseph, who understood the importance of “democracy” in international affairs, had stipulated from the outset that the European Settlement Bank would be jointly owned by all member states, with France holding only slightly more seats.
Fovorno glanced at that regulation and shouted to the Minister of Finance: “Look, our country also has to bear 45% of the construction costs of the European Settlement Bank. This is not worth it.”
He then looked at the senior bank members present: “By then, everyone will have to pay a deposit to the European Settlement Bank, or provide asset collateral, and also accept their supervision. Are you all really willing to do so?”
His words immediately caused several people to show hesitancy.
The subsequent meeting, under Fovorno’s deliberate guidance, turned into a debate over the risks of joining the European Settlement Bank.
At four in the afternoon, Baron Lucian helplessly announced the end of the meeting.
The next day, after signing a loan agreement with the manager of the Milan Bank, Bodoni, Palmeiri couldn’t help but talk about the European Settlement Bank’s affairs.
“It’s definitely the most perfect settlement model I’ve ever heard of!” The latter exclaimed immediately, “When I return, I must suggest to the Milan Council that we should also join this system!”
Milan, as the financial center of Northern Italy, would gain much more profit from such an efficient settlement system than Parma would.
However, Palmeiri spread his hands: “But this will affect the profits of the discount banks, and they are desperately trying to stop it.”
Bodoni leaned forward seriously: “Listen, my old friend, I will push for joining the European Settlement Bank in Milan, and you must convince Baron Lucian on your side, even if it costs some money!”
“Spend money?” Palmeiri furrowed his brow, “But I think, this is something His Majesty the King and the Chamber of Commerce should worry about…”
“What if we can make a huge profit from it?”
That evening, after the manager of the Milan Bank left, Palmeiri immediately gathered a few trusted followers overnight and instructed them to invest all funds in purchasing francs.
Indeed, Bodoni told him that once the European Settlement Bank was established, the use of francs in international trade in Northern Italy would inevitably increase rapidly. Many merchants would then seek to exchange francs, thus pushing up the exchange rate of the franc.
In other words, as long as one buys francs in advance now, one can obtain high returns without risk.
Bodoni’s efficiency was high; teaming up with the Milan Chamber of Commerce, through money paving the way, he quickly gained the support of a large number of Members of Parliament.
Just over ten days later, the Milan Council passed the resolution to apply to join the European Settlement Bank system, though they were reserved about using francs exclusively for international trade.
Joseph did not expect that even before the “demonstration area” was established, new members were being attracted.
He was very flexible and immediately agreed that Milan could accept other countries’ currencies in foreign trade.
Given the stability of the franc and France’s huge trade volume, it wouldn’t take many years to unify the settlement market.
While things were progressing smoothly in Milan, Palmeiri encountered trouble.
In the office of the Northern Parma Commercial Bank, Bodoni frowned and shouted: “Didn’t you say the Crown Prince was very supportive of this matter?”
Palmeiri nodded with a bitter expression: “Fovorno’s discount bank has garnered a large number of investors and two ministers, so much so that even the Royal Family cannot ignore their influence.”
Bodoni immediately stood up irritably, pacing back and forth in the room.
It must be noted that during this period, the Milan Bank had bought a total of 13 million francs, with many of those funds borrowed from other banks; if it remained in storage, the interest alone would ruin them.
After a while, he looked at Palmeiri with cold eyes, whispering: “Then let’s make sure this troublesome guy is silenced forever!”
In mid-April, Fovorno was shot in the back at the opera house and died on the spot.
The murderer claimed that it was because of an inappropriate relationship between him and his wife that he killed him to cleanse the shame.
Indeed, Bodoni gave him 7,000 Ducat gold coins, which is 84,000 francs.
The Fovorno Discount Bank soon fell into chaos.
Three days later, Ferdinand I personally signed the agreement for Parma to join the European Settlement Bank.
…
May 3, 1800.
Palace of Versailles.
As Charles walked through that golden conference room door, he couldn’t help but feel a bit nervous.
Today’s Cabinet meeting seemed to have a few extra attendees, not only all Cabinet ministers, deputy ministers, and high-ranking officials from the Police Headquarters, Tax Bureau, and Chamber of Commerce but even his mother, who hadn’t attended a Cabinet meeting for a long time, was present.
Yes, since last year, Joseph had been allowing his younger brother to sit in on Cabinet meetings.
Charles suddenly felt a tightness in his heart; could it be that his marriage was to be discussed?
Would it be with Princess Maria Anna of Hesse, who was a head shorter than him yet heavier, or the perpetually gloomy Princess Augusta of Bavaria?
No, no way! He anxiously looked at his brother, I only want Louise… but how could he get through today’s hurdle?
Soon, everyone stood up to salute Her Majesty the Queen and the two Princes, then the Minister of Finance Godan stood up first, holding a document and loudly proclaimed: “Under the governance of His Royal Highness the Crown Prince, our country’s fiscal situation was very good last year…”
He knew the Crown Prince did not like flattery, so he quickly moved to the main topic:
“Last year’s total fiscal revenue was — 1.23 billion francs!
“The total expenditure for the year was 1.44 billion francs, with a deficit of 210 million francs.”
He glanced at the Crown Prince and then slightly lowered his voice: “The current total government debt is 2.38 billion francs.”
Joseph nodded and smiled at Godan.
Yes, France’s foreign debt had reached a new high, approaching 2.4 billion francs. But he was not worried at all since France’s economy had more than doubled in size compared to a decade ago, making it effortless to handle this debt.
In fact, the huge fiscal expenditures over the past two years were mainly due to the massive construction of railways, which appeared to be a deficit but actually had a huge effect on boosting the national economy.
