Chapter 178: A Big Earthquake in the Banking Industry

"Haha, that's a funny joke." Charles laughed even louder.

He has been running the Mediterranean route for more than ten years and has some understanding of the conditions in North African countries. The Tunisian pasha in this prison is named Younis, but he is not really a pasha.

"Pasha" is the Ottoman-canonized governor of Tunisia and the de facto king of Tunisia. Eunice led an army to rebel as a prince and called himself Pasha, but was suppressed by his father. He later fled to Algiers and was imprisoned.

How could such an important person escape so casually?

Ali took a sip of soup and started today's story. This was a regular program for him and Charles every day, telling each other about their experiences to pass the boring time - the guards would appear from time to time after noon, making it impossible to dig tunnels.

"Actually, you shouldn't mention this to others, but you are an American, so it doesn't hurt to talk about it."

Ali ate all the food, wiped his mouth and said, "Don't think that Master Younis is a prisoner. He used to have many followers in Tunisia, including several generals. And when he came to Algiers, he also Brought a lot of wealth.

“Back then, he was imprisoned here by the Guards, and within a year, someone helped him escape.

"Now he lives on the west coast. He is rich and powerful, and even has a beautiful castle. Many people there depend on him for food."

Charles curled his lips: "These legends always like to exaggerate to the point of being fantastic, just like the ghost pirates in the Caribbean."

Ali immediately said: "This is not a legend, my friend. You know what I do. My boss has met Master Younis and had dinner with him."

Charles knew that Ali was a smuggler with a large business. One-seventh of the goods smuggled from Britain to Algiers every year belonged to his boss. This is also the reason why he was not hanged immediately after being captured - his boss might be willing to pay a ransom for him.

Ali then talked about Younis. It is said that the smuggling business on the west bank of Algiers would not be able to continue without Younis's nod.

Sometimes he would even take a share in the sale of the Algiers Navy.

Charles spat on the ground in displeasure - where he had been caught by the Algiers "Navy".

It wasn't until the sky turned dark and Ali started digging again that their "Story Salon" finally came to an end.

Two days later, when the guards came to deliver meals, they discovered that Ali had escaped.

Charles watched the Algiers soldiers cursing around the hole in the cell opposite. He was shocked and regretful at the same time - if he had believed in Ali and dug a tunnel to the cell next to him, he could have escaped with him. Oh my God!

He sighed heavily, looked at the ceiling, and recalled what Ali had said many times, "My friend, when we leave here, I will treat you to the best fermented grape juice and find the most beautiful girl. Oh, Remember where I live..."

In the afternoon of that day, a piece of news began to spread among the nobles in the Palace of Versailles - Her Majesty the Queen decided to establish the "French Industrial Development Fund".

No one could explain clearly what the "fund" was, but they roughly understood that the government would pool a large amount of money to invest in French industrial industries. At the same time, anyone can invest money in the fund, and after the investment makes profits, they can receive profit sharing.

It sounds a bit like investing in a company, but the risk seems to be much less. However, because the total amount of the legendary fund may be as high as hundreds of millions of livres, it immediately became a topic of concern.

Early the next morning, the "Necker Alliance" gathered in front of the main entrance of the Palace of Versailles and began to protest loudly.

Compared with yesterday, their number has increased and has reached more than 400 people.

In fact, there were thousands of nobles investing in the banks involved in the Necker case, but many of them did not dare to cause trouble.

However, when the few hundred people who take the lead open up the situation, they will inevitably follow suit.

Viscount Prodom stood on the steps in front of the gate. After shouting slogans for a while, he waved his arms: "Everyone, follow me to plead with Her Majesty the Queen!"

It is said that he is begging for mercy, but in fact he is using "not to borrow money from the government" to force him to have a palace.

The crowd was about to turn towards the Little Trianon when suddenly two groups of palace guards in red uniforms came running and stood around in silence following the officers' orders.

The nobles were slightly taken aback, thinking that the royal family was going to use the guards to disperse them. However, they had long been accustomed to seeing such scenes in the Palace of Versailles, and they did not show any fear. Instead, they were prepared to use more fierce protests to fight against the soldiers. Confrontation.

