Chapter 533 Mortgage

After the Russian representative proposed to exchange gold for sufficient foreign currency, the talks on the loan could proceed normally.

In any case, gold is still attractive enough for a country, especially in the era when the world generally implements the gold standard.

It can be said that the amount of gold owned represents the amount of currency a country can issue.

Having sufficient gold reserves is not only related to the credibility of a country's currency, but also to the specific value and value preservation of a country's currency.

Australasia has accumulated a lot of gold in the past 20 years, but it is destined not to be compared with those old powers.

In particular, the old powers headed by Britain and France have accumulated a lot of wealth in their hundreds of years of hegemony, including property and gold absorbed from colonies and other countries.

At present, Australasia's gold reserves have barely exceeded one thousand tons. If converted into Australian dollars, it is only about 272 million Australian dollars.

This number is still far behind the gold reserves of Britain and France, but a thousand tons of gold reserves are not a small amount in the world, at least it is considered a gold reserve at the level of a great power.

If Arthur guessed correctly, Russia's gold reserves are at least thousands of tons, or even more.

At present, Russia has only sold or mortgaged hundreds of tons of gold, which is inconsistent with Russia's previous status as a top great power.

With such a vast territory and a huge population, the Russian royal family will accumulate more gold.

It is precisely because of this that Arthur is very interested in Nicholas II's proposal to exchange gold, and he is also very curious about how much gold Nicholas II can take out for exchange.

"How much gold can you take out?" Arthur asked with a little curiosity.

"If your majesty is willing, we can transport at least 200 tons of gold from Russia to the Baltic Sea. Your majesty only needs to send a fleet to receive it. After entering the main topic, the Russian ambassador did not dare to hide anything and directly said the number that Nicholas II could accept.

200 tons of gold is not a small number. If calculated according to the current gold price, it is approximately equivalent to 27.28 million pounds, which is equivalent to the military expenditure of Australasia for more than half a year.

Although the Russian army has more people, the Russian navy has basically not been deployed. Coupled with the assistance of other countries, this amount of money can support half a year. There is no problem.

This is exactly what Nicholas II expected. The government can survive the entire summer offensive in terms of funds.

As for the funds after the summer offensive, it depends on whether this summer offensive can be successful.

If successful, Tsarist Russia will repel Soviet Russia and regain control of most of Eastern Europe. At that time, funds will no longer be a problem.

If this battle fails, Tsarist Russia will completely lose its advantage in Eastern Europe. At that time, Nicholas II can only flee St. Petersburg. Whether he can escape to Siberia safely is a problem. Naturally, there is no need to worry about future financial consumption.

"Two hundred tons of gold? It's a big deal. "Arthur nodded with satisfaction, and was satisfied with the amount of gold.

This gold can increase Australasia's gold reserves by 20%, making the Australian dollar more stable.

Compared with this, those banknotes are nothing. After all, the value of banknotes is determined by gold, and more gold is the hard truth.

"According to the current exchange rate between pounds and gold, 200 tons of gold is equivalent to 27.285 million pounds. Do you plan to mortgage or directly exchange it into banknotes?" Arthur asked with a smile.

In Arthur's eyes, the Russian ambassador opposite has become a big fool, taking out the gold in his pocket bit by bit.

"Your Majesty, although the exchange of gold and pounds is indeed like this, you must know how important gold is to a country's monetary system. We hope to mortgage at least 50 million pounds of loans. If we cannot repay it in ten years, then this gold will be used as collateral to compensate you. This is the condition of His Majesty the Tsar. "The Russian ambassador smiled awkwardly, and did not agree with Arthur's statement that the ratio of mortgage and exchange should be determined according to the specific value of gold, but put forward his own opinion.

Arthur shook his head and directly rejected the proposal of Nicholas II mentioned by the Russian ambassador, and retorted: "Although gold is very important to a country, its value is also limited. 50 million pounds is almost twice the value of this gold. According to the current situation in your country, it is difficult to use this gold for mortgage loans."

"If you really want a mortgage loan, 200 tons of gold can be mortgaged for a maximum of 30 million pounds. It is for the sake of the two royal families. Australasia does not want to lose Russia as an ally." Arthur continued.

The difference between the value of 30 million pounds and 200 tons of gold is less than 3 million pounds, and Arthur can fully accept such a difference.

