Chapter 332: A Deal of Two Hundred Thousand Pounds
Chapter 329 – A Deal of Two Hundred Thousand Pounds
Outside the smoking room of the banquet hall, several manservants of the Gladstone family stood guard.
Whenever a guest wanted to come here to take a couple puffs, the servants would politely remind the gentlemen, “For various reasons, the smoking room is temporarily closed.”
And when the gentlemen saw who was sitting inside through the glass on the door panel, they would also quite sensibly choose to change to another place to get some air.
Rees Hurst, the Harbour Master; John Gladstone, the Secretary General of the Liverpool Association; and the most remarkable young man of the party, the Senior Superintendent of the Greater London Police – Arthur Hastings.
These three men were already able to sketch out the theme of the story in the minds of the group just by simply sitting together, without them even having to open their mouths to explain much.
Old Gladstone sat on the sofa with a glass of wine in his hand and looked at Hurst who was wiping off his sweat next to him, and with just one look he guessed that Hurst was most likely caught in some kind of grip.
He thought a little, and soon decided to abandon the prepared polite words, and cut straight to the point.
“Mr. Hastings, I heard that you are very interested in Liverpool’s dock expansion project?”
Hurst’s eyebrows tightened at the words, and he twisted his head to look at the old Gladstone, his eyes full of questions.
It was so hard for him to just cover up the ‘healthcare’ matter, what exactly did Old Gladstone mean by raising another stinking stone from the toilet now?
But Old Gladstone didn’t care what Hurst was thinking.
In contrast to London, the political center of Britain, Liverpool had completed the renewal of its power class as early as the previous century. Perhaps in terms of the country as a whole, the traditional aristocratic forces still occupy a certain advantage, but in Liverpool, businessmen, especially big businessmen like the Gladstone family, are the ones who can really say something.
Even if the old Gladstone has no way to directly decide the appointment and dismissal of the Liverpool Port Authority, but as long as he is willing, he can always make the Port Authority can not do anything.
Only in most of the time, the port authority and the big businessmen class is still mutually beneficial, so the group is not willing to tear their faces for a little entanglement.
After all, it is not in line with the nature of businessmen to seek profits.
Arthur spoke: “Rather than being interested in the expansion of Liverpool’s docks, I am interested in this area of the docks. As we all know, from the time of Queen Elizabeth, mercantilism has been recognized as the basic national policy of Britain, and it has been almost three hundred years now.
This policy, in turn, has led to the creation of numerous docks and port cities such as Liverpool. As a student of history, I always like places with a long history.
And my interest in the docks has grown since I became a policeman. You are in the import and export business, so you should also understand that the docks have always been a high incidence area for all kinds of illegal and criminal behavior. Among these offenses are both violent and non-violent ones.”
Louis, who was taking notes on the side, couldn’t help but pull the corner of his mouth upwards when he heard this.
If there was a know-nothing outsider standing here, they definitely wouldn’t understand what Arthur meant by that. They might even still think that Arthur was just making random small talk.
But the same words fell into the ears of Old Gladstone and Hurst, and the flavor changed.
The violent crime at the docks in Arthur’s mouth was easy to understand.
But which aspect of non-violent crime in the docks is meant?
Everyone understands in their hearts, it is only the dock expansion project and land acquisition costs that aspect, perhaps Arthur also put smuggling and omission of tariffs are also shelved in it.
Hurst could not figure out to what extent Arthur had investigated, so he did not dare to speak easily.
But the old Gladstone early from his son learned that Arthur has been on the dock expansion suspicion, so speak more or less also have some confidence.
The old man smiled and asked, “You are staying in the hotel next to the old docks these days, what do you think of Liverpool’s docks compared to London?”
“Wow! Very good!”
Arthur praised, “High standards, strict requirements, both in terms of scale and building standards, it can be compared to London’s West India Docks. And I’ve heard that there are actually three other large docks like this in Liverpool. What can I say? If Liverpool develops for a few more years, London’s position as the largest port in Britain may have to be surrendered. I can only say that the additional investment made by the Board of Public Works in Liverpool has been well spent, and not a penny, not even a farthing, has been wasted.”
Hurst’s face turned green at these words, but old Gladstone remained old and unperturbed.
