He Became Napoleon’S Genius Son [EN]: Chapter 15

(14) January 1790: Gambling on the East India Company

Paris was in the throes of upheaval.

“Goodness, where are we?”

The journey from Marseille to Paris was more peaceful than expected.

Perhaps the wave of revolution that started in Paris had not yet swept across all of France.

However, Paris alone was definitely seething.

For example, the mansion of the King’s brother, the Count of Artois, was empty.

Seeing Josephine’s wide-eyed look at the mansion, Eugene shrugged.

“This is one of the mansions the Count of Artois used to own.”

“The Count of Artois? You mean, the King’s brother?”

“Yes, he fled overseas as soon as the revolution started. He’s probably somewhere in Italy by now.”

The Count of Artois, the King’s youngest brother, and third in line to the throne.

Later, in the original history, he actually ascends the throne as Charles X.

Of course, from Eugene’s perspective, this is a future to avoid.

Because no matter which path Eugene chooses, Charles X is the enemy.

Of course, Eugene didn’t bother to bring up such stories to Josephine.

“Well, it’s not that great of a place. In the current situation, it’s more dangerous to be in a good mansion. Still, Hippolyte put in a lot of effort.”

Hippolyte, who had rushed to Paris first to find a mansion, stood before Josephine with a flushed face.

“Thank you, Hippolyte.”

“Ah, no, Madam. It’s my duty!”

“Hehe, nothing is a given in this world. I have to repay every favor.”

Just as Hippolyte, with a bright red face, was about to say something with a grin.

In that instant, Eugene didn’t leave Hippolyte alone and kicked him.

Eugene intends to block any possibility of the two dating.

Even if it means castrating Hippolyte.

“Ouch! Ugh, Eugene! You!”

Ignoring Hippolyte, who was jumping up and down after being kicked in a sensitive area, Eugene spoke to Josephine.

“Now, then. Get some rest. I’ll provide the necessary living expenses, and I’ve already found someone to take care of you for the time being.”

“Oh my, how thorough. But where are you going?”

“Well, I’ve returned to Paris, so there’s work to be done.”

After getting Josephine into the house and dragging Hippolyte out, Eugene finally breathed a sigh of relief.

-Neigh!

The horse of the carriage they had ridden in neighed.

It was because it had bumped into a passing horse.

The complex streets of Paris now came into view.

Three months to go, three months to come, a total of half a year.

In normal times, it would be just a short period where nothing happens.

But Paris had already been turned upside down.

You can feel it when you see the red caps [symbol of the revolution] and National Guard patrolling the streets.

The power in Paris is no longer in the hands of the King.

Then, Hoche asked with a smile.

“Wow, you’re quite the operator, aren’t you? Can we just get our pay and step down?”

“What are you going to do, Mr. Hoche?”

“Well, it seems the Royal Guard has been completely disbanded. All I know is military stuff, so I guess I’ll have to join the National Guard?”

Eugene nodded seriously.

“That’s the right choice. In times like these, the military might be the safest place. Of course, you’ll have to become a high-ranking officer.”

Besides, Hoche is originally a soldier who rises to prominence during the revolutionary period.

Perhaps, although Eugene doesn’t know exactly, he has great military talent?

Right now, he’s just a former Royal Guard sergeant.

Then, Hoche tilted his head and grinned.

“I’ve been thinking about it for a while now. Eugene, you’re predicting something, aren’t you?”

“What do you mean?”

“The war, I mean.”

Just as Eugene’s eyes widened, Hoche tilted his head.

“Will it break out? The King has lost power, and the National Assembly doesn’t have the money to wage a war right now.”

Indeed, Hoche is no ordinary person.

At this point, no one is predicting a war.

Even the Holy Roman Emperor, who will start the war, wants to avoid it.

The same goes for England.

Of course, the National Assembly members, who have just started the revolution, are not even thinking about war.

Nevertheless, war will eventually break out.

Hoche didn’t predict this war; he judged it based on Eugene.

That he is acting with war in mind.

Eugene was silent for a moment, then licked his lips.