After all, it is also necessary to consider the depreciation of the currency in the future. Using 30 million pounds in exchange for 200 tons of gold reserves is still a very cost-effective deal in general.

"30 million pounds? Your Majesty, I still need to discuss this matter with my country, so I am afraid I cannot give you a reply in a short time." The Russian ambassador said with some embarrassment.

This is 20 million pounds less than what Nicholas II expected. Obviously, the Russian ambassador cannot act on his own, so he needs to consult the domestic government and Nicholas II.

"Of course, Australasia welcomes your country to mortgage at any time. In any case, Australasia will always be Russia's ally. Please convey my greetings to His Majesty Nicholas." Arthur smiled and nodded, saying undeniably.

Although the Russian ambassador did not agree in person, according to Arthur's knowledge of Russia's current situation, Nicholas II's consent is inevitable.

Although Russia can still get loans from Britain and France, Britain and France are more ruthless than Arthur. Whether 200 tons of gold can get an equivalent loan is a problem, not to mention the mortgage loan that exceeds the value.

In addition, a considerable part of Russia's arms trade is conducted with Australasia, which is actually the reason why Russia found Australasia.

It is more about food trade and other materials trade with Europe. After all, Europe is closer to Russia, and the transportation of materials is still relatively convenient.

Sure enough, just the next day, the Russian ambassador approached Arthur again and agreed to the 30 million pounds loan mortgage proposed by Arthur.

Of course, because the loan was made in Australasia, the loan amount was actually 60 million Australian dollars equivalent to 30 million pounds.

However, this had almost no impact on the loan and subsequent purchases. After all, Australasia had a close relationship with the British Empire, and the release of the Australian dollar was directly linked to the British pound, and the exchange rate of 2 to 1 between the two was almost fixed.

In addition, Australasia had almost no losses during World War I, and even obtained a lot of gold reserves from Russia, making the Australian dollar even stronger.

At present, there are only the British pound and the Australian dollar in the world that have not depreciated in large quantities. There is a relatively fixed conversion ratio between the two. Whether the loan currency is the British pound or the Australian dollar, it has no effect on the loan itself.

The chaotic situation in Russia itself is doomed, and it is almost impossible to conceal the occurrence of major events in this country.

Within a few days, the news that Russia had mortgaged 60 million Australian dollars with 200 tons of gold spread throughout Europe. Everyone was greedy for the Tsar's gold reserves and was trying to squeeze Nicholas II's gold reserves through various channels.

However, Nicholas II was not a fool after all, and it was impossible for him to use gold for any trade.

Especially with the mortgage of 60 million Australian dollars, Nicholas II had sufficient funds, and there was almost no problem in supporting the first half of the year, so he would not take the initiative to use gold to mortgage goods.

In the Russian government, Nicholas II was quite satisfied with this mortgage loan. After all, the current situation was different from usual, and it was good news that he was not blackmailed.

With the official arrival of the funds, Nicholas II could not wait any longer and called the Prime Minister again, impatiently asking: "Prime Minister, with this 60 million Australian dollars, can the government survive the entire summer offensive stably?"

"Theoretically, there is no problem, Your Majesty. The purchasing power of the Australian dollar in Europe can still be maintained. As long as there is no major depreciation, there is almost no problem in surviving the summer offensive." The Prime Minister thought carefully for a while before giving a more appropriate answer.

Nicholas II had already demonstrated his means when clearing out some nobles and capitalists.

This also led to the Prime Minister not daring to give a more definite guarantee, after all, Nicholas II would really settle accounts later.

"Well, in this case, the government will quickly prepare the materials needed for the summer offensive. I don't want the front line to face a shortage of various materials during the offensive, which is likely to affect the final outcome of the war." Nicholas II nodded with satisfaction and ordered.

During World War I, Australasia and European countries conducted a large amount of trade, which also allowed the Australian dollar to go to Europe, be recognized by European countries, and circulate in small quantities.

Compared with the depreciating mark and franc, the pound and Australian dollar are still relatively strong, and even if they depreciate, the depreciation is destined not to be too large.

Nicholas II firmly believed in this point, so he believed the government's reply that it could stably support the entire summer offensive.

There is only more than a month left before the launch of the summer offensive. This month is the most precious material preparation stage for Russia.

At least the reserve of materials must keep up with the speed of consumption, otherwise, before the aid from Western countries arrives, the materials will be exhausted and it will be impossible to survive this war.

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