Chapter 240: Big Borrowing
Ernst had anticipated Prussia's intention to request financial support. As he was returning to Hohenzollern Castle, he received an invitation from the Prussian royal family to visit Berlin as their guest.
In the Kingdom of Prussia, Ernst met with King William I in a friendly manner. They discussed Prussia's financial challenges, the debts incurred due to wars, and the need for additional funds to continue the unification of Germany.
Ernst, understanding the situation, offered his support. He agreed to subscribe for 500,000 Taylor's war bonds, a substantial sum but only a fraction of his overall wealth. This gesture was to show his solidarity with Prussia in its time of need.
King William I appreciated the support but felt melancholic about the financial burden. He explained the dire need for funds and how Prussia was preparing for a potential war with France. The King also mentioned the difficulties in securing financial backing.
Ernst reassured the King and expressed his willingness to invest in Prussia's war efforts. He mentioned the financial stability of the Hechingen Bank and the consortium's holdings, which exceeded 30 million Taylors. Ernst was prepared to commit at least 20 million Taylors to support Prussia, demonstrating his faith in their victory.
King William I welcomed the investment and promised favorable terms, including setting an interest rate higher than the market rate. He also hinted at potential future cooperation, considering that the creation of the East African Kingdom might require various resources.
The two agreed on the terms, with Ernst pretending to be somewhat reluctant to part with the funds. He emphasized that despite his commitment, the Hechingen Company had its financial obligations, including workers' wages.
Ernst ultimately pledged to provide 15 million Taylors, expressing the importance of Prussia's victory for both parties. King William I was deeply moved by Ernst's commitment and saw him as a reliable supporter of Prussia.
The large-scale borrowing planned by Prussia required France to declare war, and Ernst's substantial investment would significantly alleviate Prussia's financial pressures and allow the army to prepare adequately.
In the end, both parties signed the agreement, marking a substantial financial commitment from Ernst to Prussia's war efforts. The terms were carefully reviewed, and professionals from both the Prussian government and the Hechingen Consortium ensured the agreement's accuracy before signing their names.