"Gentlemen, German warships are ruthlessly destroying cities and harming civilians in the island nation. Such actions are profoundly immoral. As a great and civilized power, the German Empire cannot act in this manner. As a member of the civilized world and one of its leading powers, the United States cannot stand idly by and allow the Germans to continue this bloody slaughter!" President Woodrow Wilson declared passionately before the senior officials of the American government, his demeanor brimming with fervor.
Except for Secretary of State Bryan, the cabinet ministers exchanged bewildered glances, puzzled by the president's unusually impassioned stance. Why should the fate of the island nation concern the United States? Was it worth provoking the formidable German Empire over this matter? After all, Germany was currently the most powerful nation in the world.
The already strained relationship between the United States and Germany would likely deteriorate further if such a course were pursued—an outcome fraught with complications and bereft of benefits for America.
"Mr. President, taking such actions would inevitably provoke the Germans. There's no need to risk offending them for the sake of the island nation—it's simply not worth it," Navy Secretary Daniels objected.
"I agree, Mr. President," War Secretary Garrison added. "The island nation is, in some respects, a potential adversary of ours as well. Germany is at the height of its power right now. We must avoid confronting them directly and certainly not exacerbate tensions unnecessarily."
"Gentlemen, I understand your concerns, but I believe they are unwarranted. While Germany is undoubtedly strong, they are currently burdened on multiple fronts: preparing to launch an assault on Britain's mainland, maintaining their naval presence in the East, and deploying massive forces on the Eastern European plains to crush guerrilla resistance. Their resources are stretched to the limit. At this juncture, they cannot afford to target us. Even after the war, their primary focus will likely remain on consolidating the vast colonial territories they stand to acquire from Britain and France. Though these colonies are rich in resources, their vast expanse will require significant military presence to govern effectively. When that time comes, Germany may well lament that an overabundance of colonies is more a burden than a boon. Thus, even in the postwar period, Germany will find itself unable to contend with us for quite some time," President Wilson reasoned.
Both Secretary Daniels and Secretary Garrison nodded in agreement, reluctantly conceding the soundness of Wilson's analysis. Yet, by America's standards, any action must yield tangible benefits. What advantage would supporting the island nation bring to the United States?
"Gentlemen, while the island nation may have been a potential adversary in the past, it no longer poses a threat. Their navy has been all but annihilated by Germany's expeditionary fleet—no capital ships remain, and only a handful of destroyers survive. At this moment, they pose no danger to us. Instead, Germany's presence has forged a common enemy, aligning our interests with theirs. By aiding the island nation, we are effectively aiding ourselves," President Wilson asserted.
"Very well, Mr. President. If that's the case, I have no further objections," Secretary Daniels conceded.
Secretary Garrison also nodded, signaling his agreement with Wilson's rationale.
"Our response must extend beyond mere diplomatic gestures. We need to take concrete action. The devastation wrought by Germany's expeditionary fleet has been catastrophic for the island nation. Not only has their navy been obliterated, but several coastal cities have been reduced to rubble. This, I fear, is only the beginning. Germany is likely to escalate its actions further. Therefore, I propose that the U.S. government offer the island nation a loan to assist with civilian recovery and military rebuilding," Wilson suggested.
The cabinet members chuckled knowingly. They understood the president's true intent. It was obvious that any funds lent to the island nation would be funneled primarily into military development. By doing so, the United States could cultivate a formidable adversary for Germany in the Far East. The more enemies Germany had, the safer America would be, increasing the likelihood of eventually defeating Germany. Though some sacrifices might be necessary now, the long-term benefits were undeniable.
"Mr. President, I'm afraid our finances are rather constrained," Treasury Secretary McAdoo interjected. "Our annual revenue barely exceeds $700 million. Converted into pounds, it's only about £150 million. While significant, our domestic economic situation remains precarious. We simply don't have the capacity to extend loans to the island nation."
"The government's finances may be tight, but we can act as intermediaries to arrange loans from domestic financial consortiums. With the government's credit as a guarantee, I'm confident the financiers would be willing. Of course, the interest rates could be higher—at this juncture, I doubt the island nation would quibble over such details," Secretary Bryan suggested.
"Excellent. This approach is perfect. Not only will we support the island nation, but we'll also enable our bankers to profit handsomely," President Wilson remarked, clearly pleased.
"Gentlemen, we must demonstrate goodwill to the island nation, showing them that the United States stands by their side. This will intensify their animosity toward Germany. Once their military power is rebuilt, Germany will face its nightmare. At that point, the island nation can attack Germany's colonies in the East, while we engage Germany in the Atlantic. We'll force them into the quagmire of a two-front war once again. With this strategy, I believe our chances of defeating Germany will greatly improve," Wilson concluded.
The cabinet members nodded in agreement.
After liaising with financial groups, the U.S. government covertly approached the island nation's government, offering a $200 million loan, to be disbursed over two years at an interest rate of 11%.