Chapter 147: Despicable Means
Chapter 145 – Despicable Means
At the same time as the railroad program was launched, Franz did not forget the other two core industries, but on these two industries, the government directly intervened much less.
In a way, the processing and manufacturing industry could be viewed as a whole. The agro-processing industry was able to be spun off separately for no other factor than simply being able to make money.
Currently the largest source of foreign exchange for the Austrian Empire is the export of agricultural products. This includes two parts: the export of refined agricultural products and the export of raw agricultural products.
Undoubtedly, the finished processed food exports are much more profitable, and can drive a large number of people to work, bringing a large amount of tax revenue to the country.
From the perspective of economic development, this is the growth point of GDP. Franz is counting on the profits from agricultural exports to make up for the trade deficit.
In international trade, the Austrian Empire has been in deficit for most of the time, which is the main factor contributing to the continuous depreciation of the Austrian guilder.
This year’s currency is not the credit system of the latter days, completely tangible real money, international trade settlement, everyone uses gold and silver.
International currency? The British pound can barely be counted, but not to the late 19th century kind of status, most countries and regions are not recognized.
In this context, the trade deficit continues, it will cause an outflow of wealth, affecting the domestic economic development.
After Franz came to power, he stabilized the value of the Austrian guilder in order to keep the domestic economy on track.
Finding a way to quell the trade deficit as soon as possible became the government’s top priority.
In the short term, the only way for the Austrian government to achieve a balance of trade is to earn added value by exporting refined agricultural products.
In August 1849, the Austrian government issued a regulation: reduce the tax rate of agricultural products processing enterprises by 2 points, and at the same time announced that after 1850, the export tariffs of raw agricultural products will be increased by 1 point.
In order to encourage more people to invest in this industry, the Austrian government also stipulated that newly established agro-processing enterprises would enjoy tax exemption for the first year and half-tax treatment for the next three years.
As a result of this policy, 221 agro-processing enterprises were added to Austria in the latter months of 1849, including Franz.
Austria was originally a large exporter of agricultural products, the development of agro-processing industry has a natural advantage, the introduction of policies to encourage it.
Manufacturing on the trouble, this covers a wide range, in some areas Austria has the advantage, most of the industry has begun to lag behind.
However, this backwardness, only relative to the completion of industrialization of the British, in southeast Europe, Austria’s industry still has an advantage.
In Franz’s view, advancing the manufacturing industry was actually accelerating the pace of industrialization, and mechanized production had too great an advantage over handicrafts.
This was not something that could be done in a short time, but the government still supported heavy industry, for example, the iron and steel industry, machinery and equipment manufacturing, was taken care of.
This care does not only include lowering tax rates, but also local governments will help solve infrastructure problems, such as industrial water and transportation problems.
Development of the manufacturing industry, the most important thing is to endure loneliness, not to mention a year’s time, even if it is three or five years, are not necessarily see the results, but adhere to the ten years and twenty years later, it will certainly achieve results.
Innovation?
It is too early to say this question, before the completion of industrialization, the Austrian manufacturing industry is to copy the British road, of course, there is an occasional windfall, is also pleasant.
……
In general, the economic reforms carried out by the Austrian government from the second half of 1848 to the end of 1849 were aimed at clearing away the obstacles to economic development in the country.
As a unique country with a half-planned, half-market economy, Austria achieved remarkable economic success in 1849.
The most intuitive feeling of the citizens of Vienna was that the price of food had fallen, down fifteen percent from 1847.
Don’t look at this figure as insignificant, but in fact it was very important in industry. The fall in food prices meant that the cost of feeding workers was reduced.
The lower cost of living likewise made life better for the citizens at the bottom. Many people have seen minuscule savings in their hands, money that some have chosen to save and others have chosen to spend.
One or two insignificant, the number of people more convergence is not a small amount, the prosperity of the market increased.
These inconspicuous consumption, and finally feedback to the industrial production, there is a market naturally have production, promote the increase of industrial capacity.
If this effect was insignificant, then the absence of internal tariffs opened up the market in the Hungarian region and caused a much larger effect.
