Chapter 186: New Currency Issuance
For Australia, the outcome of this naval battle was also good news.
Currently, the naval situation was at a standstill, and both the island nation and the Russian Empire would now turn their attention more heavily to land-based warfare.
The Russian Empire had already begun rapidly mobilizing troops to the Far East. By the second day after the war broke out, the Russian Empire had already begun assembling forces and sending reinforcements to the region.
However, for such a vast and decaying nation like the Russian Empire, its war machine was slow to mobilize.
The war broke out on February 8, but the first batch of soldiers didn't arrive in the Far East until the end of March.
This was not a completely unacceptable timeline for the Russian Empire. At the current pace, Russia could send about 20,000 troops to the Far East every month. By the end of the year, the Russian army in the region could number about 300,000, a number that could rival the island nation's forces. This was a source of confidence for the Russian Empire, from the Tsar down to the officials.
Although its system was somewhat outdated compared to other European powers, the Russian Empire was still one of the most powerful nations in the world. The prestige of the Russian Empire was certainly not something a small island nation could challenge.
However, while personnel were sufficient, the corresponding weaponry and equipment were not.
War meant massive consumption of weapons, especially ammunition.
As the closest and most capable nation to supply the world's most advanced weaponry, Australia had become a key supplier for both the Russian Empire and the island nation.
For Russia, one key reason for this demand was that the German Empire's loan had not yet been fully spent, and it was stipulated that the loan could only be used to purchase weapons from Australia.
Thus, shortly after the war broke out, Arthur received requests for meetings from both the Russian Empire's Governor of the Far East and diplomats from the island nation.
Their purpose was essentially the same—to purchase more weapons and ammunition from Australia to support the increasingly fierce land battles.
Arthur had no objections. After all, under his prior preparation, Australia's military factories had already produced large quantities of weaponry and ammunition. These had been stockpiled for the war, and now they represented a lucrative opportunity for Australia.
In the end, Australia signed separate arms import agreements with the Russian Empire and the island nation.
It was clear that the Russian Empire was determined to make a comeback with a victory to alleviate the growing internal strife. The Russian import list included 20,000 Gew98 rifles, 5 million rounds of matching ammunition, 100 Maxim heavy machine guns, and 30 CA-1 automatic cannons.
In fact, Russia had initially intended to buy Germany's 105mm howitzers. However, after witnessing the immense firepower of the CA-1 automatic cannon demonstrated by Australia, they immediately opted for the CA-1.
Of course, another key reason for this choice was the price: one 105mm howitzer cost enough to purchase two CA-1 cannons, and the CA-1's firing rate was much higher, delivering far greater firepower.
Although the CA-1 didn't have the destructive power of a howitzer, it was more than sufficient for the Russian Empire, which wasn't facing fortified defenses but rather an attacking island nation.
The CA-1's firepower would easily make the island nation's soldiers feel the full force of death.
These weapons were all in stock in Australia, and with a 10% price markup, the weapons were loaded onto ships the following day and sent to the Pacific Fleet, which still occupied Port Arthur.
To avoid causing any misunderstandings, the shipment fleet flew German flags.
The island nation, not foolish enough to provoke another enemy during wartime, had no choice but to let the fleet pass.
The island nation's weapon orders were even larger and included several warships.
This was, of course, a reluctant decision. The Russian Empire was about to receive the Tsarevich battleship's repairs, meaning they would have no worries about naval strength.
But the island nation's situation was different. The damaged warships had been built by the British Empire, and the repair time and difficulty were considerable.
Given the island nation's current level of technological capacity, it would take at least six months to fully repair these ships.
But six months was an uncertain period, and the possibility of future battles made it necessary for the island nation to increase its naval strength.
During this naval battle, Australia's Duke-class cruisers had caught the island nation's interest.
Though these smaller, mid-sized ships weren't particularly useful in full naval battles, they proved extremely effective for specific tasks.
Whether protecting supply lines, cutting off enemy transport routes, or carrying out patrols and mine-laying tasks, these fast, well-protected, and well-armed cruisers excelled at such duties.
Their high speed also gave them a chance to escape danger, especially when facing the older battleships of the Russian Empire.
With nearly half of the island nation's cruisers lost in the battle, their fleet was severely depleted in terms of available ships.
