St. Petersburg Hermitage

The contract for the arms deal between Russia and Austria had already appeared on the desk of Nicholas I, along with documents on the issue of a debt roll proposed by the Austrian government for the blocking of loans.

Nicholas I had no opinion on the purchase of weapons production lines and directly made instructions on the document.

The gap between the Russian Empire and European countries in the field of military industry is huge, and it cannot be made up in the short term, and the purchase of production lines is the only option to bridge the gap in the short term.

Nicholas I asked: "What do you think of Austria's proposal to issue bonds?" ”

Chancellor of the Exchequer Arry Stanley Rhodes analyzed: "Your Majesty, I'm afraid this is very troublesome. It's not that we haven't issued bonds, but the previous bonds have been cold in the capital market.

Now in order to sell the bonds, in addition to the collateral proposed by the Austrians, there must be a high enough interest rate to be able to obtain the pro-sleep of the capital.

This will significantly increase our financial costs, as we have only received a loan from Austria at a monthly interest rate of 0.2%, which would have been significantly higher if we had issued bonds.

The military expenditure of this war has far exceeded our expectations, and if the financial cost is raised, our financial pressure will be very great in the future. ”

The tsarist government did not consider in advance that Britain and France would send troops directly, and all the battle plans were to fight the Ottoman Empire alone.

According to the original plan, they have sea power in the Black Sea, the Russian army can get supplies at sea, the logistical pressure is greatly reduced, and the number of troops that the Russian army can invest in the Balkans has also been greatly increased.

Theoretically, the Russian army, with sufficient superiority, could defeat the Ottoman Empire in 1852 and end the war in the Balkans in 1853, and then set out to attack Asia Minor on both sides.

As a result, the plan could not keep up with the rapid changes, and the entry of Britain and France into the war disrupted their deployment. The war got out of control from the very beginning, and military spending increased dramatically.

Nicholas I continued to ask: "Is it possible to continue to receive low-interest loans from the Austrian government?" ”

Foreign Minister Karl Vorsale replied: "Your Majesty, if there is no problem with a small loan, it is probably impossible to get a loan of 200 million rubles at once.

Austria did not directly refuse our loans, but they made it clear that the amount of money was too large to afford.

According to our analysis, the Austrian government has the ability to raise a huge amount of money, but this will affect their domestic development, which is impossible unless we pay a big price. ”

200 million rubles is an astronomical amount, which is equivalent to the financial revenues of the Russian Empire for a year. Under normal circumstances, the Austrian government does not have the financial resources.

But now the situation is different, the Russians do not need to take real money for loans, all loans are used in Austria, and the money does not leave Austria.

The money did not flow into the market all at once, but first lay in the accounts of Austrian banks, and slowly flowed into the market through the purchase of materials.

Because of the tax revenue, a large part of this money goes back to the Austrian government, and in fact it is much less money to pay.

For example, if one million goods are purchased, the first round of transaction tax, value-added tax, corporate tax, customs duties, etc. will add up, and the government will receive two or three hundred thousand; In the second round of raw material suppliers, they also have to pay transaction tax, value-added tax, enterprise tax and other taxes, which add up to tens of thousands.

Because of this business, it has also driven the development of transportation and the surrounding catering industry, which will also generate taxes. After the capitalists make a profit and the workers get their wages, they have to consume, and consumption drives the development of other industries, which are all taxes.

This is just the simplest commodity circulation, and in fact, the industrial circulation system is much more responsible than this. Very few companies buy raw materials directly, which can be turned into industrial finished products for sale.

Most industries are in a cycle of three or four rounds, in which the funds are returned to the government's finances through taxation. In fact, the Austrian government had to pay only half or less of the money for this loan.

If it were not for these advantages, relying on the interest of those few points alone, the great powers of Britain and France would not be keen on usury.

Furthermore, through loans, the flow of goods between the two countries should be accelerated, and gradually penetrated into all walks of life in a country, especially the financial industry, which is the most easily penetrated.