It’s a situation where he needs to say a little.

Even to secure the trust of ‘General’ Hoche, who will become a hero of the revolution.

“The National Assembly will have no choice but to antagonize the nobles completely.”

“What? No, what are you talking about? Even the general of the National Guard…”

“It’s temporary. Eventually, General Lafayette won’t last long. His personality is too gentle.”

Eugene said, recalling what would happen in the future in the original history.

“Starting with General Lafayette being pushed back, they will drive the nobles out of the military. Then, what will happen?”

Of course, the nobles will flee.

But what ranks do nobles occupy in the military?

Hoche’s eyes widened.

“The officers will disappear!”

At those words, Marceau, Elly, Gomie and Tournai looked this way.

All of them were former lower-ranking soldiers.

They can’t help but be interested.

Eugene smiled.

“That’s right. That’s exactly it. Then, commoner non-commissioned officers will have no choice but to be promoted to officers.”

“Great. It’s an opportunity! Oh, but I have a favor to ask.”

“I’ll take care of the funds for the time being. Of course, leaving Mr. Marceau behind.”

Then, Marceau’s eyes widened.

“Me? Why me?”

Eugene chuckled as he looked at the young general who would later make a name for himself in the Vendée.

“Well, you won’t be thinking of returning to the military for the time being, will you?”

“Well, that’s true.”

“Since you’re unemployed anyway, help us with our work for the time being. You saw it in Marseille, right? Creating a Société [Company].”

Marceau’s eyes widened.

But now, he is just a young man who is tired of the military, not a general.

Besides, Eugene needed a lot of help for the time being.

High-level help that Hippolyte couldn’t handle.

Coincidentally, former Sergeant François Séverin Marceau is actually a qualified lawyer.

“What are you planning to do? Don’t tell me you want me to smuggle too?”

To Marceau, who was showing interest, Eugene made an irresistible offer.

“I’m going to create a bank. To turn everything we’ve been doing into a single company. Of course, Société de Beauharnais will be its subsidiary.”

That is, the best business at the end of the 18th century, founding a bank.

***

So why does Eugene need Marceau?

This is the same reason why he entrusted the trading company Société de Beauharnais to Antoine de Damas.

Because Eugene is still a child.

Only 8 years old.

No matter how lacking the legal system in France is at this time, a child has no legal rights.

“Good heavens! Eugene de Beauharnais! What are you up to!”

For example, he is young enough that his father, Alexandre, would jump up and down in anger when he returned home.

The reason Alexandre is angry is, of course, obvious.

No parent would approve of a child who is about to turn 9 traveling alone across the Atlantic.

Josephine was too desperate, so she just came along without thinking.

Just as Alexandre, unable to control his anger, was about to hit Eugene as soon as he saw him.

Marceau quickly grabbed his hand and stopped him.

“Ugh, who are you?”

“Ah, Viscount Beauharnais. I apologize. This humble body is François Marceau. A former sergeant in the French army.”

“A sergeant? Why would such a guy dare to stop me!”

Not missing the opportunity, Eugene opened his mouth.

“Well, because he is now an employee of Banque de Beauharnais [Beauharnais Bank]?”

“What?”

“Let me introduce the vice president of Beauharnais Bank, François Séverin Marceau, Father.”

The next moment, former private Louis Tournai, who had followed along, put down a package.

-Clang! Clang! Clang!

It was a pile of gold coins.

It was some of the money Eugene had earned in the meantime, withdrawn from Recamier Bank.

In fact, just by not running away with this money, you can see the trust of Marceau or Tournai.

Conversely, the untrustworthy and greedy father, Alexandre, drooled.

All high-value Louis gold coins.

In silver coins, it would be 100,000 livres [French currency].

“What is this?”

“It’s money I brought back from Martinique.”

“What? Martinique? No, did Rose’s house have that much money?”

Of course not.

But it’s easier to explain the source of the money by pretending it came from Martinique.

Instead of bothering to explain, Eugene spoke about his future plans.

