Chapter 878: The Gambler
Bruni offered a polite smile and said, "Lord McGovern, as you are well aware, according to our original agreement, my duties do not include facilitating loans."
He was a high-level executive in the Parisian banking industry with close ties to London, but his commission was far from enough to warrant him guaranteeing a loan of tens of millions of francs for the British.
McGovern did not hesitate. "Twenty thousand francs. You will receive a commission of twenty thousand francs once the deal is finalized."
With a massive victory seemingly within his grasp, he no longer considered such a sum to be of any great consequence.
Bruni immediately gave a slight bow. "I can arrange an introduction for you, My Lord. However, you will have to handle the specific loan negotiations yourself."
The following morning, a wrinkled banker wearing an exquisite wig met with the British representative in the offices of the Paris Seine Silk Trade Company.
This company served as the primary white glove for British financial operations in Paris.
"Mr. Lemoine, that is the gist of it," Danny Gray, McGovern's trusted aide, gestured toward the warehouse. "I hope you can provide these funds for the sake of my company."
Banker Lemoine nodded slowly. "Mr. Gray, if I may be blunt, your company is clearly not worth four million francs.
"Bills of exchange will be sent from London in a week. You can gain ownership of those bills in advance through an agreement..."
Lemoine shook his head with firm politeness. "I am sorry, Mr. Gray, but the amount is simply too staggering. I dare not take even the slightest risk.
"Without collateral, we would have to follow standard financial procedures. We would need to conduct a detailed audit of your assets and the company's status before deciding whether to grant the loan."
"No, that would definitely take too long..."
The normal loan process to obtain four million francs would take at least two months to clear the paperwork.
Gray knew his employer didn't want to wait a single day.
Lemoine adjusted his coat and stood up. "Then I am afraid I cannot help you, sir..."
"Please, wait a moment."
Gray motioned for the banker to stay and hurried up to the second floor. In a private office, he relayed the lender's requirements to McGovern.
The latter let out a long sigh and finally nodded. "Tell him we can put up gold as collateral."
He had previously used the franc banknotes obtained from the South German states to gradually exchange nearly 40 million francs' worth of gold from the French Reserve. This gold was currently stored in the warehouses of the Paris Seine Silk Trade Company and several other front companies.
He had hoped to avoid exposing the fact that he was withdrawing gold from the French Reserve. If the French financial police caught wind of it, it could cause complications for his subsequent short-selling operations.
However, he also understood that there were few people capable of producing millions of francs in cash on short notice. He didn't have much room to bargain.
A moment later, Gray returned downstairs and informed the banker, "Gold. I can offer gold as collateral."
Lemoine sat back down, a smile returning to his face. "If your collateral is sufficient, I guarantee the four million francs will be delivered to your company within two days."
Gray added, "But we must sign an agreement. Until the loan is repaid, this gold must remain in a location of my choosing. Of course, you may station men to keep watch over the collateral."
This was his attempt to ensure Lemoine's bank would not leak information regarding the gold cache.
"That..." The banker hesitated briefly before nodding. "Very well, I can accept those terms.
"Now, let us discuss the interest."
Gray stated, "I only need the loan for five months. If everything goes smoothly, I can repay it in three."
Lemoine nodded again. "Fine. Five months, at eighteen percent interest."
"That is far too high!"
Lemoine smiled confidently. "Believe me, anyone capable of providing you with four million francs in two days will not offer a lower rate."
Gray went back upstairs once more to consult Lord McGovern, then returned to the office to sign the loan agreement with Lemoine.
Over the better part of the day, Gray met with two other lenders. Using gold as collateral, he secured additional loans of three million and 2.7 million francs respectively.
The interest rates were consistently high, at eighteen percent.
However, McGovern didn't care about the high interest.
Once he successfully depleted the gold reserves of the French Reserve, the franc would inevitably plummet in value.
At that time, he could use his gold to buy back several times—perhaps even ten times—the amount of francs needed. Repaying the interest would be effortless.
He would also make a massive fortune in the process.
Mr. Wilberforce had promised him a five percent cut of the profits from this operation.
He would become wealthy overnight, securing his place in the upper echelons of society!
The next day, McGovern's loans began to arrive, totaling 9.7 million francs.
He immediately ordered Gray to distribute the funds and have them exchanged for gold at the French Reserve.
With such a massive influx of capital, the effects were instantaneous.
Three days later, Bruni brought him exhilarating news. "Lord McGovern, do you know who appeared at the French Reserve today?
"It was the steward of the Count of Provence, the King's own brother.
"I heard from my friends at the Reserve that the Count of Provence submitted an application to exchange five million francs' worth of gold.
"Word is that the French Reserve, shaken by such a massive request, has decided to suspend all gold exchange operations tomorrow morning."
McGovern gestured elegantly and commanded, "Spread this news immediately."
"As you wish, My Lord."
Bruni was about to leave when he suddenly stopped. "Oh, there is one more thing, My Lord.
"The journalists from the Netherlands, Prussia, and Saxony have requested an increase in their expenses for staying in Paris due to the impact of the war. Specifically, the two newspapers from Saxony are asking for three thousand florins."
McGovern was in a grand mood and nodded instantly. "Since this is a feast to celebrate my total victory, why not let the guests enjoy themselves? Tell them that as long as they send the news back to their home countries as quickly as possible, the cost is no object."
Indeed, to maximize the blow to French finances, he had invited journalists from all over Europe to Paris more than two weeks ago. He wanted the entire world to hear the news of the 'collapse of the French gold standard' the moment it happened.
However, the resilience of French finances had exceeded his expectations.
Even a week later, the French Reserve was still stubbornly exchanging gold for its depositors.
McGovern was certain the gold in the bank's vaults was hitting rock bottom, yet those cursed Frenchmen refused to draw their final breath.
Fortunately, the 800,000 pounds sterling authorized by Mr. Wilberforce had arrived.
Like a gambler with bloodshot eyes, McGovern did not hesitate to convert the entire sum into franc banknotes.
Because the amount was so large and his need so urgent, he was forced to pay the predatory private French banks a processing fee of seven percent.
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