Chapter 535: Calculations
Chapter 523: The Calculations
The development of South Africa is also part of Austria’s response to the agricultural crisis, with new jobs being created just in time to house bankrupt farmers and avoid a wave of unemployment.
The European public has always been interested in gold, and panning for gold is the easiest way to get rich in this day and age. If you were lucky enough, you were able to get rich.
Austria’s earliest immigrants to Africa broke out, five out of ten were started through the gold mine, and two out of the remaining five were doing logistics for gold mining.
In this era, the colonies are short of immigrants, want to stand out in the many competition, publicity is the key.
A beautifully painted cake was essential, as to whether or not you could find a gold mine and get rich when you got to the place? Franz can say with certainty that ninety-nine percent of the people will not get rich.
There is a good joke: two brothers ran to look for gold, to the place only to realize that they do not know how to prospect.
The fact is, unless it is an open-pit gold mine, and still particularly high gold content, a glance can be seen, otherwise ordinary people even if they encountered also can not be found.
Now that the gold mine has been discovered, I don’t know how many prospecting teams on the South African side, and the powerful and wealthy people in the country are likewise organizing prospecting teams, and most of the gold mines that are there are also owned by these people.
If it is not the Vienna government opened the gold mine acquisition function, ordinary people found the gold mine can be directly sold to the government. Otherwise, even if they found a gold mine, they would not be able to afford to mine it, and they might even get into trouble for killing themselves.
Seeing how positive everyone was, Franz was salty. Everyone else wanted to find gold mines and get rich, but he was the one investing in local farms and plantations.
Facts have proved that the traveler is not omnipotent, a point on the map, to the place that are thousands of square kilometers, a little deviation is one hundred and eighty kilometers.
Can you find a gold mine all depends on luck, although the range of gold mines in South Africa, there is no big enough to have tens of thousands of square kilometers of large deposits.
Relying on paper to find gold, that and relying on luck is not much difference. In the latter part of the world is very famous gold mine, this era does not even have a name.
Even if the name appears, after Franz’s butterfly effect, how big this error is, only God knows.
In that case, might as well be a little salty. The gold diggers’ may not necessarily be able to make money, but those who do the logistics will definitely make money.
Investing in farms and plantations nearby, selling bread, cheese, fruits, vegetables, meat products and other necessities of life will certainly not lose money.
Don’t look for the agricultural crisis to erupt and the prices of agricultural products to plummet everywhere, but this will have little effect on the interior of Africa.
Food can be brought in from outside, cheese, fruits, vegetables, fresh meat products, it is impossible that these things can also be shipped from outside, right?
Even though canned goods have appeared, not many people can stand it if they eat that stuff every day.
With any luck, there might be a gold mine under the farm. Who knows? In West Africa, there was more than one discovery of minerals under the royal plantation established by Franz.
In South Africa, not to mention, gold mines are all over the place. Just buy land near the gold mine is accurate, underground gold mine big hair, no gold mine can also make a small profit.
South Africa found a large number of gold mine news, still in the small circle circulation, the outside world is still immersed in the panic of the agricultural crisis.
Berlin, after the outbreak of the agricultural crisis, the Prussian government is nervous. This is related to their own interests, can not afford to be sloppy.
I do not know when, Austria has become the wind vane of European agriculture, William I also closely watched the Vienna government.
Look at the Vienna government introduced fallow law, limiting the increase in the area of food cultivation, calling on all countries to reduce production. William I did not feel relaxed, but more headaches.
Cutting food production is not a question of words, which also involves all aspects of the interests of the most critical is involved in the interests of the agricultural Junker nobles.
Today’s times are different, when Prussia was a food importer, naturally will not worry about these problems, now they have become a food exporter.
If the Russians are the most frantic in opening up their land, with Austria coming in a close second, then the Kingdom of Prussia is in third place. In recent years, the arable land of the Kingdom of Prussia has also grown by half.
Everyone was very motivated to grow food, and the land that was originally wasted in the hands of the Russians was now efficiently utilized by the Junker nobles.
Now the trouble came, there was an overcapacity of food. This is not a one-star excess, according to the data released by the Austrian Ministry of Agriculture, Europe’s food overcapacity rate is more than twenty-one percent.
No matter how excess food production capacity, food-importing countries are unlikely to cut their own production capacity, the need to compress production are food-exporting countries.
Even if the food for various reasons wasted part of the capacity to be compressed, apportioned to the countries, is still not a small number.
The main culprit for this is the Russians. According to the Russian agricultural acreage estimates, if all of this food can be shipped out, even if other agricultural exporting countries have stopped exporting food, Europe will not be short of food.