Even if it was economically backward, it had a population of more than ten million. After the emancipation of the serfs and the redemption of the land, these people became proletarians.
With assets comes purchasing power, and while the market may not be fully developed yet, it is an indisputable fact that the total amount of consumption has increased.
Without tariffs, Austrian industrial and commercial products became much more competitive in the Hungarian region, and together with the expansion of the Hungarian regional market, it naturally stimulated the development of domestic industry and commerce, and there was already a small boom.
According to the statistics of the Ministry of Industry, the industrial capacity of Austria in 1849 increased by 15% compared with that of 1847, a figure which was unexpected and reasonable.
Industrial capacity cannot be increased in a single leap, and it takes time to expand production. This era is not like the latter days, when you can get the equipment immediately after placing an order.
The next few years will be the explosion of Austria’s industrial capacity.
In addition to the expansion of the domestic market, the establishment of the Holy Roman Economic Union, domestic industry and commerce has a broader market, will naturally stimulate to industrial production.
While Franz was thinking about the bright future, a bad news came.
“Your Majesty, news has come from St. Petersburg that the patience of the Russians has run out.
A week ago, after the Prussian government announced a national mobilization, Tsar Nicholas I made the tit-for-tat decision that the Russian Empire’s army was massing towards the Prussian-Russian border.
Yesterday morning the Russian Foreign Ministry, issued a 72-hour ultimatum to the Prussian ambassador to Russia.
If nothing else, the Prussian government will soon give in to the Russians, with whom they dare not go to war now.” Metternich said with a frown
The Prussian-Russian standoff over the Danish War was in Austria’s interest, draining the Prussian government’s strength while worsening Prussian-Russian relations and emphasizing the importance of the Russian-Austrian alliance to the Russians.
But the Russians were impatient, then the Prussian government could not hold out.
At first, the Prussian government had confidence in the annexation of the two duchies of Schleswig-Holstein, but after seeing the toughness of the Russians, their confidence gradually decreased.
The factor that supported them not to give up now was not the annexation of the two duchies of Schleswig-Holstein, but the public opinion of the German region that did not allow them to retreat.
The Russians were scary, and felt it most by their neighbors, not by the German states separated by Prussia and Austria.
In order to curry favor with public opinion at home, the government of the Duchy of Saxe-Gotha then openly declared, “For the sake of the territorial integrity of the German Confederation, we will fight the Russians to the death!”
The Kingdom of Hanover also stated forcefully, “As long as the Russians dare to invade Schleswig-Holstein, we will fight the Russians to the death!”
Even Franz was compelled to say, “If it is necessary to send troops to defend Schleswig-Holstein, Austria will not be left behind.”
……
The toughness of these kingdoms and duchies was still only verbal words, then the Free City, a region ruled by public opinion, had already taken practical action.
The German National Expeditionary Army of Hamburg, the German National Self-Defense Army of Lübeck, the Hanseatic German National Volunteer Army of Bremen ……
It is not necessary to pay too much attention to the fact that these forces with their loud names are actually made up of a three-digit number of nationalists and have more political than practical significance.
Everyone has done this, so naturally the Prussian government is embarrassed to back down.
Frederick William IV said that he also wanted to face ah, if he did not have a convincing reason, he backed down, do you still want to be in the German region?
If Prussia and the Russians really fought, would these people who shouted so many slogans change their positions in an instant?
What is modesty in the eyes of a politician? There are thousands of excuses, and they can’t be found.
If you can’t, you can organize a group of volunteers to act as reinforcements, and stuff the enemies you don’t like as cannon fodder.
Just look at the Austrian government’s approach, anyone who wants to go to the front line to join the war, can sign up, after the outbreak of war, they will be sent there.
In the end, even the parade was no longer there, the Austrian government did not carry out repression, or expulsion, but only sent a few clerks to record the list of participants in the parade.
Those on the list were all activists who loved the German Confederation. Prepare to go to the front. War has broken out, and the Confederation needs you to defend it. It’s not enough to just shout slogans. You must prove your patriotism with real action.
The mouth-breathers are scared. It’s fine for them to shout slogans, but let someone else go to the front line and fight for their lives.
