CHAPTER 353: CHAPTER 348: EMPIRE’S FINANCIAL CRISIS

After the Staff Department examination ended, the staff from various major war zones gradually returned to their respective stations, and it was only at this moment that the General Staff Department system truly took root.

From now on, no one could hinder the General Staff Department, having overcome initial difficulties, it was destined to forge ahead unwaveringly.

By mid-August, the weather in Paris had become increasingly scorching, with the high temperatures baking the ground, causing it to ’exhale’ the moisture it contained. Wisps of white mist rose from the crevices on the ground, vanishing without a trace in an instant. The air was stiflingly hot, as if a mere match could ignite it. The roads, paved with stones, also became unusually scorching, stepping on them barefoot felt like enduring a form of torture.

In such sweltering weather, even the Champs-Élysées had few pedestrians, and the bourgeoisie residing in Paris took this time to leave the city for places like Lyon and Bordeaux to escape the heat.

The petite bourgeoisie, on the other hand, removed the ice they had prepared in cellars the previous year and placed it in their rooms, using the thin mist of cold it released to combat the scorching heat in the air. Alternatively, they opened the doors and windows completely, fanning themselves with a round fan in one hand and holding the summer drinks prepared by their landlords in the other, gathering in threes and fives on rocking chairs to enjoy their drinks.

I forgot to mention, the petite bourgeoisie working in Paris mostly didn’t have their own residences, often living in private apartments.

After paying a certain rent and moving in, the landlady became the highest servant and steward of the residence.

(Generally speaking, in better-condition rental apartments, the landlady would hire two to three actual servants and cooks to clean and cook, catering to the countless needs of everyone in the apartment. The more rent paid, the more attentive the service received. This is mentioned in 19th-century French novels.)

Meanwhile, the proletarians, who made up a relative majority of the Parisian population, lived in dark, damp, and plague-infested underground dwellings, they suffered from pain and disease yet continued to repeat the same work day after day.

For them, Paris seemed unchanged.

Be it Louis Philippe or Jerome Bonaparte, they were all the same!

The living environment and economic strength of the entire Paris presented a pyramid structure, with changes at the top seeming to bring no benefits to the middle and lower classes.

Of course, it would be biased to say there were no changes at all.

In the Saint-Germain District, a few new welfare hospitals were built to help those with more difficult economic conditions get treatment.

The treatments mainly addressed minor illnesses; true major illnesses were beyond the capacity of the welfare hospitals too.

It was under such conditions and at such temperatures that an even more frustrating matter was happening at the Tuileries Palace.

Jerome Bonaparte, who was napping in quarters with ice blocks, heard a knock at the door in a daze. He opened his eyes drowsily, turned on the bed, and looked up at the ceiling. It wasn’t until the knocking came again that Jerome Bonaparte realized someone was at the door.

As his consciousness returned to his body, Jerome Bonaparte turned his head towards the window, squinting in the glaring sunlight. After a moment, reopening his eyes, Jerome Bonaparte reached under his pillow, feeling around until he finally found his pocket watch.

It was three o’clock in the afternoon, and less than an hour had passed since Jerome Bonaparte had lain down for a nap.

"Achoo!" Jerome Bonaparte couldn’t help but sneeze, turning his head towards the door side.

He wondered who it could be outside? It didn’t look like it was anything urgent!

Jerome Bonaparte had once instructed that in case of an emergency, he should be called regardless of what he was doing.

Jerome Bonaparte got up slowly, casually grabbing a handful of ice from a bucket and holding it in his hand. With the stimulation of the ice, he finally woke up completely.

After changing his clothes, Jerome Bonaparte opened the door to find the Minister of Finance, Mane, and the Minister of State, Fuld, standing outside.

It indeed surprised him a bit that Mane and Fuld had come to the Tuileries Palace together. From their grave expressions, it seemed as though some critical issue had arisen in France.

Jerome Bonaparte couldn’t help but shiver, yet continued to act calmly, greeting Mane and Fuld with a smile: "Minister Mane, Minister Fuld, good afternoon!"

"Your Majesty, could we trouble you for some time? We have some matters to discuss with you," Mane requested to head to the study for a conversation.

"Alright!" Jerome Bonaparte nodded in response.

Mane, Fuld, and Jerome Bonaparte proceeded to the study together. On the way, Jerome Bonaparte noticed that Mane was carrying a black briefcase. If his guess was correct, the briefcase should contain what Mane was about to report to him.

