Chapter 0043: Lending to the Empire

Both the "Bellerophon-class" and the "St. Vincent-class" battleships were merely minor modifications of the Royal Navy's "Dreadnought." Even the subsequent "Neptune" and "Colossus-class" battleships followed similar designs, continuing the use of five twin 305mm gun turrets. 

It wasn't until the later "Orion-class" battleships that the Royal Navy would adopt 343mm main guns. If the German Navy were to equip its next-generation battleships with 343mm main guns, it would secure an overwhelming advantage in firepower. 

"Oscar, are you planning to install larger main guns on the next class of battleships?" Admiral Count Tirpitz asked, frowning. 

"Indeed, caliber is truth. In naval warfare, larger-caliber main guns consistently outperform smaller ones, providing greater range, armor penetration, and destructive power. If the technology allows, we should unquestionably aim for larger-caliber guns," Qin Tian replied without hesitation.

"But this will make the battleships larger, and the construction costs will rise dramatically," Kaiser Wilhelm II frowned as well. 

The German Navy's budget was far from abundant. In fact, to sustain naval expansion, Germany's finances were already under immense strain. Should the arms race escalate, the required military expenditures would only increase. One of the major reasons World War I broke out was that the arms race had pushed nations to their breaking points. Without war to divert the public's attention and seize the wealth of defeated nations, the inevitable outcome would be financial collapse.

"Father, the increasing size of battleships is inevitable. In the future, battleships will only grow larger in displacement. Especially for the German Navy, we emphasize armor and survivability, which means our battleships will have thicker armor and greater displacement than those of the Royal Navy. Naturally, this will lead to significantly higher construction costs. However, in my view, it's worth every penny. Once war breaks out, our battleships must be able to overpower those of the Royal Navy, giving us a better chance at victory. After all, only by defeating our enemy in war can the enormous military expenditures be justified. If we lose, then everything will have been in vain," Qin Tian said solemnly.

The logic was undeniable. Once you've spent on armaments, defeat would mean total loss. If a little extra spending increases the odds of victory, why not?

Kaiser Wilhelm II and Admiral Tirpitz both nodded in agreement, acknowledging Qin Tian's reasoning.

"That may be true, but the state budget has been running deficits for years. Increasing naval funding again will put tremendous pressure on the government, and opposition in Parliament will grow even louder," Kaiser Wilhelm II said, clearly troubled.

"Father, Your Excellency, as per our agreement, I will cover the cost of constructing one of the next-generation battleships," Qin Tian proposed.

"But the remaining ships will still be a massive burden on the government," Wilhelm II shook his head.

"How about this, Father: I can offer a loan to the government, or more specifically, to the Navy. The interest rate would match the bank's standard rate, and this would help support the Navy's shipbuilding efforts. However, this must remain strictly confidential. The lottery company is preparing to expand into the British and French markets this year. If they were to find out that we're using lottery profits to fund the Navy, the consequences could be severe," Qin Tian said.

No country would allow its citizens' money to fund an enemy's military buildup. If the lottery company was discovered to be supporting the German Navy, its chances of entering British or French markets would vanish entirely.

"Oscar, that would be ideal," Wilhelm II expressed his approval.

"Your Highness, we will certainly keep this confidential. The idea of using British and French money to build our battleships and then unseating them as rulers of the seas is simply brilliant," Admiral Tirpitz added, visibly delighted.

To both Wilhelm II and Tirpitz, Qin Tian's wealth was astonishing, especially the seemingly limitless profits generated by the lottery company. In a capitalist society, the power of money was unquestionable. If Qin Tian were to use this wealth for other purposes, it might have sparked the Kaiser's suspicion. However, by offering loans to the Navy, he was showing his full support, and this only reinforced Wilhelm II's trust in his loyalty to the empire.

"Once the war ends and the empire emerges victorious, the government will need to repay the loan using the profits gained from the defeated nations. Would that be acceptable?" Qin Tian asked.

He wasn't a saint and had no intention of giving away his hard-earned money. Unless, of course, he were to become the Crown Prince or even Emperor—then things would be different.

"Of course, that won't be a problem at all. Once the empire wins the war, repaying your loan will be a top priority," Wilhelm II immediately agreed. The fact that Qin Tian was willing to loan the Navy a considerable sum was already a major relief. Asking him to provide the money without expecting repayment would be taking advantage.

"Your Highness, how much can you lend the Navy?" Admiral Tirpitz asked with anticipation.

Qin Tian thought for a moment before replying, "One hundred million marks."

"One hundred million marks?" Both Wilhelm II and Admiral Tirpitz were taken aback. While one hundred million marks was certainly a large sum, it seemed insufficient for the Navy's needs. Even the cost of the "Nassau-class" battleships exceeded 40 million marks each, and the next-generation battleships were expected to cost at least 50 million or more. One hundred million marks would barely cover the construction of two capital ships. The Navy needed much more to fund its plans.

Moreover, given Qin Tian's current fortune, this amount seemed a bit modest.