“I’m going to start a bank with half of this money. During the revolutionary period, when prices are soaring and the government has no money, a bank to handle this is a very important organization.”

At those words, Alexandre, who had been possessed by greed, briefly regained his senses.

A child who is about to turn 9 is creating a bank?

It doesn’t make sense.

“You? Eugene, you’re only 8 years old!”

“I’ll be 9 soon, Father. But that’s not important. Anyway, you’ll be running it in your name until I come of age.”

“What? My name?”

Alexandre, who had been rolling his eyes, suddenly shouted, looking at the money.

“Wait. Then, what about the other half?”

Let’s say half is capital.

Then, what will happen to the other half?

Eugene smiled, pushing the pile of silver coins over.

“Of course, it’s the political funds for Father, who will be doing politics in earnest.”

Alexandre rolled his eyes.

A bank is literally a venture business at the end of the 18th century.

High returns, high dividends, but high risks await.

No matter how much of a prodigy he is, it’s not something a child can do.

But this money is too precious.

“It’s 50,000 livres for now, Father.”

At that moment, the gambler Alexandre quickly grabbed the money.

“Great! Do as you please, Eugene! You’re a prodigy, no, a genius!”

Marceau looked at Alexandre, who was leaving happily with the money, with disdain.

How can a son and father be so different?

Then, Marceau suddenly asked Eugene about something he had thought of.

“But where did all this money really come from? Did you really earn it all?”

“Of course, some of it was borrowed. From Mr. Recamier and Bering.”

“Good heavens. Can you pay this back in this situation? The royal family is no longer functioning?”

Then, Eugene chuckled and replied.

“Marceau. You’re the one who went to the Bastille, so why are you saying such childish things?”

“What, chi, childish.”

“It’s time to become an adult. Marceau.”

Eugene said coldly.

“Money will still be important, but an era is coming when money cannot save lives. Recamier and Bering have taken out insurance to prepare for that era.”

Furthermore, although he borrowed it, neither Bering nor Recamier lost anything.

Why?

In fact, the source of this money is ultimately the commission from the national bonds issued by the French royal family.

What I mean is, the national bonds that Eugene sold off before the revolution broke out are the source of this money.

But after the revolution broke out, all financial transactions of the royal family were temporarily suspended.

As a result, neither Recamier nor Bering is paying the price they owe to the royal family.

That price is this money.

Of course, that doesn’t mean they have to give that money to Eugene.

Unless they thought Eugene would become a much bigger figure during the revolutionary period.

Realizing that point, Eugene smiled.

“To this Eugene de Beauharnais.”

Of course, Eugene was planning to become a big figure.

Even to survive.

***

So how can a mere child become a big figure during the revolutionary period?

“It turned out as you predicted. Eugene.”

In fact, the one who wanted to know the most, was impatient, and excited was Recamier.

That’s why he rushed over when Eugene asked to meet him.

Second floor of a café on Rue du Faubourg Saint-Germain in Paris.

There, Eugene smiled as he looked at Recamier.

“Thank you for the funds. It was a great help.”

“No, it’s me. Thanks to you, I started trading with the Duke of Orléans in earnest before, right? Thanks to that, our bank was safe from the rioters.”

“You sided with the right people at the right time. Although you’ll have to change soon.”

It’s a statement that predicts the downfall of Orléans.

Recamier swallowed hard.

This extraordinary gambling prodigy is truly skilled at gambling.

Then, what about this gamble?

“Then, who do you think will seize power?”

Eugene shrugged lightly.

“In such a turbulent period, it’s better to distinguish who will fall than to seize the powerful.”

“Really, sometimes I don’t know who’s the adult. So, who will fall?”

“The Duke of Orléans.”

Recamier swallowed hard again.

He had expected it from what he said earlier, but that was indeed the case.

Eugene is predicting the downfall of the Duke of Orléans.

In fact, there are many reasons to find for his downfall.

The kingdom’s foremost nobleman, rich man, and heir to the throne.

It would be strange if he didn’t fall in a revolutionary situation.

He is only considered a powerful member of parliament now because he supported revolutionary intellectuals.

