Chapter Thirteen: The Banking Consortium
Although it was their first meeting, Feng Chengqian could immediately tell that this capitalist named Karl was a shrewd man.
“I heard that the Count has already proposed to the British Prime Minister the construction of a railway from the Bosporus Strait to the Persian Gulf, which is why I have taken the liberty to visit you.”
“Mr. Karl, you come at this late hour for that matter alone?”
“Firstly, to express my gratitude to you, Count, and secondly…”
“Why thank me?” Feng Chengqian smiled. “I acted in the interest of the Empire and in service of His Majesty the Emperor.”
“True as that may be, you have nonetheless done us a great favor.”
“Is that so?”
Karl looked a little embarrassed. “You may not know this, Count, but plans for this railway have long existed; it’s just that no one had formally raised the proposal. By presenting it to the British Prime Minister, you have made the matter official. I believe the Imperial Cabinet will soon begin negotiations with the British government.”
“So, I have inadvertently assisted you, Mr. Karl.”
“Not me, personally.”
“Then whom?”
“To be frank, Count, I represent Deutsche Bank and the Württemberg Bank. I believe you have heard of these institutions.”
Feng Chengqian smiled and said, “You may be disappointed, Mr. Karl. All I have now is granted by His Majesty and has nothing to do with any bank.”
“And in the future?”
“The future?”
“Though we are all subjects of His Majesty, surely you will need some financial support in time, will you not?”
Feng Chengqian kept silent, for he understood full well the significance and value of finance.
“The second reason I have disturbed you tonight, Count, is to hope you might grant us greater assistance. In return, we will also offer you certain conveniences.”
“What kind of convenience?”
Karl took an envelope from his pocket and placed it before Feng Chengqian. “This is a chequebook from Deutsche Bank. The Count is granted an overdraft limit of five hundred thousand marks.”
“Borrowed money must be repaid, sooner or later.”
“As an honored client, the Count will not be charged interest. As for repayment, you need not concern yourself; we shall handle it accordingly.”
“Are you bribing me?”
“You overthink it, Count. This is simply what you are due.”
Feng Chengqian glanced at the envelope. “I cannot accept this. After all, one must not receive rewards without merit, and there is yet no outcome regarding the railway.”
“Will there not be a result tomorrow?”
Feng Chengqian’s brow twitched; these capitalists were indeed well-informed.
“If you are willing to exert some influence at the audience with His Majesty, Count, I shall return with even more sincerity. You will not be disappointed.”
Feng Chengqian still said nothing, for he knew the Baghdad Railway existed only on paper.
“Does the Count think our sincerity insufficient?”
“Mr. Karl, you are overthinking matters.” Feng Chengqian exhaled and said, “What benefits the Empire, I will naturally strive for.”
“Then…”
“In the end, it is for His Majesty and the Chancellor to decide.”
“But…”
“Mr. Karl, with your sources, you will surely hear news by tomorrow,” Feng Chengqian said with a yawn. “It’s late, and I must rest. I suggest you return as well.”
Karl hesitated for a moment. “Then I shall await good news.”
Feng Chengqian smiled and rose to see Karl out.
Of course, Karl did not take the envelope containing the chequebook with him.
Feng Chengqian’s lack of response did not mean he had no use for the financial support banks could offer. By the standards of this era, five hundred thousand imperial marks was no small sum. One must know that the average worker earned only a few marks a month. A century later, that sum would be equivalent to tens of millions of dollars.
For Feng Chengqian, what he needed most at this moment was money.
After seeing Karl off, Schmidt hurried back.
“Count, this…”
“Leave it here. You may rest now.”
Schmidt nodded and tactfully withdrew from the study.
Feng Chengqian pondered for a long while before retiring to his bedroom.
The next afternoon, Feng Chengqian set off early for the Potsdam Palace.
“What is this?”
“A capitalist named Karl gave it to me, claiming to represent Deutsche Bank and Württemberg Bank. It’s an overdraft of five hundred thousand imperial marks.”
“You may keep it. There’s no need to hand it to me.”
“Your Majesty, all I do is for the good of the Empire. If I accept favors from others, is that not tantamount to accepting a bribe?”
Frederick III smiled and handed the chequebook back. “Isn’t the Navy in need of funds? If you don’t want the money, you can always contribute it to the naval budget.”
“This…”
“In future, there’s no need to report such matters to me. If money is sent to your door, there’s nothing wrong with that. Just exercise discretion.”
“As for the railway…”
“I have already discussed it with the Chancellor, who agrees it is necessary, but for now it is unwise to act. Though Salisbury has not opposed us, the British Cabinet and House of Commons will certainly not support our proposal. The Chancellor’s view is that we can use this to win over Turkey, rather than stretch our hand into the Persian Gulf. Weakening Britain cannot be achieved overnight—it must be done patiently and gradually.”
