Reincarnated as Nikolai II

Chapter 131 A Reliable Alliance (7)

Nicolson, who had remained as ambassador to Russia since the Anglo-Russian agreement.

There were clear reasons why he was convinced that "Russia fears economic damage more than war casualties!"

First, the Russian Empire hasn't increased taxes since the war began.

Looking at Britain alone, they raised income tax from 6% to 18% in just one year. The number of taxpayers also increased from 1.13 million to 2 million.

Meanwhile Russia? While using monopolistic enterprises like public companies in the rationing economy, they refuse to increase individual taxation at all costs.

That's not all. The Russian government even tries to counter inflation tax - that economic law of nature where all currency-using citizens bear the burden proportional to the bundles of money they hold.

It's common sense that printing money during wartime leads to inflation.

The Russian government persistently tries to control inflation, which even France - famous for having the most solid middle-class ratio and national assets - has given up on.

This isn't simply solved by the central government having a lot of gold.

When government spending skyrockets and private markets are controlled, reducing total supply, inflation naturally occurs.

Britain, who experienced inflation under the gold standard nearly a century before Russia, knew this better than anyone.

Nevertheless, the current Kokovtsov administration was going against this.

'That shows how afraid they are of internal economy collapsing.'

Somehow reclaiming the Black Sea.

Preventing price increases.

A government afraid of the collapse of lower and middle classes.

This was the Kokovtsov administration that Nicolson had observed.

However, Kitchener hadn't expected such a positive response from Kokovtsov.

"The capital's largest factory is the Putilov Shell Factory. Plus Moscow, Donbas, Yaroslavl, Yuzovka, Sulin, even the Far East! Shell production is possible in any amount. Just how many shells does the cabinet need to face such political crisis!"

"No, it's not quite a political crisis yet, just controversy with Liberal and Conservative parties fighting-"

"And the British Empire, land of labor rights, even issued a ban on munitions industry strikes? Even railway company production lines are to be diverted to 6-inch high-explosive shell production?"

How on earth did he know that too.

The wartime Prime Minister who had treated allies colder and more calculatingly than anyone now looked like a warm restaurant owner welcoming guests.

"Ahem, if Russia provides help in this area, surely it would strengthen Western Front forces and become an opportunity to show Germany the terror of a two-front war?"

"Hmm, certainly that's true."

Whether Kitchener's logic worked, for today at least there were no words like "When your Anglo-French forces fought 2-to-1, we fought 1-to-2" or nuances like "If things go wrong, I don't give a damn" from Kokovtsov's mouth.

No, beyond their absence, the atmosphere itself was different.

"U-boats make it hard to obtain TNT materials from far away, don't they? As you know, our empire is optimized for TNT production with the world's largest oil refining system and fertilizer factories rivaling Germany's."

"Hmm? Perhaps wondering about transportation? Well, countries with stronger naval power than us should probably handle collection."

"So actually, I too thought General Roman wasn't suited for commander-in-chief? They say Chairman Bunge died clutching his neck over the budget he threw into Port Arthur during the Russo-Japanese War! Recently he said if we just beat German forces with artillery alone, it costs about 5,000 rubles per person?"

Unlike the past two weeks of push-and-pull negotiations, Kokovtsov was impossibly kind and put his all into achieving sales- no, alliance unity, trying to show Kitchener the warmth of alliance.

Whatever the case.

"Now we just need to occupy Constantinople."

"...Indeed."