Chapter 510: Multiple Paths Forward
The individuals Bolloré mentioned were his "black hands." They were responsible for contacting the lower ranks regarding the recent threats to tax officials.
Therefore, as long as they were properly handled, the police would never trace anything back to Bolloré.
The butler immediately bowed and said:
"Rest assured, master. They left France two days ago."
...
Meanwhile, Joseph looked at the report from the Tax Bureau detailing the recent arrests and killings of lawbreakers involved in the attacks, a satisfied smile gracing his face.
'Now that's more like France's "IRS."'
He pondered for a moment, then sent Eman to summon Denico, the editor-in-chief of the Paris Business Journal. The Tax Bureau's recent major actions needed to be thoroughly leveraged.
On one hand, it was to publicize the tax officials' brave deeds—how they, undeterred by intimidation, courageously crushed the thugs in their efforts to create a better tax environment for France. This would establish a heroic image for the Tax Bureau, gaining public support, and also deter those who considered tax evasion.
Eman received the order and departed. Joseph then penned a commendation, specifically recognizing individuals and groups with outstanding performances, such as Chaumette for being the first to kill an attacker, and the Orléans Tax Bureau for swiftly eliminating the thug syndicate.
He was effectively signaling to the tax officials that ruthlessness and decisiveness were precisely what would earn them accolades.
More than an hour later, Denico, the "official mouthpiece" of the French government, arrived on the second floor of the Tuileries Palace.
Joseph first instructed Denico on publicizing the tax officials and the abolition of the tax farming system. He then handed him the information on the banker Charles, along with a copy of the 12 million franc loan agreement Charles had just signed with Brienne.
The editor-in-chief looked perplexed. "Your Highness, what are these for?"
"Please arrange for a journalist to interview Monsieur Charles as soon as possible," Joseph instructed with a smile. "The focus should be on his full support for the government's tax system reform, and how he provided a large, low-interest loan to alleviate the government's financial pressure.
"Oh, and finally, be sure to mention that the Charles-Boulton Bank has been listed as one of the custodian banks for the King's Fund."
He intended to maximize Charles's role in dividing the Tax Farmers' General Assembly. On one hand, he would reveal Charles's "defection" to the government; on the other, he would subtly indicate that defection brought benefits.
The King's Fund, it was important to note, was a core fund for agricultural development across France, currently boasting over 34 million francs in principal—mostly invested by old nobility to maintain their family livelihoods. It also held government authorization in agricultural production management, as well as assets like land, farming tools, livestock, and agricultural patents. Its future was destined for rapid growth and immense prospects.
To become a custodian bank for the King's Fund, even with only a ten percent share, would represent a colossal sum.
For a bank, the amount of money on its books directly translated to its profitability.
This was sure to cause further division within the Tax Farmers' General Assembly.
After Denico departed, Joseph gazed at the loan agreement on his desk and fell into deep thought.
With this new sum, the fiscal budget for next year would still be less than 40 million francs, and he had less than two months left.
If the division of the Tax Farmers' General Assembly progressed smoothly, more individuals would "defect," but a significant amount of capital would also inevitably flow in other directions.
Therefore, he had to try and narrow the outflow channels for the original tax revenue, aiming for at least 200 million francs to flow into the French treasury.
Joseph tapped his fingers lightly on the desk, his brow furrowed.
To control capital, the government possessed many tools. In extreme cases, it could even issue a decree prohibiting a certain bank's capital from leaving France, and the capital holder would have no means of resistance.
However, if the methods were too crude, too ugly, it would only scare away other capital and potentially destroy the domestic investment environment—after all, a government that dared to brazenly seize private property at any time would be a character all investors would flee from.
Stories of the King's seal being stamped and the army seizing the property of magnates could only happen in fiction.
Just like his previous "coercion" of Charles, it was purely a stroke of luck that Charles happened to be a magnate in the Southern Netherlands, with strong ties to the Brabant rebellion that were hard to deny. This allowed Joseph to legitimately pursue legal action through the High Court and leverage the situation.
Under such circumstances, other investors would merely view it as an isolated incident, unrelated to them, thus preventing widespread panic.
Even so, Joseph could only threaten Charles with a temporary freeze of his assets; any more drastic action would still instill fear in other capital holders.
Currently, the other titans of the Tax Farmers' General Assembly held no such leverage over him. Therefore, he needed to find a reasonable, legal method that wouldn't cause a shockwave in the capital markets.
Joseph rubbed his temples wearily. It seemed for now he could only buy time by citing "banking sector rectification." Yet, even this delay would cause many capital holders to choose the French government.
Because even a delay of just one month could lead to massive losses for substantial funds, and many investments had to be finalized by the year-end, giving him a slight advantage.
If, by the turn of the year, he still couldn't raise enough funds to cover the next year's fiscal operations, he would have no choice but to significantly raise interest rates to attract these magnates, or seek financing from the Royal Insurance Company.
However, even raising interest to around 18% would still be considerably less than what the tax farmers had previously siphoned off.
...
In the villa of Fould, the head of France's Tax Farmers' General Assembly, more than a dozen of the assembly's magnates sat gravely around a conference table.
Fould clasped his hands, his voice low:
"You must have all heard: Charles betrayed us and bowed to the government."
Baron Morrel said, "I heard Monsieur Charles say he was forced into it because he was entangled in the Netherlandish Rebels' case."
Charles hadn't attended this meeting, so this was the only statement made in his defense.
Everyone present showed disdain and refuted Morrel.
An old man sneered, "He received a share of the King's Fund. Is that because he was involved with rebels?"
"He's always been timid; it's no surprise he'd side with the government."
"Exactly! I heard his 12 million franc fund is earning 14% interest from Brienne. If he can't be a tax farmer, that's not bad at all."
If Charles had heard this, he would likely have wept; his money was only earning 4.5% interest, which was practically like giving it to the government for free.
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