Loan to the Empire

Both the Bellerophon-class and St. Vincent-class battleships were merely simple modifications of the British Navy's HMS Dreadnought. Even the subsequent HMS Neptune and Colossus-class battleships followed a similar layout, retaining five twin 305mm main gun turrets.

It wasn't until the later Orion-class battleships that 343mm main guns were adopted. If the German Navy were to equip the next class after the Nassau-class with 343mm main guns, it would give them an overwhelming advantage in main gun firepower.

"Oskar, you intend to use larger main guns on the next class of battleships?" Grand Admiral Count Tirpitz frowned.

"Exactly. Caliber is truth. In naval combat, large-caliber main guns are always superior to smaller ones—greater range, better armor penetration, and more destructive power. If technology permits, we should naturally use the largest caliber possible." Oskar replied without hesitation.

"But that would make the battleships even larger, and construction costs would keep rising." Wilhelm II also frowned deeply.

The German Navy was not exactly flush with military funding at the moment. In fact, developing the navy had already placed a heavy burden on Germany's finances. Once the arms race among nations reached its peak, the required military spending would only climb further. One major reason World War I broke out was that the arms race had become unbearable for all involved. If war wasn't used to divert public attention and plunder the wealth of defeated nations, the only outcome would be national financial collapse.

"Father Emperor, battleships will inevitably grow larger. That's unavoidable. For the German Navy in particular, we emphasize defense and survivability, which means our battleships must have thicker armor and greater displacement than those of the British Navy. Naturally, construction costs will rise significantly as a result. But in my view, it's entirely worth it. Once war breaks out, our battleships will be able to suppress the British Navy's, giving us a much better chance of victory. After all, only by defeating the enemy in war and securing victory will the enormous military expenditures we've made prove worthwhile. If we lose, everything is for nothing." Oskar said solemnly.

It was a sound argument. Since money had already been spent on armaments, losing would mean a total loss. If spending a bit more could improve the odds of victory, why not do it?

Wilhelm II and Grand Admiral Count Tirpitz both nodded repeatedly, acknowledging Oskar's reasoning.

"That's true enough, but the treasury has been running deficits for years. Increasing naval investment again would put immense pressure on the government. Opposition within the parliament would also be very strong!" Wilhelm II looked troubled.

"Father Emperor, Your Excellency. As promised, I will cover the construction cost of one ship in the next class of capital ships." Oskar said.

"The remaining ships would still be a huge burden on the government." Wilhelm II shook his head.

"Then how about this, Father Emperor. I can provide a loan to the government—or rather, to the navy. The interest rate will follow the bank rate. This will support the navy's shipbuilding needs. Of course, this must be kept strictly confidential. The Welfare Lottery Company is preparing to enter markets in Britain and France starting this year. If they discover we're using lottery profits to fund the navy, the consequences would be severe." Oskar said.

No country would likely tolerate such a scheme—using money earned from their own people to develop weapons for an enemy nation. If that came to light, the Welfare Lottery Company's hopes of entering British and French markets would be nothing but a fantasy.

"Oskar, this would be the best possible outcome." Wilhelm II nodded approvingly.

"Your Highness, we will ensure this remains secret. If the Welfare Lottery Company can earn money from the British and French, that's the best scenario. We'll use their money to build warships and knock them off their throne as masters of the seas." Grand Admiral Count Tirpitz beamed with joy.

In the eyes of Wilhelm II and Grand Admiral Count Tirpitz, the wealth Oskar controlled was astonishing within the entire German Empire. The endless stream of profits from the Welfare Lottery Company made everyone envious. In a capitalist society, the power of money was undeniable. If Oskar used that money for other purposes, it might arouse Wilhelm II's suspicion. But now, by voluntarily offering a loan to the navy, Oskar demonstrated his support for the military—and his patriotic heart.

"After the war ends, once the Empire wins, the government will need to repay the loan using spoils from the defeated nations. That shouldn't be a problem, should it?" Oskar asked.

He was no saint, and he had no intention of simply giving away the money he had worked hard to earn. Of course, if he became the Empire's Crown Prince or Emperor, that would be a different matter entirely.

"Of course, no problem at all. Once the Empire wins the war, we will naturally prioritize repaying your loan." Wilhelm II replied immediately. Getting Oskar to lend money to the navy for armaments had already solved their most pressing problem. Expecting him to donate it for free would be pushing too far.

"Your Highness, how much can you lend to the navy?" Grand Admiral Count Tirpitz asked eagerly.

Oskar thought for a moment, then said, "One hundred million Marks."

"One hundred million Marks?" Wilhelm II and Grand Admiral Count Tirpitz were both taken aback. While one hundred million Marks was a substantial sum, it seemed almost trivial for the navy. After all, even a Nassau-class battleship cost over forty million Marks. The next class of capital ships would likely see costs soar to fifty million Marks or more. One hundred million Marks would barely cover two ships. For the navy, it wasn't much help.

Moreover, given Oskar's current wealth, such a modest amount seemed almost stingy.