The War Court and Lap Pillow, Austria's Mandate of Heaven

Chapter 1858 Solution
The entire British cabinet was also frowning, after all, they had heard this kind of talk too many times, and the results were getting worse and worse.

"But Prime Minister, can we really win? The chaos at home and abroad is obvious to the naked eye. You don't even need to read the newspapers; just look out the window."

Conflicts happen every day, and people die every day. We can borrow less and less money, and our debts are coming due soon.”

The Earl of Derby gets a headache just hearing the word "debt." He really can't understand when all this debt will ever end.

"Didn't we pay off this year's debts? Why are they due again?"

Gladstone could only say with a wry smile.

"It's already December, and next year's debts will be due again."

"Then can we return a little less? You all know the current situation on the battlefield. If we retreat, all our previous efforts will be in vain."

"The Earl of Derby asked tentatively."

Gladstone shook his head.

“Your Excellency, we are only paying interest now, not any debt. Even so, our deficit this year is as high as £3000 million, and it is unlikely that we can borrow any more money.”

Gladstone revealed Britain's financial situation in advance to shut the Earl of Derby up, since bankers are not philanthropists and have no obligation to keep lending money to the British government.

In fact, the bigwigs in London's financial world are very dissatisfied with the British government's actions in recent years. The war was initially launched to solve economic problems and protect British commercial interests overseas.

However, the nature of the war changed at some point, and the high sunk costs made it difficult for several British governments to extricate themselves. The ever-expanding losses were like an unstoppable avalanche.

The Earl of Derby was unhappy that his mouth had been gagged, but he also knew the current state of England: years of deficits, mounting debt, and a vicious cycle.
"What is the maximum amount of debt you can repay, and how much interest can you reduce?"

"50%"

"not bad."

"That's 50% of our country's fiscal revenue for the next year. Of course, this is just for interest payments."

"How much money do we have left?"

"Not a cent."

Gladstone's answer nearly made the Earl of Derby choke.

"Que?"

Even the Earl of Derby, with his impeccable manners, couldn't help but feel a little uneasy. What did he mean by "not a single penny"? Were the British Empire's tens of millions in annual revenue all a lie?

Gladstone, however, was completely unconcerned. The other party's reaction was exactly what he expected; he had been worried that the other party wouldn't react at all.

"We have debts to pay and the basic functions of this country to maintain. If you don't pay the police, who will help you disperse the rioters in the streets?"
If we don't pay them, the lamplighters won't work. Then London will be plunged into darkness!

The military, the royal family, colonies, courts, government bureaucrats—which of them doesn't need money?
"It's already quite an achievement that we can maintain the basic operation of the country."

The Earl of Derby was at a loss for words; no words could express his feelings at that moment.

Do you have any ideas?

The Earl of Derby could only hope that the Chancellor of the Exchequer would have any ideas, as he himself had little knowledge of economics and it was impossible for him to come up with any solutions.

"Either devalue, over-issue, or sell some titles and official positions, as well as those bad assets in the colonies. But I recommend shock therapy."

Gladstone's words were startling, and frankly, they shocked his colleagues.

Both devaluation and over-issuance would affect the interests of a large number of people, which is almost impossible in the UK.

If any prime minister or minister were to actually do this, they would most likely be forced to step down immediately and permanently removed from the decision-making circle.

If he hadn't stepped down, he would most likely have died in the street.

Britain has done this kind of thing many times before: selling titles and official positions. However, the debt at this time is too huge, and the income from selling titles and official positions is probably just a drop in the bucket.

Unless we go back to the tax farming system, or sell out the entire British government.

In fact, the status of British peerages in the public eye has been declining, which is why they are becoming less attractive to the emerging bourgeoisie.

The main reason is that these nouveau riche have found other ways to prove their difference, and they even look down on the traditional aristocracy.

