Chapter Twenty-Nine: Despicable Means
At the same time as the railway project was launched, Franz did not forget about the other two core industries, but in these two industries, the direct involvement of the government was much less.
To some extent, the processing and manufacturing industry can be seen as a whole. The agricultural product processing industry can be separated from each other, and there is no other factor, that is, it can simply make money.
At present, the largest source of foreign exchange in the Austrian Empire is the export of agricultural products. It includes the export of refined agricultural products and the export of original ecological agricultural products.
There is no doubt that the export profit of grain after processing is much higher, which can lead to the employment of a large number of people and bring a large amount of tax revenue to the state.
From the perspective of economic development, this is the growth point of GDP. Franz is also counting on profits from agricultural exports to make up for the trade deficit.
In international trade, the Austrian Empire was in deficit for most of the time, which was the main factor in the continuous depreciation of the Austrian guilder.
The currency of this year is not the credit system of later generations, it is completely real real money, and everyone uses gold and silver when settling international trade.
International currency? The pound is barely countable, but it does not have the status it had until the late 19th century, and most countries and regions do not recognize it.
Against this backdrop, a persistent trade deficit will lead to an outflow of wealth, which will affect domestic economic development.
After Franz came to power, in order to allow the normal development of the domestic economy, the value of the Austrian guilder was stabilized.
Finding a way to smooth the trade deficit as soon as possible has become a top priority for the government.
In the short term, the Austrian government will be able to achieve a trade balance only by exporting finely processed agricultural products and earning added value from the products.
In August 1849, the Austrian government issued regulations to reduce the tax rate of agricultural product processing enterprises by 2 points, and at the same time announced that after 1850, the export tariff on original agricultural products would be increased by 1 point.
In order to encourage more people to invest in this industry, the Austrian government has also stipulated that newly established agricultural processing enterprises will enjoy tax exemption in the first year and half tax treatment in the next three years.
As a result of this policy, Austria added 221 agro-processing enterprises in the latter months of 1849, including Franz.
Austria is already a major exporter of agricultural products, and the development of agricultural processing industry has natural advantages.
The manufacturing industry is in trouble, this covers too wide a scope, and in some areas Austria has an advantage, and most industries have begun to lag behind.
However, this backwardness is only compared with the British who have completed industrialization, and Austria's industry in the southeastern European region still has an advantage.
In Franz's view, promoting the development of manufacturing industry is actually to accelerate the pace of industrialization, and mechanized production has great advantages over handicrafts.
This is not something that can be done in a short period of time, but the government still supports heavy industries, such as the steel industry and machinery and equipment manufacturing, which are taken care of.
This is not only about lowering tax rates, but also about local governments helping to solve infrastructure problems, such as industrial water and transportation.
The development of the manufacturing industry, the most important thing is to endure loneliness, not to say a year, even if it is three or five years, may not be able to see the results, but after ten or twenty years, it will definitely achieve results.
Innovation?
It's too early to say this, before the completion of industrialization, Austrian manufacturing followed the path of copying the British, and of course there was an occasional windfall, which was also pleasant.
……
In general, from the second half of 1848 to the end of 1849, the Austrian government carried out economic reforms aimed at removing obstacles to the development of the domestic economy.
As a unique country with a semi-planned economy and a semi-market economy, Austria achieved remarkable economic results in 1849.
The most intuitive feeling of the citizens of Vienna was that the price of food had fallen, by fifteen per cent compared to 1847.
Don't look at this statistic as inconspicuous, it's actually very important in industry, where falling food prices mean that the cost of feeding workers has decreased.
The reduction of the cost of living has also made the lives of the citizens at the bottom better. Many people have negligible savings in their hands, and some people choose to save these money, and some people choose to spend it.
One or two are inconspicuous, and the number of people gathered together is not a small number, and the prosperity of the market has increased.
These inconspicuous consumptions are finally fed back into industrial production, and where there is a market, there is naturally production, which promotes the improvement of industrial production capacity.
