Chapter 148: Cooperating to Dig for Treasure

As a former colonial empire, Spain actually possessed a not insignificant amount of gold reserves. However, due to the decline of national strength, combined with the fact that a large portion of the wealth belonged to the former royal Bourbon family, the Bourbon family took away a massive amount of gold and other assets when they fled north to France.

Currently, the gold reserves under the control of the Spanish government are less than 200 tons, and the gold reserves in Gao Da's hands are even fewer, not even totaling ten tons when combined.

There is no help for it; in the era of the gold standard, gold is simply too unimportant to various countries.

Possessing gold allows for the printing of currency, and the ratio between gold and currency cannot possibly be a fixed 1: .

In some countries with larger gold reserves, the actual ratio of gold to printed currency is as high as 1: 0 or more.

What does this mean? Holding gold worth 100 million pounds, the share of paper currency issued externally could be as high as over 1 billion pounds.

However, printing currency cannot be done recklessly. First, one must worry about currency devaluation and inflation caused by a large influx of money into the market; second, one must worry that overly frequent gold redemptions will lead to a sharp decline in domestic gold reserves, triggering a currency crisis where there is no gold left to redeem.

In truth, currency circulation is also related to the credibility of the currency. Gold reserves are a major element that supports currency credibility and one of the most important methods.

Currency itself does not possess value; it only gains actual meaningful value after being pegged to and exchangeable for gold. If there were no gold, currency would effectively be a piece of waste paper, completely unable to circulate in the market.

As the only two legal currency-issuing banks in Spain, the Royal United Bank and the Bank of Spain have also accumulated a certain amount of gold reserves during their currency issuance over these past few years.

But the gold reserves accumulated by the two major banks combined only total a little over ten tons. While this is already a not insignificant gold reserve for the banks themselves, for Spain, a dozen tons of gold is merely a drop in the bucket.

The gold reserves in the hands of the Spanish government might be able to cope with this economic crisis, but who would ever complain about having too little gold?

Every additional ton of gold in hand can create a value of over one million pounds, which is more than 30 million pesetas.

Whether it is the Spanish government or the two official banks, the more gold reserves they have in hand, the better.

Where can one obtain enough gold reserves to cope with this economic crisis?

Gao Da thought of many methods, but most of them were not very reliable, or at least basically impossible to achieve for Spain.

For example, salvaging treasure from shipwrecks. To say nothing else, during the period when Spain colonized the Americas, many ships transporting treasure sank in the Atlantic Ocean.

Although the money transported on a single ship was not too much, all the shipwrecks added together would likely be a not insignificant fortune.

But the problem is that the locations of these shipwrecks are not entirely static. Furthermore, due to current salvage technology, even if one could eventually find the locations of these shipwrecks, it is not certain that they could be salvaged.

Moreover, the Atlantic is so vast that finding the locations of shipwrecks is extremely difficult. Current technology is not suitable for salvaging shipwrecks; otherwise, countries with stronger technology like Britain and France would have done it long ago.

Besides salvaging shipwrecks, another relatively reliable method is to prospect for and mine gold mines. But doing so requires a very long time, and secondly, existing proven gold mines are basically already owned by others, while prospecting for gold mines in other places takes too long.

Gao Da does indeed know that many places have large gold mines, but the problem is, how can one ensure that other great powers do not interfere and that Spain can exclusively possess this gold mine?

Furthermore, even if Gao Da pointed out the existence of a gold mine in a certain region, it would still require mineral exploration teams to pinpoint the location of the gold mine and perform large-scale extraction of gold ore to refine the gold.

Such a long time clearly cannot keep pace with the economic crisis, and for the current Spain, it is not a very suitable method.

After much thought, Gao Da finally set his sights on the Indians. The region of India possesses the world's second-largest population and also holds a massive amount of unknown treasures.

Gao Da is naturally aware of the Indian temple treasures that have many rumors surrounding them in later generations. In fact, there is more than one Indian temple treasure; the largest temple treasure contains countless wealth, and smaller treasures also contain many gold and silver valuables. Getting hold of just one would yield a significant amount of gold reserves.

But the current problem is that India is British territory, and the relationship between the British and Spain is not that good.

Moreover, going to India to excavate temple treasures requires total secrecy throughout the process. Based on the power Gao Da currently holds, it is very difficult to execute the entire plan perfectly. After all, this requires sending personnel to India to excavate the treasure, and while keeping it hidden from the entire Indian colonial government and the British government, transporting the excavated treasure from India to Spain.

