Chapter 50 Development
In the midst of all the disturbances, 1850 passed quietly. What may seem like an ordinary year has had a profound impact on Austria.
A large amount of foreign capital poured into Austria, which led to the development of the domestic economy, and various factories sprung up like mushrooms after a rain.
The most direct impact of economic growth is the increase in government revenue. Although many industries have given preferential treatment to tax reductions and exemptions, the government has also received a large amount of tax revenue in the upstream and downstream links.
In 1850, the industrial and commercial tax revenue increased by 8 percent compared to 1849, or more than 4 million guilders. It didn't seem like a big number, but Franz was very satisfied.
This is just the beginning, and when the tax holiday is over, it will be the explosion of tax growth.
Obviously, the benefits brought by the development of industry and commerce will not only be so little, but also the supporting industrial chain of the enterprise will also develop.
This is reflected in the production of raw materials, product sales, transportation, catering and entertainment and other industries, and can be seen in finance.
In 1850, the Austrian economy grew by 18.7 per cent, and the government's tax revenues increased by 9.4 per cent.
This figure is not high, and after any country opens its market, it will usher in high-speed economic growth, and there are examples of soaring by 30 or 40 percent.
However, in Europe at the same time, Austria's economic development speed can be regarded as unparalleled.
There is no doubt that the dividends of economic growth have been directly invested in the military, and have not been able to continue to be invested in reproduction.
Of course, Franz did not dare to invest in reproduction. If it weren't for the communication and transportation restrictions of this era, Austria's domestic economic growth would have been even faster.
This is not to say that fast economic growth is necessarily a good thing. The most important thing for a country is to continue to develop, the economy skyrockets in the short term, and if the market does not keep up, then overcapacity cannot be avoided.
Overcapacity means that a large number of goods cannot be sold and will rot in the warehouse. Enterprises with deep pockets can also reduce production capacity for transformation, and weak enterprises naturally have only one way to go bankrupt.
Enterprises went bankrupt, the number of unemployed people increased, the purchasing power of the market continued to decline, and once again, the capitalists had to continue to reduce production capacity and lay off workers, and a vicious circle began, and the economic crisis broke out.
To some extent, the arms race also prolonged the period of rapid economic growth in Austria. The armed forces themselves are a consumer group, and the expansion of the armed forces is also expanding the consumer market.
The fastest growing railway in Austria today began in 1849 and has now been under construction in hundreds of sections.
The railway is growing by 265 kilometers a year, and don't get me wrong, it's not just a matter of now, but a railway that started construction in a few years, and happened to be completed in 1850.
The railway, which started construction in 1849, is still not visible to Mao, which is different from the road. Highway construction can be built on a section of the road, but the railway is different, unless a section of the road is completed, otherwise even if the track is laid, do not dare to run the train?
However, by 1852, it was estimated that some sections of the plains would be open to traffic, and whether they would be put into operation ahead of schedule was a question that only the railway companies themselves knew.
The Austrian government will not bother with this little problem, and these private railway operators are self-financing and have nothing to do with the government.
In order to encourage everyone to build railways, the Austrian government has also announced tax exemptions. From the beginning of the establishment of railway projects, no railway operation tax will be levied in the next ten years.
If you want to make money, you should build the road in advance and operate it, and if you delay the construction period, you can't get along with your wallet.
Taking advantage of the hot environment of the railway, the Austrian government has packaged a large number of railway lines to private railway companies, and the cost of demolition and relocation can be paid by the government, and the premise is that after obtaining the railway construction right, the construction must start within one year and be opened to traffic within ten years.
As far as Franz knows, the Austrian government has sold more than 40,000 kilometers of railway routes through coaxing.
God knows how many unfinished projects will be left in the end, and the government will not lose anyway. Even if you take over the unfinished project later, it's cheaper than building it from scratch, isn't it?
The railway companies are aware of these problems, but the hot market can deceive people's eyes, and Austria's economic growth has also deceived many people.
Coupled with the promotion of financial consortia, it has fueled the ambitions of investors. A lot of speculators think about waiting until the highest point to sell the stock and make a big profit.
If you want to speculate on the stock price, you naturally have to make a beautiful statement. If a railway company only has a few hundred kilometers of railways in its hands, no matter how much you brag about it, it will not attract many people.
If there are thousands of kilometers or even tens of thousands of kilometers of railways, then there is no need to brag, someone will give you a blueprint for development.
Making money by railways is only one aspect, after controlling the railway network in some areas, even if you invest in other industries, you can also use the transportation network in your hand to squeeze your peers, and a conceptual business empire has emerged.
In the hottest years of European railways, there were probably four or five railways operated by different companies between the two cities, and there was a direct market competition.
The Austrian government has been quite disciplined, at least not licensing the same section to different railway companies, which has made many people see opportunities.
Is there a more lucrative business in the world than a "monopoly"? Even if it is a railway line with low economic value, once a market monopoly is formed, it will be a big profit!
