Chapter 854: Iberian-Apennine Summit III
Doge Abbiasso of Genoa, hailing from a long line of merchant princes, was the quickest to react. He stood immediately and declared, "Your Highness, I believe the Bank of France is perfectly suited to undertake this responsibility."
Joseph was highly satisfied with how quickly the man caught on. He signaled for the Doge to sit with a gracious smile, though he shook his head in disagreement. "This bank is intended to serve the common market as a whole. It would be inappropriate for the Bank of France to hold that dual role."
He continued, "I propose that all member states contribute capital to establish a new entity: the Mediterranean Bank. Each nation will hold shares in this bank proportional to their investment. This institution will not engage in standard commercial deposits or loans. Instead, it will focus exclusively on settlements between member states and sovereign-level lending."
The delegates from various nations nodded in unison, their admiration for France's magnanimity growing by the moment.
A bank managing the settlement of international trade would inevitably wield immense influence, potentially dictating the economic lifeblood of a nation. For France to allow all member states to hold shares and participate in its management was a level of sincerity rarely seen even among the closest of allies.
A chorus of praise quickly filled the hall once more.
Joseph raised his hand to signal for silence before proceeding. "To regulate the operations of the Mediterranean Bank, and to facilitate trade settlements and loans within the common market, I believe we must designate a single currency as the standard for settlement. When nations engage in international trade, they will use this standard currency for payment. This will not only improve efficiency but also minimize trade disputes. Each country may fix the exchange rate between its own currency and this standard, and the Mediterranean Bank will use those rates for conversions."
In an era dominated by gold and silver coinage, there was little concern regarding currency manipulation.
The Doge of Genoa was again the first to speak. "The standard currency should be, and indeed can only be, the Franc. Our collective trade volume with France is staggering; using the Franc would be the most convenient path for everyone."
Nods of agreement swept through the room without exception.
After all, the Franc could be exchanged for gold at the Bank of France at any time. What issue could there be with using it for trade? Furthermore, French goods were already trending across Italy. Even if they didn't exchange the Francs for gold, the currency could be used directly to purchase those highly sought-after commodities.
Joseph had expected someone to voice an objection, but the process was surprisingly smooth. He announced with satisfaction, "Then, in accordance with your wishes, we shall use the Franc for trade settlements. Regarding the preparations for the Mediterranean Bank, I ask each nation to dispatch their financial representatives as soon as possible so we may begin operations."
And so, after a relatively brief consultation, the Franc officially claimed its throne as the international settlement currency.
This day was destined to be recorded in the annals of French history in bold, vibrant strokes. Yet, for most of the delegates present, they had no inkling of what this truly signified.
After all, the concept of a currency war was something that had yet to even be conceived.
As the first day of the summit concluded, the participants exited the hall in a flurry of excited conversation, surrounding Joseph with looks of anticipation and hope.
That evening, at the court ball held at Versailles, Archbishop Brienne was so thoroughly besieged by foreign delegations that he barely managed a single dance.
The delegates had spent the time following the meeting hatching their own schemes. Some, like the wealthy Genoese, wanted to secure a larger share of the Mediterranean Bank. Others, like the perpetually cash-strapped Spanish, were already hoping to line up development loans.
Despite the galleons of silver Spain brought back from South America every year, its domestic industry was in ruins, its agriculture backward, and its nobility so accustomed to luxury that the kingdom faced massive deficits annually.
Brienne was still being trailed by a crowd of people even after he returned to his private residence. It wasn't until one in the morning that he finally saw off his last guest—the Speaker of the Milanese Parliament.
Rubbing his aching back, the Archbishop couldn't help but marvel at the Crown Prince. How did the boy come up with these miraculous methods? In a single day, he had bound these nations tightly to France's side, and they were all seemingly delighted by the arrangement.
He reflexively crossed himself and whispered, 'Thank God for sending the Son of Divine Favor to France.'
The next day, to the sound of a live orchestra, the delegates walked across red carpets into the Tuileries Palace. The Iberian-Apennine Summit resumed.
Joseph began by painting a grand vision of the common market's prosperous future before shifting the tone of his speech. "As we embrace this coming prosperity, there will undoubtedly be malevolent nations that threaten us, demanding unreasonable trade concessions or even reaching out to seize our wealth directly. To protect our common market and every member state within it, I propose the formation of the Iberian-Apennine Security and Defense Organization."
He paused briefly as he watched the delegates. "Should any member state face invasion, every nation within the organization will be obligated to provide military support. Furthermore, should the common market face the risk of disruption, the organization will mobilize the member states' armies to conduct an appropriate counter-strike."
Before his voice had even faded, the delegates—excluding the Spanish—showed signs of hesitation. The Crown Prince's words sounded suspiciously like a military alliance.
The small states of Northern Italy had no desire to chain themselves to the French war machine. Their primary concern was that they couldn't afford to provoke France's potential enemies. If France declared war on powers like Britain, Prussia, or Austria and dragged them along, it could mean the end of their very existence.
Joseph had anticipated this reaction and continued in a relaxed tone. "The Security and Defense Organization will be managed by a General Staff that operates independently of any single nation's government. Officers for this General Staff will be dispatched by all member states, and the position of Chief of Staff will rotate among the nations every year. Every action taken by the organization must be approved by the General Staff. Major decisions, such as a declaration of war, will require a vote from all member states."
The representatives of the Northern Italian states looked at one another, visibly relieved. If the decision to go to war was a matter of voting, then the smaller nations collectively held more votes. This would surely prevent them from being dragged into a clash between Great Powers against their will.
Joseph added, "The organization will also serve a vital role in mediating conflicts between member states. Should a diplomatic dispute arise between members, it can be appealed to the Security and Defense Organization. Until the organization renders a judgment, member states are prohibited from mobilizing their armies against one another."
This time, the delegates of the smaller states were genuinely moved. This was essentially a security guarantee from France. It would also prevent their neighbors from using military threats against them.
In this era, the threshold for declaring war was incredibly low. Small nations lived in constant fear, as if treading on thin ice. With such an organization to rely on, they could finally sleep soundly.
They wouldn't have to fight France's wars abroad, and their safety at home would be guaranteed. It seemed this Security and Defense Organization was something they very much wanted to join.
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