Chapter 42: Loan Crisis
"You will certainly not regret your decision today." Brent, the manager, performed a low hat tip, speaking in a highly persuasive tone, "Viscount Baudoin, congratulations on becoming a part of Paris Angel!"
Comte d'Albret hadn't expected the young viscount to be so decisive, but he reacted quickly, immediately declaring, "I've also decided to invest in a franchise."
"Oh, that's excellent, Count. Your investment acumen remains as sharp as ever."
The other individuals were momentarily stunned. One moment they were haggling, the next, three stores in the Paris district were already claimed?
It was a common saying at the time—France, in essence, had only two provinces: Paris and everywhere else. As the political, economic, and cultural heart of France, Paris's spending power far exceeded that of other regions.
Large investments meant this business was definitely profitable! Those who had been hesitant and observing now chastised themselves, lamenting their lack of courage.
But having missed one opportunity, they absolutely couldn't miss a second!
Duc de La Vallière chimed in, "I'll open a store in Reims; my family estate is there."
"Ahem, I'll also join. I have some properties in Marseille, so I'll invest in two stores there."
That evening, at his home, Brent passionately kissed the seven franchise agreements in his hands, shouting and leaping like a madman.
Joining the Paris Angel Company was undoubtedly the best decision he had ever made. Just this afternoon, he had achieved financial freedom—Joseph had promised him a commission of 3,000 livres for every franchise agreement signed.
This meant he was now a wealthy man with over 20,000 livres to his name!
He poured himself a glass of wine, taking a large gulp alongside the contracts, happily calculating: 'First, I'll buy a villa in the Louvre District or Saint-Germain-des-Prés, then I'll go to Viscount Marcheyi's house and propose for my son! That old miser can no longer laugh about my family being poorer than his, haha!'
...
Joseph signed each of the contracts Brent brought him, without feeling too surprised.
Anyone with an eye for business could see the profitability of Paris Angel. And while the French government was poor, the populace was relatively wealthy, so a project this good would certainly attract investors.
Seven stores were just the beginning. He estimated that once these franchises opened, the demonstration effect would bring in at least twice as many franchisees.
After Brent departed, Joseph, as the second-in-command of French finance, headed towards the Minister of Finance's office.
As soon as he stepped through the door, all the officials in the room gathered around him, enthusiastically saluting and congratulating him, "Your Highness, congratulations!"
"Your Highness saved the Dutch!"
"The Prussians scurried back with their tails between their legs, haha."
"The Son of Divine Favor of France!"
Archbishop Brienne, the Minister of Finance, came to the front of the crowd and sincerely stated, "Your Highness, I heard about the situation in the Netherlands. I must say, your diplomatic methods astonish me!"
Joseph smiled slightly, "This is a victory for France; I merely gave it a slight push from behind."
Everyone offered another round of praise before gradually dispersing.
Archbishop Brienne's smile faded as he said, "Your Highness, the news I gathered suggests that the High Court's review results will be out in a few days, and it's likely they will still refuse registration."
Joseph was not surprised; the terms of the bill submitted this time were intentionally designed to be rejected.
He calmly replied, "Archbishop Brienne, you needn't worry. This is only the beginning; I haven't played my hand yet."
Archbishop Brienne recalled the Crown Prince's brilliant maneuver in the Netherlands and immediately felt reassured. He nodded encouragingly and then casually added, "By the way, I saw yesterday's financial report; it seems your loan hasn't been secured yet?"
"Yes, thank you for the reminder. I will expedite its processing."
Joseph returned to his office, glanced at the recent important matters, and asked his assistant, "Has the loan negotiation with Laville Bank been postponed again for tomorrow?"
The assistant helplessly replied, "Your Highness, they said they need to audit their accounts recently and temporarily don't have the capacity for other matters."
Joseph frowned, "Then what about Laborde Bank?"
"There's been no reply yet, but your subordinate heard they invested a lot of money in the British automatic weaving machine industry and might not be able to provide millions of livres in loans in the short term..."
"Hmm?" Joseph narrowed his eyes instantly.
As far as he knew, the French government had cooperated with these two banks for short-term loans for over a decade. Previously, the banks would even draft and send the agreement two months in advance without the Assistant to the Minister of Finance needing to intervene.
Yet, with only half a month left until the National Debt matured, the two banks kept making excuses and delaying. It would be a miracle if there wasn't a problem here!
The banking system of this era was highly inefficient. A massive sum of over six million livres would take several days from signing the agreement to the funds being disbursed. This meant if they delayed for another eight or nine days, the French treasury would face a Debt Default!
He had to find another way.
Joseph immediately motioned to Eman, who was standing by the door, "Please prepare the carriage for me. I need to go to the Paris Discount Bank."
"Yes, Your Highness!"
By noon, Joseph had arrived at the headquarters of the Paris Discount Bank, currently the largest bank in France.
The manager of the Discount Bank, along with its management team, greeted the Crown Prince with considerable ceremony and even offered to host him for lunch.
However, when Joseph brought up the matter of the loan, he was immediately met with a very polite refusal. "Your Highness, we have prior agreements with Laville Bank and others. They handle large, short-term government loans, and it would be inappropriate for us to get involved in such business."
Joseph tried for a long time, but ultimately, the Discount Bank was only willing to offer medium-to-long-term loans with collateral, and the fundraising period might still be quite extended.
Joseph left disheartened and then visited the Bank of Paris, receiving the same answer as from the Discount Bank.
His final destination was the Royal Bank.
Only... this bank genuinely had no money.
Although it was also a major bank, ever since John Law's Mississippi Company Ponzi scheme caused hyperinflation and ruined the Royal Bank's reputation, this government-affiliated bank had been as poor as the French government itself.
In the end, only two medium-sized banks were willing to lend 600,000 livres to the French government, and the Interest rate was as high as 25%. As for the other smaller banks, many had only one or two million livres in capital to begin with, and simply couldn't provide much in loans.
Back in the carriage, Joseph's face was ashen. These banks were likely conspiring, and it didn't seem like they were merely posturing to increase the Interest rate.
He looked at the Assistant to the Minister of Finance accompanying him, "Can we use administrative means to pressure those banks?"
The assistant immediately looked distressed, "Your Highness, given the government's current financial situation, it's not advisable to become too antagonistic with the banking industry..."
Joseph took a deep breath, gazing out the carriage window at the Carnot Bank, and said in a low voice, "They dare to play games with the nation's finances just because they control the money supply?
"Fine, then I'll just open my own bank."
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