While You Play in Europe, Louis Heads to America
August 1786, Versailles Palace, Council Chamber.
Another day was passing peacefully. Or at least, it wasn't that peaceful.
"Your Majesty. Total imports for the second quarter stand at 83,317,695 francs, while total exports reached 200,715,441 francs. That's a surplus of 123,836,723 francs."
It was all because of the current account balance.
To put collars on the necks of the European nations, he needed to tie all their currencies to the franc. But they were buying food and draining every last franc from France's coffers, leaving Europe parched for cash. At this rate, those countries might start minting gold coins instead of francs someday.
"The thirteen mints across France are producing an average of 600,000 francs per month, but the amount leaking abroad is minimal."
The surplus was so massive that they'd delayed introducing tariffs and VAT just to stem the inflow somehow. Yet it still ballooned. They'd printed more money in a pinch, but that only fueled domestic inflation. The southern industrial zones had soaked it up, masking it with growth rates, but a mistake was a mistake.
"What about increasing imports?"
"We're already at the limit."
A natural outflow of currency would be ideal, but Europe's private sector was too puny to expect that—excluding Britain and France, anyway. In this transitional phase of the Industrial Revolution, productive output differed by factors of five to a hundred between revolutionized nations and the rest.
"Report on the current account statuses of all nations excluding Britain."
In the end, adjusting the non-industrialized countries' balances required state-level investments. In other words, finding excuses to pump money out.
"Denmark's been balanced at a near-zero deficit thanks to payments for Grimsbytton rare minerals. Italy's the same, including road construction fees and extra pay for our garrison troops. The countries still needing adjustment are Britain, the German Customs Union, Spain and Portugal, and the United States."
The United States?
"Europe can be excused because of the Grimsbytton blight, but where the hell is America getting its surplus from?"
"The U.S. has too much federal autonomy—no tariffs. Plus, they have nothing to sell us. Their main exports are lumber, wheat, corn. That's it. Meanwhile, what they import from us? Expensive stuff like Lorraine steel and southern French manufactures. Even their foodstuffs are luxury wines from Bordeaux and Champagne—high spending, low earnings."
America's about to pop champagne and trigger a crisis. They can't even hoard gold yet.
"This isn't good. The situation is very not good."
My free trade vision's crumbling here.
"Your Majesty. The Treasury deems further current account adjustments impossible. Other nations simply can't offer us meaningful value."
"Then we'll have to approach it politically."
France had sparked its own Industrial Revolution with the Lorraine steelworks and southern industrial complexes, leaving nowhere else to buy manufactures except Britain. For the price of one kilo of foreign steel, Lorraine could produce fifty; Britain, 130.
Time to tidy up Britain first, while it's on my mind.
"Britain's balance could be fixed by buying machine tools and investing in the southern industrial zones."
"Noted."
Industrialized nations advanced at breakneck speed; catching up meant spending like this. Plus, it was a chance to propose a ladder-pulling alliance on industrialization.
"Your Majesty. A word from the Foreign Affairs Director. For the German Customs Union, how about importing iron ore and coal? The Lorraine steel complex is right there for it. We could even join the Customs Union and seize control."
"Rejected. No reason to feud with Prussia."
That'd eliminate their trials.
"Iron ore and coal imports are fine, though. Treasury, run the numbers on this."
Digging near the Ruhr would yield either; not an unreasonable demand. Early discovery of coal or iron deposits would give Germany staying power, making for believable trials.
"Spain and Portugal... no answers there."
Truly none. They had colonial sugar, cocoa, tea, coffee... but they'd hit import saturation. Luxury spice bombs like bûche de Noël existed, but those were seasonal novelties, unfit for steady trade.
Hmm. Let's recap. Buy machine tools from Britain for industrial investment; iron ore and coal from the German Customs Union for steel raw materials. Chemical investments via Danish minerals; Italy got goodwill garrisons. What more? All feasible R&D was done, gaps filled by imports. And still a surplus.
French citizens loved the high purchasing power making foreign goods cheap, but I was dying inside.
"Um, Your Majesty. A word from the Agriculture Minister. Why not develop the North American colony, Louisiana?"
"A colony."
Since the tripartite pact, he'd wanted colonies, but Europe kept stirring trouble.
Really now? Scan the east. The Tenth Crusade turned the Ottomans into Europe's sick man; Catherine's Russia was pinned to Constantinople by southern policy. Poland was dead, Germany digesting under Prussia—100 years to settle. Italy had no growth potential but was rock-stable. Britain? Riots daily. Either way, no one could interfere with France's moves: Britain lacked capacity, Italy no motive. Spain and Portugal were kin with debts of gratitude...
Timing feels right.
"What of the Spanish officials in Louisiana?"
"All repatriated to Spain proper. We've sent junior bureaucrats with double leave as incentive. Handover complete; they're managing now."
Louisiana sounded grand, but managed areas were just Central American sea lanes—mountains of unclaimed land ahead.
Really go for it? Perfect timing for America if Austria doesn't freak. Colonizing there means importing from Spanish/Portuguese holdings, balancing their accounts. Problem: Austria would flip at American expansion. Revolutionaries always lack legitimacy; they'd cling to hegemonic France for scraps.
Not convinced.
"Take out insurance. Develop Louisiana, but lease Central America to us and North America to the U.S."
Pretend interest in American colonies; if Austria twitches, smash them. Napoleon in Italy buys time. Rescuing Joseph II needs cooled revolutionary fervor—colonize till then. Central America? Quick work.
* Venetian Republic, Udine.
"Southeast, four 2-kg guns, 800g charges. Two direct fire, two high-angle. Spotter. 32x telescope."
Napoleon was toying with the occasional dozen cavalry scouts, picking them off with cannons. Peaceful for anti-revolutionary forces, thanks to his talent.
"Gun two. Landed 150 meters short. Elevate three degrees."
With innate gunnery, he sniped foes crossing the Isonzo River.
"Hit... not quite. Effective, though."
Revolutionary scouts thus avoided Udine entirely. Proper recon needed Torre River, but Isonzo crossings drew his fire—no real intel.
"This is getting boring. I'd rather a proper field battle."
Austria's revolutionary government had effectively abandoned the Italian front. No confidence against a mad gunner sniping from three kilometers.
"Right on schedule. Here they come again."
But Austria couldn't halt recon. Persistent scouts asserted dominance—and signaled ongoing attack. A cutoff might invite French-Italian counterstrike. Thus, fake offensives kept Italy defensive.
"Wait, same spot as last week. Gun three. Gorizia direction, 730g charge, 65.2-degree elevation. Southeast wind picking up—add 16g."
But pitting this "fake" against Napoleon was the fatal flaw.
"Direct hit!"
The revolutionary government fed the 16-year-old real combat experience, safely and steadily.
"Grivbalt tables are a mess. Yards and pounds, no wind or weather adjustments. Plenty of time and targets, though—test away."
Moreover, he began compiling field artillery tables from their "targets."
"4-kg gun, north zero azimuth 23 degrees, 850g charge incrementing by 5g sequentially."
"Gun eleven, fire mission complete! Close! Metric-based firing tables. The Napoleon System was born.