Your Postal Service is in the hands of six tax-farmers
and a dozen subordinates (partners).
and a dozen subordinates (partners).
Treitschke - 1915 - Confessions of Frederick the Great
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? Frederick the Great 103
Flagons Flagons Flagons
of Wine. of Beer, of Spirits.
In the Boroughs and Towns . . 400,000 1,500,000 30,000
In the Villages and Hamlets . . 100,000 800,000 12,000
500,000 2,300,000 42,000
Totals:--
Beer 2,300,000
Wine 500,000
Spirits 42,000
Total Amount 2,842,000
According to the Two taxes which we impose:
FOR THE towns:
livres. livres.
400,000 flagons of wine at 10 sous
make 200,000
' 1,500,000 flagons of beer at 4 deniers
make 25,000
30,000 flagons of spirits at 20 sous
make 30,000
255,000
FOR THE villages:
100,000 flagons of wine at 5 sous make. . 25,000
800,000 flagons of beer at 3 deniers make. 12,000
12,000 flagons of spirits at 10 sous make . 6,000
43,000
298,000
We have sent circular instructions to the Burgo-
masters of the towns, and others to those of the villages
to the following effect : --
instructions to the burgomasters of magdeburg^
Gentlemen,
By the returns which you have forwarded to us,
'The king's arithmetic is unintelligible.
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? 104 The Confessions of
it is an established fact that the dealers in wine, beer,
and spirits sell each year in your town
133,000 pots of wine
800,000 " " beer
15,000 " " spirits.
We charge you, Gentlemen, to collect, in whatever
way suits you best, the sum of 93,833 livres, 6 sous,
8 deniers, to wit : --
livres. s. d.
For the 133,000 flagons of wine, at 10 sous. . . 66,500 - -
For the 800,000 flagons of beer at 4 deniers' . 13,333 6 8
For the 15,000 flagons of spirits, at i livre. . . 15,000 - -
Equal to the Imposition 94,833 6 8
We give the Town, for Expenses of Collection,
as making very nearly the consumption of a third
of the
livres. s. d.
Province 20,000 - -
This will not yield to the coffers of the
King more than 74,833 6 8
94,833 6 8
And by this arrangement the Eling will not collect
further taxes from your town. You will have the
satisfaction of giving him 16,000 livres more than the
Tax-farmers, and the privilege of adjusting the tax
on yourselves as you desire, and you will gain about
43,000 livres a year.
^ The king's arithmetic is unintelligible.
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? Frederick the Great 105
instructions to the burgomasters of villages^
Sir,
Following the Schedule which you have sent
us, it is obvious that the average sale per annum in
your Village amounts to --
400 flagons of wine
2000 " " beer
150 " " spirits.
We charge you, Sir, on your Village, by whatever
method appears most suitable to the Villagers in
Council for this purpose, to collect the sum of 425
livres.
livres.
For 400 flagons of wine at 5 sous 100
For 2000 flagons of beer at 3 sous 250
For 150 flagons of spirits at 10 sous 75
425
We give to the Village, for Expenses of Administra-
tion, 85 livres, in consequence of which it will only be
reported to yield 340 livres. By this payment the
King holds you exempt from further Customs dues,
and you will have the advantage of giving him about
40 livres a year more than the Tax-farmers, and the
privilege of taxing yourselves, and of gaining about
180 livres.
Concerning Salt^
The Tax-farmers give us yearly for Salt 900,000
livres. In virtue of this sum, we grant them the ex-
clusive right of working the Salt-mines and of manu-
' The arithmetic is again unintelligible.
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? io6 The Confessions of
facturing Salt, throughout our Kingdom, of charging
our subjects 5 sous a pound for Salt, and of forcing
them to take so much Salt per annum. According to
the returns and the consumption of Salt during the
past year, the Tax-farmers have disposed of 18,000,000
pounds of Salt at 5 sous
livres.
a pound, which amounts to 4,500,000
on which they have paid
Hvres.
To the King 900,000
For working the Salt at 6 deniers the
pound 350,000
Interest on advances at about 5 per
cent 350,000
Expenses of Distribution and Salaries. 900,000 3,270,000
Consequently the Tax-farmers retain 1,230,000
METHOD OF WORKING
We have devised a simple method of working, which
the cupidity of the Tax-farmers has rendered extremely
simple. It is as follows: --
We have required in each Province a Statement of
the amount of Salt which it was obliged to take into
store, and having collated all the different Statements,
we have drawn up a rule of division for the 900,000
hvres which the King draws from this farming; that
is to say, we have applied to the Province that por-
tion of this sum which corresponded to the amount
of Salt taken, taking everything into consideration,
and then we have sent to each Province the following
Memorandum : --
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? Frederick the Great 107
MEMORANDUM SENT TO THE PROVINCE OF MINDEN'
Gentlemen,
By the Report which you have sent, we see that
your Province is obHged to purchase from the depots
of the Farmers-General a milHon pounds of Salt per
annum, and to pay them, at the rate of 5 sous the
pound, 250,000 livres.
The King does not wish to use compulsion with his
subjects in the matter of any commodity which is
indispensably necessary to them, and from this
moment he takes over the control of the Salt Mines,
and will manufacture the Salt at his own expense, for
sale to all alike and without distinction. He merely
requires from you that you should send him yearly,
direct and free of charges, the sum of 50,000 livres,
making the i8th part of that of 900,000 livres given
him by the Farmers-General, and which you your-
selves pay since you take a million pounds of Salt,
making also the eighteenth part of the consumption
for one year.
But as by his project the King increases his revenue,
and at the same time confers an advantage upon you,
we propose to go into the matter with you in greater
detail (more minutely).
livres.
You take a million pounds of Salt every year, and
you pay for it 5 sous per pound, which makes 250,000
On this 250,000 livres the King receives only. . . . 50,000
Consequently there remains for the farmers 200,000
Through the enquiries which we have made,
we know that the Tax-Farmers disburse on the 200,000
^ The arithmetic is again unintelligible.
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? io8 The Confessions of
(i) For the production of a million livres.
pounds of Salt at i sou the pound 75,ooo
(2) Interest on advances both for the
75,000 livres and for the 50,000 livres
given to the King, about 6,800
(3) Expenses of Distribution at I sou
per pound 50,000
131,800
Leaving for the Tax-Farmers 68,000
It is this 68,200 livres which the King proposes to
divide with you and your Province, by giving the
dealer for right of sale the 50,000 livres which it costs
the Tax-Farmers in salaries for distribution of this
commodity in your Province. We imagine that your
dealers will be well satisfied.
Tobacco
sous.
We allow our tax-farmers to sell tobacco to the public
at the rate per pound of 45
It costs them the following: --
sous.
