The morning sun cast a golden hue over the south wing of the Palace of Versailles as Joseph, now the assistant to the Finance Minister, made his way to the office. The grandeur of the palace stood in stark contrast to the grim financial realities he was about to confront. Skipping the elaborate royal breakfast, he opted for a modest meal—bread, grilled fish steak, and vegetable soup—saving precious time for the pressing matters ahead.
Upon entering the Finance Minister's office, Joseph was met with the sight of Archbishop Brian, his superior, in a state of visible agitation. The Archbishop's fist slammed against the table, his voice echoing with frustration:
"These selfish wretches speak of equality and justice, yet their eyes see only gold coins! Don't they realize this will strangle the finances of the entire nation?"
Joseph calmly approached, righted the overturned brass pen holder, and inquired, "Archbishop Brian, who has incited such anger?"
A nearby clerk whispered, "Your Highness, the High Court officially refused to register the tax law yesterday afternoon."
Brian sighed deeply, his face a mask of resentment. "Those greedy nobles, unwilling to bear a modest land tax, are prepared to ruin France. Do they not understand that when ruin comes, they will suffer alongside everyone else?"
Turning to Joseph, he added apologetically, "Your Highness, forgive my impolite words."
Joseph waved off the concern. "Think nothing of it, Archbishop. Your frustration is understandable."
He picked up the thick stack of returned bill texts, noting the "not registered" stamp atop. "What are your plans now?"
Brian closed his eyes, pinching the bridge of his nose. "We must make further compromises, seek the Church's support, and attempt to persuade those selfish individuals."
Joseph, aware of the intertwined identities of high clergy and nobility, knew that expecting them to act against their own interests was futile. He recognized this as more than a tax dispute; it was a test of noble resistance against royal authority. Historically, King Louis XVI had faltered in similar circumstances, leading to increased noble defiance and national chaos.
Determined to prevent history from repeating itself, Joseph resolved to assert royal authority decisively. The nobles relied on the High Court's registration rights and public opinion to challenge the monarchy. However, Joseph knew that the courts were rife with corruption, providing ample leverage. As for public opinion, his knowledge of modern media manipulation techniques gave him a significant advantage.
After a moment's thought, he reassured Brian, "Archbishop, perhaps in two or three months, the bill might pass."
Brian nodded, his steps heavy as he returned to his office. "I will see what compromises can be made within the tax provisions."
Joseph retreated to his own office, requesting internal financial documents. As he delved into the nation's finances, he was alarmed by the extent of the crisis. France's total debt stood between 8 and 12 billion livres by 1789, largely due to expenses from the Seven Years' War and the American War of Independence citeturn0search10. Interest rates on government bonds ranged from 8% to 12%, consuming a significant portion of the annual fiscal revenue, which was only 500 million livres.
Compounding the issue were short-term bank debts with interest rates between 15% and 25%. These debts, though termed "short-term," were perpetually renewed, effectively becoming long-term obligations. The monthly interest payments alone exceeded 1.8 million livres.
As Joseph pondered these grim figures, his assistant entered. "Your Highness, Labod Bank has postponed the loan negotiation due to temporary business changes. No specific date has been set."
Joseph nodded, recalling that one of his responsibilities was to negotiate such loans to repay maturing government bonds. The upcoming negotiation with Labod Bank was crucial for repaying a 6 million livres bond due in a month. Previously, similar loans had interest rates of 18% and 19%.
Reflecting on the situation, Joseph mused, "Running a bank in this era is indeed a lucrative business." In the 21st century, such interest rates would be deemed usurious.
Determined to address the financial crisis, Joseph began formulating a strategy to stabilize the nation's economy and reinforce royal authority.