The Confusion: Volume Two of the Baroque Cycle

by Neal Stephenson

This quieted the crowd so profoundly that Étienne felt rather bad about it, and began to formulate what showed every sign of being a lengthy and comprehensive apology. But Eliza was having none of it. “You don’t know England!” she said, “But I do, for I am Mercury. England has factions. The one that rules now is called the Tories, and they make no secret that they loathe the Usurper, and want him out. Indeed, our invasion plans are predicated, are they not, on the assumption that the English Navy will look the other way as our fleets cross the Channel, and that the common folk of England, and much of the Army, will joyfully throw off the yoke of the Dutchman and welcome our French and Irish soldiers with open arms. If we grant all of these assumptions, why, there is no difficulty in supposing that the Tory masters of the Mint will strike a few coins for the House of Hacklheber—”

  “Or whichever bank we elect to deal with,” put in Pontchartrain.

  “—without asking too many awkward questions as to where those coins are intended to end up.”

  “Yes—I see the whole thing now as if you have painted a picture,” said Étienne. At which most of the party-guests attempted to get faraway looks in their eyes, as though gazing raptly at the same picture that Étienne was viewing in his mind’s eye.

  Though there were exceptions: “Samuel Bernard,” unable or unwilling to let go of the scheming-Jew impersonation that had garnered him so many laughs and so much attention, was still back in the Petit Salon, storming to and fro between “Paris” and “Lyon,” waving his stick around and demanding to know when he was going to see some of this dough that Monsieur le comte de Pontchartrain had spoken of so convincingly; and “Castan,” his partner in billiards, finance, and (now) drinking (for they had got control of a decanter of something brown), was also beginning to make himself heard on the matter. “What are they on about?” inquired Étienne.

  “Don’t worry, ‘Lothar the Banker,’ ” said Eliza. “You will be paid back.”

  Étienne’s brow furrowed. “That’s right—I quite forgot! I haven’t seen any dough! Is that what those two are so upset about?”

  Pontchartrain intervened, sharing a warm private look with Eliza. “Those two, monsieur, have just discovered something called liquidity risk.”

  “It sounds dreadful!”

  “Never mind, Monsieur le duc. It is a phantom. We do not have such things in France.”

  “That’s fortunate,” said the duc d’Arcachon. “They were starting to make me a bit anxious—and I’m not even a banker!”

  Eliza to Lothar von Hacklheber

  12 APRIL 1692

  Mein Herr,

  PRIDE is a vice to which a woman is no less susceptible than a man, and I, perhaps, more than other women. PRIDE, like other vices, is arrogant of what room it can claim in the human breast, and jealous of that occupied by the Virtues, which it ever seeks to trample on or drive out.

  When I rushed to little Johann’s nursery eighteen months ago to discover his cradle empty, a war began within my soul. On one side was the Virtue of Love: a mother’s natural love for her child. On the other was the Vice of Pride: pride wounded, aggrieved, and humiliated. It was not merely that I had been bested, but that it had happened while I was far away attending a fashionable soirée, rather than staying at home and tending to my duties as a mother. Pride, therefore, was urged on by Shame; and together their legions charged across the field and swept Love’s feebler forces before them. All that I have done since then, where Johann is concerned, has been dictated by Pride. Love’s counsel has rarely been heard, and when I have heard it, I have wilfully ignored it.

  But the soul harbors its own tides. Much has changed in eighteen months. I have a new little boy now. Impetuous Pride, I have learned, is better at seizing ground than holding it. Love’s inroads have insensibly made up all the ground that she lost, and more. This letter may be considered the instrument of Pride’s surrender, and Love’s victory. It only remains for terms to be negotiated.

  Of course you have already dictated the terms; you laid them out with admirable clarity in the note that was left in Johann’s crib. You seek the return of the gold that was seized off Bonanza in August of 1690 and that is believed to be in the hands of the band of thieves and pirates led by the villain Jack Shaftoe. You phant’sy that I had something to do with the theft and that I know where Jack is to be found.

