Tight pockets

In the stately home of Prime Minister Sturlier, a serious discussion was underway in the study. Sturlier, as the leader of the ruling Liberal Party and the kingdom's chief steward, was deeply engaged in conversation with his nephew, Karaturi. The political landscape of Romania was a delicate balance, primarily oscillated between the Liberal Party and the Conservative Party, reflecting a multi-party system where power was often exchanged between these two dominant forces.

"Uncle, the government's finances are in a dire state right now. Should we approach the royal family for assistance? I've heard that the crown prince has recently come into a considerable sum of money," Karaturi suggested, concerned about the financial woes.

"I'm aware of the situation; it's an income of more than 2 million pounds," Sturlier replied, not directly addressing his nephew's proposal.

"Uncle, the Bredian faction within our party seems to be consolidating power. I suspect they aim to undermine you," Karaturi expressed his worries.

Bredianu, a significant figure in the Liberal Party and the nephew of its late founder, wielded considerable influence and had a substantial following. Sturlier, however, had been a formidable player himself. Following the founder's demise, Sturlier had actively worked to suppress Bredianu's influence. Historically, if not for the peasant uprising in 1907, Bredianu might have succeeded earlier in his political ambitions. However, due to a small twist of fate brought about by a character named Edel, the uprising didn't occur as it had in the original timeline, allowing Sturlier to maintain his position.

The old prime minister's decision to support the crown prince's initiatives for military and industrial enhancements had significantly strained the government's finances. Bredianu viewed this as an opportunity to rally the party against Sturlier in hopes of usurping the leadership.

Sturlier was well aware of the undercurrents within his party suggesting he was too subservient to the royal family, undermining his stature as prime minister. He dismissed these critiques, understanding the critical juncture the kingdom was facing with the old King Carol I preparing to gradually transfer power to Crown Prince Edel. Any rash actions could provoke royal displeasure, and without royal backing, a political party's ability to govern effectively would be severely compromised.

"I will give this matter some thought. Karatu, you should align closely with the crown prince. Your time in power may be limited," Sturlier advised, hinting at the transient nature of political power.

"Uncle, you could still hold your position for several more years. Perhaps consider postponing your retirement," Karaturi suggested, visibly surprised by his uncle's resignation to the looming political shifts.

"This is something I have pondered over. I've been in office nearly a decade, and it's time for me to step aside. This would not only alleviate some of the dissatisfaction directed at me but also pave a smoother path for you in the future," Sturlier explained, revealing his long-term vision for his nephew's political career.

Karaturi, understanding the gravity of his uncle's decision, accepted it with a hint of reluctance evident on his face. Sturlier, perceptive as ever, noticed his nephew's hesitance and offered reassurance.

"There's still some time before I retire. If you wish to continue leading our family and the party to prominence, you must remain resolute," Sturlier encouraged.

Bolstered by his uncle's words, Karaturi affirmed, "Please rest assured, uncle, I will uphold our family's legacy and bring us back to our current standing."

"I believe in you," Sturlier expressed his confidence in his nephew.

After Karaturi left, Sturlier sat back, pondering the challenges ahead. His nephew, currently the Minister of Industry, seemed well-positioned near the echelons of power, but the true test would come once Sturlier stepped down. He knew the political arena was unforgiving, and the path ahead for Karaturi would be fraught with obstacles.

The following morning, Prime Minister Sturlier headed to his office, where his secretary, Feiyangscu, immediately briefed him on an urgent matter. "Your Excellency, the military has again come to press for the funding that was supposed to be allocated last month—8 million lei," Feiyangscu reported.

"And what did Minister Sterling say?" Sturlier inquired, referring to the Minister of Finance.

"After accounting for emergency funds and daily expenses, only 2 million lei remain in our coffers. Minister Sterling is also pessimistic about our prospects for issuing government bonds, especially given Germany's current stance on not supporting our bond issuance," Feiyangscu relayed the grim financial outlook.

Sturlier's mind raced as he considered the geopolitical tensions affecting Romania's financial stability. The cooperation with Germany and Austria in the Bosnia and Herzegovina region, coupled with internal strains from Austria-Hungary's treatment of Romanians, complicated matters further. The only potential ally, Germany, was itself financially strained due to its naval arms race with Britain.

"Bring Chief of Staff Puleshan to me," Sturlier directed his secretary, preparing to handle the military's demands personally.

Soon, Chief of Staff Puleshan was ushered in, his demeanor brusque and his purpose clear. "Your Excellency, I am here regarding the payment due last month," he stated bluntly.

"The government is currently unable to release these funds," Sturlier responded calmly, maintaining his composure in the face of the pressing demand.

Puleshan, barely containing his frustration, pressed, "And when can we expect the funds?"

"Unfortunately, we must wait for the agricultural tax collections in three months," Sturlier replied, his tone steady yet firm.

This response did little to assuage Puleshan's concerns. "This is unacceptable. In a month, we won't be able to pay the army's salaries. Are you aware of the potential consequences?" Puleshan challenged, his patience wearing thin.

