Novel Full Chapter 1284 - 1189: The Price of Winning Allies
Chapter 1284: Chapter 1189: The Price of Winning Allies
The other Genoa nobles had naturally heard about the possibility of the European Continent erupting into war, and all displayed solemn expressions.
Baron Ikobeley said, “So, those who are buying French government bonds are doing so to avoid war risks?”
Once the Austrian Army enters Italy, the local industry and agriculture will certainly be damaged, leading to huge losses for investments here.
Buying French government bonds, however, seems much more secure.
No one even mentioned, “What if France is defeated?” Most people in Northern Italy had personally experienced the moment a few years ago when Napoleon led the army to sweep the Austrian Army away, without a shred of doubt about the combat power of the French Army.
Beside them, Alfeiri again began promoting British government bonds. Baron Todrick immediately said coldly, “Haven’t you heard? The British Government is continuously printing British Pounds to buy sugar.
“Their banknotes can no longer be exchanged for gold. I bet, in a few years, the British Pound will become nothing more than wallpaper.”
The others, though unfamiliar with the situation of British currency, couldn’t help but believe a bit after hearing him speak so assuredly. At least the fact that British Pounds cannot currently be exchanged for gold is certain.
Baron Todrick, recalling the “standard rhetoric,” continued, “Think about it, why does the British Government set the interest rate so high? It’s because the depreciation is too rapid, and no one wants to buy it.”
Indeed, he had been employed by the French Security Bureau for several years, and was currently on a mission.
Even Alfeiri started to wonder whether he should offload the £10,000 worth of British government bonds he had just purchased. The French Government probably had enough confidence to set the interest rates so low, maybe he should actually buy a bit to see.
A month later, the second batch of French government bonds, totaling 20 million francs, began selling in Northern Italy.
What surprised everyone was that the interest rates on this batch were even lower than the previous one!
The three-year rate fell to 5.5%, and the five-year rate dropped by 0.2%, leaving only 6.6%.
This was extraordinarily unusual.
While many Italians were still hesitant, the banks selling French government bonds announced that they were all sold out.
Among the major buyers this time, Princess Therese, married to Parma, and her husband purchased 2.8 million francs, while Lady Adelaide used financial reserves from Modena, along with her dowry, to buy nearly 4 million francs of government bonds.
At Countess Ranelli’s salon, Genoa nobles gathered again, discussing the recently feverish French government bonds.
“I heard the Modena Royal Family bought quite a lot.”
“Twenty million francs, sold out in less than half a month. What are these people thinking?”
“Actually, I bought 20,000 francs worth myself…”
“Your decision is correct.” Baron Todrick immediately whispered mysteriously, “Did you notice the text on the back of the French government bonds?”
The agent took out a bond with a face value of 5,000 francs: “Look here. ’The French Government will strive to ensure all rights of creditors.’ ”
“What does this mean?”
“My friend in Paris confirmed, if Northern Italy is invaded, the French Government will, in the worst-case scenario, move major creditors to France—this is how they ensure creditors will get as much return as possible.”
The others widened their eyes, “Really?!”
“It shouldn’t be wrong,” Baron Todrick said, “Otherwise, why do you think those big figures rushed madly to purchase French government bonds?
“Such text doesn’t exist on bonds below the 5,000 francs denomination. Meaning, every 5,000 francs can ensure one person’s safety during wartime.”
This explained everything. The nobles started calculating how many family members needed to be relocated in case of emergency.
A few days later, news in the Milan Morning News indirectly confirmed what Todrick said—Finance Minister Godan mentioned in a public speech about guaranteeing the safety of government bond creditors.
It wasn’t until mid-April that the eagerly anticipated third batch of French government bonds finally appeared on the Northern Italy market.
The total was 30 million francs, and interest rates fell again. Three-year rates dropped to 5.4%, and five-year rates to 6.5%.
After previous hype, the purchasing enthusiasm of Italian nobles was fully ignited this time.
The hall of Paris Commercial Bank’s Genoa branch was already crowded, the front door had a long line of nearly a hundred people, resembling a downtown bakery during sales, but most were wealthy individuals with fortunes over tens of thousands.
Genoa sold 3 million francs worth of bonds in less than three days.
While during this period, the total sales in Northern Italy were 14 million francs. There was no “water” added by Joseph this time.
At the same time, guided by nobles in the Palace of Versailles domestically, bond sales in France also reached 37 million francs.
…
Vienna.
In the gardens outside Schonbrunn Palace, State Minister Kobitzel scowled, “Stupid British politicians only think about using our interests to attract the Russians!
They even consider Serbia. Such conditions are impossible to present to the Emperor!”
His brother, Ludwig von Kobitzel, sighed, “In a way, Lord Hawkesburg’s strategy is indeed more viable.
If the Tsar of Russia is willing to join the Allied Forces, at least we can gain 120,000 troops, ensuring no challenge from the French Army in Italy.”
Walking on the other side, Count Stadion, the Finance Minister, said, “Actually, I’m more worried about a Russo-French alliance causing the Russians to stand on France’s side.”
Kobitzel’s face turned even grimmer. He knew well what it meant if the Russian Army suddenly launched an attack from the East when Austria was in a decisive battle with France in Italy.
“But neither can we bear all the costs alone. At least, we absolutely cannot abandon Serbia!”
Based on the British Foreign Minister’s suggestions this morning, Austria needed to acknowledge Greek independence, accept Russian influence entering Bulgaria and Serbia, and open Southern Wallachia roads for Russians.
This was equivalent to ceding most of the Balkan Peninsula to Russia.
Vienna had long sought Serbia’s integration into the Austrian Map and invested heavily over the past few decades nurturing anti-Ottoman forces in Serbia.
More importantly, if Russia controlled Serbia, they were likely to extend influence further west into Bosnia.
These countries, including Greece, shared Eastern Orthodox beliefs, naturally close to Russia as the “Protector of Eastern Orthodoxy.” It was challenging for Austria to effectively stop them.
After a moment of silence, Assistant Foreign Minister Metternich suddenly spoke, “Count, I believe letting Russia control Serbia is not unacceptable.
We could even consider handing part of Wallachia to the Russians.”