(i) Payment to Your Majesty 10
(2) Purchase in leaf 12
(3) Carriage 2
(4) Manufacture 3
(5) Packing (or making up) and waste 2
(6) Extraordinary expense and interest on ad-
vances 3
(7) Wages and expense of distribution 4
- 36
There consequently remains as net gain to the tax-
farmers on every pound 9
According to the total of the past year, this con-
sumption has amounted to eight million pounds.
Thus, our Tax-farmers have made 3,600,000 livres.
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? Frederick the Great 109
In order to secure for ourselves a portion of these
profits, we are establishing a General Depot in each
Province, to which the Tobacco is brought in the first
instance in leaf, to be then manufactured, and finally
sold at a fixed price to whoever wants it.
According to the calculation we have ourselves
made, based upon that of the Farmers-General, each
sous,
pound should cost us not more than 20
(1) For the purchase in leaf 12
(2) Carriage i
(3) Manufacture 3
(4) Packing and waste 2
(5) Interest and advances , 2
-- 20
We shall sell it to the public at 35
Consequently, we shall gain 15
which makes a gain of 2,000,000 livres for us.
There remains 10 sous, which will be re-absorbed in
commerce, and which will be shared, naturally, be-
tween the public and the dealer, for the latter will
certainly be content to make four or five sous per
pound.
Forestry
livres.
This Department is farmed for 2,500,000
Upon this sum we pay 800,000
to an endless number of officials, created formerly for
the purpose of keeping order, exclusive of the cost of
their oflficial reports, which are made at our expense,
and which amount to more than 400,000 livres per
annum.
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? no The Confessions of
livres.
Therefore, from the sum of 2,500,000
we must deduct 1,200,000
Consequently there only remains to
ourselves i ,300,000
In order thoroughly to understand the value of this
source of revenue, we have sent Surveyors into each
Province, who have drawn plans of all our forests, have
produced specimens of them, have analysed the quali-
ties of the woods, have noted the price of each, and
have observed the best method of selling them.
One can judge by the Report on one of our Pro-
vinces the result of their investigations throughout
the Kingdom.
Province of Minden
Report Sent to the Council by the Surveyor
There are in this Province 8,000 acres of Wood.
These 8,000 acres consist of three forests, to wit : --
acres.
That of 4,000
That of. 2,000
And that of 2,000
The forest of is composed of ,
2,000 acres of firs
1,000 " " oaks
and 1,000 " " beeches.
Its situation, close to the Weser, enables all the wood
to be sold at a reasonable price, to wit : --
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? Frederick the Great iii
livres.
That of Firs, which are cut down every
sixty years, at 800 per acre.
That of Oaks, which may be cut down
every twenty years, at 150 "
That of Beech, which one may cut down
at the same periods, at 180 "
According to my calculations, cutting so regulated,
will bring in : --
livres.
Firs, about 33! acres at 800 Hvres, the sum of 26,666
Oaks, about 50 acres, at 150 livres 7, 500
Beech, about 50 acres, at 180 livres 9,000
Total per annum 43, 166
The Forest of . . . is composed of 2,000 acres,
to wit: --
acres.
Oaks 1,400
Beech 200
Chestnuts 200
And White Wood 200
This Forest is not well situated, because there are
no large rivers or big towns in the neighbourhood,
thus I don't cut the wood for sale, but to make the
following use of it : --
Every year I take 24 acres of Oaks, which I have
made into planks,'^ and I find that after deducting
all expenses each acre brings in 250 livres, making a
total of 6,000 livres.
' Or stave- wood -- merrain in the dictionary.
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? 112 The Confessions of
Uvres.
Carried forward 6,000
Then I take 13I acres of beech and of white wood,
because I have divided the 400 into thirty parts, and I
make a Hme-kiln, provided I find in the forest itself the
right kind of material for this purpose. By the sale of
the lime I find that each acre is worth, less expenses, 30
livres, which makes 13 1 acres worth 400
Of the 200 acres of Chestnuts, I cut 8 acres every
year, and I have them made into barrel hoops: I
find that each acre brings in 80 livres, which makes
on the 8 acres the sum of 640
7,040
The Forest of is composed of
acres.
Oaks 600
Beeches 1,200
White Wood 200
It is situated in a plain, easy of access, and within
easy reach of three small towns.
I divide the 600 acres of Oak into 100, and I find
that I can cut 6 acres every year. Since these three
small towns must of necessity supply themselves with livres
wood and building material, I sell these six acres for. . 9,000
Carried forward 7,040
9,000
Of the 1,200 acres of Beech trees, I take 800, which
I cut every 25 years, to make firewood, which makes 32
acres every year, which I sell at 160 livres, bringing in 5,120
For the 400 acres remaining of Beechwood, and
the 200 acres of White Wood, I cut them every
13 years, making each year 15 acres, and I make
them into brushwood, which is done up into large
faggots, for the convenience of the poor. I find that
the sale of this brings me in per acre 120 livres, making
in all for the '50 acres 6,000
Total 27,160
* The arithmetic is again unintelligible.
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? Frederick the Great 113
Schedule of the District of
This District contains two large and enormous
forests, which embrace a considerable extent of
country. These two forests are situated partly on the
plain, and partly on the mountain. They are both of
them far distant from any large rivers, and have,
properly speaking, no outlet, so that the property is
useless to the King.
But the examination which has been made of these
two forests has shown that they can be made use of.
(i) There are districts in which it would be an easy
matter to establish glass and china works, because
there is there plenty of fern and earth, and no lack of
water.
(2) There are large streams, collected or dammed in
good beds for the formation of canals, especially at the
times when the snows are melting, or during the
periods of the heavy rains.
In order that the undertaking may cost us nothing,
a Company might be formed, wherein we would be
represented by an Agent, and to which we would sub-
scribe a quarter of the funds; this Company would
make the necessary advances for the Canals, and for
this purpose it would have the use of the wood for a
period of . . . years.
As there are valleys which are situated at too great
a distance from these canals, the woods there should
be burnt out, and villages built on the clearings, which
would soon be peopled, since the land will be excellent
for pasture, and the inhabitants would find plenty of
occupation in the regular felling of the wood which
will be established, and in the upkeep of all the canals.
We believe this project to be good, Sire, because,
8
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? 114 The Confessions of
however weak may be the Navy of our Kingdom, it
will be able to obtain thereby a great deal of wood, and
even for export to France ; which would be a matter
of great importance to our dominions, since by this
means we open up a very considerable source of
exportation and of revenue.
