Marat's self-doubt

Joseph was pondering how best to deal with these people when he heard Count Capeville chuckle:

"Your Highness, besides us, the Trade Credit Bank and Lavier Bank also wish to obtain your forgiveness..."

Marquis Ludo glared at him fiercely to stop him from continuing, secretly thinking that he shouldn't have brought this guy along. 🐳✋ Claw 🎈👮 If it weren't for the huge influence of the Capeville Family in the Banking Guild, this guy's brains would probably have bankrupted the family business ten times over!

"Oh?" Joseph turned to Cape, "How many banks are you representing this time?"

The latter quickly pointed out the window. "There are seven families, Your Highness. They're waiting outside the Versailles Palace."

Seven banks? Those involved in the Necker Case are all influential large banks. Joseph glanced at the group and suddenly realized that this might be an opportunity to launch France's "central bank" ahead of schedule.

Moreover, the French Reserve Bank is currently finding it difficult to absorb so many banks. It wouldn't be unacceptable for them to relinquish their profits and accept regulation. If this could accelerate the process of establishing a "central bank," then it would be a huge win.

Joseph immediately smiled, completely ignoring the rhythm of the people in front of him, and said directly:

"You want to save your bank?"

Marquis Ludo and the others were visibly taken aback for a moment, then nodded "shyly":

"If I could be so kind as to ask for your mercy..."

Joseph smiled slightly and asked, "Can you represent those four banks outside?"

Marquis Ludo nodded repeatedly. "Yes, Your Highness, they have entrusted everything to me."

"Alright," Joseph nodded, "I have a few conditions."

Marquis Ludo and the others immediately perked up their ears.

"First, you will reduce the government's loan by 10%, the loan agreement will be renegotiated, and the interest rate must not exceed 3%."

The three banking tycoons exchanged a glance, their faces filled with pain.

The loan reduction may seem like only 10%, but each of them had borrowed tens of millions of Livre from the French Government, which adds up to a huge sum of several million.

Moreover, a 3% interest rate is practically interest-free in this era. Keep in mind that even government bonds sold to citizens typically have interest rates between 9% and 12%.

However, Necker's confession is now in the Bastille, and if it is not accepted, the four previously bankrupt banks will serve as an example.

After struggling for two seconds, the three of them gritted their teeth and nodded. "As you command, Your Highness."

"Well," Joseph continued, "Secondly, the French Reserve Bank will acquire 30% of your bank's shares. You've been illegally profiting from the national treasury for over a decade; these shares will serve as a penalty."

"Furthermore, I can assure you that these shares will not be sold without the approval of the bank's board of directors."

Marquis Ludo and the others agreed without much hesitation this time.

They had originally planned to use the shares as a bargaining chip to persuade the Crown Prince to make an exception for them. Although the Crown Prince asked for a slightly larger percentage than they had prepared, he did receive a promise not to sell the shares.

In other words, the French Reserve Bank will only pay dividends. Their bank will not suffer losses from the sale of its shares. Such conditions are perfectly acceptable.

Joseph was fairly satisfied with their attitude, and then emphasized, "Third, and most importantly."

"Your banks must support the monetary policy announced by the French Reserve Bank."

"At the same time, you should leverage the influence of the Banking Guild to get more banks to support the French Reserve Bank."

Marquis Ludo's expression changed, and he cautiously asked, "Your Highness, what monetary policy are you referring to?"

Joseph said, "In the future, the French Reserve Bank will issue nationally standardized Bank Notes, just like the Bank of England. Your bank will accept these Bank Notes for settlement and remittance."

So-called Bank Notes are "certificates" issued by various banks that can be redeemed for gold Silver Coin. Anyone who holds these certificates can exchange them for currency at the corresponding bank.

If a bank is financially strong and enjoys widespread trust, people will readily accept using Bank Notes for payments, rather than actually exchanging them for gold or silver Silver Coin.

This thus became the de facto circulating Paper Money.

In reality, the Pound Sterling Paper Money currently circulating in the United Kingdom are, strictly speaking, just Bank Notes by the Bank of Bank of England. However, the Bank of England of England's business has become so large that it has surpassed all other banks and obtained authorization from the British Government to issue the "sole legal Bank Notes," gradually transforming into the central bank of the United Kingdom.

