CHAPTER 559: CHAPTER 550: THE ERA OF CREDIT ARRIVES

When Mane nominated Count Jiles Lebegue de Bemini as the new president of the Bank of France, Count Beimini himself was stunned for a few seconds before a hint of joy involuntarily appeared at the corner of his mouth.

It is necessary to introduce the background of this "lucky one" here.

Jiles Lebegue de Bemini, born on November 15, 1799, was a French banker and politician. He has served as a member of the Lower House (1832), Secretary of State at the Ministry of Finance (1840, when the Minister of Finance was his father-in-law George Hamman), Governor of the Loire Province (1842), and Governor of the Seine-Saône Province (1842—1845). He participated in the establishment of the Bank of France in 1848 and was one of the shareholders of multiple banks, including Paris-Orléans Bank and the Bank of France, having substantial financial resources. Under the recommendation of Adolf Fuld, Count Bemini joined the Bank of France in 1850, becoming a member of the board of directors. More importantly, at the inception of the Paris Industrial Bank, Count Bemini also made a significant contribution to its establishment.

After introducing the background, the conclusion is not difficult to draw.

The reason Count Bemini was nominated by Mane as the president of the Bank of France is nothing more than his good relations with the Mane-Fuld-Pereire alliance.

An even more crucial point is that Count Bemini himself, like Adolf Fuld and the Pereire Brothers, is a follower of Saint-Simonism.

If Count Bemini takes up the presidency of the Bank of France, then the entire Bank of France will become the domain of the Saint-Simonists.

[Here, we should mention that the current Bank of France has gradually formed three major factions.

One faction is the financial conservatives led by Count Algou, the most powerful of the three factions (James Rothschild was originally the largest faction). Their viewpoint is: the government should let the financial sector self-regulate through market forces.

Second to Count Algou is the neutral faction led by Alphonse Rothschild, who believe in siding with whoever can bring them the most benefit.

The last faction is represented by Adolf Fuld, the members of the Saint-Simonian Faction. Their financial views are more radical compared to the financial conservatives led by Count Algou, and also more aligned with Jerome Bonaparte’s smaller version of Keynesianism. However, Fuld’s credit economics appear somewhat idealistic to Jerome Bonaparte.

Without government intervention, the result of relying solely on bankers’ self-consciousness leads to uncontrollable speculation, just like in history.

When the bubble expands to an uncontrollable size, the government will also have to bear the consequences.

Paris Discount and Land Bank in history is the most typical example.]

Once the Bank of France becomes a Saint-Simonist domain, those who advocate financial conservatism might be forced to the margins.

Thinking of this, some supporters of Count Algou in the bankers’ camp are getting restless, wishing they could publicly refute Mane’s proposal, even at the risk of offending the Emperor.

However, since this is an Imperial Council, no one is allowed to speak freely without the Emperor’s permission.

"Bemini!" Jerome Bonaparte pondered for a moment, then turned his gaze towards the banker Alphonse Rothschild and said, "Sir, what do you think of Bemini?"

Alphonse Rothschild, suddenly addressed by Jerome Bonaparte, was initially taken aback, but quickly understood the purpose of being called out by Jerome Bonaparte.

"Your Majesty, I believe Count Bemini’s professionalism is beyond doubt! If he becomes the president of the Bank of France, it will certainly become more prosperous!" Although Alphonse Rothschild was not keen on Count Bemini’s economic philosophy, he had to comply with the Emperor’s will.

"I understand!" Jerome Bonaparte nodded at Alphonse Rothschild and then shifted his gaze to military representatives, Minister Kuzen Montebon and Vice Chief of Staff Nier, saying, "What do you think?"

Unfamiliar with economic concepts, Kuzen Montebon didn’t know much about economic philosophies, but he understood that since His Majesty the Emperor did not oppose Mane’s appointment, it indicated that he was likely favorable towards Bemini.

Plus, with Alphonse Rothschild’s recent support for Bemini, Kuzen Montebon was more convinced that the Emperor favored Bemini.

"Your Majesty, I am a soldier! I don’t understand economic accounts, but I believe Count Bemini is surely more capable of handling them than I am!" responded Kuzen Montebon to Jerome Bonaparte.

As soon as Kuzen Montebon finished his words, Nier spoke up: "According to the news from the front lines, our army has already captured Sevastopol!"

Nier’s words were like a bombshell, dropping directly onto the Imperial Council, stunning everyone present with the news.

It’s only been a little over a week since the last battle (at Alma), and the Imperial Army has already taken Sevastopol.

"General Nier, is the news true?" Minister of Finance Mane eagerly asked Nier.

