by Eric Flint
"All right, Rebecca," Frederik muttered unhappily. "So Don Fernando is proving to be clever. I had almost hoped . . . Well, no matter."
"I understand how you feel, but it's still better this way. Just as things are better without another Alva," Rebecca commented. "Now, we must counteroffer, as well you know. What would Don Fernando agree to?"
"He's not getting the Wisselbank in Brussels. I'll not agree to that. Neither will the members of the city council who are still in town. In fact, getting them to agree to move it at all will not be easy. They will have to get something for it, something substantial."
"That seems like a reasonable assumption. I'm sure we can eventually find a compromise," Rebecca agreed.
Rebecca had performed the introductions and Frederik Hendrik had been very gracious, offering everyone a seat in the meeting room and listening carefully to their explanations. Andries Bicker, the representative of the city council, was obviously disturbed. Bicker wanted the bank open, but he wanted it kept in Amsterdam. His attitude came across as a sort of groveling resentment.
"What brings you through a siege to visit Amsterdam?" Frederik Hendrik asked. "I know the outline of what you have done but not really the why of it."
Looks were passed among the group and ended up on Fletcher. "We want the Dutch guilder to survive as a viable currency, especially the bank money. It facilitates trade and allows a fairly constant money for other currencies, including the New U.S. dollar and probably soon the USE dollar, to trade against."
"Why? The failure of the Wisselbank and the loss of bank money would seem to be an advantage to you."
"We want to limit the number of New U.S. dollars to those supported by the product of New U.S. industry. On the other hand, we want enough good dependable money to allow the economy to grow. If we do the first, we can't do the second, not with our own money. So, we suggest that the Wisselbank be moved. Don Fernando offers Brussels as a suitable location."
"Brussels?" Andries Bicker squeaked. "What good does the Wisselbank do Amsterdam in Brussels? Is this the sort of aid you bring us after all the money the citizens of Amsterdam . . ."
"Calmly, Herr Bicker," Frederik Hendrik instructed. He then turned to Fletcher. "I would likely make the same suggestion if I were Don Fernando. If I agree with this, he can sit back, relax and let the besieged city cart all its wealth to his treasury without having to actually take the city to get it. And, at the same time, he would receive the praise of Europe's merchants. At least, they will praise him until his brother needs some extra cash. Then the merchants of Europe may not be so pleased. The Spanish Habsburgs don't have the best reputation where money is concerned, you understand."
"Yes, sir, that is true," Prince Karl agreed. "However, Don Fernando is not his brother."
"He is his brother's subject," Frederik Hendrik insisted. "To place the Wisselbank in his capital is to place the key to the vault in the hands of King Philip of Spain. Olivares will talk Philip into looting the bank because Gaspar Olivares thinks he can restore the glory of Spain if he hires enough mercenaries. I won't put the Wisselbank into Olivares' control, not even indirectly."
"Yet if the Wisselbank remains here it does neither Europe nor your nation any good," Don Alfredo pointed out. "Not unless you are prepared to loot the Wisselbank yourself. What is the benefit to Europe if you do so, rather than His Majesty, the king of Spain?"
"I would pay it back," was Frederik Hendrik's quick response, "assuming it became necessary to use the funds at all."
"Granted," Franz Kunze gave Frederik Hendrik a respectful nod. "Miss Wendell, the daughter of Herr Wendell here," Franz indicated Fletcher, "had the excellent notion of seeing if things could be settled peacefully through negotiations. When we had the notion of moving the bank, Don Fernando offered Brussels as a possible site. I don't expect you to agree to it, nor do I believe that Don Fernando does. It was an opening bid. The question now is: what is your counter offer?"
Frederik Hendrik sat quietly for a moment. "I see," he finally answered. "I must have some time to consider. Perhaps you will attend me tomorrow?"
