European Financial Emperor

085 War(1)

In 1827, when Austria declared war on Prussia, tensions between the two sides were broken.

Due to the preparations for war between the two countries, prices soared, currency values fell, and the British financial district began to experience an untimely colon premium.

Inflation caused by the risk of war was putting pressure on Britain, the Netherlands and Austria.

On the other hand, at the beginning of the war, there was a controversy about who the leader of the Allied Forces was.

Austrian Allies or British Allied Forces?

This was because if a war-leading country was decided, they would pay subsidies with their salaries instead of occupying territory in that country.

In this case, the maintenance cost of the Allied Forces was financed exclusively by the war-leading countries, but the Allied leader could bring the advantage of territorial expansion.

Then, in March 27, at the end of the meeting, it was concluded that Austria would lead the Allied Forces, but provide support to both British and Japanese to expand the territory.

On March 12, this news was delivered to Lee Hwan.

It was none other than Elizabeth who had brought the news.

“You are the finance manager for Austria. congratulations.”

“Then are notes in the name of the Austrian Empire in circulation now?”

“It’s like that.”

After receiving the newsletter, Lee Hwan talked with her while walking along the banks of the Mars River, where the East Stellar Company headquarters is located.

she asked Lee Hwan.

“How are bills circulated?”

“I have outlets all over Europe where I can sell bills and bonds. We will distribute bills with different payment methods according to the exchange rate of each country.”

Usually, the financier in charge of the warfare receives a bill stamped with the national emblem of the warfare paying country, converts it into bonds or currency, and delivers it to the Allied Forces.

As such, Austria will issue a bill to be converted into gold to Lee Hwan on a set date, and if Lee Hwan delivers aid to the UK and the Netherlands based on this, the war expenses agreement will be implemented.

This is where the decisive opportunity arises for the morbidity to take advantage.

Currently, the subsidy to be paid to the Allied Forces is 500,000 pounds per month, and Lee Hwan’s fee was only 3~5% when it was settled by bill.

The key here is how to diversify payment methods and significantly increase the interest rate of fees.

Elizabeth knew it well, so I was very excited about what kind of skill Lee Hwan would use this time.

“Can you tell me how you will roll the money when you get the bill this time?”

“There is nothing complicated about it. We will adjust the payment method to benefit.”

“Are you adjusting your payment method?”

“We, Eaststella, receive the notes from Austria, but go to the Amsterdam paper market, but there is a company that handles them.”

“You mean the Rashid Company?”

“you’re right. It is a key force in helping the slush fund business that we run jointly, but it is also the main bank.”

“But how do you make more money there?”

“Eaststellar was promised a 2% discount from the Allied Command when receiving the bill in Austria. If a war breaks out, Austria and the whole of Germany will become battlegrounds, and roads and railroads will be the enemy’s main target of artillery fire. I was promised a 2% discount because I had to take that risk. And if the war escalates, I’ll even get a 1% commission. That’s who we are, and that’s the condition to earn a 3% profit.”

“Well, yes. I know that from hearing. The commission you receive is a risk allowance.”

If a bill or bond suffers loss, Eaststellar suffers a huge loss of close to £1 million per month.

It’s not just a loss made by Ross on his investment.

For Lee Hwan, it is like paying war expenses to Prussia, which is now a hostile country, and it is a perfect loss to plunder only raw money without receiving any benefit.

Although the fee obtained from pre-financing carries such risks, it also has the advantage of being able to significantly increase this fee depending on the skill of the banker.

“We take bills, convert them into bonds, and pass them on to the British or Dutch governments. Some are even delivered in British bills of exchange. But with war squeezing the colon market, turning it into cash isn’t as easy as it sounds. Armaments are best eaten like bread, but it’s not easy to freely exchange money, which is usually around a million pounds.”

“Hmm, yes. Especially when the war begins in earnest, the situation will get worse.”

“So I will initially deliver the funds in the form of bonds or drafts of exchange. Dealing with the Austrian bill of exchange in the UK will take some time and will not be easy to sell due to the added war risk. We will charge an instant conversion fee of 4% as a commission for that.”

“Ah, instant currency exchange!”

“If you pay with Thaler or Sovereign, the UK will be happy to pay a 4% fee. They say that these days, the royal family’s finances don’t make sense, but you would think that this is a pretty good condition.”

The fund management that Lee Hwan thought was a structure in which 2% was deducted as an advance deposit, 1% as a commission, and 4% as a currency exchange fee.

In a word, Lee Hwan was trying to roll money like a loan shark would take a good interest rate.

If you adjust the payment timing here, you may be able to maximize your profits even more.

“Unlike the way we financed wars in the Americas and made a profit, the financial markets of Britain, the Netherlands, or Austria fluctuate from moment to moment. If the pound was strong today, the market could be bullish for the guilder tomorrow. Therefore, if you predict that the value of the currency will rise or fall, and make a payment at that time, you can get enough profit.”