As to the reason for his calmness it was not hard to guess; it was simply that he had not taken advantage of the dock extension.
Although the Gladstone family is also keen on real estate investment, but they bought most of the land concentrated in the swampy area along the Mersey. Incidentally, that is also the direction of urban development in Liverpool in recent years.
However, although the old Gladstone disdained the simple and crude low-level play directly from the project money and government land acquisition funds, but can not help but Liverpool Association always have fools like to do so.
As one of the association’s leaders, he always had to step in to help smooth things over.
He was thinking of discussing this issue with Arthur in depth, but before he could open his mouth, he heard Arthur’s voice ring out again.
“But while Liverpool’s docks are magnificently constructed, I’ve also found the hygiene standards and building specifications of Liverpool’s slums to be insufferably poor. Although I’ve only just been here for a few days, if the gang must ask me to make a suggestion to the City Council, it would be that the next time a public works project is being considered, perhaps the upgrading of the slums’ water supply and drainage systems should be at the top of the list.”
“Hmm?”
Old Gladstone and Hurst couldn’t help but both give a look of puzzlement when they heard this.
What was the meaning of this?
Raise it high and put it down gently?
Point out the pier expansion project and then leave it alone?
Hurst couldn’t figure out what Arthur was up to, so he could only respond securely, “I’ll get back to the city council with your comments.”
Arthur sniffed and directly fished out the map from his jacket pocket and lined it up on the desktop.
“Feedback alone won’t do, Liverpool’s City Council and Board of Health had better be able to come up with a reasonable plan for slum upgrading. Although I have the title of Anti-Smuggling Commissioner on my head, everyone should understand that I came to Liverpool this time to solve the cholera problem. And right now, the poor sanitary conditions in the slums have seriously affected epidemic prevention. If we can’t prevent the rapid spread of cholera in the slums, then it’s useless even if we catch all the smugglers. I won’t say anything more, you guys look here ……”
In a few short minutes Arthur had presented the results of his day’s work to the gentlemen present, as it were.
“This ……”
“I must say, Mr. Hastings. Perhaps this disease is really, as you say, the result of a problem with the water supply.”
“The Central Board of Health found out before that cholera was spreading along the canals, and at the time the guys thought it was spreading due to inland navigation, but now it seems that maybe it’s not just the sick sailors, but also partly the quality of the water?”
“If that’s the case, wouldn’t all the cities of Britain be unsafe?”
One by one, Old Gladstone and Hurst suspected the cause of the cholera, but Arthur’s words gave them a piece of mind.
“With the volume of water in the canal, even if contaminants were mixed in there, they should be diluted quickly. And it’s better to leave it to the headaches of the medical authorities in Britannia to figure out exactly what’s going on with cholera. The only thing we can say for sure now is that the cholera outbreak in Liverpool is most likely related to the chaotic and dirty water supply system. All I want to know now is whether the municipal council of Liverpool is capable of first giving the water supply system in the cholera area a facelift and refurbishment in the short term.”
Hearing this, Old Gladstone spoke decisively, “If what you have just said is true, then I am willing to convince the members of the municipal committee on your behalf.”
Hurst also spoke up, “Liverpool’s town building engineer is the child of a friend of mine. Whether it’s for public or private reasons, I am willing to supervise and push their design progress on your behalf and compress the schedule as much as possible. But ……”
As soon as Arthur heard the word but, he immediately smelled a bad odor, “Is there any difficulty?” Hurst returned, “Mr. Hastings, this matter of municipal works is not something that can be just nodded and agreed to by the city council and city commission. Although we are willing to launch a public fundraising campaign, compared to such a large project, such a small donation can only be considered a drop in the bucket.
Especially now that it is the end of the year, Liverpool’s local coffers do not have enough money to support such a large-scale transformation of the slums. You have just mentioned the dock extension, and for a public project of this magnitude we would have to apply to the Public Works Committee in London for central assistance funds to be able to build it.”
Dumas sniffed in amazement, “Liverpool is one of the richest in Britain, can’t the local treasury even spare the money for urban renewal?”