But how long will that last?

That’s when.

“Is this an Assignat bond note?”

Recamier, who had been deep in thought, returned to reality.

Eugene was paying attention to the ‘Assignat’ note in Recamier’s wallet.

This is Recamier’s specialty.

It is a bond and banknote issued by the National Assembly to solve the national financial crisis.

A certificate secured by church land.

Then, what happened to the church?

Recamier smiled and explained to Eugene as if boasting.

“Yes. You’ve heard of it too. The National Assembly has decided to solve the financial crisis by confiscating church lands.”

“What? The church? No, the church will protest!”

“Huh? Ah, is that Hippolyte? Haha, protesting in this situation?”

Looking at Hippolyte, who suddenly sat next to him and intervened, Recamier looked out the window.

“It will be like that.”

Outside the window, red-capped sans-culottes [common people of the lower classes] were marching and shouting.

“Shout, I hate nobles!”

“Long live the Third Estate!”

“Drive out the traitors of the nation! Long live the revolution!”

The problem is that the people they are putting forward are monks, nuns, and high-ranking clergy.

You can tell just by looking at their clothes.

They are those who resist the confiscation of land, do not abandon the Pope, and refuse to swear allegiance to the National Assembly and the state [Oath].

The so-called non-juring clergy.

They are being severely suppressed by the revolutionary government.

“Non-juring clergy? I’ve heard of them.”

“Yes. Friends who have crossed over to the revolutionary faction are safe, but those friends are in that state. It’s not just the clergy. The servants of the nobles who fled are similar. If they had joined the rioters, no, the protesters, they would have been treated preferentially.”

“They were faithfully guarding their positions and got caught.”

In the age of revolution, things that vaguely maintain the old order die.

Very quick-witted people are more likely to survive.

But Eugene needs someone a little different.

Like the banker in front of him, an old man who knows how to keep business relationships.

Eugene pointed to the Assignat bond in front of him.

“Don’t buy this note.”

“Huh? Ah, I won’t. In fact, its value is constantly plummeting. Printing money on paper is a terrible thing.”

“It would be best to invest in grain for the time being. This year is a good harvest, but next year will be difficult again. Huh?”

Just as Eugene was talking about which side would increase in value.

A commotion was seen from the street.

Turning his gaze, Eugene’s eyes widened.

A familiar face is seen.

“Citizens!”

A lawyer who was once just a powerless speaker.

But after the revolution, he rose rapidly as a key figure in the National Assembly, which holds real power.

Furthermore, he is the one who will become the ruler who will shake the era.

Maximilien de Robespierre was standing in the square.

“Oh, it’s Mr. Robespierre!”

“Councilor, please hear my petition!”

“Hero of the people!”

Looking at the citizens running, Recamier shrugged.

“Ah, that friend. He’s a councilor who’s been getting a lot of attention in the National Assembly these days. I heard he’s also getting attention as a pretty hardliner in the Jacobin Club [influential political club during the French Revolution].”

He’s just a promising star for now.

But the upheaval of the era will make this 26-year-old young man the foremost ruler.

Even as a slaughterer of the Reign of Terror who kills enemies, comrades, and eventually himself.

Among them is Eugene’s father, Alexandre.

Eugene nodded heavily as he looked at Robespierre.

“Yes. He will become a powerful figure who is dangerous to get close to, and even more dangerous to get too far away from.”

He must change the future.

Eugene is already in a position to die if he doesn’t become a big figure.

Because, unlike the original history, he became a royal page and also made money through the royal family.

The time has come to use the power in his hands, the gold coins.

***

No matter how rapidly everything changes, there is a stable metal.

That is [gold].

-Clang! Clang! Clang!

Gold coins pour onto the desk.

The sound of gold clashing is surprisingly clear.

As if listening to an instrument played by a virtuoso in a concert, Antoine de Damas listened to the sound with his eyes closed.

Suddenly, Damas opened his eyes, smiled, and spoke to the person counting the gold coins in front of him.

“Wow, I brought it, but it’s a really nice sound, isn’t it?”

