Date: March 5th, 1905 – Belgrade, Kingdom of Serbia
The rest of the morning passed in a state of heightened anticipation for Petar. While awaiting the Minister of Finance, he had Milan procure the requested maps. They arrived in a series of heavy rolls, brought by a junior clerk from the War Ministry, whose awe at being in the King's presence was palpable. Petar had them spread out on a large mahogany table in his private study, a room adjacent to his bedchamber that his memories indicated the historical Petar rarely used for intense work, preferring the more formal offices for official duties. Alex Volkov, however, had practically lived in his university study carrel.
The maps were of varying quality and scale. Some were detailed military charts, focusing on border regions, topographical features, and known fortifications. Others were broader administrative maps, showing district boundaries and major towns. As Petar pored over them, his engineer's mind began to connect with his historian's knowledge. He traced the courses of the Danube and Sava, the Morava and Vardar valleys – historic invasion routes and vital arteries for trade. He noted the mountainous spine of the Dinaric Alps, a formidable natural barrier but also a region of sparse population and limited agriculture. He saw Serbia, a landlocked kingdom, surrounded by larger, often hostile or ambitious neighbors: Austria-Hungary to the north and west, its shadow looming over Bosnia and Herzegovina; the Ottoman Empire, still clinging to Macedonia and the Sanjak of Novi Pazar to the south; Bulgaria to the east, a rival for regional influence; Montenegro, a small, fiercely independent kin-state in the mountains.
His fingers traced the borders, a strange sensation running through him. These lines on paper represented the current limits of his domain, the starting point of an ambition so vast it was almost unthinkable. Almost.
The reports he had demanded from Pašić on industrial capacity and raw materials would be crucial when overlaid with this geographical data. Where were the potential mines? The forests ripe for timber? The rivers that could be harnessed for power, a concept Alex knew was just beginning to be explored seriously for large-scale electricity generation?
His reverie was interrupted by Milan. "Gospodin Lazar Paču, Ministar Finansija, je stigao, Vaše Veličanstvo." Mr. Lazar Paču, the Minister of Finance, has arrived, Your Majesty.
Petar straightened. Lazar Paču. The name resonated from his inherited memories, and Alex's historical knowledge supplemented it. Paču was known as a stern, highly competent, and incorruptible financier, a man credited with stabilizing Serbian finances after years of mismanagement. He was of Aromanian descent, a detail Alex filed away, and not always the most pliable of ministers, known for his fiscal conservatism and a sometimes-brusque demeanor. This would be a different challenge than the elder statesman Pašić.
"Show him in, Milan."
Lazar Paču was a man of middling height, perhaps in his early fifties, with a piercing gaze and a neatly trimmed, dark beard already streaked with grey. He carried a worn leather briefcase and moved with an air of brisk efficiency. His bow to Petar was correct but lacked the deeper, more courtly flourish of Nikola Pašić.
"Your Majesty," Paču said, his voice clear and direct. "You wished to see me."
"Indeed, Minister Paču. Please, be seated." Petar gestured to a chair opposite his desk, which he had positioned near the map table. He remained standing for a moment, a subtle power dynamic. "Like my conversation with Prime Minister Pašić this morning, I find myself compelled to take a more… active interest in the detailed workings of our kingdom. And few things are more vital than its financial health."
Paču's eyes flickered towards the maps, then back to Petar. "A commendable interest, Your Majesty. The finances of Serbia are… an ongoing project. We have made progress, but challenges remain."
"Precisely," Petar said, finally taking his own seat. "I want to understand those challenges and that progress in detail. Let us start with the current budget. I'd like a clear breakdown of our primary sources of revenue and our major expenditures."
Paču opened his briefcase and extracted a sheaf of papers, neatly bound. "I anticipated Your Majesty might require an overview." He didn't seem surprised, merely prepared. Perhaps Pašić had sent word of the King's new inquisitiveness. "Our revenues derive primarily from direct taxation – land taxes, poll taxes – and indirect taxation, such as customs duties and state monopolies on items like tobacco, salt, and petroleum. Expenditures are dominated by debt servicing, military upkeep, and public administration, with smaller amounts allocated to education, public works, and other services."
Petar listened intently as Paču elaborated, his delivery concise and laden with figures. Alex Volkov, who had once struggled to balance his student budget, found himself surprisingly adept at absorbing the national-scale numbers, his mind automatically calculating percentages, looking for imbalances.
"The state monopolies," Petar mused. "Are they managed efficiently? Is there room for increased revenue there, or are we at a point of diminishing returns if we raise prices further?"
"They are managed by competent officials, Your Majesty," Paču stated, a hint of defensiveness in his tone. "Efficiency can always be improved, of course. We strive to balance revenue generation with the public good. Excessive prices can lead to smuggling and discontent."
"Understandable." Petar nodded. "And taxation. What is your assessment of our current system's efficiency and fairness? Are we collecting all that is owed? Is the burden distributed equitably, or does it fall disproportionately on certain segments of the population, potentially stifling their economic activity?" Alex remembered reading about peasant discontent over taxation in various historical contexts.
Paču's expression became a little sterner. "Tax reform is a perennially contentious issue, Your Majesty. The Radical Party has made efforts to ensure a more equitable system compared to the past. Collection in rural areas can be challenging, and there are always those who seek to evade their obligations. We are constantly exploring ways to improve assessment and collection without inciting unrest."
