CHAPTER 354: CHAPTER 349 DEATH AND TAXES

Mane and Fuld both breathed a sigh of relief when Jerome Bonaparte requested an additional value-added tax on existing luxury goods instead of implementing a moveable property tax/personal income tax.

For the people of Paris, and indeed all of France, the establishment of each "new" tax signifies the beginning of tyranny.

Throughout history, French rulers have warned their successors with bloody experience that it is best not to introduce brand new taxes unless social tensions escalate to an uncontrollable extent.

Levying an additional value-added tax on high luxury goods is one of the easiest taxes to collect among all, and Jerome Bonaparte was equally confident that this policy was an effective measure. In recorded history, Thiers of the Third Republic elevated the economy to the pre-war level of 1869 through the policy of additional taxes, even exceeding the central fiscal revenue of 1869 by 1.1 billion francs, and the market thrived as a result of this policy.

[PS: The central fiscal revenue in 1869 was approximately 1.9 billion francs, in 1870 it was 3 billion francs, and in 1871 it was 3.1 billion francs.]

However, during the time of the Third Republic, Thiers imposed a 20% to 50% surtax on each high luxury good, while Jerome Bonaparte considered that the economic strength of 1852 was far inferior to that of 1871, so the levy of the additional value-added tax was halved based on historical precedent.

"If we increase the tax by 10% to 25% on high luxury products like tobacco, approximately how much additional tax revenue would France gain annually?" Jerome Bonaparte asked Mane and Fuld.

"Based on last year’s collection on luxury products like tobacco, it could bring France an additional tax revenue of approximately 400 to 500 million francs!" Mane cautiously replied to Jerome Bonaparte, and then added, "If other aspects are considered, it might increase financial revenue by approximately 300 to 400 million!"

"300 to 400 million!" Jerome Bonaparte instinctively touched his chin, pondered for a moment, and then asked again, "What is the current situation of our national debt?"

"As of now, our national debt is approximately 5 billion francs! Compared to the entire market, our national debt still has a lot of room!" Mane immediately responded.

"Considering that the additional value-added tax requires ample time for preparation, the Ministry of Finance should be ready to sell national debt at any time!" Jerome Bonaparte pointed to the ceiling above him and stated emphatically, "The French economy cannot experience turmoil, nor can the French military! If these two pillars were to collapse, the whole house would be in jeopardy, and we, who are under the house, would equally be unable to extricate ourselves!"

Although Jerome Bonaparte’s words seemed a bit alarmist, Mane and Fuld were unwilling to see the collapse of the Second Empire, having invested too much effort into this nascent empire.

The political investments alone were beyond monetary evaluation, and now that it’s finally time to reap the rewards, nothing must go wrong.

Mane hurriedly assured Jerome Bonaparte that the Ministry of Finance would promptly draft the regulations for issuing national debt.

Sitting beside them, Fuld also assured Jerome Bonaparte that he would mobilize the Bank of France’s shareholders to purchase the national debt issued to the public by the Ministry of Finance.

"No need!" Faced with Fuld’s idea of having the bank take over the national debt, Jerome Bonaparte shook his head and refused: "This batch of national debt must still appear on the Paris Stock Exchange. We want every citizen of France to be able to purchase the national debt."

Subsequently, Mane inquired about the amount and type of new national debt to be issued (whether long-term or short-term).

After careful consideration, Jerome Bonaparte held up five fingers in response: "Focus on short-term national debt, issuing 500 million francs worth of national debt! The term of the national debt will be calculated as two years, as long as it can alleviate urgent needs, it will suffice!"

"Understood!" Mane nodded in agreement with Jerome Bonaparte.

"Fine! Have we resolved the problem now?" Jerome Bonaparte lightly clapped his hands, smiled, and said to Mane.

"Your Majesty, it’s difficult to explain to the Legislative Corps!" Mane still wore a worried expression: "500 million francs of short-term national debt... If the Legislative Corps were to question it..."

"Rest assured! They won’t question it! If they do, just say I instructed you to issue it!" Jerome Bonaparte responded nonchalantly: "Besides, which French government hasn’t issued national debt? It’s just that the amount issued this year is slightly more! This is all for the future of France!"

"That’s right! We are all for the future of France!" Fuld also nodded and smiled.

Relieved by Jerome Bonaparte’s endorsement, Mane’s worried expression eased, and a smile reappeared on his face.

After Mane and Fuld left the Tuileries Palace, only Jerome Bonaparte remained in the study, resting solo on the sofa. He shook his head and sighed: "Why is there no one with some responsibility! Must I make every decision for action to begin!"