Marsot chuckled and replied.

“Antoine, the smuggling must be going well?”

“Well, moderately. Enough to give settlement money to people from Martinique, Marsot. You won’t report it, will you?”

“Hahaha! Even if the companies are different, both the Société [Company] and the Banque [Bank] are ‘Beauharnais,’ aren’t they?”

Société de Beauharnais and Banque de Beauharnais.

The Société [de Beauharnais] smuggles by ship, and the Banque [de Beauharnais] converts the smuggled goods into money.

Only half a year since Eugene returned home.

However, the business of smuggling and currency exchange is thriving day by day.

Strictly speaking, smuggling has become the main source of income.

The one in charge of the actual work is, of course, the silent captain, Nicolas.

However, Damas, as the ‘boss,’ had no choice but to handle the monetary transactions.

Furthermore, he was responsible for bringing the smuggled goods and money to Paris for exchange, and for bringing back goods for further smuggling.

Then Marsot suddenly asked.

“By the way, did the guests arrive safely?”

This smuggling operation is a little different from before.

Not only goods but also people had to be transported.

Damas nodded and said in a low voice.

“Of course. Departure is closely monitored by customs, but entry is easy.”

“The revolutionary government is probably only catching those fleeing abroad. Hmm, they’ll be here soon, so we need to prepare.”

“Please prepare well. Oh, what about the goods I’m taking?”

The vice president of Banque Beauharnais, Marsot, smiled and got up, holding the gold coins.

“I’ll bring them out soon. Have a cup of coffee until then.”

A place where coffee is served as a daily courtesy.

So, this is a café.

Furthermore, it was also the building of the newly established bank in the Saint-Germain district, Banque Beauharnais.

The entire first floor of Banque Beauharnais, founded by Eugene, is a café.

This was Eugene’s idea.

It’s like imitating the way most modern banks operate cafes on the first floor.

Surprisingly, it also fits in this era.

Because even in the 18th century, cafes were places where businessmen discussed business.

It was just as Damas was sipping the coffee brought by the waiter.

Suddenly, someone, an older man, picked up a leaf from the corner and asked.

“Oh, is this real ‘American’ tobacco?”

For a moment, Damas almost choked.

The smuggled item that Damas brought was none other than that tobacco.

In the original history, in modern times, it is a commonly traded item, but in this era, tobacco is truly a luxury item.

Taxes are heavily attached, and the place of origin is mainly the New World.

However, highly addictive tobacco is popular even in this era.

There is even a saying that one of the causes of the American Revolutionary War or the French Revolution was the tobacco tax.

In any case, after the revolution began, tobacco smuggling increased significantly.

The main items that Damas and Nicolas Surcouf smuggle are also tobacco.

Suddenly, a familiar-faced boy was standing in front of the man who was talking about tobacco, talking.

It was Eugene’s aide, Hippolyte Charles.

“Shh, we got it from a trading partner we know.”

“Not through normal channels, I presume, hehe.”

“You know? This is something no one knows about. It’s half the price of the regular price. No, at the current market price, it might be 10 percent of the price.”

Of course, that’s because it’s smuggled goods.

Because customs duties are not attached.

However, the middle-aged man buying the smuggled goods did not seem like an ordinary person.

The man examining the goods nodded.

“Okay. I’ll buy it all. Instead, supply it exclusively to our trading company.”

“Good, Monsieur Reveillon. You’re about to start a new business.”

“Hehe, in these times of upheaval, we must always be prepared to enter new businesses.”

Reveillon, a name Damas had heard of.

Jean-Baptiste Reveillon.

A businessman who runs the largest paper mill in France.

A man who employs over 300 people to sell wallpaper and paper.

Reveillon also supplied all the paper for the first balloon made in France.

Just before the revolution, a riot broke out targeting this businessman’s business.

However, he somehow survived and is still doing business in revolutionary France.

Is he now trying to get his hands on smuggled tobacco?

Damas glanced at the scene and turned his head, pretending not to notice.

“Oh, I’m late. Here, Assignat bonds.”

