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Chapter 424: Currency Reform

Western Bavaria.

In the suburbs of Nördlingen, a line of mounted guards bearing flags with dolphins and fleur-de-lis passed along a muddy road. Behind them, surrounded by numerous retainers, was the French Crown Prince's convoy.

Inside the carriage, Joseph kneaded his aching shoulders, turning to gaze out the window at the historic town. This was once the famous battlefield of Nördlingen during the Thirty Years' War, but with the passage of time, it had long since returned to peace and tranquility.

The blonde girl seated opposite him noticed his discomfort, quickly rising to whisper:

"Your Highness, allow me to give you a massage."

Joseph was momentarily startled; such thoughtful service had been unheard of on his previous long journeys. Nevertheless, he quickly nodded with a faint smile.

"I appreciate the effort."

"It is my honor to serve you," Camelia replied, bowing as she moved from the low carriage bench to his side. Her long, slender fingers pressed into Joseph's shoulder with just the right pressure, making him close his eyes in pure comfort.

A moment later, Joseph's fatigue was swept away.

The girl noticed his coffee cup was empty and immediately picked up the coffee pot to refill it halfway—it wouldn't do to fill it to the brim in a bumpy carriage, as it would easily spill.

Indeed, after leaving Vienna, Camelia had almost entirely taken over all of Joseph's servant duties, proving even more thorough and attentive than his three previous servants combined. Madam Delvaux had taught her all this—anyone who could be a wet nurse to an Austrian princess would certainly have a knack for it, and Camelia had even surpassed her teacher.

Initially, Camelia had been very hesitant about Mr. Bazel's suggestion. But after the French Crown Prince severely punished the scoundrel who had threatened and harassed her for over a year, and then personally handed her the 150,000 florin in compensation, she made up her mind completely.

'My teacher was right!' No, more accurately, she herself was deeply captivated by His Highness's aura, charm, and the profound sense of security he offered.

Joseph nodded to her in thanks, then sipped his coffee, finding it mellow and delightful. He couldn't help but nod slightly again—'this girl's coffee-making skills were truly exceptional'—before picking up his pen to continue drafting the Wallonia investment and development plan.

The agreement with Austria stipulated that both parties could invest in the "Walloon Special Trade Zone." Joseph hoped to take advantage of Austria's preoccupation with the Silesian War to finalize the development of Wallonia as soon as possible.

For instance: implement preferential immigration policies to encourage more French citizens to invest and settle in Wallonia.

Furthermore, there was the establishment of the police force. The first batch of Walloon police planned for recruitment numbered 4,000 officers; half of them would be sent to France for training and then rotated. The high-level officials of the Police Bureau would all be French—after a large influx of immigrants, it would soon become impossible to distinguish between native Walloons and new settlers—as the integration between the two groups, from language to customs, would be seamless.

Once French investors held controlling stakes in nearly all of Wallonia's coal mines, and with the two preceding points implemented, France would effectively control the region.

As dusk fell, the convoy stopped in eastern Stuttgart.

Joseph gazed at the investment and development plan in his hands and let out a relieved breath. After two years of his careful maneuvering, he had created a favorable situation for France.

Beyond the Southern Netherlands, the situation in Tunisia had also stabilized, ushering in a second wave of immigration.

Domestically, industries such as coal, iron, textiles, and chemicals had all entered the fast lane, poised for an explosion of growth after sufficient quantitative accumulation.

However, all of this would require money.

Whether it was investment in Wallonia, the development of Tunisia, or the training of the army and police to fuel the Industrial Revolution, all demanded enormous capital.

According to Joseph's plans, future endeavors would also include tax reforms and naval expansion. These were all veritable money pits.

Currently, the French treasury still bore a colossal deficit of over 2 billion Livres, and over the past half-year, numerous wars had drained vast sums of military expenditure. At present, trying to extract enough funds to accomplish these goals would be harder than wringing water from a stone.

Joseph followed Clauzel into the manor where they were staying, pondering to himself that, given the army's recent string of victories in the Southern Netherlands and North Africa, and the surge in royal prestige, perhaps it was time to resolve to undertake currency reform.

Across the entirety of France, replacing gold and silver coinage with paper currency, combined with the vast markets of Wallonia and Tunisia, the seigniorage alone could alleviate the current financial strain.

Given France's current pace of industrial and agricultural development, inflation could be raised slightly further—which would even prove beneficial for economic growth. By pre-emptively printing currency corresponding to the nation's increasing material wealth, they could effectively avoid situations where trade was hampered by a lack of circulating money. Simultaneously, the moderate devaluation that accompanies inflation could also incentivize people to invest more rather than hoarding their funds.

This additional printed currency would be controlled by the French Reserve Bank, allowing it to be swiftly channeled into the most critical sectors, thus minimizing the usual wait time for investments.

Furthermore, as trade between France and other nations steadily progressed, French paper currency would inevitably circulate into other countries.

Given the weak awareness of monetary sovereignty among nations of this era—a consequence of long-standing reliance on gold and silver coins, which made it common for foreign currencies to circulate domestically—French paper currency would, at least in the short term, be able to circulate in limited quantities within neighboring countries.

While individual nations might not hold large quantities of French paper currency, as most merchants would quickly convert it into gold and silver coins, even if the paper money remained in their hands for only a month or two, the cumulative sum across all countries would be immense.

This would essentially mean France was exchanging mere paper for their goods.

After a simple dinner, Joseph, heavy with weariness, entered his bedroom. His nose caught a faint scent of incense, and then he noticed that Camelia had meticulously tidied the bed; indeed, she had even arranged the pillows in what felt like the most comfortable position.

The girl, startled by his entrance, quickly turned, offering a slight curtsy to the Crown Prince. In the candlelight, a sudden blush bloomed on her cheeks.

Joseph sensed the subtle shift in atmosphere and, looking at her with surprise, asked, "Is something the matter?"

"No, no, nothing..." Camelia suddenly lowered her head and scurried towards the bedroom door. "Please, Your Highness, retire for the night..."

The two servants by the door paused in confusion. 'Why hasn't this new lady finished her duties?' they wondered. They quickly entered the room to help His Royal Highness change into his nightclothes.

In truth, Joseph strongly disliked others helping him change his clothes, but at Versailles, being assisted into his nightclothes was a necessary formality—often performed by high-ranking nobles—so he had no choice but to indulge it.

Camelia retreated to her own room, closed the door, and covered her flushed cheeks, her heart thumping wildly. She murmured to herself, 'This... this is too difficult... What, what should I do...?'