Chapter 393: Chapter 387 Railway Bond Regulation Ordinance
"Can the Ministry of Railways suspend all exchange of railway bonds during the war period?"
Jerome Bonaparte tentatively suggested to Barroso the postponement of railway bond exchanges.
Barroso, who stood beside Jerome Bonaparte, showed a look of astonishment; he was obviously frightened by the suggestion made by Jerome Bonaparte.
"What’s wrong? Is it not possible?" Jerome Bonaparte lightly tapped the table, crossed his legs, and jokingly said to Barroso, "Feel free to mention any difficulties! I’m not a tyrant who acts arbitrarily!"
You’re even scarier than a tyrant!
Barroso silently whispered in his heart. Jerome Bonaparte’s strategy was practically robbing money out of Paris bankers’ mouths.
In all the major railway districts, which subsidiary company doesn’t have bankers behind them?
Jerome Bonaparte’s strategy was entirely freezing the money ’stored’ by bankers in railways, and that amount was no small figure, worth tens of billions of francs!
The interest alone each day could ensure a comfortable life for many.
Not to mention, these banks are essentially transfer hubs, using banks to collect individual investors’ money together, then using it to generate more money.
After this portion of funds is frozen, a small part of banks might face the risk of a financial chain collapse.
No rational ruler would do such a thing, but Barroso suddenly thought of Jerome Bonaparte’s previous actions towards the Rothschild Clan; he wondered if his ruler was planning to raid the bankers once more.
At this point, Barroso could only brace himself to explain to Jerome Bonaparte the connection between the five sub-bureaus under the Ministry of Railways and the banks, subtly reminding Jerome Bonaparte not to rashly freeze railway bond exchanges, at least not without paying those bankers the interest on railway bonds.
Otherwise, the Paris financial market might experience a chain reaction.
"Who told you I want to freeze their interest?" Jerome Bonaparte glanced at Barroso in surprise, suddenly realizing that the lawyer in front of him had an even darker mind than his own.
Jerome Bonaparte merely wanted to temporarily freeze the exchange channels for railway bonds to prevent a massive bank run leading to bankruptcy, but the interest should still be paid. As long as the bankers could pacify the populace, the railways would operate smoothly.
However, during wartime, those bankers need to bear some losses themselves.
Yet, Barroso wanted to freeze both their principal and interest.
This was somewhat beyond Jerome Bonaparte’s expectations.
"Then what do you mean?" Barroso immediately realized he misunderstood the Emperor’s intentions and quickly asked.
"Freeze railway exchanges, but not the interest on the railway bonds themselves, especially short-term bonds!" Jerome Bonaparte explained to Barroso.
"Your Majesty, in that case, how does the government explain this to those bankers who invested in us?" Barroso asked Jerome Bonaparte with a bitter face.
"Explain?" Jerome Bonaparte’s lips curled into a disdainful smile, his voice involuntarily rising a few decibels, "Those guys have received so many benefits from the Empire! Now, they aren’t even willing to bleed a little? In all of Europe, which country is more lenient to them than us! You can tell those guys, if they want an explanation! Sure, let them come to the Tuileries Palace, and I’ll personally explain to them!"
Jerome Bonaparte’s expression and tone clearly demonstrated his determination; he wouldn’t indulge the Bonaparte Clan like his historical cousin, nor let an economic crisis develop unchecked as in history.
Freezing railway bonds to let bankers share some of the risks might not be the optimal solution, but it was undoubtedly the most effective method.
Only by tightly binding their funds in the railways would they refrain from causing a stir.
Otherwise, based on Jerome Bonaparte’s understanding of bankers.
Once the Crimean War begins, the railway market is bound to panic; those bankers holding a lot of bonds will spread panic to cause a sharp drop in the price of railway bonds. The panic caused by the drop would inevitably lead to a mass sell-off by the populace. Then, they would use their money to buy back at a price lower than the initial market.
As a result, the government would bear all the negative reputation of the railways, lose its credibility, and the populace would lose money while they gain benefits.
"For the financial security of the Empire, we must do this!" Jerome Bonaparte once again returned to a calm tone: "Appropriate regulation aids in stable market development!"
Subsequently, Jerome Bonaparte also indicated to Barroso that he would assign a competent regulator to assist the Ministry of Railways in supervising railway bonds.