Hirst smiled sarcastically, “Mr. Dumas, you are joking. Liverpool is indeed rich, but Liverpool’s richness is due to the import and export trade, so most of our taxes are centered on tariffs. And according to the Ministry of Finance, Britain’s tariffs are always paid to the central treasury for distribution.
Liverpool City Council’s income is mainly property taxes and a portion of business taxes that need to be split with the central government. With such a small amount of money, it was gone after the city government’s essential recurring expenditures on security, health, courts, transportation, etc. were made up each year. So whenever large public works are to be arranged, we have to apply to London for funds.”
As soon as Louis, who had studied deeply the financial operations of Napoleonic France, heard this, he could not help asking, “Hasn’t Liverpool ever thought of issuing local government bonds?”
Old Gladstone, as a senior city council member, spoke back, “Of course we have thought about it. But London is keeping a very close eye on the local debt issue. According to the rules, local governments cannot issue bonds on their own, but must first apply to the Public Works Committee of the House of Commons, and only after obtaining approval can the Ministry of Finance issue bonds on their behalf.
Moreover, although on the surface the central parliament and the Ministry of Finance have not set a limit on the debt of local governments, in actual implementation, they have a bar in their hearts. For a large city like Liverpool, the overall debt is basically locked at 100,000 pounds, not more than a penny. And for some of the smaller cities, it’s usually £50,000 or less.”
Hurst also nodded his head and said, “In the past few years, for the sake of the dock expansion, we’ve already applied for the issuance of ninety thousand pounds of city construction bonds. Now if we want to come back and issue a new bond, I guess it will be hard to convince the Ministry of Finance and the Board of Public Works to relent.”
Arthur’s frown tightened as he sniffed, his fingertips tapping on the coffee table, “Why would the Ministry of Finance look so closely at local debt? Liverpool is only putting up a hundred thousand pounds as well, isn’t that too little?”
Little Gladstone, who had been quietly listening from the side, suddenly spoke up, “The reasons for this are simple to say, but also very complicated. First of all it is due to the fact that Britain’s total debt is already very large at present, Mr. Hastings, do you know what the total national debt of Britain is at present?”
“Total?” Arthur recalled the figures he saw when he went to the Ministry of Finance earlier to ask for money, “I remember that last year, the central revenue of Britain was 51.3 million pounds …… if the national debt ……”
“51.3 million pounds?” Dumas exclaimed in shock at this, “Damn! You Brits are fucking rich!”
Heine also sighed, “Prussia owes 31 million pounds in foreign debt alone, I thought it was a huge amount before, but it doesn’t seem like much when compared to Britannia’s revenues.”
“Not much indeed.” Gladstone Jr. returned, “For Britain now owes twenty-six Prussias, and the number of our national debt is £783,000,000.”
“How much?!” Dumas’ jaw dropped, “Damn! If I had known that you owed so much money, I shouldn’t have bought Britain’s public debt in the first place. 783 million pounds, sounds like you guys could renege on your debt at any time.”
Louis also could not help but cover his mouth and sighed: “Who can tell me what Britain did in the end, why does the government owe so much money?”
Gladstone laughed helplessly as he joked, “What else could it have done? Then again, it’s thanks to your uncle, Mr. Bonaparte. Before the Napoleonic Wars, the size of Britain’s debt was only 40 million pounds. But in order to fight the Napoleonic Wars, we spent 900 million pounds, so now it’s like what you see.
Also Mr. Dumas, you don’t have to worry too much about the public debt being reneged on, when we were at the peak of our debt in 1816, the total national debt was close to 900 million pounds, and now it’s only 783 million left, so the British government’s ability to pay back the debt is actually still quite strong.”
“Spent £900 million in the Napoleonic Wars?!”
Dumas originally felt that he was already quite rich, but he still had trouble imagining just how huge a fortune 900 million pounds was: “My God! Now I know how Napoleon died, he was killed by your money!”
Louis chuckled, “I feel slightly proud of myself if you put it that way.”
Gladstone smiled back, “You do have reason to be proud of your uncle.”
Louis laughed and shook his head, “So what was the point of Britain and France fighting for so many years anyway? If you guys let the Duke of Wellington go to my uncle with a check for 900 million pounds, he might just surrender.”
