Persian Empire 1845

Chapter 463 Bank Cooperation
War between Russia and Iran was inevitable, especially since the struggle for the Syr Darya basin was something they could not give up.

Iran has gained the upper hand by occupying Petrovsk. Russia can only access the Syr Darya River via the Aral Sea, which also disrupts the Russian military's plans.

Alexander II was forced to order the Treasury to issue another 650 million rubles, equivalent to 99 pounds, in government bonds. If the issuance went smoothly, an additional 1000 million rubles in bonds would be issued.

Inside the Rothschild mansion in Paris, James is pouring tea for his guests. The tea from Iranian and East African tea plantations is of comparable quality to Ceylon; were it not for the desire not to overly provoke Britain, this kind of tea would probably be all over the market.

"The Russians want to issue bonds. I wonder what your bank's intentions are?"

Across from me was Kamim, the head of the European branch of the Persian Bank. As a newcomer, the Persian Bank in Europe was simply engaged in buying and selling bonds and stocks. Thanks to the support of the royal family, they were doing quite well.

"That would be ideal, but as you know, we should give up on our situation and Russia's situation."

Kamim felt it was a pity; national wars could be a great opportunity to make money, but because he was fighting against his own country, making money had taken on the connotation of profiting from national disasters.

"Oh, you're overthinking it. Russia doesn't care who the buyer is; they just want money to throw into a war. As long as you can afford it, it can go on like this."

The Rothschild family has consistently invested in politicians around the world. In Prussia, they attracted numerous members of parliament, including Prime Minister Bismarck. In France, the Rothschilds and their allies controlled the Bank of France, giving them control of the country's finances. In Britain, London was practically theirs.

Amid the conflict between Iran and Russia, the Rothschilds saw Iran's immense potential. Currently, Iran's economy and military are the strongest among the Crescent Moon nations, suggesting that future investments will be highly profitable.

Furthermore, the ongoing conflicts between Iran and Russia also allow these bankers to profit. War is an opportunity to make money; stocks, bonds, trade—everything can be invested in, which is another source of bank profits.

"That would be perfect. The Russians take the war more seriously than any other country. They'll probably scrape together every last penny to keep it going. I just don't know what they'll offer as collateral when they run out of money."

"That's simple. Timber, grain, minerals—there's nothing they can't mortgage."

In particular, the Russian-controlled regions of Ukraine are rich in grain and mineral resources, while Siberia and Finland have abundant timber reserves. In addition, there are many underdeveloped industries in these areas, where investment can generate profits.

James gently swirled the crystal glass in his hand, the amber tea leaving delicate ripples on the glass. "By the way, speaking of collateral," he leaned forward slightly, lowering his voice, "the Tsar recently assessed the equity value of the Caucasus Railway in St. Petersburg."

Kamim's eyebrow twitched almost imperceptibly. This was precisely the strategic asset Iran cared about most—once the railway was completed, Russian troops could be deployed to the Iranian border within two weeks. However, the current concern was rather ridiculous, as the railway was still in the planning stages and had not been built at all.

"Why bother with an assessment of a railway that hasn't even been built yet..."

Kamim turned around; it seemed that Russia's financial situation had deteriorated to an unimaginable degree.

As dusk deepened in Paris outside the window, the flames in the fireplace cast flickering shadows on their faces. Kamim calmly picked up his teacup, using the rising steam to conceal his changing expression: "I heard this railway cost 40,000 rubles per verst? Given Russia's current financial situation..."

“That’s why they need foreign funding even more.” James took a Havana from his ornate cigar box and snipped off the cap with gold scissors. “I heard they allow other countries to hold 49% of their railways.” He paused meaningfully. “Of course, this requires certain…special political guarantees.” Special guarantees. It seems Russia won’t give up its confrontation with Iran. Indeed, how can they tolerate having a piece of their flesh ripped off like that?
"By the way, are you interested in projects in Austria?"

Kamim suddenly brought up Austria's Congo colonization project, which piqued Rothschild's interest, but not much.

After occupying the mouth of the Congo River, Austria established its first city: Saint Louis. It then acquired the Cabinda region from Portugal, thus gaining complete control of the Congo River estuary.

Austria then began guiding its people to immigrate and exiling criminals. In just two months, 4500 criminals were exiled there. Many of them died en route, and once there, they were forced to perform endless labor to contribute to the construction of the colony.

"Austria made the right choice in spreading civilization. We are willing to do something for it too."

The two men smiled knowingly. A brightly lit yacht was sailing on the Seine outside the window—it was the private party of the president of the Bank of France. In this world of extravagance and debauchery, war was nothing more than a set of numbers on a balance sheet.

"Those people in Vienna had a clever plan: to use the blood and sweat of criminals to develop the colonies, and then use the profits from the colonies to fill the fiscal deficit."

However, as far as I know, the French government has been rather restless lately.

The French couldn't stand Austria's lavish spending in the Congo. They desperately needed access to the Congo region and couldn't let Austria monopolize the benefits.

Their plan was to first purchase Guinea from Spain, and then gradually extend inland. Ideally, they would intercept Austria at some tributary.

"Their reach is really too long. If they want land, they should fight for it themselves."

Iran fully supports Austria, holding a 40% stake in the Austrian-established Congolese company. Austria also grants Iranian businesses free trade rights within Congo, requiring only the payment of taxes.

Seeing that the time was ripe, Kamim smiled and took out a parchment envelope from his inner pocket: "This is a personal letter from our Minister of Finance. As long as Rothschild Bank is willing to cooperate with our country, we are willing to fully cooperate with their investments in Russia. Of course, Austria and Sicily are also included."

James looked at Camim and chuckled. "Do you think that's enough to convince me?"

"Of course I know I can't, but making friends shouldn't be a problem, right?"

The other person laughed, "Friend, great! Making friends is wonderful. Let's hope for more opportunities to collaborate in the future! Cheers!"

"cheers!"

The two men raised their glasses, already having a plan for their next move. Everyone wanted more benefits, and since Iran could have them, then Tsar, sorry!

(End of this chapter)