Since the French Reserve Bank does not currently possess the overwhelming capital advantage of the Bank of England, Joseph has no choice but to resort to administrative means to issue French Reserve Bank Notes.

However, this process will certainly not be smooth, given that the French Reserve Bank has limited capital and the general public is unlikely to have much trust in its Bank Notes. This is the biggest obstacle to the French Reserve Bank becoming the central bank of France.

Joseph had previously planned to take three to five years to gradually build market confidence in the French Reserve Bank Notes, but if the Banking Guild endorses the French Reserve Bank and these seven large banks accept French Reserve Bank Notes, this process could be shortened to a few months.

At the same time, the French Reserve Bank and these seven banks, because they have Bank Notes, that is, Paper Money, as a medium of circulation, will have far greater efficiency and convenience in circulation than other banks.

Before long, in order to maintain their competitiveness, other banks will have no choice but to accept the French Reserve Bank's Bank Notes.

Once the vast majority of banks nationwide have accepted the French Reserve Bank's Bank Notes, a decree can be issued designating these Bank Notes as the sole legal Paper Money in France.

The next step is to leverage the power to issue Paper Money to regulate other banks.

Who dares to disobey us? We'll tighten your cash flow tomorrow and see how long you can last!

The three Marquis Ludo exchanged glances again—accepting Bank Notes from other banks meant that others would hand over printed paper to customers, who could then use that paper to exchange for gold and silver Silver Coin at their own bank.

Although one's own bank can exchange the Bank Notes received at the French Reserve Bank for gold and silver Silver Coin, as long as there is a time difference of a few days, one can accumulate hundreds of millions or even millions of Paper Money in one's hands, becoming a de facto Paper Money reservoir.

Not to mention, interbank settlements are impossible to do every few days; it usually takes at least a month. That means all the Paper Money for that month are tied up in their own banks.

Mr. Boislandar, forcing himself to speak, said:

"Your Highness, what if—I mean, what if— the French Reserve Bank's Bank Notes depreciate? Wouldn't we then...?"

Joseph anticipated their concerns and immediately said:

"The Cabinet will soon issue a decree stipulating and maintaining the exchange rate French Reserve Bank Notes and gold and silver. Of course, if you are still concerned, the French Reserve Bank can also sign an agreement with you that if the Bank Notes depreciate sharply in a short period of time, the French Reserve Bank will compensate you for your losses."

He had sufficient grounds to make such a promise. After all, this era operated on the Gold and Silver Standard, with Paper Money pegged to gold and silver, resulting in stable currency values unless a major economic crisis occurred.

And even if a crisis really does occur, causing a severe devaluation of the France Paper Money, it doesn't matter. The banks will be compensated according to the agreement. It's just that by then, Paper Money will be accepted by everyone, and the compensation to the banks will still be in Paper Money. Anyway, since there's already an economic crisis, just tell me how much compensation you want, and I'll run the printing press 24/7 to print it for you.

In the end, Marquis Ludo and the others had no choice but to accept Joseph's conditions—they couldn't fight city hall, so at most they would just settle accounts monthly, and the bank statements for that month would be considered a gift to the French Reserve Bank.

Joseph stood up, smiled at the three people in front of him, and raised his arms, saying, "Congratulations to you, oh, and to the four banks waiting outside."

"From now on, you will no longer be implicated in the Necker Case. You are safe."

He then gestured towards Brienne: "Afterwards, Archbishop Brienne will represent the French Reserve Bank and the French Government to sign the agreement with you all."

The three banking tycoons bowed deeply, expressing their sincere gratitude to the Crown Prince for his leniency. Although they were extremely distressed, having lost an unknown amount of money on this trip, they were also relieved, as their bank had at least been saved.

After Marquis Ludo and his entourage took their leave, Joseph suddenly remembered a question: four banks had previously gone bankrupt and been acquired, and today seven more had "surrendered." There were thirteen banks involved in the Necker Case; what were the remaining two doing?

At 4 p. m., Fouche arrived at the Versailles Palace and answered his question.

"Your Highness, Perni, his wife, and two sons were apprehended by the Police Intelligence Division this morning while fleeing to Rouen. What do you think...?"

"Immediately freeze the bank."

Joseph sighed softly. These people are too impatient. If they had been half a day later, they could have hitched a ride with Marquis Ludo.

Now that they've fled, they'll have to be dealt with severely. Hopefully, the French Reserve Bank won't face a serious staff shortage after acquiring the Perni Family Bank.