No one understood better than Mane what the capture of Sevastopol meant for the French Stock Exchange.

Take the Battle of Alma a week earlier, for instance. When news of the victory at Alma reached Paris, the stocks directly related to the military-industrial complex surged by 15% in just one day, with other stocks rising by 5% to 10% as well.

If the capture of Sevastopol is true, stocks related to the military will undoubtedly witness a new round of growth!

This time, the growth will be more rapid than after the Battle of Alma.

After all, Sevastopol is the first Russian city captured by France since 1815.

"It is essentially true!" Nier nodded and said to Mane.

With Nier’s assistance, not even the bank supporters of Count Algou dared to oppose Bemini’s appointment at this critical juncture.

The elite politicians standing at the Imperial Council are all well aware of Count Algou’s economic policies.

If choosing Count Algou to restrict all unnecessary expenditures except for military spending, it might lead to a downturn in the military’s ancillary systems (such as canneries, tobacco factories, steel mills).

If the army fails to win the upcoming war, the Conservative Faction in finance, to which Count Algou belongs, will have to take the blame.

"Alright! Does anyone have any differing opinions?" Jerome Bonaparte asked everyone present.

No one spoke, and after a moment, Jerome Bonaparte spoke again: "Since you’re all silent, I’ll assume you agree! Mr. Beimini!"

"Your Majesty!" Beimini quickly responded.

"From today, you will replace Count Algou as the President of the Bank of France! But let me say this upfront, if there is any turmoil in the Bank of France, you will be held accountable!" Jerome Bonaparte said to Count Beimini with a serious expression.

"Please rest assured, Your Majesty! I will do my utmost!" Count Beimini replied.

With Beimini’s assurance, the Imperial Council also neared its end.

"Alright! Meeting adjourned!" Jerome Bonaparte stood up and told the ministers below the steps.

"Yes, Your Majesty!" Mane and the others below the steps responded.

...

Just as Mane was about to leave the Tuileries Palace, the Royal Palace Chief Steward Mokar called Mane.

Under Mokar’s guidance, Mane arrived at the entrance of a room.

"His Majesty is inside!" Mokar pointed to the door and said to Mane.

Mane pushed open the door and saw Jerome Bonaparte inside the room, along with the newly appointed President of the Bank of France, Beimini, by his side.

"Your Majesty!" Mane responded to Jerome Bonaparte in the room from the doorway.

"Come over!" Jerome Bonaparte beckoned to Mane.

Mane quickly came to Jerome Bonaparte, who sighed and said: "If we don’t discuss Count Algou’s economic ideology, Count Algou himself is actually a respectable elder! We have also benefited from his grace before, but unfortunately..."

"Your Majesty, for someone like Count Algou! If his economic ideology can’t be implemented, it might be better to just kill him off!" Mane excused Jerome Bonaparte: "Rather than letting him suffer in the position of President of the Bank of France, it would be better to let him leave that position!"

"Alas!" Jerome Bonaparte sighed, then asked Mane and Beimini: "Do you know about the Bank of England raising the discount rate?"

"We know!" Mane and Beimini nodded simultaneously to Jerome Bonaparte.

"What do you two think?" Jerome Bonaparte looked at them with slight surprise, then asked Mane and Beimini.

"Your Majesty, if I may speak frankly! The Bank of England raising interest rates was actually expected!" Mane said calmly.

"Why?" Jerome Bonaparte asked.

"Recently, Count Algou has already withdrawn nearly 5 million British Pounds worth of gold from the Bank of England!" Mane stated startlingly.

"5 million British Pounds? Gold?" Jerome Bonaparte said in slightly surprised tone.

"Correct! The banks under Count Algou sold off English bonds in the English market, exchanging them for gold, forcing the Bank of England to raise the discount rate to recoup the losses!" Mane nodded and replied to Jerome Bonaparte.

"Algou didn’t tell me about this!" Jerome Bonaparte frowned and said to Mane.

After all, it turns out that it was because Count Algou, as President of the Bank of France, exchanged too much gold, leading to dissatisfaction in England, causing such a situation.

"Perhaps Count Algou forgot!" Mane subtly disparaged.

"Forget it! Since Count Algou has retired, let him enjoy a grand and glorious late life!" Jerome Bonaparte decided not to make things difficult for Count Algou: "Mr. Beimini!"

"Your Majesty!" Count Beimini quickly responded to Jerome Bonaparte.

"Your first task now is to negotiate with the Bank of England to readjust the discount rate, ensuring it’s reduced to below 5 basis points! As for Count Algou..." Jerome Bonaparte paused, "I will personally go and have a talk with him!"