Life of Being a Crown Prince in France - Chapter 1217: 1122: The Tycoons' Feast

Chapter 1217: Chapter 1122: The Tycoons’ Feast

Prince Poniatowski hurriedly asked, “What do you mean?”

“I am too familiar with the Russians’ tricks,” Kosciuszko said with a vigorous wave, causing the medal on his chest to shake, “They are likely assembling their army domestically 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 immediately, 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 immediately reinforce the line from Mozhili to Minsk. We must ensure at least 70,000 troops to defend the eastern front.

“At the same time, 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 same time, Poland’s Third Guard Infantry Division left Warsaw, heading to the eastern Dnieper River defense line.

Half a month later, Prince Poniatowski received a message 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 confirmed Kosciuszko’s previous assessment — that the Russians intended to invade Poland.

Gosakowski and another member of parliament 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 members of parliament who were Eastern Orthodox or insufficiently anti-Russian were placed under house arrest, and shortly thereafter, the Great Sejm issued a nationwide mobilization order.

Meanwhile, Russian negotiation envoy Iglerstrom had just reached Smolensk when he received a notice from the Polish Government denying him entry.

…

London.

The armed merchant ship “Gassen” slowly sailed into London Port from the Thames 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 immediately 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 me beforehand? Was the agreement 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 come 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 payment, but a tiered loan over three years.

“The first installment requires only 500,000 British Pounds, which I have sufficient funds for. You know, my investment 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 payments 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 Government 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 Government has to exchange gold for francs at the Bank of France, and then proceed to the futures market for trading.

“But the British Government 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 government bonds?”

“Yes, I mortgaged them to French sugar merchants 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.

“Meanwhile, we continue to collect interest on the French government bonds for these six months. The British must also pay interest.

“If the British want more sugar, they’ll have to pay me in cash.”

French government bonds are denominated in francs, so it’s quite easy to exchange them for sugar.

Amshel pondered and nodded. For the British Government, 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 payment is about 1.7 million British Pounds.

“Yes, I know, even so, the family still doesn’t have enough money. I have already reached agreements 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 Government 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 income tax — now 35% higher than last year. Somehow, 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 some wild firing, their guns fell silent, then the cavalry quickly dispersed them.

“There’s already someone in the British Parliament preparing to impeach their Prime 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.”