Fouche nodded and continued:

"Your Highness, the two largest shareholders of Denaro Bank were in Switzerland when the incident occurred. They must have heard the news from Paris and haven't shown up since."

Although De La Rue's main business is in France, it is a Swiss bank headquartered in the Swiss canton of Schwyz.

In other words, the bank's profits have most likely been sent to Switzerland, and even if its assets in France are seized, there probably won't be much money left.

Joseph frowned. "It seems we'll have to resort to diplomacy."

Three days later, a grand but not very lively awards ceremony was held in the Hercules Room of the Versailles Palace Hercules Hall.

It was considered grand because Her Majesty the Queen presided over the ceremony.

Apart from the officials from the Fair Investigation Department who were being honored, the attendees were mainly high-ranking officers from the Police System, as well as the Crown Prince and Baron de Breteuil, the Minister of Justice. There were fewer than 30 people in total, so it was hardly a lively gathering.

After a melodious tune, Queen Mary, dressed in a gorgeous light purple gown, walked up to the high platform on the west side of the Hall, smiled at Marat and the others, and said loudly:

"Gentlemen of the Fair Investigation Department, with your excellent work and Dreadnought spirit, you have saved France from enormous losses and brought corrupt officials who had escaped justice for years to trial!"

"On behalf of the Royal House, I extend my highest respect to you!"

This time, Marat, along with his assistants, uncovered Necker's shocking corruption case. Through Joseph's series of maneuvers, he "earned" hundreds of millions of Livre for the France Finance and significantly promoted the establishment of the France central bank. His contribution was considerable.

In the previous operation, Evans from the investigation department was killed, Marat was also stabbed and wounded, so Joseph decided to give them a proper commendation.

Court Official came with Garland. Queen Mary personally placed one on Marat's head, who was leaning on a cane. Police Commissioner Nessanson then presented flowers to the others.

Then, amidst applause, the Queen announced that, in recognition of the outstanding contributions of the Fair Investigation Department, it was decided to upgrade it to the Fair Investigation Bureau, under the direct jurisdiction of the Cabinet.

With this, France's "Anti-Corruption Bureau" has finally shed its "mask" as Police System and gained a formal identity, stepping into the limelight.

The Director of the Investigation Bureau remains Crown Prince. Marat becomes the head of the Operations Division. Desmoulins becomes the head of the Archives Division. The Investigation Bureau comprises four divisions, with the largest, the Operations Division, planned to expand to seven Action Team with a total of over 200 personnel.

In reality, this was far from sufficient for the massive France bureaucratic system, but it was the most advanced institution in Europe for overseeing Officialdom conduct. While other countries relied on Royal Power to monitor officials, France had already taken the lead in implementing independent oversight.

This is also why officials are reluctant to attend the commendation ceremony—no one can guarantee that their own hands are absolutely clean. Necker was once all-powerful in France and incredibly wealthy, yet he still fell from grace so easily. If the investigators were to target them, they would be completely finished.

Queen Mary publicly awarded Marat a bonus of 500 Livre. Other members of the investigation team who had participated in the Necker Case also received a month's salary as a reward. As for Evans, who sacrificed his life, the Pension was as high as 4,000 Livre, and the Royal House sponsored all of his son's schooling expenses.

After the awards ceremony concluded, the Queen invited everyone present to a banquet.

Upon exiting the Hercules Hall, Baron de Breteuil was the first to congratulate Marat:

"You are truly an outstanding investigator; you've uncovered a case from so many years ago."

Marat frowned slightly as she looked at his magnificent formal attire. Before she could decide how to answer, Besançon leaned closer, beaming, and said:

"Her Majesty the Queen speaks highly of you, and I believe it won't be long before she bestows upon you a Nobility title."

Friant and Fouche also launched into a barrage of praise.

Marat looked around at the people around him, his expression growing increasingly grim.

Nobility title?

He found it somewhat amusing; was he destined to become one of these filthy Nobility?

He then looked up at the exquisite and artistic carvings on the roof of the Versailles Palace.

Why am I here?

What am I doing?

It's ironic that all I've done has earned me praise from the Nobility!

Have I betrayed the people of France?!

He suddenly stopped, claiming that his wound was too painful to attend the banquet, and turned to walk out of the Versailles Palace, leaning on his cane.

(End of this chapter)