"Cash-and-carry?"
King William pondered over the phrase. The German language, compared to English, is far less complex—its word construction is far more direct and blunt. So from just these words alone, King William could grasp what Smith meant:
"You mean, the goods we sell will only be settled in cash, and we won't be responsible for transportation?"
"Exactly," Smith replied concisely. "After all, the Americans are in the middle of a civil war. In extraordinary times like these, they'll understand."
King William raised an eyebrow and exchanged glances with Frederick, who wore an expression that screamed, "See, I told you this kid was extraordinary."
"Willie..." King William looked at Smith, his tone unusually earnest.
"You truly are a prodigy. Given time, even Frederick the Great may not compare to you. I don't know how you came up with these ideas, but from my conversation with you and your father just now, these strategies are indeed highly feasible. If executed well, they will certainly solve our immediate crisis!"
Smith knew his grandfather well. The newly crowned king was, by nature, a man of few words. While he wasn't difficult to please, he rarely gave out praise. This was why Frederick often felt his father was never satisfied with him—a sentiment that could be heartbreaking.
But when King William did praise someone, it meant that person had truly impressed him. It also typically meant that the king would offer them his unwavering and resolute support.
In history, Bismarck had received this very kind of praise from King William. During his long twenty-plus-year tenure as Chancellor, Bismarck was able to transform the entire bureaucratic apparatus of the German Empire into his loyal servants—all thanks to King William's steadfast support.
Now, King William had given Smith the same kind of praise. This essentially meant that, from this moment forward, King William would become Smith's most powerful supporter—and this was precisely what Smith wanted!
Of course, these plans weren't entirely Smith's original ideas. In a sense, he was borrowing from the Americans' playbook. During the historical First World War, the warring nations faced severe material shortages due to the rapid consumption of resources. The Americans, leveraging their industrial strength, made a fortune through the very same "cash-and-carry" method.
The strategy was undeniably effective. While the Southern states were economically weaker than the North overall, wealthy plantation owners were willing to spend their last dollar to win the war. Meanwhile, Northern industrialists were equally eager to stake their fortunes to maintain dominance over the South. Historically, in the early days of the war, many arms dealers—commissioned by both sides—were waving wads of dollars as they scoured Europe for weapons and supplies. Unfortunately, the quick-witted British and French beat the slower-responding Prussians to the punch. But now, with Smith here, there was no way he would let the British and French snatch up such a lucrative opportunity!
Smith continued:
"Even before the Southern forces made their move, many American arms dealers had already arrived in Europe to procure military supplies. However, most of these people are currently concentrated in London and Paris. I suggest you order our military attachés in London and Paris to make contact with these individuals. They won't find suppliers as reliable, stable, and capable of delivering quality goods as we are!"
Hearing this, King William stroked his beard thoughtfully and said, "We must act quickly. We can't let the French and British beat us to it. But surely France and Britain won't sit idly by, will they?"
"Of course not," Smith replied, fully understanding the king's concerns.
In the historical American Civil War, Britain and France were undoubtedly the largest "foreign anti-American forces." Both nations supported the Confederacy without exception. They not only sold rifles and cannons but even built ironclad warships for the Southerners. While some of these ships were never delivered, those that were caused significant headaches for the Northern states. According to post-war American statistics, the British-built CSS Alabama alone sank or captured 65 Northern ships, causing direct economic losses exceeding $6.5 million, with indirect losses impossible to calculate. The Americans were furious—President Lincoln publicly declared multiple times that Britain's actions of building ships for the Confederacy were tantamount to an act of war. But in the end, there was little the Union could do as Britain turned a deaf ear.
Even after the war, the Americans couldn't let it go. They pursued a prolonged legal battle against the British.
—Perhaps the British knew they were in the wrong. Ultimately, the case ended with a victory for the Americans, and the British government paid $15.5 million in compensation.
But knowing the British, one can only imagine how much profit they made from the American Civil War to willingly pay out $15.5 million in reparations.
The French were no less opportunistic. They too openly built warships for the Confederacy. However, unlike the headstrong British, the French were more pragmatic. As the tide of war turned against the South, the French government ordered their shipyards to stop building ships for the Confederacy and refused to deliver the ones already completed. Instead, they sold the ships to other countries.
This was an even more shameless move than the British. When reselling the ships to other buyers, the French offered relatively favorable prices. However, the deposits and subsequent payments the Confederacy had already made were never refunded. This "double-selling" maneuver was a stroke of genius for the French!
With such "brilliant precedents" set before him, Smith had no illusions that Britain and France would remain neutral in this timeline. They would undoubtedly seize the opportunity to profit from the war. However, Smith wasn't worried about Britain or France gaining the upper hand in selling firearms and ammunition. He explained to King William:
"While Americans are frugal, they aren't foolish. When it comes to purchasing weapons, they may not be willing to pay a premium for superior products, but at similar price points, they will always choose the better-performing weapons.
"The rifles currently in service in Britain and France are essentially on par with those used by the Americans. Neither country has significant stockpiles of modern rifles. Clearly, they won't hand over weapons from their active-duty troops to the Americans. What they can immediately offer are outdated models.
"Of course, they could accept orders to manufacture new firearms and ammunition, but that takes time. Their arsenals simply cannot produce hundreds of thousands of rifles in a short period!"