This made the Duke-class cruisers, which were relatively inexpensive and could be quickly constructed, even more appealing to the island nation.
Australia guaranteed that four Duke-class cruisers would be ready for deployment within six months. In response, the island nation immediately ordered four of these cruisers, while also pressing for the completion of the Brunswick-class battleship.
Indeed, the Brunswick-class battleship was still under construction and had not yet been launched. It had been in construction for over a year, and it was expected to be ready for trials in about six more months under normal conditions.
However, after intense pressure from the island nation's diplomats, Arthur agreed to expedite its completion, after an additional £100,000 was offered as a "bonus" to the workers and experts involved in its construction. Arthur promised the battleship would be launched within four months and delivered to the island nation.
In addition to the four cruisers and the £100,000, the island nation also placed large orders for land-based weaponry.
This included 30,000 Gew98 rifles, which had proven highly effective in the island nation's initial land engagements. The island nation's soldiers had shown great proficiency with the German weaponry, which had been the basis of their military training.
Also ordered were more than 40 Maxim heavy machine guns and over 30 artillery pieces, including 105mm and 155mm howitzers, to boost the firepower of the landing forces as they attacked Russia's Far Eastern fortresses.
As the attackers, the island nation would face heavier losses than the Russian Empire. The fortifications built by Russia in certain regions were formidable, contributing to the high casualties of the island nation's forces, which had already surpassed 300,000 by the end of the war.
In addition to these weapons, the island nation ordered 10 million rounds of rifle ammunition, 5 million rounds of machine gun ammo, and tens of thousands of artillery shells to replenish the quickly-depleted stockpiles.
War always demands the most in terms of ammunition and weaponry—not manpower.
According to unverified statistics, during the World Wars, it took over 20,000 rounds to eliminate a single enemy combatant. Post-WWII, it could take even more, sometimes up to 100,000 rounds or more.
Such statistics are rough estimates, calculated by dividing the total ammunition used by the number of enemies killed, without accounting for various factors like training, losses, or captured equipment.
However, a reasonable estimate from WWI suggests that approximately 2,000 rounds were needed to kill one enemy combatant, which highlights the enormous logistical toll of war. To kill 10,000 enemies in a day, a nation would need at least 20 million rounds of ammunition.
This is an unsustainable drain on any nation's resources, even the major powers like Britain and Germany.
These two weapon orders would provide Australia with at least £500,000 in revenue, though more than half of that would go to the military factories and shipyards.
Riding the wave of success from these arms sales, and buoyed by the joy of the recent formation of the Australia-New Zealand Federation, Arthur successfully issued a new currency—the Federal Commemorative Coin.
Of course, the coin had a full name: the Australia and New Zealand Federation Commemorative Coin. It also had a simpler, more appealing name: the Australian Dollar Commemorative Edition.
The Federal Commemorative Coin came in three denominations: the Australian Dollar, the Shilling, and the Penny.
The Australian Dollar, Shilling, and Penny were valued identically to their British counterparts, with one pound equaling two Australian dollars, one Australian dollar equal to ten shillings, and one shilling equal to twelve pennies.
The Australian Dollar featured Arthur's portrait on the obverse, along with the inscription commemorating the formation of the Australia and New Zealand Federation and the number "1" written by Arthur himself.
The reverse side displayed the Australian Royal Coat of Arms and various anti-counterfeit features, including the date of the federation's establishment.
The Shilling showed a portrait of Queen Victoria on the obverse, and the reverse displayed the British Royal Coat of Arms, symbolizing Arthur's royal lineage.
The Penny depicted an illustration of the Sydney Palace on the obverse, with a simplified map of the Federation on the reverse, marking its territories.
All the coins were marked with the signature of Arthur, and security features were heavily integrated.
The total minting volume was approximately 15 million Australian Dollars, 50 million Shillings, and 1.2 billion Pennies.
The total value of these coins amounted to 15 million pounds, and while they wouldn't circulate widely in Australia and New Zealand immediately, they would eventually.
Given Arthur's strong reputation and the Australian government's credibility, these coins were expected to become popular and occupy a significant portion of the market.
With the Australian dollar pegged to the British pound at a 2:1 ratio, there was little worry about destabilization of the currency.
Now, all that was needed was time for the new currency to gain acceptance and circulate throughout the country.
(End of Chapter)
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