However, giving up the Indian temple treasures for nothing would be a bit too regrettable.

Although the temple treasures in history will not be discovered until over 100 years later, who can be certain that things won't change?

After all, the course of the Franco-Prussian War has already been changed; whether future events will be changed is something Gao Da cannot be certain of at all.

Since it cannot be determined, the sooner the temple treasures are obtained, the better. Leaving this rich treasure for the British or the future Indians is not cost-effective for Spain and Gao Da.

Now is a relatively good opportunity; the market fluctuations before the outbreak of the economic crisis will surely attract the attention of the British government, and this is also the most suitable time to go to India to excavate the treasure.

Once the British turn their attention back to India, it will not be easy to send personnel to carry out large-scale operations.

After careful consideration, Gao Da finally decided to cooperate with Prime Minister Primo and use the power of the Spanish government to obtain this batch of treasure.

Of course, by cooperating with the Spanish government, a portion of this treasure must certainly be shared with the Spanish government. If Prime Minister Primo is forceful enough, the Spanish government might even take the lion's share, leaving Gao Da with only a small portion.

But there is no help for this; after all, the power of the royal family is too weak at this time. Although those nobles possess a certain degree of influence, the matter of the temple treasures is of great importance and cannot rely entirely on those old-fashioned nobles.

As for the new-style nobles, there is no need to mention them. The power in their hands comes from the royal family. Gao Da does not even have the ability to hide the excavation of treasure from the Indian colonial government and the British government, let alone these new-style nobles who have no power at all.

Although cooperating with the Spanish government means giving the government the lion's share, the good news is that the Spanish government does indeed possess sufficient power. Moreover, there is more than one Indian temple treasure; as long as more gold and other valuable treasures are obtained from a few more treasures, the benefits Gao Da ultimately receives will still not be small.

Furthermore, for Gao Da, it is also beneficial for the Spanish government to obtain these treasures. Although Spain's development has been relatively smooth, all of this is predicated on loans from the Italian government and the Austro-Hungarian government.

Including France, the loans provided by France to Spain reach as high as 500 million francs, and the interest alone requires a repayment of 100 million francs.

The financial pressure on the Spanish government is still very great. If they could obtain a batch of temple treasures to expand their gold and capital reserves, it would undoubtedly alleviate a large portion of the financial pressure, and investment in development and construction could also be increased to achieve better results.

Since the cooperation with the government has been decided, the subsequent matters are easy to handle.

Gao Da only needs to finalize the relevant plans with Prime Minister Primo, and the specific actions can be left to the government to carry out; at most, the Royal Security Intelligence Agency can provide support.

January 15, 1873, inside the Royal Palace of Madrid.

"Your Majesty, what is the matter that you have summoned me so urgently?" Prime Minister Primo arrived in a hurry, his eyes filled with a bit of curiosity and doubt.

Since Gao Da ascended the throne a few years ago, he had never summoned him so urgently and mysteriously. This also made Prime Minister Primo feel a bit curious, and he rushed over without thinking too much.

"Prime Minister Primo, my subordinates have discovered a mysterious treasure outside of Europe. The treasure may contain a large amount of gold, silver, and other priceless treasures."

"But as you know, the royal family does not have enough manpower to retrieve this treasure. I wonder if the government is interested? If possible, I am willing to take 30 percent of the treasure and give it to the government as a reward for the government's participation in this operation." Gao Da got straight to the point and proposed his suggestion.

However, Gao Da did not tell the truth about the more private agencies like the Royal Security Intelligence Agency, instead simply summarizing it as "my subordinates."

"A priceless treasure outside of Europe?" Prime Minister Primo was a bit doubtful; this sounded like it might not be very reliable.

"Your Majesty, where did you hear this news? Please forgive me, but if our operation ends up with no harvest, I am afraid it will be difficult to answer to the government." Prime Minister Primo pondered for a few minutes and raised his doubts.

Although Gao Da is the King of Spain, the Spanish government clearly would not take actual action based on a few words from Gao Da.

The risks involved and the potential benefits are things Prime Minister Primo needs to consider. Unless it is certain that the government can obtain substantive gains, the Spanish government will not travel thousands of miles outside of Europe to search for a so-called treasure just because of a word from Gao Da.

"There is nothing to say about the source of the intelligence, but it is certain that the intelligence is highly likely to be true. Even if the intelligence is not true, the royal family is willing to bear all the expenses of this operation."