At this moment, Brian walked out of the main entrance of the Palace of Versailles, accompanied by the crown prince and officials from the financial system.

The nobles of the "Necker Case Alliance" were stunned for a moment, and immediately turned their attention to the Minister of Finance: "Archbishop Brian, please suggest to Her Majesty the Queen that the interrogation of Necker be stopped!"

"It must be a cabinet conspiracy to use Necker to accuse those banks!"

"Archbishop Brian, please seriously consider the financial issues and let the Necker case end."

"Yes, otherwise we'll just have to stop buying any more bonds!"

Brian smiled and raised his hand to signal everyone to be quiet, and then said loudly: "Necker was seriously corrupt during his tenure, and his trial must not be interrupted."

"And the banks involved in the case will also face heavy fines." Joseph added on the side. He is here as assistant to the Chancellor of the Exchequer, mainly responsible for assists.

The nobles below were immediately excited: "You can't do this!"

"What if all those banks go bankrupt?"

"Let's petition Her Majesty the Queen!"

"I have good news to tell you." Brian's voice made everyone quiet down, "The French Reserve Bank will acquire the Bélanger Bank and take over the bank's previous debts."

The bulk of the bank's debts are the nobles' investments.

The nobles of the "Necker Alliance" cheered: "Acquisition? That's great!"

"Long live the King! Long live the French Reserve Bank!"

"Now we are saved!"

However, some smart nobles immediately found the problem and asked loudly: "Archbishop Briand, does the French Reserve Bank have so much funds?"

"Yes! There may be many banks that will have problems in the future. Will the French Reserve Bank also acquire them?"

Briand nodded and said: "Yes. The government will invest in the French Reserve Bank. Together with the bank's original assets, there should be tens of millions of funds."

Before the nobles raised any objections, Joseph stepped forward and said: "Yes, this money is not enough to pay for your investment in the bank, but illegal banks must also be punished!

"Therefore, in order to protect everyone's money from loss, the benevolent Queen decided to establish the French Industrial Development Fund."

He then explained the meaning of the fund, and finally said:

"All investment certificates of banks acquired by the French Reserve Bank can be used to invest in the Industrial Development Fund. "

His words immediately brought back painful memories of the "Mississippi Company Scam" - John Law had asked everyone to exchange national debt for shares in the Mississippi Company, and ended up losing everything.

The nobles erupted in a fierce protest. Joseph waited for them to stop shouting, then took out a document and shook it: "The Industrial Development Fund is guaranteed by the French Reserve Bank and the French Treasury.

"First, the fund's accounts are completely open, and all customers who purchase more than 500,000 livres can check their accounts at any time.

"The fund will announce its budget at the beginning of each year. It will also publish financial statements every six months to explain its revenue.

"Second, we will require all companies that receive investment to also announce their operating conditions and accept the fund's financial audit.

"Finally, all matters of the fund are decided by the fund committee, and the government shall not interfere. "

Openness and transparency, these financial policies that seem very ordinary in later generations were very advanced in the 18th century. Even the most transparently managed companies such as the British East India Company are far from being able to do this.

The nobles below began to whisper when they heard this, and more than a dozen "shills" arranged by Joseph in advance also started working together at this time:

"If you can check the accounts at any time, it will be very secure."

"The main thing is that there are financial guarantees from the French Reserve Bank and the government. I don't think there is any problem."

"And this is an investment in domestic industries, unlike the distant American "gold mines" in the past, where the operating conditions can be seen at any time."

They led more people, and the nobles began to nod their heads at once.

Seeing that the momentum was not right, Viscount Prodome and others hurriedly shouted: "What fund, who knows how it will operate in the future? It is safest to suspend the interrogation of Necker!"

Joseph sneered: "Archbishop Brian just said that the case must be investigated to the end! ”

“Then we can only consider not lending money to the government anymore…”

As soon as Viscount Prodome finished speaking, Joseph’s “trustees” began to murmur with the people around them: “I think it’s impossible for everyone not to lend money to the government.”

“Why? Didn’t you succeed when you refused to pay taxes before?”