If this effect is insignificant, then the impact of the opening of the market in the Hungarian region without internal tariffs is even greater.
No matter how backward the economy is, there are still more than 10 million people. After the emancipation of the serfs and the ransom of the land, these people became propertied people.
There are assets that naturally have purchasing power, and perhaps the market has not yet fully grown, but the increase in total consumption is also an indisputable fact.
Without tariffs, the competitiveness of Austrian industrial and commercial products in Hungary has greatly increased, and the expansion of the Hungarian market has naturally stimulated the development of domestic industry and commerce, and there has been a small prosperity.
According to the statistics of the Ministry of Industry, Austria's industrial production capacity increased by 15% in 1849 compared to 1847, which was unexpected and reasonable in Austria.
Industrial production capacity cannot be achieved in one leap, and it takes time to expand production.
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 League, which gave domestic industry and commerce a wider market, naturally stimulated industrial production.
Just as Franz was dreaming about a bright future, 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 a-for-tat decision that the troops of the Russian Empire were massing to the Prussian borders.
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 compromise with the Russians, who now do not dare to go to war with them. Metternich said with a frown
It was in Austria's interest to confront Russia over the Danish War, which depleted the Prussian government and worsened relations and highlighted the importance of the Russo-Austrian alliance to the Russians.
But the Russians were impatient, and the Prussian government could not hold on.
At first, the Prussian government was confident in the annexation of the Duchy of Schleswig-Holstein, but their confidence gradually diminished after seeing the Russians' intransigence.
The factor that supported them not to give up was not the annexation of the Duchy of Schleswig-Holstein, but the public opinion in Germany that did not allow them to back down.
The Russians are terrible, and it is their neighbors who feel it the most, not the German states separated by Austria.
In order to curry favor with the public opinion at home, the government of the Duchy of Saxon-Gotha openly declared: "For the sake of the territorial integrity of the German Confederation, we will not hesitate to fight to the death with the Russians!" ”
The Kingdom of Hanover also strongly stated: "As long as the Russians dare to invade Schleswig-Holstein, we will fight the Russians to the death!" ”
Even Franz had 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 principalities is still only in words, and then the free city, which is ruled by the will of the people, has already taken practical action.
German National Expeditionary Force in Hamburg, German National Self-Defense Army in Lübeck, Hansea German National Volunteer Army in Bremen......
There is no need to pay too much attention to the fact that these well-known troops are actually made up of three-digit nationalists, and their political significance is greater than their practical significance.
Everyone had done this, and the Prussian government was naturally embarrassed to back down.
Frederick Wilhelm IV said that he wanted to be embarrassed, and if there was no convincing reason, he would have backed down, or should he mix in the German region?
But the hard top doesn't work, if Prussia and the Russians fight, believe it or not, these earth-shattering people shouting slogans will change their positions in an instant?
What is the point of being a man of discipline in the eyes of politicians? There are thousands of excuses, are you afraid that you can't find them?
It's really not okay, organize a group of volunteers to be reinforcements in the past, and stuff the enemy who doesn't like it into cannon fodder, and it's not that everyone can't do it.
Just look at the practice of the Austrian government, anyone who wants to go to the front to participate in the war can sign up, and after the outbreak of the war, send them there.
In the end, there was no longer even a procession, and the Austrian government did not suppress or expel it, but sent a few clerks to record the list of participants in the procession.
The people on the list are all activists who love the German Confederation, so get ready to go to the front. War has broken out, and the Federation needs you to defend it. It is not enough to just shout slogans, but we must prove our patriotism with practical actions.
The mouth cannon party coaxed, let them shout slogans, go to the front line desperately or let others go.
It was supposed to be the main force of the student army, but now they are still gnawing books at school, although they care about what is happening outside, but they can't get out?
Coupled with the government's performance, it seems to be very positive, there is no need for them to do anything, can't they violate the school rules?