King Wilhelm immediately understood Smith's meaning upon hearing this. Stroking his beard thoughtfully, he mused:
"Thanks to the introduction of the Dreyse needle-gun, our country has already achieved a generational advantage over them. The weapons we just retired are on par with their current active ones. Simply opening the doors to our retired weapons storage would give us hundreds of thousands of units ready to be deployed. And because these are our second-hand rifles, they will naturally be cheaper while performing almost as well as new ones. This gives our rifles a clear price advantage! Moreover, since they are ready stock, delivery and arrival will be much faster!"
At this point, King Wilhelm looked up at Smith and Frederick, exclaiming:
"Ha! If I were an American, I'd buy our second-hand rifles too!"
"Furthermore, given the current weapon shortages on both sides of the conflict, it's likely that both North and South will need our rifles," Smith added.
"This way, no matter which side wins in the future, neither can accuse us of violating neutrality!"
"Brilliant!" King Wilhelm exclaimed, pounding one fist lightly into his other palm.
"Then let's proceed with this plan!"
"But it's not just guns and artillery that we can sell," Smith continued, clearly holding another card up his sleeve.
"One thing is certain: this American civil war will drag on for a long time, and the casualties will be staggering—so massive, in fact, that even the Napoleonic Wars might pale in comparison. This will inevitably create enormous demand for medical equipment and supplies. As far as I know, the Hohenzollern family has pharmaceutical enterprises under its wing…"
Smith wasn't wrong. As an old Prussian aristocratic family, the Hohenzollerns not only wielded immense political resources but also had their economic reach. By 1860, the Hohenzollerns were no longer the backward landowners of centuries past; they had their own industrial enterprises. Factories supplying medical equipment and pharmaceuticals to the Prussian army proudly bore the "Royal" name. While these factories weren't fully funded by the Hohenzollerns, they were absolutely controlled by them, with trusted family retainers managing daily operations. Using these enterprises for "export profits" was a natural next step.
"Yes, good! Very good!" King Wilhelm nodded approvingly. Following this train of thought, his imagination began to expand:
"Furthermore, the Southern states are not very industrialized. In wartime, they certainly won't want to rely too heavily on imports. We could also use family-controlled factories to produce machinery and export it to them… Hmm, this seems feasible…"
"You're absolutely right!" Smith agreed.
"However, there is still one issue…" After a brief moment of thought, King Wilhelm voiced his concern:
"As we've discussed, the North possesses a much stronger navy and can blockade Southern ports. Even if we use the 'cash and carry' method now, no matter how much we successfully ship, this is not a sustainable solution. Over time, the North will mobilize its industrial strength to achieve self-sufficiency and will have ample time to perfect its naval blockade. At that point, not only will it be difficult to transport military supplies to the South, but Southern funds may also struggle to flow out. Wouldn't this create some longer-term problems?"
Smith understood King Wilhelm's thoughts. Clearly, the king intended to use America's civil war as a long-term cash cow. He knew that his struggle with the parliament would likely be protracted—perhaps even longer than the American conflict itself. Planning ahead to "profit from war" over the long term was indeed a prudent move.
Smith also recognized the validity of King Wilhelm's concerns.
America's civil war was fundamentally different from the First World War. In World War I, although the Allies were overall stronger and the Central Powers slightly weaker, the absolute gap—especially in industrial capacity—was nowhere near as large as that between the North and South in the American conflict. Moreover, Germany's formidable military prowess gave the Allies a hard fight. Before the U.S. joined, the Allies had been pushed to their limits both in manpower and industrial production, resulting in an insatiable demand for imports.
But the American Civil War was different. The North's overwhelming advantages in population and industrial production—combined with America's abundant natural resources—meant that after the early stages of war, when supplies were tight, the North could essentially achieve self-sufficiency. The South, on the other hand, was unable to achieve self-sufficiency and was blockaded by the North's navy. This created a situation where those capable of importing didn't need to, while those who desperately needed imports were cut off. This was clearly not the outcome King Wilhelm hoped for.
"Your concerns are valid," Smith replied.
"As you said, 'cash and carry' only solves short-term problems. There will indeed be challenges later on."
Then, Smith shifted the conversation, addressing King Wilhelm:
"However, these challenges stem fundamentally from the North's naval blockade and the resulting transportation issues. In this regard, we might be able to lend the Southerners a little help."
"Hmm?" King Wilhelm raised an eyebrow, sensing that his young grandson was about to surprise him yet again.
"You see, the Hohenzollern family doesn't just own enterprises that produce medical equipment and pharmaceuticals. We also have shipyards. If we could build cargo ships in these shipyards that are capable of breaking through the Northern navy's blockade, wouldn't that solve the problem?"
"Hmm…"
Smith's answer touched on an area outside King Wilhelm's expertise. As an excellent army commander, King Wilhelm had a deep understanding of technologies like trains and railway systems. But for Prussia—a nation never known for its navy—expecting its generals to understand ships was asking a bit too much.
Nevertheless, even with no expertise in ships, King Wilhelm found the idea theoretically sound. If the Southerners were already buying weapons, medicine, and machinery from Prussia, why not go all the way and ship everything back on Prussian-made vessels?
"Since these ships need to freely traverse the North's blockade," Smith continued in his soft, youthful tone,
"why don't we call them 'Freedom Ships'?"