On August 30, 1852, the Minister of Finance of the French Empire submitted a proposal on tax reform and national debt issuance to the Legislative Corps.

With Jerome Bonaparte’s covert nod, the Legislative Corps passed the contents of the proposal that afternoon.

Subsequently, the proposal was handed over to the Senate for a second vote.

The Senate also unanimously passed the scheme for tax reform and national debt issuance.

On August 31, the French Ministry of Finance announced by telegraph to the citizens of Paris and all of France that the first batch of national debt for 1852 had begun to be issued on the Paris Stock Exchange, with an amount of 200 million francs.

Once the news spread, Parisians rushed into the Paris Stock Exchange as if they had gone mad, crowding the entire stock exchange. Everyone held high-denomination banknotes from the Bank of France, eagerly awaiting the issuance of the national debt.

Due to the overwhelming number of permanent residents in Paris, and the inability of the Paris Stock Exchange to accommodate tens of thousands of people queuing for national debt, coupled with the crowded conditions that could easily lead to stampedes and massive casualties.

Therefore, after the Paris Stock Exchange informed the Ministry of Finance and the Emperor about the situation, Jerome Bonaparte immediately realized the seriousness of the problem.

That very night, Jerome Bonaparte urgently summoned the heads of the Ministry of Finance, Police Department, and the Bank of France to the Tuileries Palace to discuss countermeasures.

After discussions, a solution was found: the first issue of two billion bonds would not only be sold at the Paris Stock Exchange but also at all banks large and small within Paris, which could act as collection points. At each sales point, police would be dispatched to maintain order.

The news was released in the early hours of September 1, and the crowd gathered near the Paris Stock Exchange cheered upon hearing it; they no longer feared they would miss out on purchasing bonds.

With the police dispersing them, the entrance of the stock exchange was no longer crowded, but some people still lingered there waiting.

On the morning of September 1, the Paris Stock Exchange and major banks throughout Paris opened, and people poured in frenziedly to buy bonds.

In less than a day, the first issue of bonds worth two billion francs was sold out.

The enthusiasm of the Parisians for the bonds once again refreshed Jerome Bonaparte’s understanding. (Upon further investigation, it was found that the main purchasers of the bonds were European nobles residing in Paris and slave owners from the southern New Continent, whose enthusiasm for the bonds surpassed that of the locals in Paris.)

The first issue of bonds not only resolved more than half of France’s fiscal deficit but also repaid part of the interest on the previous 50 billion bond debt.

Once again, the French Empire returned to a promising and prosperous future.

Time flew by, and soon it was mid-September.

The "missing" Valerovsky for half a year brought Jerome Bonaparte some "good" news.

"Your Majesty, your uncle, His Majesty William (King of Württemberg), has agreed to our request!" Valerovsky said to Jerome Bonaparte.

"That’s good! You’ve worked hard!" Jerome Bonaparte patted Valerovsky’s shoulder and said.

"It’s my duty!" Valerovsky replied modestly.

After two rejections, Valerovsky finally found Jerome Bonaparte a partner and a suitable empress for the French Empire.

Reflecting on the mental journey over the past six months, Valerovsky felt truly exhausted.

In the talks with the first marriage prospect, Catherine Vach from the Swedish Royal Family, it ended in failure due to internal opposition from the Habsburgs. Valerovsky, after nearly three months of hard work, could only leave the Habsburgs disheartened.

The second prospect, Queen Victoria’s niece, also ended in failure due to her sudden change of plans, which took almost another month.

After that, Valerovsky went to Prussia seeking a marriage alliance.

William I, the Regent of Prussia, tactfully rejected the marriage proposal and "sincerely" hoped that Jerome Bonaparte would find a suitable candidate.

Subsequently, Valerovsky visited Baden, Bavaria, and even Liechtenstein in succession, but without exception, all these countries rejected Bonaparte’s marriage proposal.

It wasn’t until the end, after several failures, that Valerovsky went to Wurttemberg with a mindset to give it a try.

Initially, William I of Wurttemberg, like all the previous German monarchs, was unwilling to agree to the marriage.

(It later turned out he was actually holding out for more benefits.)

If it hadn’t been for the persuasion of the Prime Minister and Minister of Foreign Affairs, King William (King of Württemberg) would have been hard-pressed to relent.

Finally, King William agreed to Valerovsky’s terms and consented to betroth his daughter, Princess Augusta, who was also Jerome Bonaparte’s cousin, to Jerome Bonaparte.

Having achieved his desired result, Valerovsky immediately requested that King William send Princess Augusta to France, fearing that King William might go back on his word like the previous instances.

It was again under the persuasion of the Minister of Foreign Affairs that King William agreed to let Princess Augusta go to Paris.