Marsot smiled as he came out with a stack of papers.

Assignat bonds, soon to be issued by the National Assembly [the revolutionary assembly in France].

The purpose of the next voyage is to transfer these bonds to the Hope Bank in the Netherlands.

After the French Revolution, the border areas are chaotic, and land routes are almost blocked.

Therefore, the smuggling ship, the Santa Maria, is also needed to send bonds to the Hope Bank.

In the original history, when Barings Bank made the famous Louisiana Purchase deal, they also transported bonds by ship like this.

Damas put the light bonds in his bag instead of the heavy gold coins and got up from his seat.

“Then, I’ll go trade again.”

“Be careful. Don’t forget that life is the most important thing.”

“Of course. I survived the Martinique riots, you know!”

As he walked out with a cheerful step, Damas glanced at the vault of Banque Beauharnais.

It’s quite big.

However, the gold coins brought in today will fill only one-tenth of it.

“At this rate, we’ll fill that vault soon.”

Then Damas’s bonus will definitely increase.

With steps as light as his bag, Damas began to run to Bordeaux.

***

There is also a man running from Bordeaux to Paris.

“Hmm, Paris changes every time I see it. It’s always new.”

It is Francis Baring, the co-owner of Barings Bank.

In the old days, he would have come to France through northern Normandy.

However, after the revolution, border controls became stricter, and even Baring had to come to Bordeaux through smuggling.

Baring, who was looking at the streets of Paris with his secretary, raised his hand.

A hackney carriage, an essential carriage for traveling the streets of an 18th-century city.

When coming from Bordeaux to Paris, he used carriage transportation called [stagecoach], but here he had to use a city hackney carriage again.

A passing hackney carriage stopped.

“Where are you going, gentlemen?”

“Let’s go to Banque Beauharnais.”

“Huh? Banque Beauharnais? The new attraction of Faubourg Saint-Germain, that café?”

Baring, who was getting into the carriage, showed interest in his eyes.

“Do you know it?”

Baring’s French is very fluent, so the coachman did not notice that he was a foreigner at all and chattered.

“Of course, I know it. These days, many customers are looking for it.”

“Really? Heh, what kind of people are they?”

“Mostly friends who look rich, tsk! I heard that the owner of that house became a member of the National Assembly this time.”

The coachman grumbled with a face that seemed displeased.

“In many ways, there seem to be many people trying to get on the bandwagon. The world has changed!”

Conversely, Baring smiled with satisfaction and muttered in a low voice.

“Indeed, it’s quite prosperous even as just a bank.”

Originally, the transaction that Eugene was conducting with Baring before the revolution was bond brokerage.

I heard that he returned from the New World.

After that, I also heard the news that he had established a bank, but I just thought he was going to resume bond brokerage.

However, it seems that he is also doing quite a bit of the bank’s original business, deposit keeping and lending.

Then why did he call Baring all the way to Paris?

If the business is doing well, there would be no reason to make him take risks.

“It’s not just that he called me. Hmm.”

“Huh? What do you mean? Did a customer call you from that bank?”

“That’s right, haha. I’m quite a busy person too.”

A banker who likes adventure, Baring’s eyes flashed.

“Maybe he’s going to propose a new business. The young, no, young owner of that house.”

If not, there would be no reason to call the largest customer.

In this dangerous revolutionary situation, even by smuggling.

***

The revolutionary period speeds up all clocks.

-Click!

Eugene’s pocket watch also sped up a little.

Perhaps the mainspring stretched a little from crossing the equator.

It was just as Eugene was adjusting the time and fiddling with the golden watch.

Francis Baring, a slender middle-aged man, flashed his eyes, perhaps because the watch looked quite tempting.

“That’s a nice watch. Where did you get it? Swiss made?”

“The parts may be. Anyway, His Majesty the King made it himself. He gave it to me as a gift before the revolution.”

“Oh, it’s better to hide that. In these times, it’s best to be far away from the royal family.”

Still sending greedy glances at the watch, Baring smiled.

“But it’s not good to be too close to these certificates either, is it?”