"I can assure you, we will secure the necessary funds within half a month, or else I may have to bring the soldiers here to collect their salaries directly from the Prime Minister's Office," Puleshan threatened before storming out, leaving a tense atmosphere in his wake.

The confrontation quickly became the talk of the town, and by noon, even Crown Prince Edel had heard about the financial debacle. That evening, at Sturlier's residence, Karaturi sought clarity on the morning's events from his uncle.

"Why did you have a confrontation with General Puleshan? This could be detrimental to us," Karaturi questioned, concerned about the political implications.

"Are you surprised by my actions?" Sturlier asked, his demeanor calm and composed, showing no signs of someone who had been involved in a heated dispute just hours earlier.

Karaturi, puzzled by his uncle's tranquility, struggled to respond.

Seeing his nephew's confusion, Sturlier explained, "I let the news slip that the government lacks the funds necessary for the army's reorganization. This prompted Puleshan to confront me, which in turn allowed the news of our financial troubles to spread quickly. This sets the stage for me to approach the crown prince for financial assistance."

"But why use such a tactic?" Karaturi inquired, still trying to grasp his uncle's strategy.

"Puleshan wouldn't have visited otherwise, and we needed a swift way to publicize our fiscal challenges to justify requesting funds from the crown prince," Sturlier elaborated.

"How were you so sure General Puleshan would react this way?" Karaturi asked, impressed yet bewildered by his uncle's foresight.

"Puleshan was known for his composure two decades ago, but his temperament has grown increasingly volatile over the past five years. Doesn't that strike you as odd? I provided him the perfect opportunity to make his case, and he took it," Sturlier revealed, shedding light on his calculated move.

Karaturi marveled at his uncle's tactical acumen, realizing the depth of political maneuvering involved.

"This approach, however, is only viable now, as I'm nearing retirement. It wouldn't be prudent to employ such a strategy under normal circumstances, as it could displease the king," Sturlier cautioned, hinting at the delicate balance of power and perception in royal politics.

"Uncle, you mean..." Karaturi started, seeking confirmation.

"Yes, the king is likely aware of our tactics, but given my impending retirement, he may not intervene. After all, I've served loyally and diligently," Sturlier affirmed, acknowledging the risks and rewards of his strategy.

The next day, Sturlier visited Crown Prince Edel at the palace to discuss the government's financial straits and propose a solution involving the issuance of national debt.

"Your Highness, given our current fiscal constraints, I propose issuing national bonds to alleviate the government's liquidity crisis," Sturlier presented his case to the crown prince.

Edel, already informed of the previous day's altercation and aware of the low purchase rate of existing bonds, understood the gravity of the situation. "Is there truly no other alternative?" he queried, exploring all possible options before committing royal funds.

"Unfortunately, without the issuance of these bonds, we risk bankruptcy before we can collect the upcoming agricultural taxes," Sturlier explained, pressing the urgency of the matter.

After a thoughtful pause, Edel responded, "We can issue a batch of two-year treasury bonds worth 25 million lei at an annual interest rate of 10%. I understand the navy is also looking to acquire a new cruiser, which should be supported."

Sturlier, seeing an opportunity to negotiate, countered, "A 10% interest rate is excessively high. If we agree on a 5% rate, the navy can manage with a smaller, 500-ton vessel."

"The security of Romania's coasts and territories is paramount. A 2000-ton cruiser is essential. However, I am willing to consider reducing the interest rate to 8%," Edel negotiated, standing firm on the naval requirements.

After further discussion, they settled on issuing the bonds at a 6% annual interest rate, allowing the navy to procure the necessary cruiser while addressing the government's immediate financial needs.

With the agreement in place, Sturlier returned to his office to finalize the arrangements with the Minister of Finance. Within days, the Romanian government successfully issued the new treasury bonds, which were quickly snapped up by the market, with the Industrial and Commercial Bank of Romania purchasing a significant majority.

Crown Prince Edel, relieved by the successful bond issuance, discussed the outcome with Wariochi, the president of the Industrial and Commercial Bank, at the palace.

"Your Highness, the bank has acquired national bonds worth 1.124 million pounds, utilizing both bank and royal funds," Wariochi reported.

"Thank you, Wariochi. Your efforts have ensured that not all royal funds were expended, allowing us to support the government while maintaining financial prudence," Edel acknowledged, pleased with the bank's substantial contribution.

Meanwhile, King Carol I, concerned about the potential implications of the prime minister's actions, received a report from Milock, his secret investigator.

"Your Majesty, after thorough investigation, we've confirmed that there was no prior collusion between the Prime Minister and the Chief of Staff. The decision appears to have been made independently by the Prime Minister," Milock informed the king.

"Is this information reliable?" Carol I pressed, seeking absolute certainty.

"Absolutely, Your Majesty. We verified this over four days to ensure its accuracy," Milock reassured.

Satisfied with the report, Carol I dismissed Milock. The king remained vigilant, aware that in the realm of power, nothing could be taken at face value, a lesson ingrained in the Hohenzollern dynasty's long history of rulership.