Chapter 1217: Chapter 1122: The Tycoons’ Feast
Prince Poniatowski hurriedly asked, “What do you an?”
“I am too familiar with the Russians’ tricks,” Kosciuszko said with a vigorous wave, causing the dal on his chest to shake, “They are likely assembling their army dostically now.
“Once they’re prepared, they will take advantage of the chaos in our eastern provinces to launch an invasion, just like they did years ago.”
Ignacy Potocki imdiately, with a face full of anger, asked, “What do you suggest we do?”
Kosciuszko looked at his old comrade, “Your Highness the Regent, I suggest we imdiately reinforce the line from Mozhili to Minsk. We must ensure at least 70,000 troops to defend the eastern front.
“At the sa ti, conduct a thorough investigation within the Great Sejm to identify those who still harbor illusions about Russia. Their existence only weakens the resolve of our citizens!”
A few days later, the Polish Great Sejm overwhelmingly rejected the proposal to restore diplomatic relations with Russia.
At the sa ti, Poland’s Third Guard Infantry Division left Warsaw, heading to the eastern Dnieper River defense line.
Half a month later, Prince Poniatowski received a ssage from intelligence personnel in Saint Petersburg, stating that Russia was indeed conducting a large-scale mobilization, with dozens of carts of supplies being shipped out of warehouses daily in Moscow, Kasimov, and other places.
Indeed, this was Paul I preparing to march into India, but in the view of Prince Poniatowski, it actually confird Kosciuszko’s previous assessnt — that the Russians intended to invade Poland.
Gosakowski and another mber of parliant from the eastern provinces were giving a speech on “restoring trade with Russia” in the square outside the Royal Castle when they were approached by a few investigators from the Polish Freedom and Security Committee and taken into a carriage.
Within three days, all 21 mbers of parliant who were Eastern Orthodox or insufficiently anti-Russian were placed under house arrest, and shortly thereafter, the Great Sejm issued a nationwide mobilization order.
anwhile, Russian negotiation envoy Iglerstrom had just reached Smolensk when he received a notice from the Polish Governnt denying him entry.
…
London.
The ard rchant ship “Gassen” slowly sailed into London Port from the Thas River.
On the dock, Salomon Rothschild briskly approached the familiar figure, embracing him tightly with a smile, “My dear brother, what brings you here? Frankfurt is not exactly close by.”
The “Sect Leader” of the Rothschild family, Amshel, patted him on the back and imdiately led him to the carriage by the roadside, speaking in a low voice, “For God’s sake, why didn’t you discuss this huge matter with beforehand? Was the agreent signed?”
Salomon nodded with a radiant smile, “Yes, it was signed five days ago. I wrote you a letter, but didn’t expect you’d co to London.”
Amshel paused, looked at him, and asked, “What is the total amount?”
“8 million British Pounds.”
Salomon’s tone was as if he were speaking of 8 pounds.
Sweat beaded on Amshel’s forehead as he climbed into the carriage with his brother, shutting the door firmly before lowering his voice to a roar, “8 million pounds? Good God! Have you gone mad? Never mind the risk, but we simply don’t have that kind of money!”
Salomon loudly instructed the coachman to return to London, then smiled at his brother, “It’s not a single paynt, but a tiered loan over three years.
“The first installnt requires only 500,000 British Pounds, which I have sufficient funds for. You know, my investnt in sugar futures last year yielded quite a profit.”
Amshel tried to calm himself down and continued to ask, “What happens next? What about the paynts next year or even later this year when the family’s liquid assets will be exhausted?”
“You don’t need to worry, my dear brother. If things go smoothly, we might not have to pay the British Governnt a penny,” Salomon waved his hand, “They might even owe us money.”
“How do you plan to do that?”
Salomon picked up a sugar packet from the wooden table, tore it open, and poured it into the teacup, “The British need a large quantity of sugar. But as you know, sugar can only be bought with francs now, so the British Governnt has to exchange gold for francs at the Bank of France, and then proceed to the futures market for trading.
“But the British Governnt does not want to spend so much gold.
“So, I offer them sugar as a discounted loan in British Pounds, about 8% above the market price. You see, before even paying interest, we’ve already made a profit.”
Amshel squinted his eyes, “You’ve utilized the family’s French governnt bonds?”
“Yes, I mortgaged them to French sugar rchants to purchase long-maturity futures contracts, like those expiring in six months or later.
“Then I hand these contracts over to the British. To them, it is equivalent to having purchased sugar.
“anwhile, we continue to collect interest on the French governnt bonds for these six months. The British must also pay interest.
“If the British want more sugar, they’ll have to pay in cash.”
French governnt bonds are denominated in francs, so it’s quite easy to exchange them for sugar.
Amshel pondered and nodded. For the British Governnt, it is akin to exchanging British Pounds for sugar, so a little premium is acceptable.
Salomon continued, “The part paid in sugar amounts to roughly 1.8 million British Pounds over three years. So, we only need to provide the British with a 2 million British Pounds loan annually.
“After deducting interest and the sugar price difference, the actual annual paynt is about 1.7 million British Pounds.
“Yes, I know, even so, the family still doesn’t have enough money. I have already reached agreents with Valenberg and the Hope family, who will finance us at an 8% interest when necessary.
“Oh, by the way, the loan interest we charge the British Governnt is 16.5%.”
Amshel’s face darkened again, “Did it not occur to you why others aren’t jumping at the chance to earn such high interest?
“Because the risk is too high!
“I’ve heard the news in Frankfurt: 12 dead, over 70 injured in Manchester, and more than a hundred arrested. If their 9th Cavalry Corps hadn’t acted quickly, the Manchester City Hall might have already been taken by rioters. This is the third large-scale riot in England this year!”
He was referring to the riot in Manchester half a month ago, protesting the repeated increase in inco tax — now 35% higher than last year. Sohow, the rioters managed to procure nearly a hundred flintlock guns from a militia warehouse and initially fired upon the militia sent to quell the disorder, forcing them to stay away.
However, these rioters didn’t have sufficient ammunition and after so wild firing, their guns fell silent, then the cavalry quickly dispersed them.
“There’s already soone in the British Parliant preparing to impeach their Pri Minister.” Amshel waved his hand dismissively, “No, that’s not even the worst of it. You should know, Britain might once again go to war with France.
“In the current situation, they failed to hold Lisbon, completely withdrew from the Caribbean, and couldn’t even subdue the natives at the Cape of Good Hope.”
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