This is Café Beauharnais.

Until recently, it was a mansion where nobles lived, right next to the Beauharnais residence.

However, after the revolution began, as many nobles did, the owner of this house also fled abroad.

Eugene bought the empty mansion and put up the sign Banque Beauharnais.

The first floor is a café, the second floor is for business transactions, and the third floor is a vault.

The place where he is now welcoming Baring is the second floor.

For example, it’s a place to welcome businessmen like Baring, who is now fiddling with Assignat bond certificates.

Assignat bonds, soon to be bonds issued by confiscating the property of the church, which had vast lands.

The collateral is, of course, church land.

So this certificate is, in a sense, a land exchange bond.

Eugene chuckled and tapped the Assignat.

“It helps to buy land, Mr. Baring.”

“Huh, that’s a dream for a foreigner like me. So, there must be a reason why you called me all the way here?”

“Do you need a reason to see a friend? I know you’re converting all the French government bonds I sold, right? Besides, I politely escorted you on the Santa Maria.”

June 1790, only half a year since Eugene returned home.

It has also been half a year since Eugene established [Banque Beauharnais] and its affiliate, [Société Beauharnais].

The main business is Assignat bond trading.

However, the real money is coming from [smuggling].

Now, he was slowly aiming to expand the real financial business and called the largest ‘customer’.

Baring, a gambler who invested 100,000 livres in Banque Beauharnais, chuckled.

“Yes, surprisingly, the French National Assembly is inheriting the previous royal debt as it is. I would have said it was all invalid.”

The revolution destroyed the absolute monarchy, but it did not destroy the debt.

The French Revolution is ultimately a revolution caused by the [bourgeoisie – the middle class].

Lawyers shout at the forefront, sans-culottes [common people of the lower classes], the lower commoners, roam the streets, but bankers pay the back money.

Many bankers also hold government bonds previously issued by the royal family.

So the National Assembly could not declare the debt invalid.

Thanks to this, Baring, who took a gamble and bought royal bonds, is also making huge profits.

Eugene shrugged.

“You forgot that the leaders of the revolution are lawyers, civil servants, journalists, entrepreneurs, and bankers.”

“Ah, guys like you and Récamier were sucking up the wealth of this country?”

“You’re greatly mistaken. I only did brokerage transactions, and that was only for about a year.”

Suddenly, Eugene pointed to the Assignat bond that Baring was crumpling like a tissue.

“There will be a big crash soon.”

Baring’s hand stopped.

“What do you mean?”

“The certificate you have, the National Assembly will soon issue additional ones.”

“What? No, wasn’t the land confiscation already done? Are you going to confiscate noble land this time?”

Originally, at the end of the 18th century, there were no pure banknotes in Europe yet.

However, there is only a gold certificate, which is a certificate that can be exchanged for gold if you take it to the bank.

However, France, which started the revolution, has a debt of 4.5 billion livres [French currency].

There is no way there is gold, so what they took as collateral instead is the church’s land.

That is the Assignat, a bond certificate with an interest rate of 5 percent.

1,000 livres per sheet.

The total amount issued is 400 million livres.

The immediate financial difficulties were resolved with this.

The National Assembly used the Assignat to cover debt interest, national finances, and military expenses.

However, this is only a temporary measure.

In particular, the maturity of the already issued government bonds is returning.

Therefore, the issuance of new Assignats is inevitable.

Then, is there any land to be taken as collateral again?

Strictly speaking, there is.

The land of the nobles, especially the land of the [émigrés – nobles who fled France during the Revolution], as Baring said.

However, the revolutionary government will not touch that yet.

Eugene pondered the original history and shook his head.

“They may do that in the future. But not for the time being.”

“Then what is it, really?”

“This time it’s not a bond. No interest is attached. So, in a word, it’s a banknote.”

It is issued as [banknotes] with no collateral at all.

It sounds like a matter of course in modern times, but now it is 1790.

There is no electronic financial transaction, and there is no concept of national credit.

In fact, France is in a situation where credit is at rock bottom even if there is such a thing.