Barroso understood perfectly well that the guy dispatched by Your Majesty was not merely to supervise their management of railroad bonds, but rather to monitor their antics.
Barroso welcomed such surveillance. Even he himself lacked any confidence in being able to suppress those bankers and could only completely restrain them by leveraging the Emperor’s flag.
"Your Majesty, whom are you planning to send to the Ministry of Railways for guidance?" Barroso tactfully turned surveillance into "guidance."
"One of them is Prince Lucien Murat!" Jerome Bonaparte said to Barroso.
Lucien Murat, whose full name is Lucien Charles Joseph Napoleon Murat, was the second son of Marshal Murat, King of Naples, and Catherine Bonaparte.
This marshal, who made outstanding military achievements for the First Empire, was beloved and relied upon by his uncle, Emperor Napoleon. Thus, he was bound to the cart of the First Empire through marriage by the Emperor.
Marshal Murat’s life was dedicated to the creed of living for the Empire and dying for the Empire. In the wake of a series of military defeats by the Empire, Murat was caught by the Austrian army due to his defection during the Hundred Days Dynasty, which led to the capture of the Kingdom of Naples.
Murat himself could not meet a sensible general like Wellington and was executed by the Austrian army.
After the events of 1815, the then 12-year-old Murat settled with his mother Catherine Napoleon and his brother Achille Charles Louis Napoleon Murat in Trieste, and in 1824, they went to the United States with his uncle and brother.
After arriving in the United States, Lucien Murat and his brother wandered for nearly seven years without any success. Even worse, the funds left by Prince Murat were nearly exhausted.
Given the 19th-century New Continent’s veneration for titles, Lucien Murat and his brother Achille Murat decided to marry an American woman to sustain their later life.
Achille Murat successfully married the niece of George Washington thanks to the title of Prince Murat, while Lucien Murat married a descendant of the Duke of Lovat from Trenton.
The post-marriage life of the brothers was somewhat pleasant, but it was short-lived as both of them simultaneously developed a wretched habit of incompetence yet love for playing.
The successive business failures made their family’s life become strained, and the years of failures left Lucien Murat’s once-prosperous family barely surviving with the school founded by his wife.
The active-minded Lucien Murat began to set his sights on Europe, making several transatlantic journeys between Europe and the United States from 1839 to 1847.
Each time he attempted to enter France, he was heartlessly rejected by the government of Louis Philippe.
Even worse, after Lucien Murat’s last return from Europe to the United States, he was suddenly informed that his brother Achille Murat was in critical condition.
Despite the doctors’ efforts to resuscitate him (through bloodletting), Achille Murat did not escape the embrace of death.
Since Achille Murat died childless, Lucien Murat inherited his brother’s princely title.
A year after Lucien Murat inherited the princely title, a Great Revolution occurred in France, and Jerome Bonaparte assumed the presidency of France in December.
Upon hearing that Jerome Bonaparte became President, Lucien Murat immediately sold off his property in the United States, bringing his wife and four children back to France to meet Jerome Bonaparte, fantasizing about being relied upon by Jerome Bonaparte.
However, a fantasy is just a fantasy, and reality dealt Lucien Murat a heavy blow, as Jerome Bonaparte was not someone who liked to assist his relatives.
For someone like Lucien Murat, whose talents were not outstanding, Jerome Bonaparte’s condition was that money could be given, but power was off-limits.
From 1849 to 1853, Lucien Murat merely existed as an ornament of the House of Bonaparte.
It wasn’t until the establishment of the Empire that Lucien Murat saw a slight improvement when Jerome Bonaparte appointed him the position of "Elder," serving as a member of the Senate.
Of course, this position was merely meant for Lucien Murat to receive a bit more money, and as for any additional power, it was out of the question.
Since Barroso often needed to report routine discussions at the Legislative Corps and Senate, he frequently greeted Lucien Murat and had a somewhat positive impression of this prince.
Compared to other ambitious Bonaparte princes, this Prince Murat was particularly steady.
A steady prince was far more suitable for this position than a prince who only knew how to mess around all day (Pierre Bonaparte), as supervising railroad bonds was not a task requiring much technical skill.
However, when Jerome Bonaparte announced the second supervisor’s name, even with mental preparation, Barroso was still taken aback.
"The other is Jerome Patterson! The son of my half-brother, technically my nephew! However, he should still be on his way here now!"