“Predicting currency fluctuations… … ? Is that possible?”

“Available. Even if I can’t say that it’s 100% correct, I can predict the ups and downs to some extent.”

Lee Hwan’s ability to trade forward exchanges is so accurate that ghosts stick out his tongue.

So far, while rolling money with Eaststellar Finance, he has taken advantage of adjusting the timing of payments over and over again.

Now that all the information necessary for fluctuations has been gathered, it is possible to compose a chart with it and directly conduct forward exchanges.

“If war breaks out, Austria’s currency will plummet. Instead, gold and silver prices will rise. The difference is even greater because bills and bonds are valued as thaler and sovereign. It’s the same in the UK, so a small adjustment to the timing of your payment can be beneficial. This is my defense.”

“… … That’s great. The phrase “making money with money” seems to be used at times like this.”

“The context is similar to what we did with France and Spain last time. But it’s just a little bit bigger.”

Elizabeth poked Lee Hwan’s side with her finger.

Her playful smile blended with the twilight that had just landed on the ground, creating a fantastic ensemble.

“This man is really useful. marry me I’ll take good care of you.”

“I thought you weren’t talking about it anymore.”

“I am a more persistent woman than I thought. I’ll brainwash you from time to time when you think of it.”

Her cute obsession makes me laugh out loud.

***

It was about three days after Elizabeth passed away.

There was a discussion about the participation of the Blackmaul mercenaries at the Benheren mansion in Amsterdam, the Netherlands.

Prussia declared that it would unite the national ideology of the Northern German Confederation and bring Tsarist Russia, and such arrogance was possible because a Prussian princess married a Russian prince.

If Russia really did enter the war, the plate could be turned over at any time.

It was Austria who insisted on the participation of the Black Hammer mercenaries.

“He said he had bought weapons in Russia a while ago. There’s no way of knowing who the hell these bastards did, but they said the purchases of weapons were enough to arm nearly 100,000 soldiers. Considering the military power that Russia has developed so far, a large army of over 300,000 would be gathered. It is only natural that the Black Hammer mercenaries should participate in the war.”

“No, where the hell did you get a gun enough to arm 100,000 infantry?”

“Perhaps… .”

“It’s not Eaststellar. They call it an old weapon.”

“Uh… … .”

“But that alone is threatening enough.”

The Austrian side was in a position that they could be pushed back if the power of the Tsarist Russia was the national power.

But the British thought differently.

“I don’t think the power of Tsarist Russia would count that much if Sweden were to join the war. After all, this war is a battle of who has more new weapons. Eaststellar rifles distributed on the basis of credit so far have been distributed except for Russia, and Prussia’s credit is in the mid-range, so less than 20,000. In such a situation, we will soon be receiving the cannons, so what the hell is the problem?”

“Hmm… … .”

“How can you fight a war when you are so afraid of the enemy?”

From the Austrian point of view, the key was to reduce the war damage as much as possible.

In the end, even if the war is won, what is the meaning of German reunification if the country is devastated?

Such pressure was shaking the Austrian Empire, but Britain’s position was different.

For them, whether the land was desolate or not, as long as the war was won, it was enough.

“Unless Bulgaria’s elite troops or Swedish artillery units are involved, we will never be pushed back. So rest assured.”

“Hmm… … .”

“More than that, Osmantruck is the problem. Are they really going to let this opportunity stand still? Isn’t that the issue?”

In fact, for Britain, the Ottoman burden was more burdensome than that of Tsarist Russia.

Since the beginning of the 19th century, they have become really neighborhood drums, but the Ottoman Empire was once the most powerful empire in name and reality, controlling all of Europe with hegemony in the Mediterranean.

In this war, they were clearly the dragons, and they were one of the key forces that could turn the tables at any time.

At present, the Ottomans are troubled by the Greek independence issue, but they have the strength to advance north at any time.

Ben Heren, who attended this meeting, said something.

“If that’s the case on the British side, how about sending Eaststellar to the Mediterranean?”

“… The East Stellar mercenary corps to the south?”

In fact, Britain refused to participate in the East Stellar mercenary corps because of the European hegemony after the war.

If their overwhelming firepower shines on the battlefield, wouldn’t the British halo naturally disappear?

However, if East Stellar does not directly participate in the war and unilaterally takes over the Mediterranean area, the story will be different.

“Ah, it was! Right. You said that the Eaststellar Company would give you sovereignty over Suez, in northeast Egypt, in exchange for lowering the lease rate. As part of that, I promised to buy the entire stake in Suez Corporation.”

“Eaststellar is interested in the Suez Canal, so why not just let them take care of the eastern Mediterranean?”

The eyes of everyone who attended the meeting sparkled.

England will be in the spotlight again and Austria will have a chance to win, so it’s a mutual aid, isn’t it?