Vienna Palace

Franz's wedding is officially on the agenda. On this issue, he could not make his own decisions, and more than 50 million people of the new Holy Roman Empire were eagerly awaiting.

The auspicious day of the zodiac must be chosen, in case the day is not overcast and rainy, doesn't it tell everyone that God does not like this couple?

If you are left in an ordinary person's house, you will have to sigh bad luck when you encounter this situation, and if you are a fanatical believer, you may even cancel the wedding. If it is put on the royal family, let alone put it on the throne, this is a huge political scandal.

Although the influence of theocracy had been greatly reduced, this feudal superstition still prevailed in conservative Austria.

After a group of theologians and meteorologists, the auspicious day of the zodiac was finally set for March 12, 1855.

Preparations had already begun, and Franz had to make occasional inquiries to show the importance he attached to the marriage.

It's a good thing to get married, especially with someone you like. Well, Franz admits that his feelings for Princess Helen are average, but for an emperor, it is a blessing to be able to marry a wife who is not hated.

Franz's good mood didn't last long, and the blockage came.

"Your Majesty, our plan to buy gold has failed, and the price of gold on the international market has skyrocketed by twenty percent, and it would be too much of a loss to continue to buy it.

After our investigation, we found that the price increase of gold in the international market was planned by the British to prevent us from buying gold. The Chancellor of the Exchequer said with a tired face

It could be seen that he hadn't slept well in a few days.

At a critical moment in the currency reform, the British were clearly ill-intentioned to raise the price of gold and prevent Austria from buying. When this happens, the pressure on the Chancellor of the Exchequer, who is leading the currency reform, can be imagined.

Franz frowned, under normal circumstances, the British had no reason to hinder the reform of the currency of the new Holy Roman Empire, and the increase in the membership of the gold standard system was also beneficial to them.

"Have you found out what the British were doing this?"

Franz asked if he believed the British were doing it for profit. If it's just to raise the price of gold and make a profit from it, then just slow down the unit price.

As long as the increase is not too large, in order to increase the gold reserves, the Vienna government will admit it?

All of a sudden, it has increased by 20 percent, and with such a huge disparity, idiots will continue to buy.

Forcibly raising the price of gold is not without a price. It doesn't matter whether the capitalists who speculate on the price of gold can make a profit, but after the appreciation of gold, the pound sterling, which is pegged to gold, also appreciates.

This is equivalent to a 20 percent appreciation of the pound at once, and such a large increase will naturally increase the cost of Britain's industrial and commercial products by a large margin, and it will be difficult to continue to maintain competitiveness in international trade.

Could it be that the British capitalists are tired of life and are ready to play themselves to death?

From the beginning to the end, Franz never thought that this was planned by the London government. To do this is to kill 1,000 enemies and damage 800 yourself, who would do it if you hurt others and not benefit yourself?

Karl replied with a look of embarrassment: "It is said that it is to prevent us from buying gold, so that we cannot raise enough gold as a reserve. ”

He didn't believe this statement himself. Austria is also an old empire, and there is still a heritage of tradition. If the government is willing to pay the price, it can raise gold reserves at the gold standard at home.

As long as the government's credibility is high enough and the market is recognized, even if the gold reserves are slightly insufficient, the gold standard reform can still be completed.

In the final analysis, the issuance of paper money still depends on the credibility of the government, and the Russians are a negative example, they are not worried about the lack of reserves, but no one buys the paper rubles they issued before.

The British can't just break the market's confidence in the new Holy Roman Empire, can they? If they had this strength, they would have threatened the Vienna government during the Near Eastern War.

Franz sneered and said: "Keep checking, forget if you can't buy gold." Anyway, we have been prepared for a long time, and the gold for currency reform is barely enough.

The remaining shortfall is not large, it is a big deal to go to the countries that use gold and silver for exchange, the British have the strength to raise the price of the European gold exchange market, I do not believe that they have the ability to raise the price of gold all over the world.

However, it is still necessary to make a posture to continue to buy gold, let the British continue to maintain the high level of gold, and see how long they can last! ”

Poor access to information was the biggest ill of the era, and in poorly informed areas, the price of gold and silver remained the same.

If the global gold price is to be raised, unless the British keep gold high for several years, many regions outside Europe will not be able to react at all.

