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Bust for Charles III , Prince of Monaco , in the Boulingrins Gardens
1869
The reign of Prince Charles III turned out to be a period of unprecedented prosperity for the Principality , with the splendid Casino opening in the Monte-Carlo area . These were the times of major economic reforms , laying the foundation for the tiny state ’ s wealth . One of the vital steps taken by Charles III was the abolition of tax . Nowadays , during the financially challenging pandemic times , it is hard to imagine that Monaco flourished to the point of being able to free its population from tax . Thanks to this decision , however , the Opera House was constructed in 1869 and also several museums , including the Monaco Oceanographic Institute .
Charles III ’ s reign was indeed pivotal for the Principality ’ s political and economic life . That ’ s when the foundations for diplomatic relations between Russia and Monaco were laid . A Customs union was signed between Monaco and France , introducing trade duties for crossing borders . At first , however , those measures were not sufficient to patch up the holes in the country ’ s budget .
In 1863 , Charles III signed a decree for the creation of a group which was to deal with upgrading the coastal route — the line that
later affected the small country ’ s entire territory . This is how and when the legendary Société des Bains de Mer saw the light .
On February 8 , 1869 , to the great joy of his subjects , Prince Charles III abolished personal , land and property tax .
ereign decided to take his chance , betting on ... white (‘ blanc ’ in French ). He invited the famous Blanc brothers , owners of gambling houses in Paris and Homburg , to run the Monaco Casino . To get the “ Wizard of Homburg ”, François Blanc , Charles III had to be creative . His ever supporting mother , Caroline Gibert de Lametz , first got his wife Marie Blanc on her side , charming her with the benefits of the Mediterranean climate .
The Monaco Casino thus opened its doors to its first visitors . Because of the gambling houses ’ ban in Europe , nobility flooded
In those years , gambling houses in Europe were banned . That ’ s when the Monaco sovto the Principality . The statistics spoke for themselves : in just five years , over 150.000 tourists from different countries , including America , visited Monaco .
In its first year the Casino brought in 800,000 francs to the Principality ’ s budget — and in three years , 2 million francs . In 1865 , upon Blanc ’ s initiative , the Hôtel de Paris was built , followed by the legendary Casino and , in 1868 , the Café de Paris . This rapidly expanding urban area with its beautiful buildings was named Monte-Carlo . And the “ Wizard of Homburg ” was promptly renamed “ Wizard of Monte-Carlo ”.
From then on , the first director of the Société de Bains de Mer and the Monaco Gambling House , was able to transfer 15 % of its income to the Principality . Thanks to this stable financial inflow , Monaco became prosperous again , with lots of tourists eager to visit .
To improve the country ’ s accessibility , the Prince signed a new agreement with France , laying the Nice — Genoa railway through Monaco .
Charles III also started minting his own gold coins and issuing postage stamps . On February 8 , 1869 , to the great joy of his subjects , he abolished personal , land and property tax . 20 years later , in 1887 , taxes paid by the Société des Bains de Mer accounted for 95 % of all state revenues , allowing the Prince to give his population total tax relief .
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