Feng Chengqian nodded. “That is my view as well. If it cannot be done, we should not force it.”
“I have left the matter with the Chancellor. There’s no need for you to worry,” Frederick III said with a smile. “At the upcoming audience, the Chancellor will surely bring it up. As the initiator, you should support him. After all, the Chancellor is far more experienced in diplomacy than either you or I.”
“And the naval budget…”
“The Chancellor has agreed in principle to my terms. The naval budget will be doubled, beginning next year, but the annual increase may not exceed twice that of the Army.”
“This…”
“In about ten years, the Navy’s budget should reach twenty percent of the Army’s.”
Feng Chengqian sighed inwardly but said nothing more.
“By the way, Wilhelm told me that he’s willing to support naval expansion.”
“The Crown Prince?”
Frederick III smiled. “Wilhelm spent his childhood in England and was deeply impressed by the Royal Navy. Even in his youth, he advocated for the Empire to have a powerful fleet. Last night, he came to me and offered to devote half his annual stipend to the Navy.”
“That…”
“It is indeed rare for the Crown Prince to have such intentions.”
Feng Chengqian nodded. “Since His Highness has the Empire’s interests at heart, I will do my utmost.”
“I know your character. But the Crown Prince is young and lacks experience. I hope you can spend more time with him, so he may understand how difficult it is to govern a nation.”
“Your Majesty flatters me. His Highness is intelligent and hardly needs my guidance.”
Frederick III laughed. “If you say so, then I am unworthy myself! In any case, I hope you will take this matter to heart. It will ease my burdens.”
“To be trusted by Your Majesty is an honor I can never fully repay.”
“Enough with the formalities,” Frederick III waved his hand. “There’s still time before the meeting, and it’s been a while since you last visited. Go and take a walk in the gardens. When the other ministers arrive, I’ll have Gustav fetch you. By the way, there are a few newly cultivated peonies in the rear garden.”
Not lingering, Feng Chengqian took his leave and followed Gustav to the rear garden.
Truth be told, Feng Chengqian had little interest in flowers and plants. In his own era, cities covered the land, greenery was scarce, and few still appreciated such things.
The palace’s rear garden was vast, and this was Feng Chengqian’s first time entering it during daylight.
Since arriving in this era, Feng Chengqian had spent his first month living by day and moving by night, rarely wandering even after dark, and mostly staying close to Frederick III.
It must be said, the German royal family was far more austere than their British counterparts.
The rear garden had few rare or exotic plants and, unlike Buckingham Palace, boasted no treasures brought back by explorers from around the world.
Yet, the German Emperor’s garden had a unique charm.
Compared to Buckingham Palace, Potsdam Palace was more serene, soothing both body and mind.
The audience was scheduled for four in the afternoon, still over an hour away, so Feng Chengqian wandered the garden for a while. It was not until he heard a commotion that he paused.
“That is Princess Sophie and Princess Margaret,” Schmidt whispered.
Before becoming Feng Chengqian’s chamberlain, Schmidt had served under Gustav and was well acquainted with each royal family member.
Feng Chengqian looked closely; indeed, it was Princess Sophie and Princess Margaret, playing and laughing among the flowerbeds behind a low hedge.
“Shall we go and greet them, Count?”
“No need. Let’s take a look elsewhere,” Feng Chengqian replied, turning away. “The audience will begin soon. We’d best head back early.”
“There’s still an hour.”
Feng Chengqian smiled and ignored Schmidt, walking straight toward the garden’s exit.
Though the Emperor had not said so outright, the arrangements for the visit to England made it clear that Frederick III intended to match Feng Chengqian with Princess Sophie. Should Feng Chengqian marry her, he would become part of the royal family and could rightfully occupy a high position in the imperial government.
Feng Chengqian had considered it, but saw no need.
Relying on the Emperor was one thing, but deliberately aligning oneself with the royal family was quite unnecessary.
Besides, Feng Chengqian had no intention of serving the German Empire forever. He harbored grander ambitions and would eventually lay down his post and depart.
He hadn’t gone far before stopping, for he saw the Crown Prince Wilhelm approaching.
Perhaps due to a less-than-favorable impression, or simply caution, Feng Chengqian had no wish to grow too close to Wilhelm, lest Frederick III become suspicious.
After all, Wilhelm was heir apparent to the throne.
Yet, now, avoidance was impossible.
Sighing inwardly, Feng Chengqian quickened his steps to meet the Crown Prince. For now, Wilhelm was his strongest supporter in building the Imperial Navy.