Nicholas I thought for a moment and said, "Because of interest?" We can pay according to the international standard, even if it is a little higher, it doesn't matter, anyway, there will be no high interest on bonds. ”

The Foreign Secretary, Karl Worthel, replied: "Your Majesty, I am afraid it is not a question of interest. The Austrians did not ask for an increase in interest, presumably due to financial difficulties.

The Austrian government attaches great importance to the development of the domestic economy and will not interrupt the development of the domestic economy for the sake of a small interest. Unless we make significant political concessions, they won't come up with this money. ”

Nicholas I nodded, it was very realistic between countries, and it was impossible for even allies to sacrifice their own interests to help.

If it is only for a few points of interest, it will have to sacrifice the domestic economic development, and everyone knows how to choose.

"Austrian loans cannot be abandoned, they can be fought for as much as they can. The Ministry of Finance has drawn up a plan to issue bonds, which can be sold not only in Austria but also in Europe.

I don't know when this war will end, and now the government wants to raise as much money as possible, and it is acceptable to have a higher interest rate. ”

Nicholas I was a smart man and did not continue to increase the war tax at home.

Historically, the Russians were forced to loot the country because they were boycotted by the major European powers and were unable to raise funds from the international capital market.

The consequences of the tax hike were also very serious, and after the defeat in the Crimean War, the foundations of the tsarist government were shaken.

After the war, Nicholas I, who was in good health, died suddenly, and most historians believe that he committed suicide by poisoning, and used his death to bear the responsibility for the defeat of the war, give an explanation to the outside world, and stabilize the rule of the tsarist government.

"Yes, Your Majesty!" The Chancellor of the Exchequer replied

……

Franz also did not know exactly how Nicholas I died, in short, his death completely deteriorated Russian-Austrian relations.

Both in terms of personal feelings and national interests, Franz hoped that Nicholas I would live a long life.

Nicholas I was of good character and a good ally, and the tsarist government he led was still credible.

And the longer he lived, the later and more difficult the reform of serfdom in the tsarist government became.

An ally who is not a threat is a good ally, and recalling the historical data, Franz had to rejoice that he had caught up with the good times.

Barring accidents, future generations of Russian tsars will be relatively peaceful, which means that Austria's back will be safe for decades to come.

The Russians are preparing to issue bonds, and Franz is preparing to issue bonds, and there is always not too much money. Especially in times of war, it is very necessary to stock up on ammunition.

Unlike the Russians, who relied on high interest rates to attract capital to buy, Franz was prepared to capitalize on the patriotic feelings of the people.

In order to support the Prussians in recovering the two principalities in the north, everyone can donate tens of millions of guilders, and now for the unification of the German region, I think everyone will be more active.

"Unified bonds", Franz did not add the word Germany in front of it, mainly to take care of other peoples in the country. If possible, he doesn't mind adding - the Holy Roman Empire.

The bonds, which are still under wraps, will be issued at the same time as the unification war is launched. Since it is for the sake of national reunification, it is too vulgar to talk about interests.

The annual interest rate of the "unified bond" is only 1%, which can be said to be better than nothing. Even with such low interest rates, Franz is still confident in the sale of bonds.

Under his influence, Austrian Greater German thought was still in the mainstream, and there was still a great deal of interest in rebuilding the Holy Roman Empire.

In order to create a basis for public opinion, the Austrian government spent millions of dong on propaganda for two consecutive years.

Not only Austria, but all the states in Germany were in the scope of propaganda.

"Rebuilding the Holy Roman Empire" has become the hottest topic in Germany, and the concept of "rebuilding the Holy Roman Empire" has been instilled in everyone's minds, both for and against.

University of Munich

This is where the debate about the future of the German region begins.

Ever since the previous king, King Ludwig I, made a declaration that the royal family would work for the unification of Germany, talk of the unification of the German regions has been legitimized.

The Great German Idea, the Little German Thought, the partition of North and South Germany, and the rebuilding of the Holy Roman Empire, which had just been proposed, were all a series of messy proposals that could be put forward for discussion.

