C2480 British Mediation Group (2/2)
Everyone knew that war required money, and the country needed money to invest in the large project. But what if they didn't have money? If you don't have money, you can only borrow it. There really isn't much of a difference between a country and a small family.
If the tsar wanted to abolish serfdom and build the Trans-Siberian Railway, he would have to borrow money from all over the world, especially from the London City, who would have to grit their teeth and borrow money no matter how high the bond interest was.
For example, the war between Prussia and the Denmark, as well as the war with the Austria, were all secretly taking advantage of the fact that the City of London was the source of the high interest funds.
The underwriting of this kind of War bond was very complicated and secretive. It was related to the diplomacy between countries, the checks and balances between financial groups, the national strategies of various countries and so on.
If you want to succeed with this kind of underwriting, other than the above conditions, what's more important is that you must also give the Investor enough interest, and these merchants must carefully calculate your repayment ability.
Businessmen want to calculate how likely you are to win the war. If your government falls because of the war, then your ability to accept these debts is in doubt, let alone pay interest. It's hard to say if Prussia will be able to pay the principal.
The big shots within the Dutch stock exchange had given Napoleon a shocking piece of news. Last year, Prussia had secretly discussed the War bond acceptance business with the financial oligarchs of the Bank of England and the Bank of England.
Prussia had initially planned to issue £7 million in war debts to the City of London. With a capital of £7 million, Prussia would be able to carry out a moderate intensity war, and that money would be Prussia's war fund for France.
Everything was done in top secret, and France had no idea that such a business was being discussed!
But today, France finally found out that this business was not only in negotiation, but also just half a month ago, the City of London changed her attitude. They made a pessimistic judgement of Prussia and eventually rejected this business.
The oligarchs did not seem to think much of the war between Prussia and France. They thought that Prussia had no chance of winning the war at all, that even the war would be difficult.
Since he was going to lose, why did he have to go into such a loss-making business? That's a pound War bond! Although the British royal family passed some small talk behind their backs, the merchants were still merchants. They had their own independent thinking, and their business would definitely not be controlled by the royal family.
In the end, he still refused. There was no hope for £7 million, nor was it possible for him to borrow £5 million. In the end, he didn't even manage to borrow a minimum of £3 million.
The French, from top to bottom, had finally figured out what was going on. It turned out that Britain had not changed its nature, and the coordination group he was working on was trying its best to avoid a war. That was because he had predicted that Prussia would not be able to carry out such a war!
They found that Prussia was not strong enough to sustain the war, unless they could raise a lot of money from the City.
With the current level of power, in the event of a war, Prussia would not only have a hard time winning, but would not even have a chance at a draw.
This way, they would not be able to control the power of one continental Europe. This war would not weaken the strength of France, but give it an excuse, an excuse to eat fat!
Such an outcome was not what the British wanted. Since the war could not bring France down, they could only change their strategy and try their best to prevent it from happening.