至于出售官职这种事情也不靠谱，此时英国出售的官职，最主要的是军职一个少尉800英镑、中尉1200英镑、上尉2500英镑、少校3500英镑、中校4500英镑、上校5500英镑。

(The above prices are for cavalry officer ranks; infantry officer ranks will be 30-40% cheaper. Even Royal Guard ranks can be sold, but at extremely high prices.)
However, this was the price before the war. At this time, the British army was suffering defeat after defeat, and no one was willing to spend money to become cannon fodder.

Even if someone were willing to buy, the British military doesn't have that many official positions to sell right now.

Members of Parliament's seats are very valuable; even a small, remote seat can sell for £5000, and seats in major cities like Liverpool and Arsenal can fetch £30,000 to £50,000.

With only 654 seats in the House of Commons, it would be difficult to solve the immediate crisis unless all seats were sold.

In fact, the most commercialized form of religious services is the Church of England. There are 12000 parishes in the UK, and the average price is £1500, which is highly recognized in the market.

An average suburban income of around £300 per year would allow you to recoup your investment in about five years with virtually no risk.

In addition to monetary gains, it can also enhance one's social status and allow one to enjoy many benefits brought by hidden power.

The priesthoods in wealthy parishes are even more valuable and difficult to obtain, passing down through generations only within a few large families.

But here's the problem: the positions that the state religion could sell had already been sold out long ago, and most of the remaining ones were in the hands of private families and were not circulating on the market at all.

The British government can only sell a few hundred each year, unless there is another Reformation.
Colonies have always been a lifeline for the British government, but not now. In the past, the British government could simply seize them; after officially and completely taking over the East India Company, it could seize them in a more civilized manner.

Unfortunately, this is a critical moment for the East India Company's transformation, and the British government not only can't extract any benefits from it, but also has to clean up its mess.

Of course, the British government could choose not to reform and continue subcontracting. But the problem is that India is in chaos at this time, and who would want to take on this hot potato?
With almost all roads blocked, Britain couldn't help but suspect they'd been outmaneuvered. But who could possibly outmaneuver such a vast empire, and so many years in advance?

Forget about all that, all they want to hear about right now is the so-called shock therapy.

Although it sounds scary, it might actually work wonders.

Count Derby looked around at the expectant eyes all around him, and nodded.

“Mr. Gladstone, could you elaborate on your shock therapy?”

However, Gladstone was stopped by the Earl of Derby as soon as he opened his mouth, because he simply could not accept the first point.

"Cut all unnecessary expenses."

"I'm sorry. The war cannot stop now unless the Americans are willing to negotiate."

Suddenly a voice came from the doorway.

"The Americans will not accept peace talks unless we withdraw from American territory unconditionally."

There are at least several hundred such letters in my office, and I don't even know which one is from the US government.

While this statement may be somewhat exaggerated, transoceanic communications were indeed in a state of great chaos at the time, with many non-governmental organizations and scammers trying to take advantage of the situation.

Of course, it's not to the point that you can't tell which letter came from the US government.

Foreign Secretary James Harris said somewhat apologetically.

"Sorry, I'm late."

Upon hearing the Foreign Minister's words, Earl Derby began rubbing his temples again; he could feel a throbbing sensation under his fingertips.

"Don't you have any good news? Are American lives so worthless? They've lost so many people, and there's not a single reaction in the US?"
For example, riots or something?

James Harris gave an awkward laugh. “Your joke isn’t funny. You know, those savages who kick hedgehogs around like footballs don’t care about casualty figures; their governments only broadcast how many people they’ve killed and how much land they’ve reclaimed.”

(The act of kicking a hedgehog like a soccer ball was originally used by Americans to smear Native Americans.)
He suddenly realized that there seemed to be something wrong with what he said and quickly corrected himself.

"I also have a corny joke from Vienna here, do you want to hear it?"

James Harris may have meant no harm, but others in the British cabinet immediately took notice.

The Austrian Empire may seem insignificant to the new foreign minister, but to the other older men it was a disaster.

Besides being a core state of the Holy Alliance, the Austrian Empire was also a major rival of Great Britain on a global scale.

The two sides have frictions on trade, strategy, culture, science and technology, and colonial issues.

Although the Austrian Empire mostly chose to avoid conflict, it was a sin to have the ability to engage in conflict with Britain.