The reality is so cruel, the international market is too small.
With the increase in the agricultural population of all countries, the number of reclaimed land is also growing, as well as the improvement of agricultural technology, the food production of all countries are increasing, while the market growth rate is far less than.
In Greater France, for example, foreign imports are expected to fall by two percentage points this year because of the increase in France’s indigenous food production.
These data are released by the Austrian Ministry of Agriculture, once a year to the public, word of mouth has been established, the accuracy of William I have no doubt.
It was not the first time that countries were called upon to work together to cut food production capacity. Since 1870, the Austrian Ministry of Agriculture has issued warnings about excess food production capacity.
Yet to no avail, even Austria itself had not been able to cut capacity down, let alone other countries.
“The agricultural crisis is really here, the Austrians have taken real action to cut capacity, and we are called here today to discuss whether we should follow suit.”
Deep down, William I was in favor of cutting food production capacity. If we don’t restore the market to normal, no one should expect to have a good time.
“Your Majesty, Austria is the world’s number one agricultural exporter, and they were hit the hardest when the agricultural crisis broke out.
It is actually a matter of necessity to carry out a production cut now. Prices on the international grain market have collapsed, and now it’s the case that the more you export the more you lose.
On the surface, the detonation of this agricultural crisis is the Anglo-Russian agreement, in fact, the Russian food has just flowed into the international market, leading to the collapse of food prices, or Austria’s dumping activities in the first half of the year.
According to the information we have gathered, up to now, Austria has cathartically released about 34.2 million tons of agricultural products to the international market, of which more than 30 million tons of grain alone.
This is already more than 81% of the total amount they sold on the international grain market in 1871. If, in the second half of the year, the government in Vienna does not restore the strategic reserve and buy grain from the market, then prices will continue to hemorrhage.
It may seem like it’s just a way to hold the Russians back from returning to the international market, but in reality it’s an excuse to drag everyone down with them.
If nothing is done, international grain prices will remain depressed for the next two to three years. During this period, everyone will lose more money the more grain they sell, and if they don’t sell, they won’t be able to get their money back.
Our share of international grain exports is only 6.6%, and even if we cut production capacity, we will not be able to salvage the situation. Unless the Russians are willing to follow suit and cut production, this crisis will not end anytime soon.
The first priority is to protect the local market. I suggest reducing agricultural taxes and export taxes on agricultural products, while raising import tariffs on agricultural products and, if necessary, following Austria’s example of adopting a minimum purchase price for grain to safeguard farmers’ returns.”
Mauch’s opinion was very clear that the government could not interfere with everyone’s freedom to plant. The reason was very simple: if Prussia cut its production and the Russians did not, it would be doing the enemy’s bidding.
“Prime Minister, it’s easy to raise the import tariffs on agricultural products, but the chain reaction caused has to be considered.
Prussian-Polish relations are at a critical moment, what will the Poles think if they raise import tariffs on agricultural products now?
If they tit-for-tat raise import tariffs on our industrial and commercial products, then the agricultural crisis, will also spill over into industry.
Don’t forget that our fiscal situation is already very bad. If we do this, the fiscal deficit will also increase substantially this year. Perhaps it won’t be long before we can declare bankruptcy.”
It wasn’t that Gorman wasn’t willing to protect agriculture; the problem was that as finance minister, he was very aware of how much of a crisis Prussia’s finances were in.
Just by reducing agricultural taxes and export tariffs on agricultural products, the Kingdom of Prussia’s revenue would be reduced by more than 56 million marks, which is already very dangerous.
If the increase in import duties on agricultural products led to an increase in Polish import duties on Prussian industrial goods, then Prussia’s fragile industry and commerce would also be hit hard.
This would have triggered a chain reaction, or perhaps an industrial crisis, and the final losses would not have been small.
Prussia does not have a colonial market flood, products in the international competition can not beat Britain, France and Austria, the Polish market is very important to them.
Mauch smiled blandly, as if nothing had happened, explained: “Not so serious, the Poles do not dare to turn the tables with us.
It is easy to deal with them, as long as we encourage the Polish radical groups to make territorial claims to Austria, and then we will come out to settle the matter.
After offending two behemoth neighbors, what choice does the Polish government have?”
This explanation left Gorman speechless, there was no way around it, Poland just wasn’t a normal country right now, it was in internal chaos.
This move wouldn’t work very well for other countries, no one would be that self-involved, but Poland was an exception, they were capable of such things.
(End of chapter)