Life of Being a Crown Prince in France

Chapter 1199: Chapter 1104: Finance and Strategic Contraction

Silence seemed to be the theme of the meeting at Ten Downing Street today.

Everyone was recalling the chaos in London after the collapse of the Lightning Coal Company, and couldn’t help breaking out in cold sweat.

Bolton-Watt’s scale is even larger than Lightning Coal, and its destructive power will inevitably be stronger.

Grenville glanced at Reid’s report and suddenly widened his eyes.

It stated that the stock price of the Chat Han Shipyard had already dropped by one-third, and with the increasing number of customers canceling ship orders, the decline is accelerating. The shipyard currently has less than 30,000 British pounds in liquidity.

Chat Han’s scale is even larger than Bolton-Watt’s. If something unexpected happens, it wouldn’t just be the Navy’s new warships at stake; the entire London might experience a “quake.”

He immediately looked to Reid, “What can be done to save this company?”

The latter gestured to the report, “As long as their 52-horsepower steam engines are normally supplied, they can maintain basic operations. But it will take a few months to resolve the technical issues.

“Ah, the main difficulty lies in their need to continually pay penalty fees.”

He quickly added, “As long as their new model high-power steam engines are put into production, they can soon turn profitable again.”

Earl Spencer frowned, “I heard they’ve significantly lowered the power of their new steam engines?”

“Indeed so.” Reid nodded, “But even if they can reach 80 horsepower, it’s still the most powerful steam engine in the world. This will allow their company to quickly monopolize the European market.”

Grenville rubbed his brow and asked, “In short, how much more funding is needed?”

“400,000 British Pounds, Your Excellency the Prime Minister,” Reid said, “If the Chat Han Shipyard can hold on. Otherwise, another 150,000 to 200,000 pounds might be needed to rescue them. Oh, the shipyard’s stock price is precariously low, which could easily render it insolvent.”

Grenville said to the Finance Minister, “So, you need to prepare 500,000 British pounds here. And some funds to stabilize the stock price.”

Petit’s face turned almost green, shaking his head repeatedly, “Your Excellency the Prime Minister, we have to wait for the third round of issuance, which is nine months later.

“Or, reduce the sugar subsidies.”

Grenville waved in irritation, “The subsidies cannot be reduced; you must come up with another solution.”

Petit’s mind was already on the verge of resignation, brimming with the idea.

Just then, William Pitt Junior cleared his throat and said, “I believe the only solution given the current situation is to increase income tax and seek bank loans.

“Of course, we also need to minimize expenses to ensure our finances don’t collapse.”

Grenville frowned, “Raising taxes… Do you think there’s still room to increase?”

“Undoubtedly, Your Excellency the Prime Minister,” Junior indicated outside the window, “The main reason people protest is because of the high sugar prices. If we increase the sugar subsidy to 2.5 million British pounds, everyone would be satisfied.

“And by lowering sugar prices, people can save on their expenses, using the savings to pay the increased income tax.

“You see, no one loses, and all problems are solved.”

Petit immediately agreed, “You’re right. The protests would cease immediately with a sugar price of 2 shillings per pound.”

Junior continued, “We should also increase support for the steam engine industry. I’ve spoken with many scholars recently, and they all believe steam engines will dictate future industry and trade patterns.”

Reid nodded repeatedly on the side.

Junior glanced at the map on his left, “Our troops have been stuck in Portugal for a year and a half, consuming countless military expenditures, yet with little to no gains.

“I suggest keeping only a portion of the forces to defend the Torres Vedras fortification group, while the Royal Navy gains a supply port in the Bay of Cadiz and swift support capabilities to Gibraltar.

“The Marquess of Wellesley is continually reinforcing the Torres Vedras defenses, which now extend to the north of Lisbon, containing hundreds of bastions of various sizes.”

“We can ensure the supply line through the sea from the West Coast, providing enough logistical support to the front lines.

“This way, around 20,000 troops can secure the vital ports on Portugal’s West Coast.”

Petit quickly calculated and immediately responded, “This could allow us to reduce military expenditures by roughly 400,000 British pounds annually.”

Junior continued, “Furthermore, we no longer need to restrict France’s sugar sources.”

No one objected. Britain had already lost miserably in this sugar war, so it was better to hold on to their own Indian cane fields.

“Moreover, the Caribbean region is already in chaos, so we should definitely pull out from there.”

Petit’s mind whirled, and he quickly reported, “Canceling ’aid’ to Caribbean countries can save us 280,000 British pounds annually.”

The Foreign Minister Fox added, “As I understand, the new Tsar in Saint Petersburg is not interested in the war against invading Persia.”

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The victory of this tactic is short-lived, as the 30,000 forces of Surt advance in the south threatening Wellington’s retreat route. In the face of overwhelming enemies, the Spaniards do not cooperate, not only failing to supply the promised support to the British Army but also abandoning the 1,500 British wounded soldiers entrusted by Wellington to the French Army. Ironically, the captured British wounded later unanimously reported that the treatment in the French prisoner camp was much better than what they had received under the care of the Spanish allies. Realizing that cooperation in combat with the Spaniards was now hopeless, Wellington decided to retreat back to Portugal. Despite winning several engagements with the French Army, Wellington witnessed the formidable strength of the French forces and the inefficiency of his Spanish allies’ regular troops. He also noticed the resistance to French occupation by local citizens, which was a significant potential force. Wellington decided to strengthen defenses in Portugal, organize militias, and implement a scorched earth strategy, using attrition tactics against the inevitable French offensive. The focus of the defensive works was the renowned Torres Vedras Line. The Torres Vedras Line was constructed in utmost secrecy from October 1809, named after the town of Torres Vedras in the front line of the defense chain. Comprising three fortified defensive lines forming a barrier to the north of Lisbon, the capital of Portugal. Each line of fortifications was built with forts at regular intervals, complemented by constructing ditches and installations utilizing the natural terrain. Lisbon’s terrain makes it difficult to attack, bordered by the Atlantic Ocean to the southwest and the Tajo River to the east, surrounded on three sides by water. The north is the sole land route, where two stretches of hills provide natural protection. The line’s main role was to use over a hundred fortresses along these two hills to control passageways and strategic points, harm and consume the attacking enemy, delay their offense, notify and assist the main forces at the back to defeat the coming enemy. This line of fortifications turned Lisbon into a formidable bastion. Wellington’s inspiration for a fortified chain of defensive lines came from the suggestions of Major Neves Costa of Portugal and referred to the terrain survey report by Colonel Vincent, an officer under the French General Juno, his former opponent, while also drawing from the British Matt Redoubts along the English Channel.