This conflict lasted for more than a decade, further proving that Austria is a formidable adversary.

"Let's talk and listen."

The Earl of Derby didn't care much, since he didn't have any good ideas at the moment.

"The Austrians actually wanted to buy the Cape Colony with money. Their reason was that they wanted to redeem the land that the Dutch had sold to us."

They must be crazy!

"Ha ha."

However, only James Harris was laughing, which made him somewhat embarrassed.

How much are the Austrians willing to pay?

The Earl of Derby spoke in a very calm tone, and James Harris answered without much thought.

Thirty million pounds.

Earl Derby frowned.

"It is a bit too little."

James Harris was somewhat surprised. He had only approached the matter with a "let's give it a try" attitude, but he hadn't expected the other party to be seriously considering the issue.

"My God, the British Empire is doomed."

James Harris was conflicted, but he still spoke up.

"Your Excellency, this is just their initial offer, not the final price. It should be negotiable."

Of course, this is just James Harris's feeling; he thinks that generally no one would quote the actual price at the beginning.

Asking for an exorbitant price and then negotiating on the spot is the only way to go.

Thirty million is merely a way of expressing sincerity, although thirty million pounds is indeed a considerable sum.
How much do you think the Austrians can contribute?

The Earl of Derby's question stunned everyone; they hadn't expected him to actually have such a plan.

That was sacred territory of the British Empire; how could it be sold off so easily?

Are you serious?

"of course."

James Harris had actually thought about this question seriously on the way, so he was able to give his answer immediately.

£5000 million.

This figure is almost five times the original price paid for the West Indies, but James Harris is very likely to accept this price.

However, the Earl of Derby still said...

"That's too little. £50 million won't even cover two years of debt. £100 million might be worth considering."

Amidst the astonishment of the crowd, Earl Derby continued.

“Count Harris, I have a task for you: find out exactly how much the Austrians are willing to spend.”

Gladstone immediately stood up and said.

"Your Excellency, you don't really intend to sell the Cape Colony, do you? It's the most important transit point on our African shipping route."

That is the key to India.

"Yes, that's our lifeline. If we lose the Cape colony, our Eastern trade routes will become extremely vulnerable."

The others stood up and said that the Cape Colony was completely different from the previous West Indies.

Although the West Indies once witnessed countless glories of the British Empire, it actually began to decline after the rise of the United States.

However, the Cape Colony was different; it served as a transit point in Africa and a crucial stop on the Asian shipping route.

Most far-sighted and powerful families have some involvement in this, and touching the Cape Colony is tantamount to touching everyone's interests.

"Nonsense! Just because the Austrians and French didn't have the Cape colony, did that mean they couldn't go to the Far East?"

In reality, based on Britain's own fundamental logic, it couldn't truly prevent other countries from going to the Far East. Moreover, even if Britain really wanted to do so, the cost would be far too enormous.

“The Austrian Empire is different from us. They will definitely block our trade with the East and disrupt our shipping routes.”

Earl Derby immediately countered with a question.

"Did the Dutch prevent our advance into India when the Cape colony was in their hands?"

What are the Dutch doing? Building ports, hotels, restaurants, and freight stations—they'd love for us to come over!
Your words are completely unconvincing.

At this point, others really didn't have a good way to refute it, because neither Britain nor the Netherlands had been able to truly stop other countries from exploring the East.

"So what do you plan to do? Sell the Cape colony to the Austrians?"

"I asked in despair," a marginalized member of the cabinet.

"Who said I was going to do that?"

"What do you mean?"

"Can't I even ask?"

"But what does this have to do with Britain's current situation?"

"Shouldn't we know what our opponents are thinking?"

The Earl of Derby raised his voice in retort, and this time the others could only remain silent. Clearly, the Earl of Derby felt his authority had been challenged, and besides, the statement was indeed difficult to refute.

"Okay then. I'll give it a try and report back to you."

James Harris said.

"Very well, meeting adjourned! Mr. Gladstone, please stay behind."

After the others left, Earl Derby asked.

"How much money do we need to win this war?"