As the party left his reception room, Frederik Hendrik motioned for Rebecca to stay behind. When he was sure that no one could overhear his remarks, he turned to Rebecca, with a grin on his face. "That went quite well, I think. What do you think, Rebecca?"
"It went moderately well, yes." Rebecca responded with her own grin. "What will you tell them at tomorrow's meeting?"
"The truth, Rebecca. And the truth is that I will not allow the Wisselbank to be moved to Brussels. Whatever they may say, or even believe, that would be too much of a temptation for Philip, and I cannot trust that Don Fernando will not comply with his wishes. I will suggest Groningen, I think. We won't get an agreement for that, and it's a stupid place to put the Wisselbank, anyway. Still it may encourage my young opponent to make a serious offer."
Frederik Hendrik smiled thoughtfully. "It will do us no harm, in the long run, for Don Fernando to realize that his word is not in question. I do not question his word, myself, even. But, as long he is under his brother's orders and cannot guarantee his brother's actions, any agreement we make with him might be overridden."
"Just how good a point does Frederik Hendrik have about King Philip and Olivares?" Fletcher asked Don Alfredo, when the servants had left the room.
Don Alfredo hesitated. "His Majesty came to the throne when he was very young, just sixteen. His advisors felt that at such a young age he was not ready to assume the duties of the king of Spain." Don Alfredo looked around at his companions, but they were nodding in agreement. "Olivares is an honest man and was chosen to run things until the king came of age. Olivares did, in fact, do a great deal to remove corruption from the court.
"However," he continued, "Philip wasn't encouraged to study or prepare to take on his royal duties. Instead, he was encouraged to enjoy the privileges of his birth. His Majesty is now twenty-eight years old, but Olivares is still mostly running things."
"Sounds like what I've heard," Fletcher agreed. "How are relations between Don Fernando and Philip?"
"Not good," Don Alfredo conceded. "Olivares has encouraged, shall we say, a certain, ah . . . distrust. Don Fernando is generally sent to posts as far from Castile as Olivares can manage. Don Fernando and his brother have never been allowed to become close."
"All of which means that Frederik Hendrik has an excellent point," Prince Karl said.
Franz Kunze nodded his agreement. "Olivares will want the silver and not just because it's a lot of money. He will want it because he won't want Don Fernando to have it. For that matter, the credit rating and popularity that Don Fernando will get out of this if everything goes well will likely give Olivares pause. It's likely to become a test of loyalty."
"Test of loyalty?" David asked, confused. "How could it be a test of loyalty?"
"Perhaps, a surety of loyalty," Karl explained. "Try to look at this situation from Philip's point of view, or the point of view of Olivares. Here is Don Fernando, a successful general and competent administrator. Why should he not want the throne? To turn the silver over weakens Don Fernando and strengthens the king. If they demand the silver and Don Fernando refuses them, they will take it to mean that he is no longer loyal. Even if he's loyal at the moment, they will feel that that could change as Don Fernando falls under the influence of others. Olivares, and Phillip, for that matter, will feel that the only sure safety is to keep Don Fernando weak."
Karl grinned as some of the delegation members looked at him in horror. "Actually, no, my family is not like that, not at all. I have seen this, though, in the court of Ferdinand, in Austria. Anyway, Olivares and Phillip will start with the presumption that Don Fernando is disloyal and look at every thing he does in that light. Anything Don Fernando does that makes him stronger or more popular will be seen as a step toward taking the throne. Putting the bank in Brussels is going to make them almost as nervous as it makes Frederik Hendrik. They will feel that they must get the si
lver out of there—partly to get the silver, true, but to keep Don Fernando weak as well."
The bargaining began in Don Fernando's headquarters. "No. Not Groningen," Don Fernando mused. "That is not acceptable. Perhaps Rotterdam."
In Amsterdam the next day, Frederik Hendrik laughed without merriment. "Rotterdam would be excellent," he agreed, "once I have forced the prince of Spain from my territory, and control my capital again. In the mean time; however, there is still the problem of his older brother. Besides, in the event of a peaceful settlement, having the Wisselbank in Rotterdam would make it rather harder for Don Fernando to return my capital. Not Rotterdam."