  In truth I had nothing to do with it and I have no idea where he is. But this is a prideful response, which brings me no closer to seeing my little boy again. The loving response is to give you, sir, what you want, to appease your anger and balm your wounds, though it be never so humiliating to me, your humble and obedient servant.

  So: though I cannot return the gold, and do not know where Jack is, I shall protest no more, but do all in my power to give you what I can in compensation.

  As to the whereabouts of Jack Shaftoe: no one knows this, though Father Édouard de Gex and Monsieur Bonaventure Rossignol have devised a scheme to ferret him out. One of the members of his pirate-band writes letters, from time to time, to his family in France. These letters are intercepted and read by Monsieur Rossignol, who, however, is unable to extract all of their meaning, as they are written in an impenetrable code. He makes copies of them and passes them on to the family.

  The family are coffee merchants who until recently lived as paupers in Paris. Then they were discovered by Madame la duchesse d’Oyonnax, who as you may know is the cousine of de Gex. She began to serve their coffee exclusively at her salon, and soon enough de Maintenon herself, at her levée, was heard to ask for coffee of this marque, and in no time at all, this family had established a coffeehouse in the village of Versailles, where they serve a steady walk-in trade as well as purveying beans to the royal château and the other estates that abound in this area.

  Obviously de Gex is behind this. For where previously the family in question were dispersed among various prisons and poorhouses around Paris, now they are all dwelling together in one house in Versailles where the Cabinet Noir can easily keep an eye on them. As I have mentioned, all of the letters that are sent to France by their brother who is a member of Jack Shaftoe’s pirate-band are passed on to them, in the hopes that they will write back to him, and in so doing, divulge something to M. Rossignol. So far this has not been productive of useful information. The family do not write back. This appears to be because they have nowhere to write back to. For the ship of L’Emmerdeur and his band is wandering all over the Red Sea and the Persian Gulf, so that trying to intercept it with a letter posted from Paris is akin to trying to strike a horsefly with a round fired from a siege-mortar. Nevertheless, the scheme that M. Rossignol and Fr. de Gex have devised to trace Jack’s movements is well-conceived and likely to bear fruit sooner or later. When it does, I shall be in a position to know about it, and will pass the information on to you.

  As to the gold you lost: since I cannot satisfy you where this is concerned, I have resolved to compensate you, inasmuch as that is possible, by other means. I am well aware that the gold taken off Bonanza possesses special properties, the loss of which no amount of mundane silver and gold can make good. But until such time as the thieves are tracked down, there is nothing I can do but try to make up your losses in the only way I know how. I lost all of my personal assets shortly after Johann was born, and so have no money of my own that I could send you. The property of my new family, the Lavardacs, is not at my disposal. I can dwell in the family residences, but not sell them. I can eat off the family plate, but not melt it down. However, my position does afford me a matchless vantage-point on the workings of French government finance. I frequently become aware of opportunities in this field from which a man in your position could reap considerable gains with little effort or risk. As a sort of down-payment or, if you will, interest on the lost gold of Bonanza—which I have every intention of repaying in full when it becomes possible—I present you, now, with such an opportunity—the first in what I hope will grow into a long series of profitable liaisons.

&
nbsp; Your agent in Lyon, Gerhard Mann, will presently be able to tell you more concerning this, but here it is in a nutshell: The French government needs to transfer silver to England to pay the French and Irish troops who will invade that country from around Cherbourg in late May. They were going to ship the silver over directly, but recently I have convinced them that it will be more efficient to make use of the existing commercial channels, viz. a Bill issued in Lyon against the credit of M. Castan (backed, it goes without saying, by France) and payable in silver coin in London. The Bill would need to be issued early in May and payable in late May or early June, and it would have to be transferable, since the identity of the French payee in London might not be known until later, and in any case, for obvious reasons, would need to be kept secret.

