Chapter 507: The Art of Moving Money Between Hands
After collecting the evidence, the police assured Le Maire they would find the attackers quickly and left two officers to guard the tax bureau.
Le Maire originally planned to have his staff familiarize themselves with the local markets and factories, but after multiple assaults, he had no choice but to order all employees to stay inside the tax bureau during work hours and to travel in groups of three when returning home.
Despite these precautions, more attacks followed. On one occasion, over a dozen assailants threw stones and incendiary objects into the tax bureau office, nearly setting the building on fire. The chaos ended only after the stationed police fired their guns to disperse the mob.
The police investigation revealed that the attackers were not gang members but acted with remarkable secrecy and professionalism. However, their identities remained elusive.
Fear spread throughout the tax bureau. Some officials even submitted resignation letters to Le Maire. Desperate, he submitted a report to Paris, requesting guards for the tax bureau.
Paris.
In the office of the French Tax Bureau, newly appointed Inspector Robespierre frowned at the towering stack of reports on his desk, his face dark with frustration.
Most of the reports detailed assaults on tax offices across the country. Over the past ten days, two tax officials had been murdered, and more than 40 were injured. Despite the police's efforts, only three or four suspects had been apprehended, and the situation was spiraling out of control.
The majority of bureau heads requested additional guards, while others outright resigned.
Robespierre knew the bureau's budget was already stretched thin, barely able to cover compensation for the injured, let alone provide security.
He felt an immense weight pressing down on him. The director of the Tax Bureau, Count Foulques, oversaw tax revenues, while Robespierre was responsible for everything else. A mishandling of this crisis could jeopardize the nation's tax collection efforts.
After a long period of contemplation, he began drafting an impassioned speech to boost morale and, at the very least, reduce the wave of resignations.
As for improving security, he could think of no viable solution. Rising to his feet, he instructed his servant:
"Prepare the carriage. I must go to the Tuileries Palace."
His only option was to request funds from the Prince to bolster the bureau's security forces.
Tuileries Palace, Second Floor.
Joseph carefully reviewed the document in his hand. Satisfied with the figures, he signed it and stamped it with his seal.
Across the desk, Matthieu de Lefebvre, the head of the Caisse d'Escompte (French Central Bank), respectfully accepted the document. He then asked cautiously:
"Your Highness, the current pace of fund transfers is rather swift. I fear it may attract suspicion.
"Should we divide the transactions passing through Poitou and Burgundy and delay some until next week?"
Joseph considered for a moment before nodding. "Your suggestion is sound. Let's proceed as you recommend. And remember, confidentiality is paramount. Ensure that every individual involved is thoroughly vetted by the intelligence bureau before being allowed to participate."
"Understood, Your Highness."
If anyone had seen the document Lefebvre held, they would have been stunned by the amount—it was a fund transfer authorization totaling 13 million francs!
In truth, the French government did not possess billions of francs in funds, nor were there weekly deposits of tens of millions flowing into its accounts.
Joseph had managed to gather only 50 million francs through insurance, financial products, and real estate ventures. However, apart from real estate earnings, the remaining funds belonged to insurance companies. While Joseph could temporarily mobilize them, he could not treat them as part of the government's fiscal budget.
Without the tax farming system, the finance minister Brienne would have access to only 26 million francs in 2024. Within a month, government operations—including salaries, infrastructure projects, and official payments—would grind to a halt.
To stabilize the situation, Joseph needed a loan of at least 150 million francs from the tax farmers.
However, the tax farmers counted on the government's lack of funds. They knew the government could only function if it received their tax farm payments, so they firmly resisted reform.
Joseph had to create the illusion of a financially stable government to disrupt the tax farmers' strategy.
To achieve this, Joseph used the 50 million francs as a "prop" in an elaborate charade.
He knew the tax farmers had informants in every bank and would inevitably learn of the government's account balances.
First, Joseph deposited the money in foreign banks, then reintroduced it to the Caisse d'Escompte as a "loan."
The Caisse d'Escompte subsequently transferred the funds to provincial banks in tranches, labeled as budget allocations for provincial governments. Most of these banks were branches of the Caisse d'Escompte.
Since the money was allocated for next year's budget, provincial governors could see it but not use it.
Here's where the covert operation began:
The provincial banks secretly issued short-term loans against these funds and immediately transferred the money back to the Caisse d'Escompte headquarters in Paris.
The provincial governments, seeing the funds in their accounts, had no reason to investigate further. No one would suspect that the finance minister and the central bank were misappropriating these funds.
Joseph personally appointed individuals to oversee these loan transactions. Once the loan agreements were signed, they were brought directly to Paris and locked in the Caisse d'Escompte president's safe, under 24-hour guard by intelligence agents.
The funds from these loans were then re-deposited into foreign banks before being funneled back into the Caisse d'Escompte.
This was the "truth" behind the reports the tax farmers uncovered, claiming the government's accounts had received over 100 million francs, with weekly deposits continuing.
In reality, it was the same 50 million francs cycling repeatedly through different accounts.
To ensure the secrecy of this "left hand to right hand" operation, Joseph appointed over a dozen directors and assistant directors at various bank branches. All funds involved in these "reverse loans" were managed exclusively by these individuals.
It was psychological warfare.
If the tax farmers remained unmoved after seeing the government's apparent financial strength, Joseph had no other recourse.
But he was confident that as he escalated his efforts, those profit-driven magnates would eventually capitulate.
After Lefebvre left, Éman entered, accompanied by a visibly distressed Robespierre.
Robespierre's face was marked with guilt as he bowed deeply and stammered:
"Your Highness, I must report a grave situation… Tax bureaus across the country are under assault. Two tax officials have been murdered, and dozens have been injured..."
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