Originally should be the main force of the student army, is still in school chewing books, what happened outside although they care, but can not get out ah?
In addition to the government’s performance, seems to be very positive, do not need them to do anything, guilty of violating school rules ah?
The general public has a job. Supporting the reclaiming of the two duchies of Schleswig-Holstein is one thing, but marching in the streets is another.
We are all rational, just give the Kingdom of Prussia a boost, there is no need to add to the chaos of the country, you know that demonstrations also affect the economic development.
“The Prussian government wants to compromise, and there is nothing we can do about it, after dragging on for so long, I think the Kingdom of Prussia is going to have a hard time this year.
Frederick William this guy is probably regretting it, after spending so much before and after, now it’s actually a basket of water, an empty one.” Franz smiled bitterly
He really didn’t gloat, if the Prussians hadn’t stimulated the Russians into a national mobilization, Nicholas I wouldn’t have been able to get on his nerves so easily, and then the Prussian-Danish war dragging on into next year wouldn’t have been a problem.
By then, the money Franz invested out, has returned a part of the funds, together with the Royal Bank’s external absorption of savings funds, can fill the hole of his misappropriation of donations.
Now the Prussians obviously couldn’t hold out any longer, and only then deliberately irritated the Russians by using the Russian military threat to convince the nationalists at home to give in.
Otherwise Frederick William IV had his fill of ordering a national mobilization?
Fighting the Kingdom of Denmark Kingdom of Prussia is now enough troops, if you fight the Russians, the national mobilization is not enough ah?
Prussia’s domestic nationalists can be persuaded, after all, to fight the Russians will be weak, this national mobilization of the Prussian government but they are also included in the army.
Shouting slogans people do not wimp out, after arriving at the barracks, many people began to rethink. Can’t let them put their lives on the line for the two duchies of Schleswig-Holstein?
If Russia and Prussia went to war, even if all the German states supported them, Prussia would suffer the greatest loss in the end. If they lost the war, not only would they not be able to recover the two duchies, but they might also have to cut off a piece of land.
The chance of military victory was too low, so everyone’s motivation was naturally low. As long as the Prussian government was convinced at home, the Prussian government would be able to overcome the difficulties.
Public opinion in the German region was clearly abandoned by Frederick William IV. How could such an obvious problem, a stumbling block that the German states had joined forces to trip them up, be so easily reversed?
It was fine to be scolded, it wasn’t like a piece of meat would be missing anyway.
The ambition to unify the German region they have, but there is no corresponding strength ah, even if they have gained the support of the people, the battlefield can not win is not in vain?
The Prussian government made the right choice, things can not be done in time to stop loss, and the actual benefits compared to the reputation can also be sacrificed.
Without the reputation in Germany, the relationship between Prussia and Russia deteriorated, and Prussia basically had no chance to unify Germany.
Strategically, Austria gained a victory. But Franz could not be happy. Money, money, money, without money is nothing.
Gritting his teeth, Franz decided to use the word procrastination. Once the Prussian government gave in and gave up the two duchies of Schleswig-Holstein, he let the Royal Bank ask the Prussian government for donations.
To realize that the war dragged on until now, the Royal Bank has been before and after the Prussian government to pay more than four million guilders of donations, the money are used in the war, the Prussian government is obviously not possible to return.
In the name of claiming back the donation to delay, to create time for the return of the money, although this is a little despicable, but also the Prussian government offended to death, Franz can not care so much.
If he did not do so, how could he return the people’s donations?
If according to the prior commitment, according to the proportion of the remaining funds to pay, Franz’s financial hole will soon be exposed.
It was only by balking at the idea that the Prussian government had fraudulently taken the donations and demanding their return on behalf of all the people who had donated, and by diverting everyone’s attention, that he was able to buy enough time to raise the money.
“Contact the governments of the German states, and once the Prussian government abandons the two duchies of Schleswig-Holstein, everyone will join together and agitate the people to demand the money donated from the Prussian crooks.” Franz thought for a moment and said
“Yes, sire.” Metternich replied
(End of chapter)