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Chapter 1300: Preparing for Takeoff

It's important to note that war reparations are actually backed by collateral.

For instance, Austria's reparations are collateralized by the nation's tariffs, along with salt and alcohol taxes from all regions except Hungary.

This means French bonds are essentially backed by various Austrian national taxes, a level of security far superior to bonds issued purely on national credit.

Given similar returns, anyone would choose to buy these national bonds.

The even more impactful masterstroke is the bearer bond purchasing model.

Currently, national bonds across Europe are registered purchases at banks, and reselling them requires going back to the bank for cumbersome procedures. This locks up buyers' funds. Many factory owners, fearing insufficient liquidity, are hesitant to purchase them.

Joseph's bearer bond system effectively transforms these national bonds into a form of currency. If holders find themselves short on cash, they can easily sell the bonds, perhaps conceding a small portion of the interest, to recover their funds at any time.

While this model sounds simple, its widespread adoption has been hindered by the limitations of financial development and a lack of confidence in anti-counterfeiting technology. Consequently, most nations have opted for registered national bonds. It wasn't until the 1820s that Britain began to gradually experiment with bearer sales.

For France, however, anti-counterfeiting poses no significant challenge.

France currently boasts the most advanced papermaking and printing technologies in Europe, and its chemical engineering is unrivaled. Coupled with the experience gained from issuing franc banknotes—which have seen three generations of anti-counterfeiting upgrades in recent years—the possibility of forgery has been virtually eliminated.

Though Godan felt a little uncertain about bearer bonds, since the Crown Prince had approved it, there shouldn't be any issues.

He quickly pulled out his notebook to jot it down, just as Joseph continued:

"As for British national bonds, after this war's defeat, investors will undoubtedly lose confidence in them.

"However, we must also actively push this further. Mr. Godan, you need to do this..."

Godan nodded repeatedly. "Yes, Your Highness. I will arrange for someone to handle it immediately."

After concluding the discussion on national bonds, Joseph turned to Berthier and said:

"The arrangements for demobilized soldiers still need improvement."

Godan immediately grew anxious:

"Your Highness, we truly cannot increase severance pay any further!"

Joseph waved a hand at him:

"No, you misunderstand. In fact, severance pay can be reduced somewhat."

This time, it was Berthier who objected:

"Your Highness, I'm afraid that..."

Joseph continued:

"Soldiers leave their homes for half a year, sometimes even more than a year, fighting bravely for the nation. Receiving only 110 francs upon discharge is simply not enough to compensate them for their sacrifices.

"For example, many lose their jobs because of it.

"The Ministry of the Interior needs to formulate policies in this regard. Factories that employ demobilized soldiers should receive tax incentives; the more they hire, the greater the tax reduction.

"We can also organize skill training for groups of demobilized soldiers, then connect them with factory managers for selection and employment.

"As for soldiers who performed exceptionally well in the military, they can attend police academies or economics institutes, and upon graduation, work in police, tax, customs, or postal departments. During their studies, they will receive half-pay to support themselves. The severance pay for this group can then be appropriately reduced.

"As for farmers, they will receive land tax reductions and benefits such as low-cost fertilizer."

Joseph directly adopted many mature demobilization policies from later eras.

Though seemingly just a welfare system for demobilized soldiers, its actual impact was profound.

Firstly, it would boost public enthusiasm for military service and increase trust in the government. The next time France needed to mobilize an army, it would undoubtedly be able to conscript more soldiers than this time.

Secondly, soldiers returning from the battlefield possessed a stronger sense of belonging and honor towards the nation than old officials who merely idled their days away. Integrating them into the ranks of civil servants would greatly benefit government efficiency and even reduce corruption.

Finally, this also supported France's industrial development. During wartime, the departure of large numbers of young, able-bodied men from their homes inevitably led to labor shortages in factories, impacting industrial production. At such times, government intervention to coordinate the return of demobilized soldiers to factories was undoubtedly a win-win situation.

Moreover, skill training for demobilized soldiers could foster a more systematic approach to industrial worker education.

Berthier busily jotted everything down. Just then, Archbishop Beaumont, accompanied by Eman, approached with hurried steps, bowing quickly to Joseph before urgently saying:

"Your Highness, the Pope has arrived in Paris, and he hopes to..."

Joseph gazed at the troops undergoing inspection and spoke calmly:

"I don't recall inviting him. As you can see, France is currently holding an important victory celebration, so please forgive me for not having time to receive him.

"How about this: let him temporarily stay at Notre-Dame de Paris."

Archbishop Beaumont paused, startled:

"Your Highness, but..."

Joseph ignored him and turned to Eman:

"Where is Archbishop Muzzarelli now?"

"He presided over the consecration and inauguration of the Archbishop of the Osnabrück diocese the day before yesterday. By my calculations, he should be nearing Trier."

Joseph nodded:

"If he takes the train from Luxembourg, he should arrive in Paris the day after tomorrow, correct?"

"Yes, Your Highness. Around the afternoon of the day after tomorrow."

Only then did Joseph turn back to Archbishop Beaumont:

"Forgive me, what were you saying just now?"

"Oh, no... nothing at all, Your Highness." The Archbishop of Paris placed a hand on his chest and stepped back two paces. "I understand what needs to be done."

...

While a grand military parade was being held in Paris, far away in Stuttgart, on the east bank of the Rhine River, the most powerful figures of the German region were gathering, preparing to convene a conference that would profoundly impact the Holy Roman Empire.

Cobentzel, representing the Prince-Elector of Bohemia, walked into the New Royal Palace of Stuttgart with a frown.

He turned his head and whispered to his assistant:

"Why is the Imperial Diet being convened here?"

"Well... apparently, there's been a recent epidemic spreading in Frankfurt. To avoid danger, Archbishop Friedrich Karl suggested moving it to Stuttgart."

Of course, the alleged epidemic was merely an excuse. Following France's directive, Stuttgart was to become the permanent venue for the Imperial Diet. After all, the Stuttgart Declaration, representing the new French order, had been signed here.

Cobentzel pursed his lips. Spotting the Salzburg Foreign Minister walking ahead, he hurried to catch up.

The two exchanged bows. Cobentzel quickly asked:

"Do you happen to know Mainz's stance?"

The main agenda item for this Imperial Diet was to vote on who would inherit the now-defunct Prince-Electorate of Hanover.

The Salzburg Foreign Minister lowered his voice and said:

"Archbishop Karl seems to favor Count Weimar."

Cobentzel nodded:

"I agree that's a good decision. In that case, let's also join forces to support Weimar."