  Because this is being arranged at the last minute, during wartime, you could probably demand a very high fee, as these things go.

  Moreover, the transaction would involve relatively little risk for you. You may laugh at this, for it must sound absurd to claim that shipping silver to England in wartime is not risky; but it is true, for the reason that the invasion probably will never happen. And if it does, it will fail. The entire plan is predicated on the assumption that the common people of England will welcome an invasion by French and Irish troops come to place a Catholic on the throne. Nothing more absurd can be imagined. You may easily verify this through your own excellent sources. So by far the most likely outcome is that the Bills you issue in Lyon will never reach England, and never be presented for payment; the transaction will be cancelled, and you shall get to keep the fee and the float on the funds transferred in Lyon. The worst possible outcome, then, is that the Bills are presented and accepted; but this would be nothing more than a routine, albeit large, transaction for the House of Hacklheber.

  I have done all in my power to predispose M. le comte de Pontchartrain, M. Bernard, and M. Castan to select the House of Hacklheber as its bank for this transaction. They show signs of favoring the idea; yet as you know, there is much competition in Lyon, and I do not have the power to compel them to deal with you. I shall continue to work discreetly on your behalf unless you write back requesting that I desist.

  In return I ask nothing, save that you might show me more favor than in the past, and consider allowing me to pay a brief visit (chaperoned if you wish) to little Johann, if I can find some way of getting to Leipzig.

  I am, mein Herr, your humble and obedient servant

  Eliza, duchesse d’Arcachon, comtesse de la Zeur

  Eliza to King William III of England

  12 APRIL 1692

  Majesty,

  By now you must have heard from a hundred different sources that an invasion of your Realm is being readied on the Cotentin Peninsula. You may even know that it is to set sail from Cherbourg during the third or fourth week in May. I shall not waste your time, then, belaboring these facts. I write to you, not as a spy for England, but as a champion of France. This invasion must never be allowed to go forward. It is a ruinously stupid plan. Its defeat will neither improve the security of England (since it is doomed in any case) nor bring England glory (since it is so feeble and ill-conceived). The French have convinced themselves otherwise. Somehow they have made themselves believe that all England is against your majesty, and that your majesty’s Army and Navy are so riddled with secret Jacobites that they will declare their allegiance to James Stuart as soon as the signal is given; that the Royal Navy will suffer the French to cross the Channel in force, English regiments will make themselves scarce while a French beach-head is established in Wessex, and English people will welcome French and Irish invaders on their territory. Perhaps all of this is true; but to my ear it sounds absurd. I suspect that your spies and emissaries in France have been making a pretense of hostility to your majesty and whispering, into the ears of their French counterparts, all sorts of flattering and seductive nonsense about how England is poised for a Jacobite rebellion. If so, your majesty, the deception has worked all too well, and made the French so cocksure that they have laid plans, devised stratagems, and formulated resolves that seem to your humble and obedient servant like utter lunacy.

  I pray that you will write a letter, or send an emissary, to King Louis XIV; announce that you know of the invasion plans; and make le Roi understand that the project is doomed. If French troops and sailors must be sacrificed on the fields of Mars, then let it happen in fair and honourable clashes of arms. It is more than I can bear to see them go down to David Jones’s Locker in pursuit of a folly.

  Eliza, Duchess of Qwghlm, Duchess of Arcachon

  P.S. I have sent three copies of this letter in the holds of three different smugglers’ boats. If you have received redundant copies, please accept my apologies for so making a pest of myself; but the matter is important to me.