"Good. I would like a separate report on potential avenues for tax reform, focusing on both efficiency and equity, and importantly, on how it might stimulate, rather than hinder, economic growth in key sectors." Petar pressed on. "Now, the national debt. To whom do we owe, what are the terms, and how significantly does debt servicing impact our ability to invest in national development?"
Paču's lips thinned. This was clearly a sensitive point. "Our debt is primarily held by French and Austro-Hungarian banking consortiums, Your Majesty. The terms are… standard for nations in our position. Servicing it consumes a significant portion of our annual revenue, a legacy of past conflicts and ambitious, sometimes ill-advised, projects under previous administrations."
"So, our financial autonomy is somewhat constrained by these obligations," Petar stated, more than asked. "Are there possibilities for renegotiation, or for seeking loans from alternative sources on more favorable terms? Perhaps from powers less… geographically proximate or politically ambitious in the Balkans?" He was thinking of British or even American capital, though that was a long shot.
Paču looked wary. "Such maneuvers are delicate, Your Majesty. They risk antagonizing current creditors and may not yield significantly better terms. Financial markets value stability and predictability."
"Stability built on perpetual debt is a fragile kind of stability, Minister," Petar countered gently. "But I take your point. It is something to be considered with caution." He shifted tack. "What of our currency, the dinar? Is it stable? What are our gold reserves like? And what is the extent of the National Bank's control over monetary policy and credit?"
The discussion continued for well over an hour. Petar probed into areas the historical king had likely left to his ministers. He asked about specific allocations for infrastructure, the funding mechanisms for the army's modernization efforts Pašić had mentioned, and any existing economic strategies beyond simply balancing the books. Paču, for his part, answered with precision and a deep command of his subject, though Petar sensed a growing curiosity, perhaps even a grudging respect, for the young King's unexpectedly sharp inquiries. He didn't offer grand pronouncements or easy solutions, but rather a sober assessment of Serbia's fiscal reality.
"Minister Paču," Petar said as their meeting drew towards a close, "I appreciate your candor and the detail you've provided. It is clear that while our house is in better order than it once was, thanks in no small part to your efforts, our financial resources are tightly constrained. This limits our ability to invest in the future of Serbia as robustly as I believe is necessary."
He paused, choosing his words carefully. "I want you to begin thinking creatively. Are there ways to significantly expand our revenue base beyond simply tweaking existing taxes or monopolies? Ways to attract productive investment, both domestic and foreign, that doesn't come with crippling political strings? Are there state assets that could be more productively utilized or managed to generate greater returns? I am not asking for rash measures, but for a thorough exploration of all possibilities to strengthen Serbia's financial foundations."
Paču was silent for a moment, his expression unreadable. "Your Majesty sets a challenging task. True economic expansion requires more than just financial acumen; it requires peace, stability, a skilled workforce, and access to markets."
"All of which we must strive to achieve," Petar replied. "But a strong treasury is the bedrock upon which many of those other elements can be built. I trust you will give these matters your deepest consideration."
"I will, Your Majesty," Paču said, rising as Petar stood. He gave another of his curt bows and departed, leaving Petar with a stack of preliminary financial statements and a mind buzzing with new information.
Alone once more, Petar turned back to the maps, now viewing them through the added lens of fiscal constraint and potential. He spread Paču's documents beside them. The intersection of geography, resources, and money was where the real work of kingdom building lay. He saw mountainous regions, likely poor in taxable agriculture, but potentially rich in minerals – minerals that would require significant capital to extract and process. He saw rivers that could irrigate fertile plains, but also required investment in canals and dams – Alex's engineering mind sparked at the thought, recalling his studies of Roman aqueducts and modern hydroelectric projects.
He saw a small nation, with limited funds, a heavy debt burden, and powerful, predatory neighbors. The dream of a new Roman Empire seemed almost laughably distant when faced with the stark figures on Paču's reports.
Yet, there was potential. Serbia had a resilient population, as Pašić had said. It had a core of a decent army. It had a government, and now, a king who was determined to push it forward. Alex Volkov knew that empires weren't built overnight. Rome itself had started as a small city-state. It had taken centuries of struggle, innovation, and ruthless ambition.
He didn't have centuries. He had, at best, nine years before the world descended into chaos.
His immediate goals were becoming clearer.
1. Information Dominance: He needed those detailed reports from Pašić. He needed more data, more facts. He couldn't operate on assumptions.
2. Consolidate Control over Finances: Paču was competent, but conservative. Petar needed to find ways to either make Paču share his vision of expansive growth or find someone who would, while still maintaining fiscal prudence. He needed to find new money, or make existing money work harder.
3. Identify Key Personnel: He needed men of talent and loyalty. Men who were not afraid of bold ideas. He'd have to observe his current ministers and officials closely.
4. Small, Visible Projects: Perhaps some initial infrastructure projects, focused on clear economic or strategic benefits, could build public confidence and demonstrate his seriousness. Something that Alex's engineering background could contribute to directly.
The afternoon sun cast long shadows across the room by the time Petar finally pushed himself away from the map table. His head ached with the influx of information and the intensity of his focus, but it was a satisfying ache. He felt, for the first time since his bewildering awakening, a sense of genuine agency. He was no longer just a disembodied soul in a strange new world. He was King Petar of Serbia, and he had a plan, or at least the beginnings of one.
The weight of the crown was still there, but now, so was the keen edge of ambition, sharpened by the day's revelations.