Nice post,

The net effect for the Empire remains, so to look at the numbers you presented differently, the interest reduction was helped by reducing "local" Dutch debt, primarily by exploiting the "distressed" prices on the Dutch debt, and thereby reducing the interest charge from 80 to 28 or by 58 million.

Yet, as the Imperial treasury issued new debt, and the army and navy were paid for by the Imperial treasury, they did not "go away" (except for the "arbitrage" on the open market operations and whatever seizures and customs were used to retire Dutch debt instruments). Say, this meant they "saved" half of the 58 million (or 29). Then the "administrative burden" of a separate Dutch army and navy "saved", say, 4 million.

Thus, the Imperial treasury needed to collect 57 million (29 interest and 28 army and navy). So, as the customs duties under the Continental System was to fund coastal defences, what was the Imperial source of income to cover these 57 million of expenses?

I find it interesting that the debts of the House of Orange and of Hesse-Cassel were abrogated, as these seem more personal than public. The other changes appear to be "proper" market transaction. As abrogation is a legal act (generally meaning it was not negotiated, but was imposed, it "sticks out". I wonder who held them and whether (since the consolidation was an Imperial act), Napoleon was "getting even" with someone). Do you know who "lost" on this element of the "reorganization"?

As I did it for myself, others may be interested in an alternative presentation of the tables:

Prior to 1810 After 1810

Total inflows
from tax receipts 60 60

____ ____

Outflows from expenses:
Army and navy 32 Paid by Imperial treasury
Domestic expenses 32 32
Interest 80 28
Pensions 5

____ ____
Total outflows 150 60

____ ____

Net outflows over
inflows (90) - nil -

Financed by new issues
of government debt 90 - nil -

____ ____

Net - nil - - nil -

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Estimated debt
using effective rate 800 400

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Note: effective interest rates estimated at 10% and 7%, respectively.