Chapter 52: The French Reserve Bank
Joseph had acquired a small, nearly bankrupt bank two days prior, renaming it the French Reserve Bank. The process of renaming and registration was swift, given his connections in the court.
The bank's premises and staff were already in place, so it had begun normal operations yesterday.
The next day, at Brent's request and after receiving a hefty payment, the Paris Stock Exchange added five new traders specifically for the Paris Angel Company's operations.
The pace of stock transactions immediately accelerated. As 4 PM approached, nearing closing time, a mysterious buyer suddenly appeared, snatching up all 430,150 remaining shares of the Paris Angel Company.
When the transaction record appeared—"Buy, Paris Angel Company, 2 Livres, 430,150 shares, total 860,300 Livres"—the entire trading floor fell silent.
A few seconds later, the trading information board displayed: "Sell, Paris Angel Company, 2 Livres and 2 Sous, 40 shares, total 84 Livres."
Immediately below, a record of those 40 shares being purchased appeared.
Soon, more sell orders emerged, and in less than ten minutes, the selling price had reached 2 Livres and 5 Sous, with all shares being instantly snapped up.
The very next morning, Paris Angel's stock price immediately surged to a high of 2 Livres and 8 Sous. Still, demand far outstripped supply, and stock trading suddenly became extremely active.
After a moment, he gave a nod to his assistant, who immediately approached a trader and listed 8,000 shares for sale at 3 Livres.
Investors didn't pay much attention, assuming the price was too high and unlikely to sell.
However, less than three minutes later, all 8,000 shares were purchased in three separate transactions.
Everyone on the trading floor holding shares instantly realized something was amiss. The stock price seemed poised to rise much higher; otherwise, shares wouldn't be snapped up so quickly, no matter how high the asking price. Suddenly, everyone, as if by unspoken agreement, began hoarding their shares, reluctant to sell.
After that, the American directed his subordinates to trade more than a dozen times, mostly listing shares himself and then having different individuals buy them, with the selling price climbing higher each time.
After the market closed, the young American and his bodyguards went to a nearby upscale hotel. He locked the door, laid a stack of documents on the table, and began reconciling accounts with Joseph's personal accountant.
Indeed, this man was the stock operator Joseph had hired, and his bodyguards were all members of the Royal Guard.
While countries like England and France restricted companies from issuing shares, the unfettered United States had become a haven for stock trading, giving rise to numerous financial prodigies.
Thanks to their skilled manipulation, the closing price was now approaching 3 Livres and 5 Sous.
The front pages of Paris newspapers were almost exclusively focused on the soaring price of Paris Angel stock. Now, it wasn't just Paris; people from several nearby provinces also flocked to buy shares, and a flood of capital poured into the Stock Exchange.
It wasn't until the sixth day of Paris Angel's stock issuance, when the Paris Angel Company's share price reached 4 Livres and 5 Sous, that massive sell orders began to appear. However, as soon as the price started to dip, large sums were immediately invested to stabilize it.
Just after noon, the American stock operator sold the final block of 100,000 shares, then departed the crowded exchange with a relaxed expression.
At Joseph's instruction, through a series of buy-low-sell-high transactions, he also sold 200,000 of Joseph's original shares, securing a total of 6.15 million Livres.
Inside the Assistant to the Minister of Finance's office in Versailles, Joseph gazed at the loan agreement before him with a wry smile. He was both the Assistant to the Minister of Finance, representing one party of the agreement, and the owner of the French Reserve Bank, representing the other. It was truly a case of his left hand dealing with his right.
Ultimately, he signed a 6 million Livre loan contract on behalf of the French government with himself, at an interest rate of only 15%.
There was no issue with the payment; over 8.1 million Livres lay quietly in the French Reserve Bank's account.
Palais-Royal.
The Duke of Orleans looked at the headline of the Paris News on his desk—"Crown Prince Struggles with Financial Crisis, Government Debt Nears Default"—and suddenly snatched the newspaper, tearing it into shreds with force.
This was yesterday's newspaper.
He had received news this morning that the 6 million Livres of National Debt had been fully paid, with all funds originating from the French Reserve Bank.
Half an hour ago, representatives from Laville Bank and Laborde Bank had just departed. To appease the two banks, he had been forced to reallocate a larger share of the British ventures to them.
The Duke of Orleans couldn't help but recall how, a month prior at a banquet, under the guise of introducing major French banks to invest in British automatic textile machine projects, he had instructed the two banks to obstruct the 6 million Livre loan and enlist other banks' cooperation.
At the time, he had believed that with a simple maneuver, the Crown Prince would be left helpless. After all, the leading figures of France's entire financial industry had been present at that banquet. If they agreed, no one could hope to secure a large loan from any bank.
'I never thought that boy would actually get his hands on that money,' he mused.
A short while later, his butler knocked and entered, bowing to the Duke of Orleans. "My lord," he reported, "we've confirmed that the bank was originally called Certeau Bank and was acquired by His Royal Highness, the Crown Prince, just a few days ago."
The bank's acquisition information was public and easily discoverable.
The Duke of Orleans immediately frowned deeply. 'How could this be possible? The Crown Prince managed to establish a bank with 6 million Livres? How did he do it?'
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