The Confusion

Eliza to Pontchartrain
MARCH 1694

Monsieur,

A man of your erudition, a scholar as well as a nobleman, must know that the office of controleur-general comes with certain perquisites. If you have been slow to avail yourself of the same, it is not out of ignorance, but because your only thought is to be of service to the Most Christian King. I have long noted, but never mentioned this, for it was obvious that you were satisfied. But the latest letters from my friends in France are of a very grim cast, which has caused me to wonder whether you have, as you lay in bed in the dark hours of the night, regretted that you had not been more forward in looking after your own interests during those early years when France’s prosperity was the envy of the world, and her credit as good as gold.

I would be remiss if I did not let you know of a certain opportunity. As you know, France has since ancient times owed money to any number of different creditors at any given time. Part of the job of the controleur-general is to see that these obligations are discharged by assigning them to sources of revenue; for example, if France owes such-and-such number of livres to Signore Fiorentino, the controleur-general might go to some French count and say, “This year, when you collect the taxes on your lands, send the proceeds to Signore Fiorentino, as we owe him a debt.” A consequence of this is that not all French government debts are of equal value; for if the count, in the example above, was honnete, his lands bountiful, and the weather good, why, Signore Fiorentino would be repaid promptly and in full, while some other creditor, whose loan had been assigned to a less reliable source of revenue, might come up short-handed. It is this variability that makes the work of the controleur-general so endlessly absorbing. Not to mention profitable; for nothing in law or custom prevents the controleur-general himself from purchasing some loans that have gone bad, and then re-assigning them to more reliable sources of revenue, so that they are suddenly worth more. It is a perquisite of the office, and no one would give it a second thought if you were to avail yourself of it.

As it happens, for several years I have been purchasing underperforming loans from diverse petty nobles who did their parts to be of service to the King when the present war broke out. The total number of such transactions now numbers in the hundreds. The principals of all of these loans, summed, come to rather more than half a million livres, though I acquired them for less than a quarter of that amount. I will now sell them to you, Monsieur, for just what I paid for them, plus a soupcon of five percent. If, as I suspect, you lack the liquid assets necessary to close such a transaction, I will accept your word as a nobleman, and not think of being repaid until after you have had the leisure to plumb all of these obligations into adequate sources of revenue. Once you have accomplished that, you should be able to see that each of these loans is repaid in full, which means that you could in theory get back quadruple what you shall owe me.

No gratitude is expected, or desired; my only wish, as ever, is to be of service.

Eliza, duchesse d’Arcachon My lady,