MEMORANDUM OF THE POSTAL SERVICE TO THE KING
We have no suggestions to make concerning the Ad-
ministration of the Postal Service, because, all things
considered, it is good in our Kingdom. The only
transaction which we would beg of you is to place this
department under the Excise, since you would then
gain yearly at least the amount of the tax-farmer's
profit. You are the better able to do this, that the
department is a well-equipped machine and not liable
to much change. Moreover, the same employes
would serve under the Excise, and the general manage-
ment can be left to the present official.
Your Postal Service is in the hands of six tax-farmers
and a dozen subordinates (partners).
livres.
The tax-farmers each make at least 60,000 livres,
which for the six amounts to 360,000
The 12 subordinates each make 15,000 livres
or together 180,000
In all 540,000
From this amount we must take that of 140,000
to wit: --
livres.
For the General Manager 60,000
Four Directors-General attached to
the Excise Office 80,000
There remains as profit to Your Majesty. . 140,000 400,000
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? Frederick the Great 115
POST-HOUSES
The Postal Service is divided into two branches:
Letter-Posts and Post-Houses.
The Post-Houses are onerous to us, and the Letter-
Posts are not so advantageous as they should be. We
have, therefore, to find a means of improving con-
ditions in every respect.
The Post-Houses are a burden to us, because they
involve for all the Post-masters salaries exception
from Poll-tax, and qualification for compensation in
case of accident, and because no profit accrues to us
therefrom.
Let us now examine the reasons which led my father
to institute this arrangement.
Vanity was the principal reason. He believed that
it appertained to the dignity of a king to have public
posts established in all parts of his kingdom. He did
not regard these establishments as existing only for
the distribution of letters, but much more for giving
greater facilities to the nobility and to wealthy com-
moners for the display of pomp.
The following are the arrangements which we have
made in this matter : --
(i) We have taken an exact survey of all the roads
in the Kingdom ; and after a complete and very minute
enquiry, having found four hundred posting-routes
which are hardly ever used by carriages or coaches,
we have reduced them to one stage-horse and three
saddle-horses each.
(2) As our intention is to revive a branch of industry
in our Kingdom, we desire, so to speak, to force every-
one to use the public conveyances, and to this end we
are reducing the remainder of the posts to half the
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? ii6 The Confessions of
number of horses, and at the same time doubling the
cost of posting to everyone except our ordinary and
extraordinary couriers, our Ambassadors, our Gen-
erals, and our Agents, on Royal business requiring
expedition.
By these two regulations, the Post-masters will no
longer be surcharged, and the couriers, being paid
double by the public will certainly profit, to an ex-
tent which should enable us to take from them ex-
emption from Poll-tax, and to reduce their salaries
by one-half.
That is the scheme, and this is the manner in which
it should be of use to us and to the public.
To us, because it is certain that upon two
thousand Post-masters, we should gain
livres.
through diminution of salaries, about 100,000
and through rescinding their tax-exemption 300,000
making a total of 400,000
With regard to the Public: We presume that
there are yearly 4,000 persons to whom posting
is rather a matter of appearances than of necessity;
these 4,000 persons will save, one way and another, livres.
at least 72 livres each, which makes in all the sum of . . 288,000
These same 4,000 persons by traveUing in the
public conveyances will benefit the drivers and the
innkeepers to the extent of at least 30 livres each,
making in all 120,000
Making a total of 408,000
We would observe to Your Majesty that the public
service will in no way suffer, since upon all the fre-
quented routes we shall leave the posting well enough
equipped for no loss of time to be occasioned.
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? Frederick the Great 117
STAMP OFFICE AND REGISTRATION OF DEEDS'
After a labour of some length, and the com-
pilation of an abstract of all the registers of the
past year, we have arrived at some measure of
information as to the amount brought into the
revenue by each Controller, and we have found
that, all told, these tax-farmers raise an amount livres.
of 4,000,000
of which four millions they spend : livres.
^ Given to us 2,200,000
In Salaries 400,000
Extraordinary Expenses 200,000
Advances at the rate of 5 per cent. . . 80,000
3,280,000
Profits 720,000
We shall oblige each individual Receiver to
bring us the same sum that he brought to the
Farmers-General, paying it direct and free of
cost of sending, and we will give him a third more livres.
salary; which might make a stmi of 150,000
We shall nominate further four Directors-General
at a salary of 25,000 livres each, in all 100,000
And 12 Inspectors-General at 6,000 livres each 72,000
Leaving for the King 322,000
livres.
By this operation, we gain, in the first place 720,000
Of which, in order to ensure a thorough service,
we spend out 322,000
Leaving a balance for us of 398,000
STAMPED PAPER
Throughout our dominions during the
past year there have been sold 16,000,000
sheets of stamped paper, yielding, at i sou livres. s. d.
the sheet, the svun of 800,000
* Frederick's addition is hopeless.
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? ii8 The Confessions of
livres s. d.
The Tax-farmers have paid us 200,000
The 16,000,000 sheets of
paper have cost them, livres. s. d.
at 4 deniers the sheet. . . 133,333 6 8
For Stamp, at i denier
per sheet 33,333 6 8
Distribution at 2 denier
per sheet 66,666 13 4
Advances of about 400,000
hvres at 5 per cent 20,000
Office and Extraordinary
Expenses 50,000 303,333 6 8
Remains to the Farmers-General 503,333 6 8
MODUS OPERANDI (Schedule)
Every year there are manufactured in
one of our mills 16,000,000 sheets of paper
at 3 deniers the sheet, amounting to the livres. s. d.
sum of 100,000 o o
These are stamped at i denier per sheet 33,333 6 8
(3) In every Province we establish a
General Dep6t in the ofBce of the Registrar-
General of the chief town, who is responsible
for the distribution. We allow him to
charge i denier per sheet; those who distri-
bute after him being allowed to charge 2
deniers per sheet, the total cost amounts to
3 deniers per sheet, in all 100,000 o o
Making a full total of 233,333 6 8
By this you will see that by selling our paper our-
selves, we shall make, at 2 sous a sheet, 566,666 livres
13 sous 4 deniers.
But, as our principal object is for the Public to gain
as well as ourselves, it shall not be sold at more than
I sou the sheet, and thus the Public will profit by the
transaction to the amount of 141,660 livres, and we
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? Frederick the Great 119
ourselves to the amount of 425,000 livres, instead of
the 200,000^ livres which the tax-farmer gives us.
CUSTOMS-DUTY ON FOREIGN GOODS
The Tax-farmers in this department raise every livres.
year the sum of 1,200,000
They hand over to us 400,000
So that there remains to them 800,000
The object of these Customs was to impede foreign
trade, so that the money should not leave the Kingdom,
and to oblige the inhabitants to dress in material
manufactured in the Kingdom. By degrees luxury
has increased, and money has become more plentiful,
so that it has become really expedient to manufacture
these same goods in the country.