Baring, who is a gambler but a professional as a financier, opened his mouth wide.

“You don’t print money with silver or gold, you print money with paper?”

“You don’t have to be so surprised? I know that the [City of London] in England has been printing banknotes for 100 years.”

“That’s a gold certificate. They print it because they have gold. This is originally supposed to replace the value with land, but doesn’t that mean there is no land?”

The central bank of England, [Bank of London], has already been issuing gold-convertible banknotes.

So Baring will know the convenience and danger of banknotes even better.

Furthermore, he will understand the opportunity that Eugene is about to speak even better.

More than a French banker, such as Récamier.

Eugene smiled.

“So it is expected that a crash will occur, Mr. Baring.”

Certificates are issued indefinitely without collateral?

Of course, the value of the certificate will inevitably fall.

Modern economists would expect a currency value crash and rising prices, soon hyperinflation.

However, at the end of the 18th century, France does not yet have such a concept.

Conversely, it is different for a British banker with the latest financial techniques.

Baring stroked his chin and revealed his teeth.

He realized the opportunity.

“What is the scale?”

“800 million livres. Probably September 1790.”

“I don’t know who the informant is, but it’s really detailed. 3 months from now. The crash won’t happen right away, but you can make a lot of money in the midst of the crash.”

Eugene nodded.

“As a preliminary step, there will be a speculative frenzy. Maybe it’s the stock market?”

A large value crash is as much an opportunity to earn investment income as a large increase.

In particular, when the money supply explodes just before hyperinflation, a temporary value surge occurs.

For example, a stock price surge.

That’s the case with the modern stock market, not to mention the 18th-century stock market that trades limited certificates.

Besides, in fact, Eugene did not say it, but the issuance of Assignats does not end with 800 million.

In early 1791, 600 million, and again at the end of that year, another 300 million are issued.

The following year, in 1792, a whopping 700 million livres are reissued.

Why?

Because war broke out.

All of this flow is a whirlwind caused by the revolution, so it is unlikely to change easily.

In particular, a large value crash and a large price increase are inevitable.

Baring, who is quick on the financial side even if he does not know history, understood.

Baring narrowed his brows.

“There must be a reason why you told me this information. What is the price? What do you want?”

“Make some additional investments. You’ll probably be able to get 100 livres for 1 pound soon.”

“That’s natural if the amount of issuance increases. What are you going to do with this? Are you going to invest in stocks? Where?”

Eugene lowered his voice.

“French East India Company.”

Of course, the British East India Company is famous in later generations.

However, in 18th-century Europe, maritime nations competed to establish East India Companies.

Netherlands, Spain, and France too.

Of course, in fact, they were brutally defeated by England in the famous Seven Years’ War, and they were considerably expelled from India, which is the company’s purpose.

But surprisingly, the French East India Company still exists.

What’s even more surprising is that France’s Indian trade is still thriving.

Robert Surcouf, the captain of the ship Eugene was on, Nicolas’s cousin, will probably be on a trading ship returning from India by now.

However, those who are quick with information know something.

This year, the National Assembly stripped the French East India Company of its [monopoly].

The justification is the liberalization of trade for other traders.

Baring pointed that out.

“Isn’t that going to fail?”

“No. It hasn’t failed yet. Also, it is no longer a monopoly trading company, but French ships still go to India through the East India Company. On the other hand, the stock price has plummeted because the monopoly was stripped in April this year.”

“Huh, this is a bit of an adventure. The stripping of the monopoly could lead to the company’s closure.”

The British East India Company temporarily experienced such a crisis.

Therefore, Baring was also sensitive to that fact.

Furthermore, in fact, Baring is right.

In 1794, in the original history, the French East India Company is eventually forcibly dissolved.

But now it is still 1790.

The stock surge and crash are naturally before the forced dissolution.

Eugene tapped the Assignat and said.

“Mr. Baring, we all die in the long run. Are you going to hold the stock until then?”

This is actually a saying by the British economist Keynes in the future original history.

In the long run, humans all die.

So short-term measures are needed.