Ordinary people have jobs, and it is one thing to support the recovery of the two principalities of Schleswig-Holstein, and it is another thing to march in the streets.
Everyone is rational, just cheer up the Kingdom of Prussia, there is no need to cause chaos in the country, you must know that demonstrations also affect economic development.
"The Prussian government wants to compromise, and we can't do anything about it, and after such a long delay, I guess the Kingdom of Prussia is going to have a hard time this year.
Frederick William is probably regretting that he has spent so much money before and after, and now it is actually a bamboo basket to draw water, and it is empty. Franz said with a wry smile
He really did not gloat, and if the Prussians had not stimulated the Russians to a national mobilization, and Nicholas I had not been so easily on fire, then the Prussian-Danish war would not have been a problem until next year.
By that time, part of the money invested by Franz had already been withdrawn, and together with the savings funds absorbed by the Royal Bank, he could fill the hole where he had embezzled donations.
Now the Prussians were obviously unable to hold on, so they deliberately provoked the Russians and used the military threat of the Russians to persuade the nationalists at home to make concessions.
Or did Frederick-William IV have enough to eat and hold on, and he wants to order a national mobilization?
The current strength of the Kingdom of Denmark and the Kingdom of Prussia is enough, but if it fights the Russians, the national mobilization will not be enough?
The nationalists in Prussia could be persuaded that anyone would be weak in their hearts to fight the Russians, and the Prussian government had incorporated them into the army in this national mobilization.
Everyone shouted slogans, and after arriving at the barracks, many people began to rethink. Can't you put their lives on the line for the sake of the two principalities of Schleswig-Holstein?
Once Prussia went to war, even if the German Confederation supported them all, Prussia suffered the greatest losses in the end. If the war is lost, not only will the two principalities not be recovered, but they will also have to cut a piece of land out.
The chances of victory in the military are too low, and everyone's enthusiasm is naturally not high. As long as it was persuaded at home, the Prussian government got through the storm.
Public opinion in the German region, Frederick Wilhelm IV clearly gave up. How could such an obvious problem, the stumbling block imposed on them by the German Confederation join forces, be so easily reversed?
If you are scolded, you will be scolded, and you will not lose a piece of meat anyway.
They have the ambition to unify the German region, but they don't have the corresponding strength, even if they have the support of the people, it is not in vain to not win on the battlefield?
The Prussian government made the right choice, to stop the loss in time when it was not possible, and reputation could be sacrificed compared to the actual benefits.
Without prestige in the German region, relations between Prussia and Prussia have deteriorated, and the Kingdom of Prussia has basically no chance of unifying Germany.
Strategically, Austria was victorious. But Franz was not happy, money is money, money is money, and no money is absolutely impossible.
Gritting his teeth, Franz decided to use procrastination. As soon as the Prussian government relented and gave up the two principalities of Schleswig-Holstein, he asked the Royal Bank to ask the Prussian government for donations.
You must know that the war has dragged on until now, and the Royal Bank has paid more than 4 million guilders to the Prussian government in donations back and forth, and the money has been spent on the war, and it is obviously impossible for the Prussian government to return it.
Delaying time in the name of recovering donations, creating time for the return of money, although this is a little despicable, and offended the Prussian government to death, Franz could not care so much.
If he doesn't, what will he do to return the people's donations?
If the pre-promised payment was made in proportion to the remaining funds, Franz's financial hole would soon be exposed.
As long as you insist that the Prussian government has fraudulently obtained donations, and demand that all the people who have donated money return them on behalf of them, so as to divert everyone's attention, you will be able to buy enough time for fundraising.
"Contact the governments of the German states, and as soon as the Prussian government renounces the two principalities of Schleswig-Holstein, everyone will fight together and encourage the people to ask the Prussian crooks for the money they have donated." Franz thought for a moment and said
"Yes, Your Majesty." Metternich replied