Gladstone held his head and said, “In the beginning, who knew it would cost that much? If someone had been able to tell the MPs in parliament before the war started in the first place that the battle would burn 900 million pounds, I can guarantee that not a single one of them would have agreed to go to war.”
Old Gladstone said in all seriousness, “I would have been better than any of those MPs, and I was against that war from the very beginning. If it hadn’t been for my youthful resourcefulness, I’d have had to go bankrupt along with it. Liverpool’s import and export business was not so bad during the Napoleonic Wars. I had another merchant ship taken captive by the French navy.”
Speaking here, old Gladstone also said at Louis as if he was joking, “Young man, if one day you go back to inherit the throne of France, remember to count the compensation for me.”
Hearing this, Louis also joked, “Sir, with the friendship between us, I definitely agree to the compensation. But if that day really comes, I’m afraid the compensation package won’t pass the Parisian parliamentarians.”
“Exactly.” Dumas pulled his collar in a serious manner and said, “At the very least, I definitely do not agree.”
Arthur frowned and asked, “Then again, isn’t 900 million pounds spent in the Napoleonic Wars too much? Louis, how much did France spend during the war?”
Louis returned, “It’s not a lot, but it’s certainly not exaggerated to the extent of 900 million pounds, I think a third to a quarter would be about right.”
As the Trade Commission was the target at the beginning of his participation in politics, Gladstone still knew quite a lot about the financial aspect.
He opened his mouth and explained, “Britain spends a great deal, partly because we spend far more on each soldier than France. The salary of an ordinary soldier, Britain is twice that of France. The supplies of the Royal Navy, moreover, have always used the highest standards. On top of this we were burdened with much financial aid to the Allies. Metternich of Austria, by the mere declaration of war against France, received from us millions of pounds in war aid and vast quantities of arms and uniforms. During the most difficult years of the Napoleonic wars, aid from Britain could even amount to eighty percent of Prussia’s national income.”
“I knew it!” Heine exclaimed indignantly, “The finances are supported by Britain, the weapons are shipped from Austria, the guts are given by the Russians, and only the two legs on which we walk are our own. Prussia really can’t do anything!”
Arthur looked at the German cynic who was waving his fist at the air and didn’t continue to pay attention to him, but instead leaned back on the sofa and spoke, “Well, now I finally understand why the Ministry of Finance is so cautious on the local bond issue. However, isn’t there any way we can get them to loosen up? After all, slum upgrading is a good thing for anyone, and it’s not a time of war anymore, so it can’t be that it’s okay to aid Prussia but not Liverpool, right?”
Hearing this, Gladstone first pondered for a while and then spoke, “Actually, it’s not necessarily not possible. Just like what my father said just now, the so-called local debt ceiling has not actually fallen on paper, and thus cannot be considered a hard and fast rule. In other words, as long as the Ministry of Finance can be pressurized enough, they will loosen up sooner or later.”
“Pressure? ……”
Arthur stood up and looked at the moonlight outside the window for a while in silence, and slowly spoke out, “Pressure can certainly be given, but I need the cooperation of the group in order to do so. I originally just thought of slowing down the spread of cholera in the slums to give the council a proof of it. But since the Ministry of Finance is involved, just slowing down the spread won’t be enough.”
Hurst probed softly, “Mr. Hastings, you are thinking of ……”
Arthur slowly turned around with his glass in his hand, “You guys take a message for me, I want to talk business with the Royal Navy, the Customs Department, the Customs Service, the local policing agencies in Liverpool, and the City Council.”
Hurst asked cautiously, “And your needs are?”
Arthur spoke, “I need their full support. Over the next few days, I want them to heavily resource the epidemic prevention efforts.”
Old Gladstone sipped his cigar and a thick puff of smoke came out of his nose, “Your purpose?”
Arthur said word for word, “At this moment, I need Liverpool to deliver a zero growth in half a month.”
Old Gladstone asked again, “And your offer?”
Arthur lifted his glass, the smooth wine tilting inward in a sliver down his throat.
The glass hit the floor and Arthur’s voice followed.
“Anticipated initial investment of two hundred thousand pounds in the Liverpool Urban Renewal Program, with subsequent additional investment to be determined.”
(End of chapter)