Not only the Kingdom of Bavaria, but also many German states, can discuss these issues. The government must also show its support, which is a right that the people of the 1848 Revolution fought for, and it is also politically correct.

To put it simply, you can support any plan for regional reunification of Germany, but you cannot oppose regional reunification.

Christian's passionate speaker, a supporter of the HRE sect: "The German region has been divided for too long, and the development models of each state are different, and it is not easy to integrate these regions immediately and build a large empire.

In that case, why don't we neutralize it? Rebuild the Holy Roman Empire first, bringing everyone together within the framework of a unified Great Empire.

We can sit down and discuss other issues. If one year is not enough, it will be two years, if it is not ten years, it will be twenty years, and after a few decades, the German region will become a whole. ”

As a result of the Austrian government's covert propaganda, the supporters of the re-establishment of the Holy Roman Empire, and even the rulers of certain small states, were supporters of this idea.

The Holy Roman Empire is not terrible, this empire has never been truly unified, the major states below are doing their own thing, and the central government only exists theoretically, and there is almost no binding force on the states.

If reunification is really inevitable, such reunification can protect their interests to the greatest extent.

There are also people who like to live a peaceful life, and the unification of the German regions is easy to say, but in fact war is not far away.

Both Great Germany and Little Germany must use the army to subdue everyone in order to accomplish the great cause of reunification.

It was much easier to rebuild the HRE, everyone would have a meeting to vote, elect an emperor, and the German regions would be unified.

No matter how everyone's interests are damaged internally, each state still plays its own game, but it strengthens exchanges economically, and everyone unites when it comes to foreign countries.

The German regions were united again, even if in name, and this great empire was the most powerful in the world.

One young student objected: "This kind of unification is too slow, and the European countries will not give us time to integrate the whole country." When a unified German Empire emerged, we were immediately confronted with resistance from all countries.

Even when we are besieged by various countries, we will be able to defeat the enemy and complete the great revival of Germany only if the German regions are completely united and everyone becomes one. ”

As soon as the words fell, someone objected: "Don't forget the lesson of Napoleon, any country that vainly tries to confront the whole of Europe is self-defeating."

The current international situation simply does not allow us to accomplish national reunification step by step. As soon as there were signs of reunification in Germany, European countries were bound to intervene.

British, French, Russian, Spanish...... It would not be wise to look at the reunification of the German regions and to confront the European continent on its own.

At this time, we have to learn to go step by step. First unify the Lesser German region, and when the integration is complete and the strength is strong, we will unify the whole German region. ”

Another objected: "Reunification of the Lesser German region? If that were the case, we might as well divide North and South Germany.

In the same way, we can avoid the joint attack of the great powers, and accumulate strength for the eventual unification of the country, why should we look at the faces of the Prussian eruptors? ”

"No, it's dividing the country, not uniting it. Whether it was the establishment of Little Germany or the partition of North and South Germany, the end result was the destruction of the empire.

Is Germany divided in two, or our Germany? Re-establishing the HRE and establishing a nominally unified empire is the key to our step-by-step approach. ”

……

There is no doubt that Franz was very responsible for the spread of these chaotic ideas. Many of these ideas were tossed out by him personally.

In order to achieve the purpose of propaganda, it must not be directly said: Austria wants to unify the German regions, and everyone should unite under the banner of the Habsburgs.

If it is so publicized, it is estimated that it has been suppressed by various governments at the beginning.

Now, throwing out all the messy reunification plans will dilute the figure of Austria, and everyone will think that it is spontaneous from the people.

In the eyes of most people, the idea of Greater Germany and the theory of the rebuilding of the Holy Roman Empire may have been supported by the Austrian government, which may also mean the small German states.

The remaining Little German ideas, the theory of partition between North and South Germany, were clearly developed by the Prussians, and these two ideas were the most widely spread in Prussia.

True or false, true or false, what is the real political position of the Austrian government? Franz would say that the political position of the Austrian government is what is in the interests of Austria in reality.

In the face of interests, national strategies and political concepts can be changed. The reason why it has not changed is because the benefits are not big enough.