The Shadow of Great Britain-Chapter 579 - 294: The £200,000 Deal_3

Hearst nodded and said, "For the expansion of the docks in recent years, we have already applied to issue 90,000 British Pounds in city development bonds. Now, if we want to issue new debt, it will be difficult to persuade the Treasury and Public Works Committee to loosen their purse strings."

Upon hearing this, Arthur’s brows furrowed even more, and his fingertips tapped the coffee table, "Why is the Treasury so strict with local debt? Liverpool only released 100,000 British Pounds; isn’t that too little?"

Not participating in the conversation thus far, young Gladstone suddenly spoke up: "The reason behind this is quite simple, yet also very complex. First of all, it’s because Britain’s current total debt is already very large. Mr. Hasting, do you know how much Britain’s national debt totals right now?"

"The total amount?" Arthur recalled the data he saw when he last visited the Treasury for funds: "I remember last year Britain’s central fiscal revenue was 51.3 million British Pounds... As for the national debt..."

"51.3 million British Pounds?" Great Dumas exclaimed in shock: "Damn! You British are really fucking rich!"

Heine also sighed, "Prussia has an external debt of 31 million British Pounds. I used to think that was a large amount, but compared to Britain’s fiscal revenue, it seems not so significant."

"Indeed, it’s not large," young Gladstone replied: "Because Britain now owes the equivalent of 26 Prussias, with our national debt at 783 million British Pounds."

"How much?!" Great Dumas said, eyes wide with shock: "Damn! Had I known you owed this much, I would never have bought British government bonds. 783 million British Pounds, it sounds like you might default any moment."

Louis could not help but cover his mouth and sigh, "Can anyone tell me what exactly Britain did, for the government to owe so much money?"

Gladstone smiled helplessly and joked, "What could it have been? If we go back, this matter actually can be blamed on your uncle, Mr. Bonaparte. Before the Napoleonic Wars, Britain’s debt was only 40 million British Pounds. But in order to fight the Napoleonic Wars, we spent 900 million British Pounds, which is why we now find ourselves in the situation you see."

Moreover, Mr. Dumas, you need not worry too much about the bonds being defaulted. In 1816, at the peak of our debt, it was close to 900 million British Pounds. Now it’s only 783 million. Britain’s government actually has quite a strong repayment capability."

"900 million British Pounds spent on the Napoleonic Wars?!"

Great Dumas, who had thought himself quite wealthy, found it difficult to imagine the vastness of the wealth that 900 million British Pounds represented: "My God! Now I finally understand how Napoleon died; he was literally crushed to death with money by you guys!"

Louis, laughing, said, "Speaking of which, I feel a slight sense of pride."

Gladstone also laughed: "You do have a reason to be proud of your uncle."

Louis, still laughing, shook his head, "So then, what exactly were Britain and France fighting over all those years? If you had given Duke Wellington a cheque for 900 million British Pounds to present to my uncle, he might have surrendered on the spot."

Gladstone, holding his head, said, "At the start, who knew it would cost so much? If someone could have told the Parliament beforehand that this war would burn 900 million British Pounds, I guarantee not a single person would have agreed to it."

Old Gladstone said earnestly, "I was smarter than those Members of Parliament; I opposed that war from the very start. If I had not been clever in my younger years, I would have been bankrupt along with them. During the Napoleonic Wars, Liverpool’s import and export business was exceptionally bad. I even had a merchant ship captured by the French Navy."

At this point, old Gladstone, half-jokingly, turned to Louis and said, "Young man, if one day you go back to inherit the French throne, remember to calculate my compensation."

Louis, also joking, replied, "Sir, with the friendship between us, I would definitely agree to the compensation. But if that day does come, I fear the compensation scheme might not get past the Paris deputies."

"Correct," Great Dumas adjusted his collar with all seriousness, "At the very least, I am definitely against it."

Arthur furrowed his brows and asked, "Speaking of which, wasn’t spending 900 million British Pounds in the Napoleonic Wars a bit too outrageous? Louis, how much did France spend during the war period?"

Louis replied, "Not a small amount either, but definitely not an exaggerated figure like 900 million British Pounds. I think about one third to one quarter would be about right."

Having aimed for the Trade Committee from the beginning of his political career, Gladstone had a good understanding of financial matters.

He began to explain, "Britain’s huge expenditure was partly because the cost per soldier was far higher than France’s. The wages of an ordinary soldier in Britain were double those of France. The supplies for the Royal Navy, moreover, have always been of the highest standard. In addition to this, we took on many financial aid commitments to our allies. Austria’s Metternich, having merely declared war on France, received several million British Pounds in war aid and a massive supply of weapons and military uniforms from us. In the most difficult years of the Napoleonic Wars, Britain’s aid even amounted to eighty percent of Prussia’s national revenue."

"I knew it!" Heine grumbled indignantly, "The finances are supported by the British, the weapons brought by Austria, the courage given by the Russians, and only the two walking legs are their own. Prussia is really incapable of anything!"

Arthur glanced at the German youth punching the air and decided not to engage him further. He leaned back on the sofa and said, "Well, now I finally understand why the Treasury is so cautious about issuing local bonds. However, isn’t there a way to make them loosen up? After all, the renewal of the slums is a good thing for everyone, and it’s not war time anymore. It can’t be that aiding Prussia is okay, but aiding Liverpool is not, right?"

Gladstone, upon hearing this, first pondered for a while, then began to speak, "Actually, it’s not absolutely impossible. Like what my father just mentioned, the so-called local debt ceiling is not put down on paper, so it can’t be considered a strict regulation. In other words, if the Treasury can be put under enough pressure, they will eventually relent."

"Pressure, huh..."

Arthur stood up, looking out the window at the moonlight, remained silent for a while, then said slowly, "Pressure can certainly be applied, but I need everyone to work together. I was originally just thinking of delaying the spread of cholera in the slums to prove a point to Parliament. But since the Treasury is involved, just delaying the spread won’t be enough."

Hearst inquired softly, "Mr. Hasting, are you thinking of...?"

Arthur held his wine glass and slowly turned around, "You can relay a message for me; I want to discuss a deal with the Royal Navy, Customs, Tariff Department, local law enforcement in Liverpool, and the city council."

Hearst asked cautiously, "Your demand is?"

Arthur said, "I need their full support. In the following period, I want them to pour a great deal of resources into epidemic prevention."

Old Gladstone took a puff from his cigar, expelling a thick cloud of smoke from his nose, "Your goal?"

Arthur articulated each word, "At this moment, I need Liverpool to deliver a zero-growth performance within half a month."

Old Gladstone asked another question, "And your bid?"

Arthur lifted his wine glass; the smooth wine gently tilted down his throat.

As the wine glass touched the floor, Arthur’s voice followed.

"An initial investment of two hundred thousand British Pounds for Liverpool’s urban renewal plan, with further investments to be determined."