We have manufactures of every description. The
owners of these factories have the deepest interest
in impeding the sale of foreign goods. Why, then,
should we not come to an understanding with them as
to the matter of Customs Dues ? The following is the
action which we have taken in the matter.
We have had an exact Abstract of the different goods
which come into the Kingdom each year made, as well
as of the duties which are collected upon these goods.
From this enquiry it appears that our Tax-farmers
receive at least
livres.
On Silk materials, Ribbons and the like 400,000
On Cloth and other woollen goods 400,000
On Cloth of Gold and of Silver, and on Gold and
Silver jewellery 200,000
On Iron and Steel goods 100,000
And on Copper and Tin goods 100,000
Making a total of 1,200,000
' The arithmetic is again faulty.
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? 120 The Confessions of
Having made this Abstract, we have proposed to all
the Manufacturers to pay us, direct and free of all
Charges, the sum of 600,000 livres; and we have
promised them, in the name of His Majesty, a Law,
forbidding, under the most rigorous penalties, anyone
soever, whether of His Majesty's subjects or a for-
eigner, bringing into our realm any goods for which
there are factories established in our dominions; and
we have given them permission to carry this law
into effect themselves and through their accredited
agents. And in order to prevent any confusion in the
matter of the payment of the 600,000 livres, we have
put a tax upon every species of manufactured goods:
to wit: --
livres.
All Silken Manufactures, Materials, Ribbons,
and the like 2,000,000
All Manufactures of Cloth and Other Woollen
Goods 200,000
Gold and Silver Goods and Jewellery 50,000
Copper and Tin Goods 50,000
In all 2,300,000
All the manufacturers have agreed to this pro-
position, and therefore we gain 200,000 livres, but it
is impossible to estimate the benefits which we shall
confer by this arrangement, in the first place, because
money will no longer be taken out of the country,
and secondly, because our subjects will profit to the
same extent by each other as the foreigners formerly
did by them.
OCTROI DUTIES IN THE TOWNS
We leave unaltered the established Octroi duties in
the Towns, upon commodities and goods of which we
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? Frederick the Great 121
have made no mention. They are just and necessary,
because it is through them that trade contributes to
the upkeep of the State. But we propose that each
town should compound these dues. We know, more
or less, by the Abstract of the Registers of these
districts how much they can afford to pay, so
that we should not be liable to any injury by this
arrangement.
My father, after having examined the Scheme
for this new Administration, followed his own
opinion on the subject, and continued to collect
the Subsidies upon the basis of the Land-Survey
register, and allowed the local and general receivers
to continue.
To simplify the administration of all these
taxes, payment of toll was permitted at the town
gates on tobacco, coffee, tea, chocolate, sugar,
wheat, flour, spirits, beer, liqueurs, and generally,
on all the necessities and luxuries of life.
For this purpose he established in every town
an Excise Office, the staff of which, in large
towns, consisted of a Receiver, a Cashier, a Super-
intendent, an Inspector, and ten clerks, and in
small towns, of a Receiver and two clerks. He
then formed Departments, over which he placed
Commissaries.
To ensure respect for his employees, he gave
them honoiirable social rank, which made it pos-
sible for him to insist on their taking lower salaries,
and being content with modest profits.
With regard to Salt, he undertook the manufac-
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? 122 The Confessions of
ture of it himself, distributing it at his own cost
and expense.
The Stamping of Documents was a Department
which he considered too delicate for his interfer-
ence. He would not even touch that of Stamped
Paper.
As regards the Forestry scheme, he adopted it
more or less as it stood.
This new source of revenue only brought him in
a profit of two millions.
And it was only by putting the interior of his
house in order that he placed himself in a position
to pay his debts. It is true that he introduced
into it an order so economical that it could not
be improved upon.
So long as I have had any money I have never
thought about my finances. It is only since this
War that this subject has claimed my constant
attention.
I should like to continue further with you the
Memorial of the Council of my father, but circum-
stances do not permit of my doing so, and I have
not time to enter into such long and minute par-
ticulars; in the meantime, this is what I myself
have done:
I have suggested to all the Commissaries of the
Department to compound with all the towns. I
have instituted a reform amongst all the Tax-
collectors, and I have lowered their commission
by one-half per cent. ; all this will bring me in
about 20,000,000 livres.
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? Frederick the Great 123
Secondly, I have found means to establish the
poll-tax in those provinces which were the least
overburdened, on the pretext of equalizing the
impositions for payment of contributions. This
little ruse will bring me in about 400,000 livres a
year.
ARMY
livres.
By retrenching five men per com-
pany, I make a yearly gain of 1,000,000
On the 2 sous which I deduct from
each soldier for commissariat bread,
I save 600,000
On hair powder and lodging 720,000
On Clothing 800,000
On Riding Hacks 180,000
On Staffs, Governments and Com-
mands 300,000
In all 3,600,000
When I was certain of economizing 6,000,000
a year, I began to think of paying off my debts,
and this is how I do so :
livres.
Reckoning everything, I am in
debt for 100,000,000 ;
the point is how to settle for this
amount.
To this end, I borrow from the
Dutch, in four years, at 4 per cent. ,
the sum of 74,057,500
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? 124 Confessions of Frederick the Great
I add to this sum that of my livres.
savings 24,000,000
and with the two I repay the 100,000,000 livres*
of my debt.
When this transaction is concluded, I shall take
out another loan of 60,843,025 livres, at 3 per
cent. ; I shall add to this amount 12,000,000
livres of savings; and I hope that in two years
I shall find myself in a position to repay the
74,057,500 livres. ^ In this way, by the year 1771,
I shall only owe, by the reduction of the interests,
the sum of 60,843,025 livres. The subjoined table
will afford you proof of this.
If there is no War in 1771, what will become of
all these Repayments? That is the moment, my
dear nephew, for which I am most earnestly
looking, in order to introduce into my realm a
new kind of currency.
I intend to circulate among the public a certain
amount of paper; if this is taken up, I shall
increase the amount; and if it is not taken up, I
shall withdraw it, rather than allow it to become
depreciated. I shall try this experiment several
times, and I am firmly convinced that in the end
money (specie) will become (a glut? ) and the
paper will take its place (or will rise? ).
This transaction is a very delicate one, for,
strictly speaking, paper has only a momentary
and uncertain vogue. But it is very useful when
one knows how to make good use of it.
^ The king's arithmetic is again unintelligible.
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? Frederick the Great 103
Flagons Flagons Flagons
of Wine. of Beer, of Spirits.
In the Boroughs and Towns . . 400,000 1,500,000 30,000
In the Villages and Hamlets . . 100,000 800,000 12,000
500,000 2,300,000 42,000
Totals:--
Beer 2,300,000
Wine 500,000
Spirits 42,000
Total Amount 2,842,000
According to the Two taxes which we impose:
FOR THE towns:
livres. livres.