“Haha, that means you have to pay the money. If you say you don’t want to pay, everyone will definitely be happy to cooperate. And this is lending money to the government, you can earn interest.”

“I guess in the end, everyone will say they won’t lend, but they will still do the same thing in private.”

“Yes, they deceived us not to lend money to the government, and when the interest on government bonds increases, they will secretly invest.”

“It’s safest to lend to the government now. You see, investing in banks before caused so much trouble. "

After just over ten minutes, the nobles were no longer willing to mention the matter of "refusing to lend money to the government" - they had said this before to threaten the royal family, but now with the solution of the Industrial Development Fund, who would want to go against the interest?

At this moment, a messenger reined in his horse not far away, and then ran over quickly and handed a letter to Brian.

The latter opened the letter and read it quickly, and announced loudly: "Just now, three illegal transactions between Necker and the Krassene Bank were verified, 11 bank managers were arrested, and the bank accounts are being thoroughly investigated. "

The nobles present immediately panicked, especially those who had invested in the Clasenne Bank, who were sweating profusely.

Based on the previous situation of the Bellanger Bank, the bank under investigation will soon go bankrupt. Their money will be lost!

In fact, if these banks follow the normal operation, even if there are illegal problems, they can raise funds to pay the fines, and they will be able to recover in a few years.

However, in order to force the French finances to abdicate, the Duke of Orleans caused the Bellanger Bank to go bankrupt at the speed of light, which scared the nobles who invested. As a result, other nobles have withdrawn their money invested in other banks, which has greatly tightened the bank's funds.

At this time, with the Necker case, the bank is unable to turn around, and the only way left is bankruptcy.

Of course, the timing of announcing the trouble of Krasne Bank was also arranged by Joseph in advance.

The nobles present could not hold back, especially those who invested in Krasne Bank, shouting loudly: "I am willing to transfer the money in the bank to the Industrial Development Fund!"

"I also invest, please give me a copy of the agreement document!"

"I want one too!"

"And me..."

Joseph stood up at the right time and signaled everyone to be quiet: "One thing should be explained in advance. If you use bank investment to transfer to the Industrial Development Fund, you must withdraw all the principal after five years."

This is the core of the "debt-to-fund" - to buffer panic and avoid runs on the nobles who invested in the bank. In fact, if the fund is profitable, they will not withdraw the funds after five years. Who doesn't make money?

Hearing "can only be withdrawn after five years", people hesitated again.

Brian hurriedly followed the script and launched the final blow: "In order to ensure the safety of everyone's investment, the Industrial Industry Fund guarantees that if there is a loss for six consecutive months, the investment will be fully refunded immediately. If the fund's funds are insufficient, the French Finance will take over and pay!"

The eyes of the nobles present immediately lit up again.

If the fund is making money, just sit back and enjoy the benefits. If it loses money, the government guarantees that you can get your investment back.

What else is there to worry about?

In fact, even if there are risks, there is no need to care so much at the moment. Transferring money to the Industrial Development Fund is much better than going bankrupt with the bank.

The official next to Brian immediately signaled to everyone that they could go to the office of the Minister of Finance to receive the agreement documents of the "Debt-to-Fund".

Almost in an instant, the crowd in front of the gate of the Palace of Versailles disappeared without a trace. Seeing that he could not stop everyone at all, Viscount Prodome frowned and hesitated for a few seconds, and quietly walked upstairs.

At noon, the king and queen personally held a ceremony to establish the "French Industrial Development Fund", which was regarded as a royal stand for the fund again.

As the news spread, all the nobles involved in bank investments flocked to the Chancellor's office and soon squeezed the door of the office.

One day later, Necker finally collapsed under the strong pressure of Kalona - the few transactions he had with the bank were accurately restored by the latter, and two banks had collapsed because of this.

After receiving the promise of a lighter sentence for confessing, Necker poured out all the illegal transactions with the bank.

Kalona was also relieved.

He put the cases with more clues and he was sure of it in the front, so he could try them so quickly.

If Necker kept holding on, his speed would be slower and slower, and he would not be sure of trying nearly half of the transactions.

However, Necker surrendered. The earthquake of the entire French banking industry is coming!