Chapter 46: Abolition of Local Tariffs

  Chapter 46 Abolition of Local Tariffs

By 1848, the Czech region had become one of the industrial centers of Austria, and with the growth of industry, the wealth of the capitalists increased greatly.

This outbreak of demonstrations was actually a mismatch between the wealth owned by the capitalists and their political status, and they were not willing to have no say in politics.

The Austrian government’s successive introduction of new bills, to a certain extent at the expense of the capitalists, catalyzed the Prague demonstration.

In Franz’s opinion, these people probably got so used to the days of impunity in the Metternich era that they forgot that the people who make the rules of the game can also change them at any time.

Now the Austrian government has said that it will not play this game, those who go along with me will prosper, those who go against me will die, and we will screw whoever has a problem with it.

Of course, we are all civilized people, it is impossible to play so excessively, hit a stick to give sweet dates of things, or to do.

“In view of the current domestic situation, I propose to abolish local tariffs to ease the discontent of capitalists!” Finance Minister Karl proposed

At present, the main place in Austria where local tariffs exist is Hungary, and other local tariffs have already been abolished one after another.

In fact, the responsibility for the existence of tariffs between Hungary and Austria, all the blame on the Vienna government is not right, as early as the last century Austria is ready to abolish the domestic tariffs in various places, the result was the Hungarian aristocrats, capitalists opposed.

Austria’s economic development is not balanced, industrially developed regions, capitalists naturally advocate the abolition of local tariffs, while industrial backwardness of the Hungarian region, capitalists still count on local protection?

Of course Hungary was not without those who advocated the abolition of local tariffs, such as the capitalists in the grain industry, who wanted to abolish tariffs.

Hungary’s taxes had nothing to do with the Vienna government, they were collected for their own use.

There is no doubt that the Hungarian nobility could then take a share of the local tariffs and was the biggest obstacle to their abolition.

Karl’s purpose in making this proposal now was obviously not pure, and besides buying the hearts and minds of a portion of the capitalists, there was also a warning to the Hungarian nobility.

At this time, the government in Vienna still believed that it was the nobility that dominated the Kingdom of Hungary, and that the capitalists in plain sight were white gloves.

Franz had no intention of correcting this; the Hungarian nobility was far too numerous, making up four percent of the total population, and most Hungarian capitalists had another identity – that of nobility.

If they are not suppressed, according to their death-defying attributes, it is estimated that the Hungarian problem will cause him more headaches in the future.

This has been proved in history, from Austria to Austria-Hungary were all headaches for the Hungarian problem, if not for the Hungarian people still embraced the Habsburg family, they would have long been independent.

“Yes, Austria is a united country, and the existence of local tariffs is against the tide!”

There was no doubt that by this time Franz didn’t mind letting the Hungarian rebellion come a little harder.

The interests of the Hungarian workers and peasants were claimed, and the reforms carried out by the Austrian government had practically satisfied them.

It is never politically wrong to pull a faction against a faction, to unite the majority and fight a small group.

Next, he will continue to introduce decrees to clear the obstacles to the economic development of the bourgeoisie and shake the capitalists’ resolve to revolt.

The abolition of local tariffs only harmed the interests of the big nobles, the small nobles were not qualified to profit from it, and even their interests suffered, without tariffs at least their grain would be more competitive.

This was not sufficient, and bringing the Hungarians together in the rebellion would at most involve most of the nobility.

“Your Highness, I’m afraid this won’t work, repealing Hungary’s tariffs, this will impact the industry of Austria’s grain, affecting the earnings of Austrian farmers!” Archduke Louis objected

Franz suddenly remembered, abolishing the tariffs with Hungary, the biggest impact is not the farmers, but the nobles who own a large area of land, after one more competitor, the price of grain will definitely decline.

Franz was hesitant to stimulate the aristocracy at this time. He had just abolished serfdom, and now he let the Hungarian grain in to affect the price of grain, would it touch their bottom line?

At this time, Prime Minister Felix helped to make a decision.

“Since 1846, Austria’s grain prices have been climbing, for the sake of the country’s stability, it is necessary for us to keep them within a reasonable range.

In the long run, it’s also a good thing that Hungarian grain is coming into Austria, and a drop in grain prices will help us stabilize the people’s hearts as soon as possible.

Moreover, after the abolition of tariffs, the competitiveness of Austrian industrial and commercial products entering Hungary will also be enhanced, which will be conducive to the recovery of the trauma caused by the economy!”

Franz was relieved, this big tycoon’s prime minister didn’t mind the decline in food prices, so I’m afraid the bottom line of the nobles was much lower.

Historically it seems that Austria also abolished the tariff system during this period, exactly which year Franz is not clear.

“The Prime Minister is right, abolishing tariffs now will allow the Austrian economy to recover as soon as possible, which is very important to us.

Because of the war, I’m afraid that our revenues will be drastically reduced this year, and I’m afraid that if we hadn’t confiscated the property of the insurgents, the government would be bankrupt right now.

The next war of counter-insurgency will surely cost money like water, and I’m afraid that this money will be a drop in the bucket, so we must find a way to cut down on expenses.

Now that we still have so many factories in our hands, we must run them as soon as possible, the Hungarian market is essential!” Foreign Minister Metternich spoke up

Well, Austria was really short of money. Before the March Revolution, the government in Vienna still owed 748 million guilders in national debt, and now there was about another 600 to 650 million guilders left. (One guilder equals about 11.6928 grams of silver.)

Don’t get me wrong, it’s not that Franz has paid back the money, it’s that the debtors are gone.

Because of the rebellion, many of the bonds were destroyed in the war, and more debtors became wanted criminals, the counterinsurgency army also seized a large number of bonds, Franz directly a fire to burn.

The Austrian government issued bonds, there are two kinds of real name system and bearer system, real name system of national debt wanted criminal naturally will not come to ask for money, bearer system of national debt can also change hands.

Expecting the Hungarian market to restore the Austrian economy is idealistic.

Franz believed that Hungarian capitalists would not mind doing business with Austria, even if a revolution broke out.

The problem was that with war, how could transportation be secured? Who would have the heart to buy these goods? You can’t sell arms to the Hungarians, can you?

(End of chapter)