400,000 flagons of wine at 10 sous
make 200,000
' 1,500,000 flagons of beer at 4 deniers
make 25,000
30,000 flagons of spirits at 20 sous
make 30,000
255,000
FOR THE villages:
100,000 flagons of wine at 5 sous make. . 25,000
800,000 flagons of beer at 3 deniers make. 12,000
12,000 flagons of spirits at 10 sous make . 6,000
43,000
298,000
We have sent circular instructions to the Burgo-
masters of the towns, and others to those of the villages
to the following effect : --
instructions to the burgomasters of magdeburg^
Gentlemen,
By the returns which you have forwarded to us,
'The king's arithmetic is unintelligible.
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? 104 The Confessions of
it is an established fact that the dealers in wine, beer,
and spirits sell each year in your town
133,000 pots of wine
800,000 " " beer
15,000 " " spirits.
We charge you, Gentlemen, to collect, in whatever
way suits you best, the sum of 93,833 livres, 6 sous,
8 deniers, to wit : --
livres. s. d.
For the 133,000 flagons of wine, at 10 sous. . . 66,500 - -
For the 800,000 flagons of beer at 4 deniers' . 13,333 6 8
For the 15,000 flagons of spirits, at i livre. . . 15,000 - -
Equal to the Imposition 94,833 6 8
We give the Town, for Expenses of Collection,
as making very nearly the consumption of a third
of the
livres. s. d.
Province 20,000 - -
This will not yield to the coffers of the
King more than 74,833 6 8
94,833 6 8
And by this arrangement the Eling will not collect
further taxes from your town. You will have the
satisfaction of giving him 16,000 livres more than the
Tax-farmers, and the privilege of adjusting the tax
on yourselves as you desire, and you will gain about
43,000 livres a year.
^ The king's arithmetic is unintelligible.
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? Frederick the Great 105
instructions to the burgomasters of villages^
Sir,
Following the Schedule which you have sent
us, it is obvious that the average sale per annum in
your Village amounts to --
400 flagons of wine
2000 " " beer
150 " " spirits.
We charge you, Sir, on your Village, by whatever
method appears most suitable to the Villagers in
Council for this purpose, to collect the sum of 425
livres.
livres.
For 400 flagons of wine at 5 sous 100
For 2000 flagons of beer at 3 sous 250
For 150 flagons of spirits at 10 sous 75
425
We give to the Village, for Expenses of Administra-
tion, 85 livres, in consequence of which it will only be
reported to yield 340 livres. By this payment the
King holds you exempt from further Customs dues,
and you will have the advantage of giving him about
40 livres a year more than the Tax-farmers, and the
privilege of taxing yourselves, and of gaining about
180 livres.
Concerning Salt^
The Tax-farmers give us yearly for Salt 900,000
livres. In virtue of this sum, we grant them the ex-
clusive right of working the Salt-mines and of manu-
' The arithmetic is again unintelligible.
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? io6 The Confessions of
facturing Salt, throughout our Kingdom, of charging
our subjects 5 sous a pound for Salt, and of forcing
them to take so much Salt per annum. According to
the returns and the consumption of Salt during the
past year, the Tax-farmers have disposed of 18,000,000
pounds of Salt at 5 sous
livres.
a pound, which amounts to 4,500,000
on which they have paid
Hvres.
To the King 900,000
For working the Salt at 6 deniers the
pound 350,000
Interest on advances at about 5 per
cent 350,000
Expenses of Distribution and Salaries. 900,000 3,270,000
Consequently the Tax-farmers retain 1,230,000
METHOD OF WORKING
We have devised a simple method of working, which
the cupidity of the Tax-farmers has rendered extremely
simple. It is as follows: --
We have required in each Province a Statement of
the amount of Salt which it was obliged to take into
store, and having collated all the different Statements,
we have drawn up a rule of division for the 900,000
hvres which the King draws from this farming; that
is to say, we have applied to the Province that por-
tion of this sum which corresponded to the amount
of Salt taken, taking everything into consideration,
and then we have sent to each Province the following
Memorandum : --
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? Frederick the Great 107
MEMORANDUM SENT TO THE PROVINCE OF MINDEN'
Gentlemen,
By the Report which you have sent, we see that
your Province is obHged to purchase from the depots
of the Farmers-General a milHon pounds of Salt per
annum, and to pay them, at the rate of 5 sous the
pound, 250,000 livres.
The King does not wish to use compulsion with his
subjects in the matter of any commodity which is
indispensably necessary to them, and from this
moment he takes over the control of the Salt Mines,
and will manufacture the Salt at his own expense, for
sale to all alike and without distinction. He merely
requires from you that you should send him yearly,
direct and free of charges, the sum of 50,000 livres,
making the i8th part of that of 900,000 livres given
him by the Farmers-General, and which you your-
selves pay since you take a million pounds of Salt,
making also the eighteenth part of the consumption
for one year.
But as by his project the King increases his revenue,
and at the same time confers an advantage upon you,
we propose to go into the matter with you in greater
detail (more minutely).
livres.
You take a million pounds of Salt every year, and
you pay for it 5 sous per pound, which makes 250,000
On this 250,000 livres the King receives only. . . . 50,000
Consequently there remains for the farmers 200,000
Through the enquiries which we have made,
we know that the Tax-Farmers disburse on the 200,000
^ The arithmetic is again unintelligible.
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? io8 The Confessions of
(i) For the production of a million livres.
pounds of Salt at i sou the pound 75,ooo
(2) Interest on advances both for the
75,000 livres and for the 50,000 livres
given to the King, about 6,800
(3) Expenses of Distribution at I sou
per pound 50,000
131,800
Leaving for the Tax-Farmers 68,000
It is this 68,200 livres which the King proposes to
divide with you and your Province, by giving the
dealer for right of sale the 50,000 livres which it costs
the Tax-Farmers in salaries for distribution of this
commodity in your Province. We imagine that your
dealers will be well satisfied.
Tobacco
sous.
We allow our tax-farmers to sell tobacco to the public
at the rate per pound of 45
It costs them the following: --
sous.
(i) Payment to Your Majesty 10
(2) Purchase in leaf 12
(3) Carriage 2
(4) Manufacture 3
(5) Packing (or making up) and waste 2
(6) Extraordinary expense and interest on ad-
vances 3
(7) Wages and expense of distribution 4
- 36
There consequently remains as net gain to the tax-
farmers on every pound 9
According to the total of the past year, this con-
sumption has amounted to eight million pounds.
Thus, our Tax-farmers have made 3,600,000 livres.