Negotiations continued, back and forth for several days.
Karl was beginning to feel like the "rubber ball" in the song he had heard at the coffee shop one day. "Brussels, Groningen, Rotterdam, good grief! Can't these two agree on a location for the Wisselbank?"
"It's not really about the location, and you know it. It's about who controls the location. Neither one wants to cede that control to the other. Do you suppose the two of them would agree to a suggestion from us?" Fletcher asked. "How would they feel about Hamburg? That would be convenient for us, and it would take the bank out of both their territories. I'd like to get home before Christmas, you know. It seems like we've been stuck here forever."
"I don't believe that either one will agree to Hamburg," Karl countered. "And it's nowhere near Christmas. You exaggerate. Still, we can try it. It might even give them the impetus they need to agree on a place."
The Hamburg suggestion received such a resounding no from both parties, that Don Alfredo and Karl felt like their ears were ringing. They sat at the table, resting from the ordeal of dealing with two very clever princes, each determined to get the best deal he could.
"See, David, the concept of 'nobility' is not entirely without merit." Karl grinned. "They are both amazingly clever and capable men." The delegation was staying at the inn in Amsterdam that night.
"Philip." David held up one finger. "Charles." He held up another. "Louis." He held up a third.
"I said 'not entirely,' " Karl muttered.
Fletcher snorted. The on-going discussion, well, friendly argument, over the merits of democracy versus royalty had provided entertainment and some irritation for the rest of the group.
"Okay," Franz mused, bringing everyone back to the point. "What do we have? So far, we've eliminated Brussels, Groningen, Rotterdam, Haarlem and Hamburg. Neither one of them is willing to let loose of the Wisselbank, it seems. What if they split it? Keep part in Amsterdam and part of it in a city controlled by Don Fernando? After the siege is settled, I mean. Until the siege is settled, they'll have to use one of Don Fernando's cities. Frederik Hendrik doesn't have a city that's suitable, and I'm sure he knows it."
Karl and Don Alfredo considered the suggestion for a moment. "That might work," Karl remarked. "It just might. They would both have it that way, at least eventually."
"Wait a minute," David said. "Why wait for the end of the siege to split the bank? What about this . . . the Wisselbank is a full reserve bank, and all the reserves are in one place. About a block and a half over that way." David pointed vaguely, and, Karl noticed with amusement, waved in the wrong direction.
"Suppose the reserves were split now," David continued. "It would remain a full reserve bank. The reserves would simply be split between two locations. Part of the reserves stay in Amsterdam and the rest gets moved to a town controlled by Don Fernando. Say Antwerp. That might solve part of the problem."
"True," Karl said. "If all of the reserve goes to Don Fernando's territory, Philip is going to get greedy and demand the silver. Don Fernando would have to either give him the silver or go into open revolt. If all the reserves stay here, people can't get at their silver. That would cause the guilder to collapse, exactly what we're trying to prevent."
"That's just it," Franz said. "If we only move part of it—if we move, say, a third of the reserve, there will still be two-thirds safe here in Amsterdam. With Don Fernando's promise that he won't loot the Wisselbank if he takes Amsterdam, and Frederik Hendrik's promise that Don Fernando won't take Amsterdam, well, the bank will be protected by two armies for as long as the siege lasts. There will be absolutely no way that Philip can get at the silver that remains in Amsterdam. If he grabs the silver in Don Fernando's territory, he'll hurt himself badly. His reputation will suffer just as much as if he'd grabbed the whole lot, but he'll have a lot less cash to gain."
"In fact," Fletcher added, "if Philip takes the silver in Don Fernando's territory, it's the sort of thing that could push Don Fernando into rebelling. Especially since the whole pile won't be in Philip's hands. The silver that stays in Amsterdam will act as a guarantee of the good faith of Don Fernando and his brother."