  Eliza to Monsieur le Chevalier d’Erquy

  13 APRIL 1692

  Monsieur,

  Thank you for your assistance in despatching those letters to England. I could never have made the necessary contacts without the assistance of one such as you, a Breton born and bred, who knows his way around the little coves and harbors of the Golfe de St.-Malo. I pray that you will forgive me for having laughed at the look on your face. It was entirely proper and prudent for you to open and examine those letters before you became complicit in sending them across the Channel, for who knows what they might have contained. Many times it has happened that a woman, well-meaning but foolish, allowed herself to be duped, by some conniving wretch of more wit and less virtue, into carrying letters that contain damaging information. Far from being angry with you, I am indebted to you for having had the prudence to examine the letters before turning them over to those smugglers. In return, I pray you will forgive me for the way I laughed out loud when you were confronted with page after page of gibberish. As you must have collected by now, I dabble in the stocks that are traded at the bourses of London and Amsterdam. Because of the state of war that now exists between France and Holland/England, it is difficult for me to communicate with my brokers there through the channels that are customary in peacetime. That is why I put you to so much bother in sending those letters. But such communications, by their nature, consist predominantly of numbers and financial jargon. You should not be surprised that you were unable to make any sense of them.

  This brings my subject around to business. You should know that my resources are limited and, for the most part, illiquid. However, many of the assets of the Lavardac family naturally produce revenue. Farms, for example, generate rents, which are delivered to our coffers. Those coffers are also drained by countless expenses, but if the affairs of the family are well managed, some surplus may from time to time result. It then becomes my responsibility to see to it that the surplus is put to productive use. Many opportunities for investment present themselves to me every day; I try to distribute the available capital among these in a rational way.

  So the rumors that you have evidently been hearing are correct. I have, on several occasions, purchased distressed loans from persons who have lent money to the King’s treasury and who have found that the interest payments on those loans are insufficient for their needs.

  Like all proper transactions in a market, these must be of benefit to both parties. To the original lender (which would be you, in this case) the benefit is that you receive hard money, where before you had only a piece of paper signed by the contrôleur-général promising to make interest payments. For me, the benefit is somewhat more difficult to explain. It is a service I perform for the King. Suffice it to say that by consolidating a large number of such loans into a single instrument, representing a very large amount of government debt, I may help to bring some simplicity and clarity to what would otherwise be a most complex and tedious welter of affairs. In this way the œconomy of France may be better regulated and altogether more efficient.

  At this point it is necessary to bring up the awkward and distasteful subject of terms. Specifically, we must decide what
is to be the discount at which your loan is to be sold—i.e., for each hundred livres tournoises of principal that you originally loaned to his majesty’s treasury, how many livres tournoises are you to receive from the buyer now? Such discussions are naturally repellent to Persons of Quality. Fortunately, we may refer the matter to an impartial judge: the market. For if you were the only man in France who had ever tried to sell such a loan, why, we should have to work out terms without any reference to established customs or precedents. Endless discussion would be entailed, every word of it beneath our dignity as nobility of France. But as it happens there are many hundreds of recent precedents. I myself have purchased no fewer than eighty-six loans. At the moment, you are one of seven men who is offering me such an opportunity. When the number of participants is so large, a price emerges, as if by magic. And so I can tell you that the price of one hundred livres tournoises of French government debt, three years ago, was eighty-one livres tournoises. Two years ago it was sixty-five, a year ago it was holding steady around forty, and today it is twenty-one. Which is to say that for every hundred you loaned the Treasury, I will pay you twenty-one today. Tomorrow the price may rise again, in which case it would benefit you to hold on to the loan, and sell it later; on the other hand, it might decline further, in which case you may wish you had sold it today. It is regrettably not possible for me to offer you advice in the matter.

  My attorney at Versailles is M. Ladon and I have let him know that he may hear from you on this. He is quite proficient in such transactions, having, as I mentioned, carried out more than four score of them. If you elect to proceed, he shall see to it that all of the requisite papers, &c., are drawn up correctly.

  In closing, I thank you again for your assistance in sending the letters to England. I shall probably need to send more in the near future; but now that you have shown me where to go, and introduced me to the right men, my staff, some of whom are old Marines from around Dunkerque, should know what to do.