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? Frederick the Great 109
In order to secure for ourselves a portion of these
profits, we are establishing a General Depot in each
Province, to which the Tobacco is brought in the first
instance in leaf, to be then manufactured, and finally
sold at a fixed price to whoever wants it.
According to the calculation we have ourselves
made, based upon that of the Farmers-General, each
sous,
pound should cost us not more than 20
(1) For the purchase in leaf 12
(2) Carriage i
(3) Manufacture 3
(4) Packing and waste 2
(5) Interest and advances , 2
-- 20
We shall sell it to the public at 35
Consequently, we shall gain 15
which makes a gain of 2,000,000 livres for us.
There remains 10 sous, which will be re-absorbed in
commerce, and which will be shared, naturally, be-
tween the public and the dealer, for the latter will
certainly be content to make four or five sous per
pound.
Forestry
livres.
This Department is farmed for 2,500,000
Upon this sum we pay 800,000
to an endless number of officials, created formerly for
the purpose of keeping order, exclusive of the cost of
their oflficial reports, which are made at our expense,
and which amount to more than 400,000 livres per
annum.
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? no The Confessions of
livres.
Therefore, from the sum of 2,500,000
we must deduct 1,200,000
Consequently there only remains to
ourselves i ,300,000
In order thoroughly to understand the value of this
source of revenue, we have sent Surveyors into each
Province, who have drawn plans of all our forests, have
produced specimens of them, have analysed the quali-
ties of the woods, have noted the price of each, and
have observed the best method of selling them.
One can judge by the Report on one of our Pro-
vinces the result of their investigations throughout
the Kingdom.
Province of Minden
Report Sent to the Council by the Surveyor
There are in this Province 8,000 acres of Wood.
These 8,000 acres consist of three forests, to wit : --
acres.
That of 4,000
That of. 2,000
And that of 2,000
The forest of is composed of ,
2,000 acres of firs
1,000 " " oaks
and 1,000 " " beeches.
Its situation, close to the Weser, enables all the wood
to be sold at a reasonable price, to wit : --
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? Frederick the Great iii
livres.
That of Firs, which are cut down every
sixty years, at 800 per acre.
That of Oaks, which may be cut down
every twenty years, at 150 "
That of Beech, which one may cut down
at the same periods, at 180 "
According to my calculations, cutting so regulated,
will bring in : --
livres.
Firs, about 33! acres at 800 Hvres, the sum of 26,666
Oaks, about 50 acres, at 150 livres 7, 500
Beech, about 50 acres, at 180 livres 9,000
Total per annum 43, 166
The Forest of . . . is composed of 2,000 acres,
to wit: --
acres.
Oaks 1,400
Beech 200
Chestnuts 200
And White Wood 200
This Forest is not well situated, because there are
no large rivers or big towns in the neighbourhood,
thus I don't cut the wood for sale, but to make the
following use of it : --
Every year I take 24 acres of Oaks, which I have
made into planks,'^ and I find that after deducting
all expenses each acre brings in 250 livres, making a
total of 6,000 livres.
' Or stave- wood -- merrain in the dictionary.
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? 112 The Confessions of
Uvres.
Carried forward 6,000
Then I take 13I acres of beech and of white wood,
because I have divided the 400 into thirty parts, and I
make a Hme-kiln, provided I find in the forest itself the
right kind of material for this purpose. By the sale of
the lime I find that each acre is worth, less expenses, 30
livres, which makes 13 1 acres worth 400
Of the 200 acres of Chestnuts, I cut 8 acres every
year, and I have them made into barrel hoops: I
find that each acre brings in 80 livres, which makes
on the 8 acres the sum of 640
7,040
The Forest of is composed of
acres.
Oaks 600
Beeches 1,200
White Wood 200
It is situated in a plain, easy of access, and within
easy reach of three small towns.
I divide the 600 acres of Oak into 100, and I find
that I can cut 6 acres every year. Since these three
small towns must of necessity supply themselves with livres
wood and building material, I sell these six acres for. . 9,000
Carried forward 7,040
9,000
Of the 1,200 acres of Beech trees, I take 800, which
I cut every 25 years, to make firewood, which makes 32
acres every year, which I sell at 160 livres, bringing in 5,120
For the 400 acres remaining of Beechwood, and
the 200 acres of White Wood, I cut them every
13 years, making each year 15 acres, and I make
them into brushwood, which is done up into large
faggots, for the convenience of the poor. I find that
the sale of this brings me in per acre 120 livres, making
in all for the '50 acres 6,000
Total 27,160
* The arithmetic is again unintelligible.
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? Frederick the Great 113
Schedule of the District of
This District contains two large and enormous
forests, which embrace a considerable extent of
country. These two forests are situated partly on the
plain, and partly on the mountain. They are both of
them far distant from any large rivers, and have,
properly speaking, no outlet, so that the property is
useless to the King.
But the examination which has been made of these
two forests has shown that they can be made use of.
(i) There are districts in which it would be an easy
matter to establish glass and china works, because
there is there plenty of fern and earth, and no lack of
water.
(2) There are large streams, collected or dammed in
good beds for the formation of canals, especially at the
times when the snows are melting, or during the
periods of the heavy rains.
In order that the undertaking may cost us nothing,
a Company might be formed, wherein we would be
represented by an Agent, and to which we would sub-
scribe a quarter of the funds; this Company would
make the necessary advances for the Canals, and for
this purpose it would have the use of the wood for a
period of . . . years.
As there are valleys which are situated at too great
a distance from these canals, the woods there should
be burnt out, and villages built on the clearings, which
would soon be peopled, since the land will be excellent
for pasture, and the inhabitants would find plenty of
occupation in the regular felling of the wood which
will be established, and in the upkeep of all the canals.
We believe this project to be good, Sire, because,
8
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? 114 The Confessions of
however weak may be the Navy of our Kingdom, it
will be able to obtain thereby a great deal of wood, and
even for export to France ; which would be a matter
of great importance to our dominions, since by this
means we open up a very considerable source of
exportation and of revenue.
MEMORANDUM OF THE POSTAL SERVICE TO THE KING
We have no suggestions to make concerning the Ad-
ministration of the Postal Service, because, all things
considered, it is good in our Kingdom. The only
transaction which we would beg of you is to place this
department under the Excise, since you would then
gain yearly at least the amount of the tax-farmer's
profit. You are the better able to do this, that the
department is a well-equipped machine and not liable
to much change. Moreover, the same employes
would serve under the Excise, and the general manage-
ment can be left to the present official.
Your Postal Service is in the hands of six tax-farmers
and a dozen subordinates (partners).
livres.
The tax-farmers each make at least 60,000 livres,
which for the six amounts to 360,000
The 12 subordinates each make 15,000 livres
or together 180,000
In all 540,000
From this amount we must take that of 140,000
to wit: --
livres.
