Chapter 350： Competition for funds (part 2)

After seeing that Edel had processed the documents concerning the reconstruction of northern Moldavia, Prime Minister Bretianu immediately pretended to be concerned and asked: "Your Majesty, what should we do with this batch of gold?"

As soon as Edel heard that the meat show was coming, he also pretended to be confused and said: "First put it in the Reserve Bank, and wait until the war is over."

Upon hearing that Edel planned to wait until the war was over to consider the use of the gold, Prime Minister Bretianu stopped loading it. "Your Majesty, at present, because of the purchase of war materials, the comfort of the people in the newly occupied territories, and the resettlement of the people returning from northern Moldavia, the government has almost exhausted its funds. We must have new funds to continue. Go on, so you see if you can allocate some of it to solve the current difficulties first."

Facing Prime Minister Bretianu’s request, Edel was a little silent, in fact he had his own thoughts on this batch of gold. In Edel's view, this gold from Kazan is not the best time to use it. After the end of World War I, the appeasement of Romania’s newly occupied territories and the acquisition of German industry were the best time to reflect its value.

I think of the huge debts that Germany has borne after the war and the suppressed environment. With a large number of experienced technicians and horribly cheap factories, Edel believes that it is his responsibility to let them and these factories continue to play a role in Romania. This is also the greatest contribution he can make as a member of the Hohenzollern family to these poor German people.

And for the anxious people who are about to be merged into Romania, Edel also believes that they need to be made to feel the importance of the new kingdom, so that it is worthwhile to give some economic benefits. However, both of these require huge amounts of capital, and the current batch of gold is the biggest capital he intends to do for these two things.

So for the Prime Minister’s proposal to use this batch of gold, Edel was somewhat reluctant.

Prime Minister Bretianu saw that the king was calm about his proposal, and said anxiously: "Your Majesty, there are too many supplies to be purchased at the moment. Our government's finances are quite tight. We really need a sum of funds to ease this situation. ."

Facing the Prime Minister's words, Edel asked instead: "Can't the government issue another treasury bond to ease it?"

In the face of the king, Prime Minister Bretianu couldn't smile at him. Did the king think they hadn't considered this approach? In fact, the government had made this idea a long time ago, but it was unrealistic. At present, domestic capital is not too strong, and many entrepreneurs have grievances about the Kingdom joining the agreement camp, and they will not actively buy (for anyone who makes himself a big profit to possibly lose money, he has grievances. This has nothing to do with the issue of love or patriotism. Capital is profit-seeking). And these companies basically rely on the war fortune they have made in the past few years, and many people who have made money have invested it in expanding production. Therefore, it is impossible to expect the country to digest this batch of national debt.

Therefore, the Prime Minister said bluntly: "Your Majesty, it is difficult for the domestic economy to bear the issuance of this national debt. This is not a small amount of money, but a war bond of nearly two billion lei."

Hearing what the Prime Minister said, Edel was also taken aback. How to calculate so much money?

Seeing that the king didn’t believe it, the prime minister immediately said of his reasons: “This money includes the cost of continuing to purchase war supplies, as well as the pensions for the killed soldiers and the placement fees for the disabled soldiers. You must know the current staff. The reported number of soldiers killed and disabled and discharged has reached more than 70,000, all of which require a lot of money."

Edel knew about this. When the Preshan newspaper came up, he was also taken aback. Because Romania suffered a bit when facing the Germans in North Moldavia, the other fronts were all considered smooth, how could there be so many casualties.

When Puleshan explained to the king, he knew that although the war situation was beneficial to Romania, the number of casualties was not small. First, during the Battle of Transylvania, Romania lost more than 40,000 casualties and lost more than 40,000 people. Among them, the number of soldiers who died and could not continue fighting after treatment reached more than 25,000. The Bulgarian campaign had the smallest number of casualties in Romania, with more than 24,000 casualties and missing persons, and more than 11 thousand soldiers who died and were unable to continue fighting. As for the battle of North Moldavia, which suffered the most serious casualties among the Romanian army, more than 80,000 casualties and missing persons, of which more than 45,000 were killed and retired due to injuries and illnesses.

According to the standard of 6,000 lei for dead Romanian soldiers and more than 5,000 to 3,000 disabled, this would require more than 300 million lei. The money can't be delayed. This is a major matter of the morale of the army. Therefore, Prime Minister Bretianu was also anxious and had no choice but to make this windfall.

Although the prime minister had good reasons, Edel was still a little reconciled, so he suggested another way.

"The government can go to London or New York to issue war bonds."

Faced with the king’s advice again, Prime Minister Bretianu said directly. "Your Majesty, we have considered it, and this cannot fill the funding gap."

Seeing that the king didn't believe it, the prime minister gave the reason. "At present, the national debts of Britain and France are not easy to sell in the financial markets of London and Paris, while in the United States, we have contacted banks such as Morgan and Citi. They said that they can only take off the issuance of 100 million U.S. dollars for my country's war bonds. In addition, the interest rate must be one percentage point higher than that of British and French bonds. Because the American people have concerns about our country’s ability to repay."

Edel sighed secretly when he heard the prime minister's merciless words. This is the reason why the development time is too short, and Romania's recognition in the world is not high enough. But this is much better. If according to the historical situation in Romania, it is estimated that 50 million US dollars is enough, and it is estimated that Britain and France will have to protect it.

Hearing the Prime Minister’s explanation, Edel thought about it. "Well, the issuance of war bonds still has to be carried out. According to their requirements, they will issue 100 million US dollars of war bonds in the United States, and then also issue 500 million lei war bonds in China and the United Kingdom and France. The remaining one billion shortfall will be part of the issue. Gold guarantees the issuance of one billion lei banknotes to finance the war."

After Edel finished speaking, he looked at the chancellor of finance standing behind the prime minister. Lord Albert, who has worked in the Ministry of Finance for many years, immediately understood the king's intentions. He directly asked, "Your Majesty, what proportion of gold is this banknote issued?"

The meaning of Lord Albert's words ~ www.novelhall.com ~ everyone present understands it. Although it is now a gold standard, it is not a classical gold standard. One hundred million lei gold is issued with one hundred million banknotes. Now which country is not over-issued paper money, although paper money can still be exchanged for gold, its complicated procedures have blocked a large number of ordinary people, and the exchange of paper money for gold between countries also needs to consider all aspects. Believe it or not, the domestic gold reserves of the debts owed by Britain and France after the original time and space war have long been insufficient to repay them. As the main creditor, the United States still dares not force them to pay it back, and can only negotiate the exchange of benefits.

Romania doesn't have this strength, so Edel thinks about it and said: "Let's publish it on a three-to-one basis."

After speaking, Edel sighed secretly, this batch of gold only arrived in Romania, which was one-tenth less, and who could stand it several times.

Seeing that he had got the money, the Prime Minister quickly left the palace with the Chancellor of Finance. The government’s work was so busy that he wouldn’t have bothered to come over and bargain with the king if it weren’t for the importance of this time.

After the Prime Minister left, Edel had not waited to take a break, and the guards came in again to report: The Chief of Staff Pule Mountain is coming.