Franz would not admit that he took advantage of everyone's mind to fool the capitalists into investing in the railway. Monopoly management can, which avoids the waste of resources brought about by market competition, as long as it does not affect the development of the domestic economy, Franz does not mind the emergence of monopoly enterprises.
If the domestic economic development is affected because of the high freight, then the person who makes the rules can also change the rules, such as: the price bureau, the railway state-owned ......
The Austrian government will never tell investors about these discordant topics, otherwise how could the British consortium be fooled?
The Americans have done things, and Franz doesn't mind following suit once. No matter how much, first fool you to repair the railway, and then say, when the railway is repaired, there is no use value, then you can consider the problem of turning the other cheek.
In Franz's view, it was a good policy that the maximum profit of public facilities projects in Hong Kong in the previous life should not exceed 15 percent.
If the Austrian government copied it, the people would be very supportive, right? As for the railway companies, 15 percent of the profits can also make their lives very nourishing.
The question of when the investor will be able to recover the cost of construction is unknown. Anyway, the investors in front have made money, and the receivers in the back have always been unlucky.
The development of railways has naturally stimulated the steel industry, and iron and steel companies have expanded their production capacity and are ready to get a piece of the pie in the next feast.
In order to effectively integrate resources and enhance the competitiveness of enterprises, in March 1850, the Austrian Ministry of Industry ordered the merger of seven state-owned iron and steel enterprises into the Austrian Iron and Steel Group.
Austria's first giant steel company with an annual output of 120,000 tons of raw steel and 184,000 tons of iron was born. The art of processing is an annual output of 200,000 tons of steel, and the world's first steel group was born.
Whether it is really the world's No. 1 steel group remains to be examined, but it is an indisputable fact that it has become Austria's No. 1 steel company, and half of the steel production capacity of the entire Austrian empire is in this group.
In this era, the world's steel production of more than 100,000 tons of countries is only in the single digits, and the countries with more than one million tons are British.
If it weren't for everyone staying at this level, the Austrian media would not dare to brag about this, and in general, the news people of this era are still disciplined.
After the merger, these steel mills began to divide labor, according to the geographical location of each place, give full play to their own resource advantages to integrate production capacity.
To put it simply, according to the quality of iron ore, all those suitable for steelmaking will be used for steelmaking, and those suitable for ironmaking will be used for ironmaking, and there will be no more mixed production mode.
The core is to bring together the core technologies of several enterprises and use their strengths in industrial production. At the same time, a smelting technology research and development department was established to promote technological innovation.
According to the plan, the production capacity of the Austrian steel group will be increased to 240,000 tons in 1851, 320,000 tons in 1852, and 450,000 tons in 1853......
These plans are not random, they are completely formulated according to the needs of the market, how to grab orders without expanding production capacity?
The construction of Austria's railway network is a big piece of fat, and there is nothing related to companies that do not want to take a bite.
According to the calculation that 60 kilograms of steel are used for one meter of railway, 60,000 kilograms of steel are consumed per kilometer, which means that more than 2 million tons of steel are required for Austria's railway network plan alone.
Such a good opportunity, if iron and steel companies do not expand production capacity, it will be brain water.
In order to support the steel industry, the Austrian government has decided not to take profits from the newly formed group for the next five years, and has also injected Rp 1 million into it for technological innovation.
Not only steel companies, but also many related industries are desperately expanding production capacity, and Franz is also making a fortune.
Don't look at the small things such as sand and gravel, in fact, people who have done engineering know that the profits of these inconspicuous things are not low at all.
According to preliminary estimates, more than 100,000 tons of sand and gravel aggregate will be consumed per kilometer of railway just pouring concrete, and the stone required for the thick layer of gravel above is an astronomical amount.
When the volume of any commodity is large, the profit goes up, and these inconspicuous little things are actually no less profitable than the steel mills that produce rails.
It's just that most of the time, it is scattered in the hands of countless retail investors, and it looks inconspicuous. Franz just used his foresight to make a layout in advance and carry out monopoly operation.
Of course, he will not admit the monopoly business. If you don't believe it, you can check the contract between the railway company and the Austrian mining group, which can prove that the monopoly does exist.
It's just that those in the know won't say it, and the media won't report it.
Explanation to the outside world: The Austrian mining group is only an agent, and these mines are distributed under the names of dozens of enterprises, and in order to avoid vicious competition, everyone has united to form a group to negotiate with the railway company.
That's right, that's the truth, in order to avoid being depressed by the railway company, everyone united. Didn't you look at the final transaction price, is it not much different from the market price?
If it is a monopoly, it will definitely increase the price, and since there is no significant price increase, it is not a monopoly.
What is lying down to make money, in 1850 Franz finally felt. For this humble small business, he earned an annual profit of Rp 1.23 million.
This is just the beginning, with the advancement of railway construction, he can lie down and make money for a long time in the future.
Unfortunately, after the completion of the construction of the railway, these wild sand and gravel mines will have no market, and if you want to make a lot of money, you can only wait for the construction of the road network. Judging from the current situation, there is no need to look forward to the next thirty or forty years.