For the General Manager 60,000
Four Directors-General attached to
the Excise Office 80,000
There remains as profit to Your Majesty. . 140,000 400,000
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? Frederick the Great 115
POST-HOUSES
The Postal Service is divided into two branches:
Letter-Posts and Post-Houses.
The Post-Houses are onerous to us, and the Letter-
Posts are not so advantageous as they should be. We
have, therefore, to find a means of improving con-
ditions in every respect.
The Post-Houses are a burden to us, because they
involve for all the Post-masters salaries exception
from Poll-tax, and qualification for compensation in
case of accident, and because no profit accrues to us
therefrom.
Let us now examine the reasons which led my father
to institute this arrangement.
Vanity was the principal reason. He believed that
it appertained to the dignity of a king to have public
posts established in all parts of his kingdom. He did
not regard these establishments as existing only for
the distribution of letters, but much more for giving
greater facilities to the nobility and to wealthy com-
moners for the display of pomp.
The following are the arrangements which we have
made in this matter : --
(i) We have taken an exact survey of all the roads
in the Kingdom ; and after a complete and very minute
enquiry, having found four hundred posting-routes
which are hardly ever used by carriages or coaches,
we have reduced them to one stage-horse and three
saddle-horses each.
(2) As our intention is to revive a branch of industry
in our Kingdom, we desire, so to speak, to force every-
one to use the public conveyances, and to this end we
are reducing the remainder of the posts to half the
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? ii6 The Confessions of
number of horses, and at the same time doubling the
cost of posting to everyone except our ordinary and
extraordinary couriers, our Ambassadors, our Gen-
erals, and our Agents, on Royal business requiring
expedition.
By these two regulations, the Post-masters will no
longer be surcharged, and the couriers, being paid
double by the public will certainly profit, to an ex-
tent which should enable us to take from them ex-
emption from Poll-tax, and to reduce their salaries
by one-half.
That is the scheme, and this is the manner in which
it should be of use to us and to the public.
To us, because it is certain that upon two
thousand Post-masters, we should gain
livres.
through diminution of salaries, about 100,000
and through rescinding their tax-exemption 300,000
making a total of 400,000
With regard to the Public: We presume that
there are yearly 4,000 persons to whom posting
is rather a matter of appearances than of necessity;
these 4,000 persons will save, one way and another, livres.
at least 72 livres each, which makes in all the sum of . . 288,000
These same 4,000 persons by traveUing in the
public conveyances will benefit the drivers and the
innkeepers to the extent of at least 30 livres each,
making in all 120,000
Making a total of 408,000
We would observe to Your Majesty that the public
service will in no way suffer, since upon all the fre-
quented routes we shall leave the posting well enough
equipped for no loss of time to be occasioned.
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? Frederick the Great 117
STAMP OFFICE AND REGISTRATION OF DEEDS'
After a labour of some length, and the com-
pilation of an abstract of all the registers of the
past year, we have arrived at some measure of
information as to the amount brought into the
revenue by each Controller, and we have found
that, all told, these tax-farmers raise an amount livres.
of 4,000,000
of which four millions they spend : livres.
^ Given to us 2,200,000
In Salaries 400,000
Extraordinary Expenses 200,000
Advances at the rate of 5 per cent. . . 80,000
3,280,000
Profits 720,000
We shall oblige each individual Receiver to
bring us the same sum that he brought to the
Farmers-General, paying it direct and free of
cost of sending, and we will give him a third more livres.
salary; which might make a stmi of 150,000
We shall nominate further four Directors-General
at a salary of 25,000 livres each, in all 100,000
And 12 Inspectors-General at 6,000 livres each 72,000
Leaving for the King 322,000
livres.
By this operation, we gain, in the first place 720,000
Of which, in order to ensure a thorough service,
we spend out 322,000
Leaving a balance for us of 398,000
STAMPED PAPER
Throughout our dominions during the
past year there have been sold 16,000,000
sheets of stamped paper, yielding, at i sou livres. s. d.
the sheet, the svun of 800,000
* Frederick's addition is hopeless.
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? ii8 The Confessions of
livres s. d.
The Tax-farmers have paid us 200,000
The 16,000,000 sheets of
paper have cost them, livres. s. d.
at 4 deniers the sheet. . . 133,333 6 8
For Stamp, at i denier
per sheet 33,333 6 8
Distribution at 2 denier
per sheet 66,666 13 4
Advances of about 400,000
hvres at 5 per cent 20,000
Office and Extraordinary
Expenses 50,000 303,333 6 8
Remains to the Farmers-General 503,333 6 8
MODUS OPERANDI (Schedule)
Every year there are manufactured in
one of our mills 16,000,000 sheets of paper
at 3 deniers the sheet, amounting to the livres. s. d.
sum of 100,000 o o
These are stamped at i denier per sheet 33,333 6 8
(3) In every Province we establish a
General Dep6t in the ofBce of the Registrar-
General of the chief town, who is responsible
for the distribution. We allow him to
charge i denier per sheet; those who distri-
bute after him being allowed to charge 2
deniers per sheet, the total cost amounts to
3 deniers per sheet, in all 100,000 o o
Making a full total of 233,333 6 8
By this you will see that by selling our paper our-
selves, we shall make, at 2 sous a sheet, 566,666 livres
13 sous 4 deniers.
But, as our principal object is for the Public to gain
as well as ourselves, it shall not be sold at more than
I sou the sheet, and thus the Public will profit by the
transaction to the amount of 141,660 livres, and we
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? Frederick the Great 119
ourselves to the amount of 425,000 livres, instead of
the 200,000^ livres which the tax-farmer gives us.
CUSTOMS-DUTY ON FOREIGN GOODS
The Tax-farmers in this department raise every livres.
year the sum of 1,200,000
They hand over to us 400,000
So that there remains to them 800,000
The object of these Customs was to impede foreign
trade, so that the money should not leave the Kingdom,
and to oblige the inhabitants to dress in material
manufactured in the Kingdom. By degrees luxury
has increased, and money has become more plentiful,
so that it has become really expedient to manufacture
these same goods in the country.
We have manufactures of every description. The
owners of these factories have the deepest interest
in impeding the sale of foreign goods. Why, then,
should we not come to an understanding with them as
to the matter of Customs Dues ? The following is the
action which we have taken in the matter.
We have had an exact Abstract of the different goods
which come into the Kingdom each year made, as well
as of the duties which are collected upon these goods.
From this enquiry it appears that our Tax-farmers
receive at least
livres.
On Silk materials, Ribbons and the like 400,000
On Cloth and other woollen goods 400,000
On Cloth of Gold and of Silver, and on Gold and
Silver jewellery 200,000
On Iron and Steel goods 100,000
And on Copper and Tin goods 100,000
Making a total of 1,200,000
' The arithmetic is again faulty.