"If the intelligence is true, the specific expenses of this operation will be deducted from the share of the treasure obtained. Prime Minister Primo, I hope you will carefully consider my opinion; this is a treasure that must not be missed, and it is a huge fortune for both the royal family and the government." Gao Da would not be foolish enough to reveal the Royal Security Intelligence Agency he had established.

Although the Royal Security Intelligence Agency might not be able to hide from Prime Minister Primo, he certainly would not know too much about the current development of the Royal Security Intelligence Agency.

As the King of Spain, it is only natural for Gao Da to build his own power. Unless Prime Minister Primo wants to have a falling out with Gao Da, he will not ask too many detailed questions about the situation of the Royal Security Intelligence Agency.

The facts were indeed as Gao Da had expected.

Upon hearing Gao Da state that the source of the intelligence could not be disclosed, Prime Minister Primo immediately linked this intelligence to the rumors about the intelligence agency Gao Da had established.

Prime Minister Primo did not have much objection to the intelligence agency established by Gao Da. After all, the government could not stop the King's actions. Although Gao Da did not have much power, the King of Spain was not just a figurehead.

If pushed too hard, it would be of no benefit to either Prime Minister Primo or Gao Da. Maintaining the current balance is the most suitable choice, as it will neither delay Prime Minister Primo's reforms for the government and Spain, nor will it delay Gao Da's own power layout.

Regarding the current situation of the Spanish government, Prime Minister Primo and Gao Da are naturally clear in their hearts. The current Prime Minister Primo is the undisputed controller of the Spanish government, and Gao Da's influence is far inferior to that of Prime Minister Primo.

But such power will eventually have to be returned to Gao Da in the future. Before completing their respective plans, neither Gao Da nor Prime Minister Primo is willing to destroy their relationship with the other.

Since Gao Da has expressed his willingness to bear the expenses of this operation, Prime Minister Primo naturally has nothing to say. Even if there is no such thing as a treasure, at worst, it can be treated as a bit of fun between the government and the young King.

The King does not make many proposals every year, so Prime Minister Primo naturally cannot refuse the King's opinions too frequently.

Moreover, such a proposal does not cause much loss to the government; it is nothing more than selecting a group of reliable personnel from the military to cooperate with the King in an operation.

"If that is the case, then there is no problem. But Your Majesty, according to the plan you mentioned, the government will be the actual person in charge of this operation."

"If the share of the treasure is too small, the government will have no harvest. I suggest changing the sharing ratio to fifty-fifty; for both the royal family and the government, this distribution is fair." Prime Minister Primo continued:

"The government is willing to cooperate with your operation, Your Majesty the King. If this batch of treasure really exists, no matter which country's territory it is on, we can bring this treasure back to Spain."

Gao Da naturally knew that a 30-70 split was impossible, and Prime Minister Primo would absolutely never agree to a 30 percent distribution.

The reason for proposing a 30-70 split was actually to achieve the goal of a 50-50 split. If a 50-50 split had been proposed at the beginning, Prime Minister Primo would have had a very high probability of continuing to push it down, and the share the royal family could obtain would be even lower.

This is just like doing business: start with a high price and then slowly lower it. Prime Minister Primo naturally also knew that the 30-70 split was not Gao Da's bottom line, and his meaning was also very clear: the government can cooperate with Gao Da's operation, but the split must be a relatively fair number.

A 50-50 split is completely acceptable to Gao Da. The Indian temple treasures are rumored to be miraculous, with some saying they are worth billions, trillions, or even ten trillions.

Although Gao Da is not sure about the specific share of the Indian temple treasures, the half share obtained by the royal family will definitely not be small.

Currently, the total assets of the royal family combined are only a few tens of millions of pesetas. If this treasure is obtained, it might directly allow the royal family's assets to multiply several times over.

Why would one be unhappy about such a treasure obtained for nothing? The share obtained by the Spanish government will be used to develop the whole of Spain, and the more powerful Spain is, the more benefits it will have for Gao Da.

Gao Da pretended to be very hesitant, but finally nodded, saying with a bit of heartache: "Then let's make it a 50-50 split, Prime Minister Primo."

"But I hope there will be no changes. The royal family accepts a minimum of a 50-50 split. I hope our cooperation will be very pleasant."

"That is of course, Your Majesty the King." Having obtained a 50 percent share, Prime Minister Primo's mood was quite satisfied. He nodded with a smile and said to Gao Da as if giving a guarantee: "Our cooperation will be very pleasant. I hope to see this treasure soon; I am already a bit impatient."

(End of chapter)