"Be careful, gentlemen," Don Alfredo advised. "You're coming perilously close to advocating or accusing or something . . . Well, never mind. But, please, let's keep our speculation to financial matters. For my peace of mind, if for no other reason."
"Certainly," Fletcher agreed and continued. "A chunk of the silver will be in one of Don Fernando's cities and be available for anyone with bank money to withdraw. I think that there should be another part of the agreement, too. There should be an arrangement to move more silver if the Antwerp reserves run low. For that matter, there ought to be an arrangement to shift reserves to Amsterdam if the bank gets a lot of deposits in Antwerp. That would restore most of the confidence in the Dutch guilder, don't you think? The same thing can be done with the lending bank."
"It looks to be the best we can do," Don Alfredo agreed.
Rebecca continued to sit quietly, hands folded in her lap, waiting for Frederik Hendrik to finish thinking. The delegation had made their proposal of a split silver reserve.
Frederik Hendrik looked up, smiling. "I will move the Wisselbank to Antwerp. I'll do it in spite of Herr Gunthor's objections. It is the best choice, given the sureties the merchants suggest. It is a symbolic victory for Don Fernando that doesn't really hurt us, at least not any more than any other city he controls does. Best if I offer it, I think. Your merchants have done a dangerous thing, Rebecca Abrabanel. They have given me a hope to cling to.
"I told you at our first meeting that I would win the siege but lose the war. I wasn't just talking about the war of armies, as you know. Amsterdam can hold out for at least a year. With the warehouses and their contents, we could probably hold out much longer. A year, though, that will be long enough for Don Fernando to see the wisdom of a negotiated settlement. I knew that before the siege closed in. My biggest concern all along has been what would be left of the Dutch Netherlands after the war is over. A siege would not destroy Amsterdam, not really. A year in which all the business that was done in Amsterdam had to be done somewhere else—that would be different. A year in which the bank and the exchange are closed and the merchants have to take their business elsewhere, what effects will that have?
"I'm the leader of a nation of merchants, Rebecca." There was a glistening in Frederik Hendrik's eyes. "Fifty years, at least, is what it would take before Amsterdam recovered, if it ever did. Now, though, if we can reach agreement, it will not be so bad. If the Wisselbank can reopen its doors and the exchange can resume its functions, Amsterdam could recover in a decade, possibly less. For that . . . I'll throw the dice, Rebecca. For that, I will risk it all.
"I will only allow it if I am provided with concessions in return and not all of those concessions will be from Don Fernando. From him, well, raw materials will be running out soon, and a tradesman must have supplies. The tradesmen also need customers. Perhaps Don Fernando would see his way clear to allow the import of certain items.
"I'm sure he won't allow food to be imported, but with the amount of grain that is stored in the city's warehouses, I am not greatly worried about food. Leather, though, leather for the boot makers and saddle makers, perhaps that might be allowed, I hope, as well as a few other requirements."
Rebecca nodded, heart pounding with hope. Maybe the Spanish prince would see reason.
Frederik Hendrik continued. "I will also need some solid assurance that the bank will not be looted. The splitting of the reserves, it will help, but I will need more. So from you, Rebecca, I need your miraculous radio between here and Antwerp, so that the merchants of Amsterdam may keep in contact and arrange deals and do business. The radio, it will also be a way to confirm that any more silver shipped from Amsterdam does indeed represent silver that has been legally withdrawn from the Wisselbank and not a loan coerced by Philip."
Rebecca found herself holding her breath.
"I am serious, Rebecca. I will not let it go, not without this concession." Frederik Hendrik slapped his hand on his thigh for emphasis, the sound causing her to start a bit and begin breathing again. "I will not."
"I shall see what can be arranged," Rebecca agreed. "I cannot make a promise, you understand. There are many things to be considered."