If Britain had done that, Franz would have laughed. It's a big deal that the gold standard reform will drag on for a few years, and this is not in a hurry, and it is not fatal to be a year late and a year earlier.

I just don't know if British industry and commerce can sustain it, because the increase in production costs caused by the rise in the value of the currency is bound to greatly reduce the international competitiveness of British goods.

Of course, in this era, the profits of overseas trade were relatively large, and Franz believed that the capitalists took such a big risk to trade in the oceans, and there were still 20 percent of the profits.

It is still possible to maintain the competitiveness of goods without raising prices. However, trade on the European continent may not be so profitable.

Even if the British are the world's largest industrial powers, it does not mean that they can dominate in every field, and these industries cannot withstand this blow.

Franz even had the idea of speculating on the pound and attacking British industry and commerce, but he was instantly extinguished.

As far as Austrian capital is concerned, if it is really a head-to-head game with British capital in the financial market, the probability of losing is almost nine out of nine.

London

The Granville cabinet was dumbfounded, they did it to raise the price of gold, but they weren't prepared to raise it so much at once!

According to the original plan, they were only raising a few points to make the Vienna government retreat and accept their terms, but they were not prepared to let the price of gold soar so much.

It's a pity that they ignore that there is another group in this world - speculators.

It is no longer a day or two that Britain's domestic capital is overpowered, and now the rapid economic growth of the United States and Austria is inseparable from the help of British capital.

This time, the government raised the price of gold, and it was sought after by everyone, which is not just a slip of the way. The gold-silver ratio rose rapidly and then went out of control.

There are only two options in front of the London government, either to immediately sell a batch of gold and calm the price turmoil in the capital market; Either the value of silver is devalued, and the price of silver falls, then the current high exchange ratio is normal.

One of the reasons for the popularity of gold is the reform of the gold standard in the new Holy Roman Empire.

Once the Viennese government had completed the currency reform, the new Holy Roman Empire would certainly not hold so much silver, and it was inevitable that the price of silver would fall sharply as it flowed into the market.

Speculators have a keen eye, and through the most basic information in their hands, they judge that the price of silver will fall in the future, and they start to act.

To some extent, even if the London government does nothing, this situation will still happen, and the gold-silver exchange ratio will rise.

It's not a good decision to make, and it affects the whole body.

Selling gold to calm the turmoil and stabilize the value of the pound would have bankrupted the Vienna government's plan to buy gold, and it would have to pay a greater price in the future to attract a new Holy Roman Empire to their pound-gold system.

Of course, it is not without gain, and the London government will make a profit from this operation, which can make up for their wounded hearts.

The most direct thing is that the currencies of the countries on the silver standard have depreciated, which reflects the economic export of goods from these countries and will become more competitive.

Under the trade-off, it will also affect the export of industrial and commercial products in the UK, and then affect the UK economy.

Prime Minister Granville anxiously asked, "What is the plan of the Treasury Department to quell this turmoil?" ”

Without any hesitation, Chancellor of the Exchequer George Grey gave the answer: "Your Excellency, the best thing to do now is to sell off the gold we bought and let the market normalise.

This is the least impactful approach to the domestic economy, and since we are buying at a low price, we can make a profit from the sell-off now.

And it has to be fast, and now the Vienna government has not abandoned its plans to buy gold, which simply irritates the nerves of speculators.

It's quite possible that they've already discovered our plan and are now deliberately making a winning stance, just to see our jokes.

If it drags on for a long time, more speculators will join in, and it will be difficult for us to calm down the turmoil. ”

The gold that the government buys and the reserves that issue the currency are completely different concepts, and even two different systems.

In the era of the gold standard, the government could not take for granted the decision to reduce or increase reserves, and these had to be done according to actual needs.

The consequences of rash action are already being felt by the London government. A false signal triggers a flock of speculators, and the end result is disastrous.

Whoever makes gold a hard currency, in the eyes of many people, will not depreciate at all, and even if it is smashed in the hand, it will not lose anywhere.

After much hesitation, Prime Minister Granville made a decision: "No matter what, we must first calm down the turmoil in gold prices and stabilize the value of the pound."

The Ministry of Finance immediately began to sell gold and communicate with domestic consortia that we need their help! ”

Despite knowing that this would come at a cost, Prime Minister Granville chose to seek the help of the consortium, otherwise it would be difficult for the London government alone to quell the turmoil in a short period of time.