The situation for General Leo, the Austrian commander of the army in the Southern Netherlands, looked even grimr.
Along with the reinforcents sent to Luxembourg ca a secret letter from Emperor Joseph II. The letter instructed Leo to draw the French into a battle against Prussia and Hanover, and if necessary, to lead the enemy forces into the Luxembourg region.
However, after spending ti with the French forces, Leo knew better than anyone how cunning these French soldiers were. They constantly pushed him to engage in a decisive battle with Blücher, yet they had set up their camp behind the Austrian army and were building defensive walls along the Luxembourg-Liège border, clearly preparing to hold their ground in Luxembourg.
Leo had managed to delay the battle for nearly two weeks by claiming he lacked sufficient troops, but now that Emperor Joseph II had sent 8,000 reinforcents, both the Emperor and the French were pressuring him to take action.
He looked at Lefebvre with a pleading tone, "My dear friend, you will support when I face the Prussians, won't you?"
Leo had seen the combat effectiveness of Lefebvre's troops firsthand, especially during the pursuit battle where over 2,000 French soldiers had routed Altmann's 5,000-strong corps. With Lefebvre's help, Leo believed he might stand a chance against Blücher's 14,000-strong army.
Lefebvre had been waiting for this question but put on a hesitant expression. "I would love to help you, General. We've forged our friendship in blood on the battlefield. But you know I can't move my troops without orders. To be honest, my orders are to hold the line at Mount de Vreize."
"But..." Leo began to plead further, but Lefebvre leaned in and whispered, "The Prince is in Clervaux. Perhaps you could ask him. His Highness is very approachable and kind-hearted."
...
Northern Luxembourg, Clervaux.
The scene along the roadside was bleak. When the Prussian army had retreated from here, they took whatever they could find. Livestock had been "requisitioned," and even household items like sheets and blankets had been taken to use as bandages.
Joseph looked at the Luxembourg farrs passing by his carriage window, but his mind was occupied with concerns about the military budget.
Earlier that morning, he had received a report from Brienne in Paris, detailing the expenses incurred by the French army over the past few months.
The troops stationed in Tunisia had been there the longest, costing 4.5 million livres. Although the forces in Silesia and Luxembourg had only been deployed for a little over a month, the intense fighting had already led to expenditures exceeding 10 million livres.
And this didn't even account for the compensation for wounded soldiers or the significant amount of supplies Emperor Joseph II had provided to the French forces in Silesia. If those costs were included, the total military spending over this period would be around 17 million livres.
And this was just after a little more than a month of conflict.
Joseph frowned slightly, knowing that if he were to achieve his strategic goals in the Southern Netherlands, the war might last six months to a year, requiring military expenditures that could easily exceed 100 million livres.
It's worth rembering that during the Arican Revolutionary War, France had spent a staggering 1.3 billion livres over eight years! And that was when the initial years saw only "volunteer forces" engaging in minor skirmishes. It wasn't until 1780, when the Count of Rochambeau led 6,000 French troops into Arica, that the major expenditures began. From then until Arican independence in 1783, France's annual military spending exceeded 300 million livres.
War, in any era, is a voracious consur of wealth.
While victory in war can bring substantial rewards, France needed to invest a massive amount of money upfront. If not handled properly, the French finances, which had just crossed a precarious threshold, could once again plunge into a deep crisis.
How could he raise the funds needed for the war?
The usual thods for raising large amounts of money in this era included taking loans from banks or private lenders, issuing war bonds, or imposing war taxes.
Joseph sighed inwardly, knowing these were all risky strategies. The first two thods would burden the national treasury with heavy interest paynts—such warti loans often had interest rates as high as 40%. And raising taxes would be even more dangerous. He had just gone through the trouble of quelling public unrest by addressing the grievances that led to the storming of the Bastille. The last thing he wanted was to reignite those tensions with high taxes. Besides, a military tax had already been imposed by Louis XV, and it hadn't been lifted even after the war ended.
He ntally reviewed the thods that could quickly raise large sums of money. The first thing that ca to mind was paper currency. Conveniently, the "banknotes" issued by the French Treasury had not yet been officially declared the sole legal tender in France. This might be a good opportunity to increase their issuance.
Moreover, this could benefit the current economic situation in France. The French industry was in a phase of rapid growth, and a bit of inflation could stimulate consumption, thereby boosting sales.
Next, he considered the French Comrcial Insurance Company. In the future, the insurance industry would beco a key pillar of the financial system.
However, in the late 18th century, the insurance industry was still underdeveloped. Aside from marine insurance, there were only a few policies available, such as fire insurance and property insurance. The market was still very small...
But then Joseph suddenly smiled and shook his head.
Was he thinking too narrowly?
If the market is small, that ans there's a lot of untapped potential! If people don't have a demand for insurance, why not create that demand?
If he could successfully promote the insurance industry, raising funds for one or two years of war would be no problem. There might even be enough surplus to invest in industrial developnt.
He imdiately took out pen and paper and began jotting down ideas on the small wooden table in his carriage: health insurance... comrcial insurance... investnt insurance...
Before long, Joseph's carriage ca to a stop near the Guard Corps' camp north of the town. A squad of soldiers on duty quickly ran over and lined up in front of the Prince's carriage to welco him.
The way the soldiers held their heads high and stood with straight backs showed just how high their morale was at that mont.
Joseph smiled and nodded at the soldiers before asking a major who had co to greet him to take him directly to the field hospital.
A section of farmhouses on the outskirts had been temporarily rented and converted into a military hospital. Together with the tents pitched between the buildings, the area was now treating more than 300 wounded soldiers.
Perna was busy coordinating the nurses, and when she heard that the Prince had arrived, she quickly curtseyed to him from afar before being called away by the shouts of the injured.
Many local Luxembourgers had been hired to help. Luxembourg, being located at the crossroads of France, Germany, and the Netherlands, was ho to people who were masters of language, often fluent in three languages from a young age. So, they had no trouble finding work here.
They also didn't have much preference for which country ruled them.
The wounded soldiers, upon seeing the Prince, struggled to stand and salute, but the accompanying officers quickly stopped them. Instead, Joseph was the first to respectfully tip his hat to them and sincerely said, "You are the heroes of France. France is honored by your sacrifices and dedication!"
(End of Chapter)
User Comments
0 comments from readers