Chapter 608: Aftermath
Southeast London.
A black carriage pulled up outside Windsor Castle, the King's private residence. William Pitt Junior stepped out, his expression grim. He gazed up at the grey stone fortress, taking a deep breath.
He knew he had to secure His Majesty's support now, or navigating the current crisis would be nearly impossible.
Indeed, the London Gas Streetlights affair had escalated into a severe political crisis.
Pitt had initially dismissed it as a mere loss of a few hundred thousand Pounds Sterling, but he soon learned that numerous companies in London had collapsed, thousands of workers were jobless, and violent clashes had erupted at City Hall.
Even then, he still hadn't grasped the full gravity of the situation.
Then, last Thursday, a run on the banks began at London's Mano Investment Bank and Lloyd's Bank. Both institutions had provided massive loans to subcontractors on the Gas Streetlights project, and it was highly unlikely that any of that money would ever be recovered.
Upon hearing the news, London citizens, fearing these banks would follow the countless companies that had recently gone bankrupt, rushed to withdraw their money.
Mano Investment Bank could only hold out for two days before announcing a temporary halt to withdrawals. This ignited even greater panic among depositors. 'It seems the bank truly has no money!' people thought, and the number of those rushing to withdraw funds instantly multiplied.
Soon, the bank runs showed signs of spreading to other institutions. All banks with financial ties to the Gas Streetlights project became targets of public suspicion, and William Pitt Junior could no longer afford to remain idle.
Although the Whig Party hadn't yet seized upon the matter to launch an attack, Pitt knew perfectly well they were searching for an opportunity to deliver a fatal blow.
In fact, given the current situation, banks would soon face widespread issues. At that point, even if the opposition did nothing, Pitt would still be forced out of 10 Downing Street.
Sir Stuart, clad in a black formal suit, emerged from the castle to greet him. The sight of his handsome face instantly brought a measure of calm to Pitt's heart.
“His Majesty is expecting you,” Sir Stuart said, bowing and gesturing to his side. “Please, follow me.”
Inside the ancient castle gates, they walked a short distance along a corridor. When he was sure their attendants weren't paying attention, Sir Stuart reached out, clasped Pitt's hand, and squeezed it gently twice. He whispered, “Don't be nervous. I've already mentioned this to His Majesty, and his reaction was quite calm. He's been very focused on matters in North America lately, but don't mention Ireland...”
“Oh, and His Majesty's condition has been stable recently, so you can speak with him for a while.”
Pitt, in turn, gripped his hand and brought it to his own forehead, stroking it. The feeling of reassurance deepened.
He looked up at Sir Stuart, his eyes filled with dependence and gratitude. Sir Stuart merely nodded faintly in return.
Neither said another word, yet both understood the other's unspoken meaning perfectly.
Yes, they were secret lovers.
Pitt's initial rise to favor with George III had also been thanks in no small part to the strong backing of Stuart, who served as the King's secretary.
A short while later, Stuart pushed open the door to the King's study and announced, “Your Majesty, Mr. Pitt has arrived.”
“Oh, come in,” a somewhat hoarse voice responded from behind the desk.
Pitt looked up to see George III leaning back in his chair, dressed in a thick white linen gown, his face covered in stubble, with marks on his face and neck. He appeared quite fatigued, clearly having just undergone some treatment.
He quickly stepped forward and bowed, saying, “Your Majesty.”
George III waved a hand, gesturing to a chair on his left. “Sit. You're here about the London Gas Streetlights matter, aren't you?”
“Yes, Your Majesty.”
“So, what are your intentions?”
“Currently, several banks have been affected, which makes things rather tricky...” Pitt then recounted the bank runs.
George III sighed. “Therefore, a sum of funds must be used to appease the depositors. We absolutely cannot allow the first bank to collapse.”
As long as the banks could hold on for a month or two at most, people would regain confidence, and the runs would cease.
But if a bank were to fail, panic would spread rapidly, intensifying the withdrawals, and it was anyone's guess how many more banks would go under.
“Indeed, Your Majesty,” Pitt affirmed, nodding. “At least seven hundred thousand Pounds Sterling.”
“Have you devised a solution?” the King asked, knowing that the Prime Minister wasn't asking him for money, as he himself had little to spare.
Pitt hesitated for a moment before replying, “Mr. Henry Hope, the Dutch banker. Vienna has issued a warrant for his arrest, and he is currently still in London.
“If we hand him over to His Majesty Leopold II, it would significantly improve relations between our two nations.”
George III stroked the beard on his chin, remarking calmly, “If it benefits our diplomatic efforts, then proceed. However, I recall he put a sum of money towards his earlier scheme. Is his remaining fortune sufficient for seven hundred thousand Pounds Sterling?”
“Likely not. However, Van Kiewicz, the Dutch investor who accompanied him, also participated in that trade scheme. We could certainly treat him as an accomplice.”
George III nodded slightly. “Once you have the funds, how do you intend to resolve the other issues?”
“Last week, we discovered the body of the Commercial Credit Bank's owner,” Pitt stated. “It was a suicide, and he left behind a suicide note, claiming he had intended to expand the bank's operations by leveraging the Gas Streetlights project. However, he encountered technical difficulties, making the project impossible to deliver.
“After exhausting all the funds he had raised, he was unable to continue the work and thus chose to take his own life.”
George III let out a cold laugh. “Hmph, do you believe that?”
“I...” Pitt paused, weighing his words, then looked at the King. “We should choose to believe it.”
If the British government were to accept the narrative in the suicide note, then the mastermind behind the entire affair would be apprehended, albeit posthumously. This would at least provide an outlet for public sentiment, which was far better than allowing the culprit to escape justice, a case that would otherwise be brought up for decades to come.
Secondly, the defrauded funds would also be accounted for—all of them had been used by Goldsmid on the streetlamp project. Although the expenses were inexplicably high, that deficit would no longer need to be covered.
Seeing the King nod, Pitt breathed a sigh of relief and continued, “From the government's side, we will be prosecuting Herbert, the Mayor of London, as well as other officials involved in the Gas Streetlights project...”
George III interrupted him. “There's no need for that. Herbert was merely misled by the fraudsters, as all mortals are prone to error. Simply dismiss him from his post.”
Pitt immediately understood the King's intent.
'Herbert almost certainly took bribes for allowing the Lightning Company to handle the project,' he mused. 'If allegations of corruption were to surface now, public anger over the Gas Streetlights project would only intensify.'
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