Chapter 425: Currency Reform
Western Bavaria.
A line of knights carrying flags adorned with dolphins and fleur-de-lis made their way along a muddy road. Behind them was the heavily guarded carriage of the French Prince. Inside the carriage, Joseph massaged his sore shoulders and turned to look out the window at the ancient town passing by. This was the site of the famous Battle of Nördlingen during the Thirty Years' War, but now it had returned to peace and quiet.
The blonde girl sitting across from him noticed his movement and quickly stood up, speaking softly, "Your Highness, may I help you with a massage?"
Joseph was slightly surprised—he wasn't used to such attentive service during long journeys—but he soon nodded and smiled, "That would be very kind of you."
"It's my honor to serve you," Camellia replied, bowing as she moved to his side in the cramped carriage. Her slender fingers pressed against Joseph's shoulders with just the right amount of pressure, making him close his eyes in comfort.
A few moments later, Joseph's fatigue seemed to have melted away. Camellia noticed that his coffee cup was empty, so she promptly picked up the coffee pot and poured him half a cup—enough to avoid spilling in the bumpy carriage.
Yes, since leaving Vienna, Camellia had taken on almost all the duties of Joseph's servants, doing her work more thoroughly and attentively than the three previous servants combined. These skills were all taught to her by Madame Delvaux—who had served as a nursemaid to Austrian princesses and clearly knew her craft well.
Initially, Camellia had been hesitant about following her teacher Bazel's advice, but after the French Prince had severely punished the scoundrel who had harassed her for over a year and handed her the 150,000-florin compensation, she made up her mind.
Her teacher was right! No, more accurately, she had been deeply attracted to the Prince's charm, charisma, and the sense of security he brought.
Joseph nodded to her in thanks and took a sip of the coffee, savoring its rich flavor. He nodded again in approval—this girl was excellent at making coffee—before picking up his pen to continue drafting the investment and development plan for the Walloon region.
According to the agreement with Austria, both sides could invest in the "Walloon Special Trade Zone." Joseph hoped to establish France's influence in the region as soon as possible while Austria was preoccupied with the war in Silesia.
For example, by implementing favorable immigration policies, more French people could be encouraged to move to the Walloon region for investment and settlement.
Additionally, there was the matter of building the police force. The plan was to recruit 4,000 Walloon police officers, half of whom would be sent to France for training, with rotations afterward. The upper ranks of the police department would all be held by French nationals. After a significant influx of French immigrants, it would soon become impossible to distinguish between original Walloon residents and newcomers—their language and lifestyle would blend seamlessly.
Once French investors gained control of nearly all the coal mines in the Walloon region, achieving these two goals would effectively mean that France controlled the area.
By dusk, the convoy arrived in the eastern part of Stuttgart.
As Joseph looked over the investment and development plan in his hands, he couldn't help but sigh. Over the past two years, his efforts had created a favorable situation for France.
Besides the Walloon region, the situation in Tunisia had also stabilized, leading to a second wave of immigration.
In domestic industry, sectors such as coal, iron, textiles, and chemicals were all entering a period of rapid growth, poised for an eventual explosion in output.
However, all of this required money.
Whether it was investment in the Walloon region, development in Tunisia, training the military (or police), or driving the industrial revolution, everything required substantial funds.
According to Joseph's plans, there would also be tax reforms and naval expansion in the future—both of which were major financial drains.
At present, France's finances were still burdened by a massive debt of over 2 billion livres. The numerous wars fought in recent months had further drained the treasury. Extracting funds to accomplish all these goals seemed as difficult as squeezing water from a stone.
As Joseph followed Crosode into the manor where they would be staying, he pondered whether now might be the right time to push for currency reform, taking advantage of the military successes in the Southern Netherlands and North Africa that had bolstered the royal family's prestige.
By replacing gold and silver coins with paper currency across France—and considering the vast markets of the Walloon region and Tunisia—the seigniorage alone could alleviate the current financial strain.
Given France's current rate of industrial and agricultural development, there was room to allow for a bit more inflation—in fact, this could even be beneficial for economic growth. By printing money in advance of the physical goods being produced, France could avoid the problem of insufficient currency hampering trade. Furthermore, the moderate depreciation brought on by inflation would encourage people to invest rather than hoard money.
The additional money printed would be controlled by the French Treasury, allowing it to be quickly directed to areas of greatest need, shortening the typical wait times for investment.
Moreover, as France continued to trade with other countries, French paper currency would inevitably flow into foreign markets. Given the relatively lax attitude of this era's nations towards monetary sovereignty—stemming from their long history of using gold and silver coins—French paper money could likely circulate in small amounts in neighboring countries, at least in the short term.
Even if most merchants chose to exchange it for gold and silver coins, the cumulative effect across all nations would still represent a significant sum.
It would essentially mean that France was trading paper for foreign goods.
After a simple dinner, when Joseph finally retired to his bedroom, he noticed a faint scent of incense in the air. He saw that Camellia had already tidied the bed perfectly—even positioning the pillows in the most comfortable way.
The girl, hearing the door, seemed startled and quickly turned around to give the Prince a slight curtsy. In the candlelight, a blush spread across her cheeks.
Joseph sensed that something was a bit off and asked in surprise, "Is there something you need?"
"N-no, nothing…" Camellia stammered before quickly running to the bedroom door, "Please, Your Highness, rest well…"
The two servants at the door were puzzled—why had the new lady left before finishing her duties? They hurried in to help the Prince change into his nightgown.
Joseph didn't particularly enjoy having others help him change, but in Versailles, it was considered an essential part of the evening ritual—one that was usually carried out by nobles of significant rank—so he had little choice but to comply.
Back in her room, Camellia shut the door and pressed her hands to her flushed cheeks, her heart pounding wildly as she muttered to herself, "This is too difficult… How am I supposed to do this the right way…"
(End of Chapter)
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