? ? Generated for (University of Chicago) on 2014-08-05 01:02 GMT / http://hdl. handle. net/2027/loc. ark:/13960/t5h99vc8g Public Domain in the United States / http://www. hathitrust. org/access_use#pd-us
? 120 The Confessions of
Having made this Abstract, we have proposed to all
the Manufacturers to pay us, direct and free of all
Charges, the sum of 600,000 livres; and we have
promised them, in the name of His Majesty, a Law,
forbidding, under the most rigorous penalties, anyone
soever, whether of His Majesty's subjects or a for-
eigner, bringing into our realm any goods for which
there are factories established in our dominions; and
we have given them permission to carry this law
into effect themselves and through their accredited
agents. And in order to prevent any confusion in the
matter of the payment of the 600,000 livres, we have
put a tax upon every species of manufactured goods:
to wit: --
livres.
All Silken Manufactures, Materials, Ribbons,
and the like 2,000,000
All Manufactures of Cloth and Other Woollen
Goods 200,000
Gold and Silver Goods and Jewellery 50,000
Copper and Tin Goods 50,000
In all 2,300,000
All the manufacturers have agreed to this pro-
position, and therefore we gain 200,000 livres, but it
is impossible to estimate the benefits which we shall
confer by this arrangement, in the first place, because
money will no longer be taken out of the country,
and secondly, because our subjects will profit to the
same extent by each other as the foreigners formerly
did by them.
OCTROI DUTIES IN THE TOWNS
We leave unaltered the established Octroi duties in
the Towns, upon commodities and goods of which we
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? Frederick the Great 121
have made no mention. They are just and necessary,
because it is through them that trade contributes to
the upkeep of the State. But we propose that each
town should compound these dues. We know, more
or less, by the Abstract of the Registers of these
districts how much they can afford to pay, so
that we should not be liable to any injury by this
arrangement.
My father, after having examined the Scheme
for this new Administration, followed his own
opinion on the subject, and continued to collect
the Subsidies upon the basis of the Land-Survey
register, and allowed the local and general receivers
to continue.
To simplify the administration of all these
taxes, payment of toll was permitted at the town
gates on tobacco, coffee, tea, chocolate, sugar,
wheat, flour, spirits, beer, liqueurs, and generally,
on all the necessities and luxuries of life.
For this purpose he established in every town
an Excise Office, the staff of which, in large
towns, consisted of a Receiver, a Cashier, a Super-
intendent, an Inspector, and ten clerks, and in
small towns, of a Receiver and two clerks. He
then formed Departments, over which he placed
Commissaries.
To ensure respect for his employees, he gave
them honoiirable social rank, which made it pos-
sible for him to insist on their taking lower salaries,
and being content with modest profits.
With regard to Salt, he undertook the manufac-
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? 122 The Confessions of
ture of it himself, distributing it at his own cost
and expense.
The Stamping of Documents was a Department
which he considered too delicate for his interfer-
ence. He would not even touch that of Stamped
Paper.
As regards the Forestry scheme, he adopted it
more or less as it stood.
This new source of revenue only brought him in
a profit of two millions.
And it was only by putting the interior of his
house in order that he placed himself in a position
to pay his debts. It is true that he introduced
into it an order so economical that it could not
be improved upon.
So long as I have had any money I have never
thought about my finances. It is only since this
War that this subject has claimed my constant
attention.
I should like to continue further with you the
Memorial of the Council of my father, but circum-
stances do not permit of my doing so, and I have
not time to enter into such long and minute par-
ticulars; in the meantime, this is what I myself
have done:
I have suggested to all the Commissaries of the
Department to compound with all the towns. I
have instituted a reform amongst all the Tax-
collectors, and I have lowered their commission
by one-half per cent. ; all this will bring me in
about 20,000,000 livres.
? ? Generated for (University of Chicago) on 2014-08-05 01:02 GMT / http://hdl. handle. net/2027/loc. ark:/13960/t5h99vc8g Public Domain in the United States / http://www. hathitrust. org/access_use#pd-us
? Frederick the Great 123
Secondly, I have found means to establish the
poll-tax in those provinces which were the least
overburdened, on the pretext of equalizing the
impositions for payment of contributions. This
little ruse will bring me in about 400,000 livres a
year.
ARMY
livres.
By retrenching five men per com-
pany, I make a yearly gain of 1,000,000
On the 2 sous which I deduct from
each soldier for commissariat bread,
I save 600,000
On hair powder and lodging 720,000
On Clothing 800,000
On Riding Hacks 180,000
On Staffs, Governments and Com-
mands 300,000
In all 3,600,000
When I was certain of economizing 6,000,000
a year, I began to think of paying off my debts,
and this is how I do so :
livres.
Reckoning everything, I am in
debt for 100,000,000 ;
the point is how to settle for this
amount.
To this end, I borrow from the
Dutch, in four years, at 4 per cent. ,
the sum of 74,057,500
? ? Generated for (University of Chicago) on 2014-08-05 01:02 GMT / http://hdl. handle. net/2027/loc. ark:/13960/t5h99vc8g Public Domain in the United States / http://www. hathitrust. org/access_use#pd-us
? 124 Confessions of Frederick the Great
I add to this sum that of my livres.
savings 24,000,000
and with the two I repay the 100,000,000 livres*
of my debt.
When this transaction is concluded, I shall take
out another loan of 60,843,025 livres, at 3 per
cent. ; I shall add to this amount 12,000,000
livres of savings; and I hope that in two years
I shall find myself in a position to repay the
74,057,500 livres. ^ In this way, by the year 1771,
I shall only owe, by the reduction of the interests,
the sum of 60,843,025 livres. The subjoined table
will afford you proof of this.
If there is no War in 1771, what will become of
all these Repayments? That is the moment, my
dear nephew, for which I am most earnestly
looking, in order to introduce into my realm a
new kind of currency.
I intend to circulate among the public a certain
amount of paper; if this is taken up, I shall
increase the amount; and if it is not taken up, I
shall withdraw it, rather than allow it to become
depreciated. I shall try this experiment several
times, and I am firmly convinced that in the end
money (specie) will become (a glut? ) and the
paper will take its place (or will rise? ).
This transaction is a very delicate one, for,
strictly speaking, paper has only a momentary
and uncertain vogue. But it is very useful when
one knows how to make good use of it.
^ The king's arithmetic is again unintelligible.
? ? Generated for (University of Chicago) on 2014-08-05 01:02 GMT / http://hdl. handle. net/2027/loc. ark:/13960/t5h99vc8g Public Domain in the United States / http://www. hathitrust. org/access_use#pd-us
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