After entering the study, Mane, Fuld, and Jerome Bonaparte sat down in different directions on the sofa, with the black briefcase placed on the table by Mane.

"What exactly happened?" Jerome Bonaparte asked seriously to Mane and Fuld.

Exchanging a glance with each other, Fuld took the lead to explain: "Your Majesty, we want you to take a look at the government’s expenditure for the first half of the year!"

With that, Fuld respectfully handed over the documents from the briefcase to Jerome Bonaparte, saying, "Your Majesty, this is a full account of the government’s expenditures for the first half of the year! Please have a look!"

Jerome Bonaparte took the expenditure bill from Fuld’s hand and flipped through its contents page by page.

Gradually, Jerome Bonaparte’s expression began to grow somber. Halfway through the financial expenditure statistics, he shook his head and muttered to himself in a low voice, "Impossible! How could the government possibly..."

After Jerome Bonaparte finished reviewing the entire first half of the year’s financial expenditures and budget, his expression became as melancholic as that of Mane and Fuld. He opened the drawer again and threw two of the three remaining cigars inside to Mane and Fuld, leaving one cigar clamped in his own mouth.

Accepting the cigar, Fuld considerately lit Jerome Bonaparte’s cigar, and also lit Mane’s cigar beside him, and finally lit his own cigar.

The entire study of the Tuileries Palace was once again enveloped in cigar smoke.

After Jerome Bonaparte smoked a cigar, his furrowed brow still showed no sign of easing.

From the information on France’s financial expenditures handed to him by Mane, Jerome Bonaparte saw France’s impending doom.

After deducting various operational capacities, France’s financial revenue for the first half of the year had a surplus of 1 billion francs. (Here it refers to central financial revenue, local financial revenue is slightly higher but is used for basic construction in local areas.)

However, various financial expenditures of France amounted to about 1.2 billion francs.

This means that in just the first half of the year, France incurred a financial deficit of nearly 200 million francs.

These deficits were mainly concentrated on the expansion of Paris, agricultural reform, and General Staff reform.

When considering the fiscal and debt issues regarding railroads, France’s financial deficit could potentially reach around 400 million francs.

Four hundred million francs is equivalent to a quarter of France’s annual finances, and such a massive financial deficit is obviously not something that can be resolved overnight.

This is why Jerome Bonaparte’s brow was furrowed.

Jerome Bonaparte, Mane, and Fuld looked at each other in silence; none of the three seemed willing to speak first.

"Your Majesty, I believe it is necessary for France to plan its expenditures! If this continues, the government will inevitably go bankrupt!" said Minister of Finance Mane, breaking the tense and oppressive atmosphere.

"Your Majesty, France really cannot bear such huge expenses!" Fuld also sided with Mane.

Honestly, Fuld was taken aback after seeing the financial deficit produced in the first half of the year submitted by Mane, and he even doubted whether the data handed over by Mane was fabricated by himself.

So, Fuld went to the Ministry of Finance to ask Minister Mane directly whether there was a problem with the financial statistics.

Mane responded to Fuld with a wry smile, saying there was no problem with the finances for the first half of the year; France indeed had incurred a significant financial deficit.

Every year in France, September or November is the time when the Legislative Corps inquires about the financial situation.

Fuld knew that if he took this financial report to the Legislative Corps, he would definitely be questioned by them.

Although the Legislative Corps had lost the core power of legislation and veto, they still retained the right to question finances.

Actually, the more problematic group is not the Legislative Corps; it is the Parisians who pose the greatest threat.

If the Parisians found out that the government’s financial deficit for the half-year reached 200 million francs, they would definitely explode in anger.

The urgent task was how to prevent the financial deficit from further expanding. After some deliberation, Mane and Fuld decided to go to the Tuileries Palace to present the Ministry of Finance report to Jerome Bonaparte.

Just as they expected, Jerome Bonaparte showed an expression of deep concern.

After a while, Jerome Bonaparte emphasized, "Reform cannot stop; if we halt, we’ll face the risk of being shattered to pieces!"

"But, Your Majesty! If we continue with reforms, the financial deficit will further expand! By then, the situation will become even more uncontrollable!" Mane reminded Jerome Bonaparte.

"Then raise taxes!" Jerome Bonaparte responded decisively.

"Which aspect of taxation should we increase?" Mane once again asked Jerome Bonaparte, fearful that he might suggest the dreaded income tax.

"Without changing existing taxes, impose a surtax of 10% to 25% on tobacco, alcohol, coffee, and wine!"