Chapter 240: A Great Loan
Recently, Prussia has clearly been friendlier toward Ernst. He hadn't even made it back to Hohenzollern Castle before learning that the Prussian royal family was inviting him to Berlin as a guest.
Ernst had already anticipated Prussia's intentions, so instead of going straight home, he detoured through Bavaria toward Berlin.
Prussian Kingdom
"Ernst, how have things been for you lately?" King William I asked with a broad smile.
"Sire, things are going well. I've been quite busy with my business ventures," Ernst replied.
"Just call me Uncle. Your father is a king now as well, which makes you the heir apparent—and we're all members of the Hohenzollern family—so there's no need to stand on ceremony," William I said.
"I'm not sure that's appropriate…"
"What's not to like? Privately, call me 'Uncle,' but in formal settings say 'Your Majesty,'" William insisted.
At that moment, Ernst thought: Does that mean I can call Wilhelm II my nephew? He felt a secret sense of satisfaction but outwardly kept his composure. "Yes, as you say, Uncle Wilhelm," Ernst said.
"That's right!" William I nodded. "Actually, the reason I asked you here is because I need your help. You might laugh at me—here I am a king who's fought in many wars, yet Prussia's finances have become impossible. We owe a lot of debt. But for the unity of Germany, Prussia can't just stop moving forward," William said with a sigh.
"I completely understand. Over these years, Prussia has indeed done so much for the cause of German unification," Ernst said politely.
"Mmm. Now, let me tell you a little secret: The French are growing restless, but after the last war, Prussia's debt soared. This time the military budget is really hard to raise," William I said, cutting straight to the point.
Ernst
"Ah… Uncle Wilhelm, although the Blackenring side has prospered somewhat these last few years, we've also made big investments this year. So funding is tight. Of course, I understand the government's difficulties, so maybe I'll subscribe to 500,000 thalers of war bonds to show my support," Ernst replied.
Five hundred thousand thalers isn't a small sum. But for a war, it's just a drop in the bucket. And since there's not yet any official declaration of war from the French, the North German Confederation's parliament hasn't approved a war budget.
Historically, on July 21, 1870, the North German Confederation's parliament under Prussian leadership approved 120 million thalers of war credits. Right now, since Prussia's finances were so strained and it had racked up debts from its previous wars, the monarchy was hoping to raise a few million for immediate relief—just in case.
In actual history, the first war loan of 100 million thalers the Prussian government tried to sell ended up at a discount, and it didn't go smoothly because the bankers resisted the government skipping their underwriting services. In the end, the war cost for the entire Franco-Prussian War was about 22 million thalers, meaning 2,200 million marks in later currency—but that's not immediately relevant to the conversation.
Hearing "500,000," William I grew a bit disappointed. Half a million is no small sum, yet for the war effort it's negligible.
"Ernst, the Blackenring companies have grown a lot. I heard your bank's even operating in the Far East… You can rest assured our victory is certain. You can invest boldly. We'll pay an interest rate slightly higher than the market rate. Also, your new East African kingdom presumably lacks many necessities. We in Prussia could certainly cooperate more in the future…"
That talk of certain victory is just William's attempt to reassure him, because even Prussia itself wasn't entirely sure. Before fighting, it's natural to feel uncertain. But William I knew how wealthy the Blackenring family was, so it was worth a try. By promising benefits, maybe they could get more money from Ernst.
Ernst put on a reluctant face. "To be frank, Uncle Wilhelm, it's not just about the money. When I first started out, you helped me a lot, so I'd be stingy not to give enough in return. Actually, if I were to scramble together all my resources this year, I might manage around 15 million thalers—but in that mix are the wages for my workers, so if I truly dedicate all of it to the cause of German unity, I… I'll subscribe to 15 million thalers worth of bonds! After this, if Prussia cannot triumph, the Blackenring companies will go bankrupt due to a broken supply of funds, so please—make sure you succeed!" Ernst said "heavily."
Fifteen million? William I froze. He had hoped to get three or four million at best. After all, with no official war declared, only partial funds could even be asked for. Prussia was desperate financially, carrying debts from the Austro-Prussian War, yet no large-scale mobilization had begun. A quick injection of a few million might have sufficed. But 15 million… that alone could fund a major campaign. That's definitely enough to solve Prussia's budget shortfall. For William I, it was beyond gratifying.
He was deeply moved: indeed, family is reliable, especially now that Ernst was risking nearly everything. If Prussia lost, the Blackenring finances might truly collapse.
Of course, from Ernst's point of view, he'd never gamble all of his wealth. In truth, he planned that once Prussia officially issued the first batch of war bonds, he'd buy another 10 million thalers. Through Blackenring Bank, he'd even help Prussia underwrite further bond issues, pocketing underwriting fees. Plus, with the privileges William I promised, he was set to make a killing.
Both sides believed they stood to gain. Soon, they signed the agreement. Both Prussian government staff and Blackenring professionals went over the contract line by line. Once satisfied, they penned their names.
Friends, if you enjoyed the novel, you can subscribe to my Patreon channel.
Until November 30th, get 30% off your subscription and the purchase of the novel.
Read 40 Chapters In Advance: patreon.com/Canserbero10