African Entrepreneurship Records

Chapter 460 Conflict

 Since the Age of Discovery, the prosperity of commerce has been inseparable from ports. Excellent ports can better promote economic development, and the population has gathered along the coast. The change brought about by the Industrial Revolution was the rise of railway transportation, which greatly improved land transportation capabilities and allowed inland areas to develop.

 However, this kind of development is much more restrictive than maritime transportation. Railway construction is restricted by various factors, which has also caused disputes between regions. Areas where railways pass can drive regional economic development and even directly create new cities. However, if railways do not pass through, even ancient cities may decline as a result.

“Many areas in East Africa had railways first and settlements later. Such villages and towns formed along the railways are likely to continue to flourish if the railways do not decline in the future.”

"Not only that, railway construction has more than tripled the transportation efficiency in East Africa. In the past, we needed a lot of manpower and livestock to transport goods to the seaport area. Now in the inland areas, we only need to transport goods to the nearest train station, and then there will be more." Goods can be exported to the seaport via rail.”

"Railway construction in East Africa has been a loss-making business from the beginning, with investments made without considering returns. But now we have seen the benefits of this investment, that is, the interior is developing rapidly and the gap between the east and west of the kingdom is narrowing. This has positive implications for the rule of the kingdom."

 …

“Since 1875, we have found that the German government’s targeting of our companies has increased significantly, especially those companies named Hechingen, and the difficulties they have faced have increased significantly. Obviously, in the eyes of the German government, we have become a piece of cake. Meat, and the Bismarck government clearly turned a blind eye to our interests."

“Bismarck represents the Junker group behind Germany. The barbaric growth of our Hechingen in Germany in recent years has obviously stimulated the Junker landowners.”

“And just yesterday, someone in the German Parliament proposed to increase tariffs on agricultural products, with agricultural products from our East African Kingdom being the focus.”

Constantine and Ernst listened silently to their subordinates' reports. It was obvious that the Germans could not sit still!

Ernst: "Father, look! I said that the surname Hohenzollern cannot be our protection. When we choose to develop in East Africa, we have actually completely separated from the original group and become Their competitors.”

The group Ernst refers to is the Junker aristocracy. The business scope of the Junker aristocracy cannot be said to be exactly the same as that of the Hechingen Consortium, but it is still very different.

 The market means I eat one more piece and you eat one less piece. Obviously, the Hechingen consortium is too large and has too much market share, which seriously threatens the business of the Junker nobles.

Constantine: "I just had a telegram with William I this year, and he promised not to embarrass the East African Kingdom!"

Ernst: “The Prussian royal family and the Prussian government should be viewed separately. Their interests are not consistent, and the Prussian royal family is fundamentally subject to the will of the state. This is the basis of their existence.”

Constantine: “What now?”

Ernst: “There is no good way but to gradually withdraw investment from Germany and transfer money to other regions.”

After all, the Hechingen Consortium is not East Africa, so if the Hechingen Consortium is targeted, East Africa can't do anything. However, just like Jewish capital, capital has no motherland.

Constantine: “Then where are you going to invest your money?”

 Ernst: “Austro-Hungary, the Far East, and Argentina, these three regions.”

East Africa is not mentioned, but East Africa has always been the biggest bloodletting tank of the Hechingen consortium. The Austro-Hungarian Empire market is actually not bad, and political centralization is not strong. But the more it is like this, the capital is less constrained by the government, and the Rothschild family is It's very moist in Austria. Needless to say, the Far East has a huge market and deep cooperation with East Africa. Especially after the East African fleet visited, they became more polite. Argentina has a good future. At least it can follow Britain and the United States.

Constantine sighed: "Oh, let's do it!"    As the instructions from the Hechingen Bank headquarters were issued, part of the funds in Germany flowed to other countries, and in response to Germany's pig killing behavior, East Africa was also preparing to sign contracts After the expiration, the purchase of German steel was stopped and the purchase of Austria-Hungary was increased.

 A large amount of capital fled, causing a small-scale panic in the capital market. However, now is the Great Depression, and this panic spread instantly, eventually triggering a new round of crisis.

The German government, which had just recovered, immediately felt the pressure. As a large amount of money was lost from the German market, the unemployment rate increased again.

William I asked: "What's going on? Didn't the economy just pick up?"

Bismarck said confidently: "Your Majesty, don't worry. It's an economic crisis now, so some setbacks are not a big deal. Everything is under control."

Having said that, in fact, the Hechingen Consortium mainly withdrew from the German agricultural investment market. Coincidentally, when the Hechingen Consortium withdrew, someone took over the business left by the Hechingen Consortium.

However, these businesses are not so easy to take over. The Hechingen Consortium used to cooperate with them, so it would set aside a certain share for the Junker nobles to help them sell their products in the international market.

 There is no need for it now. Many of the sales channels established by the Hechingen Consortium, especially the supermarket system, can replace more goods with agricultural products from East Africa.

The Junker nobles had better have their own sales channels to sell their goods, otherwise the losses will definitely be huge. Ernst will no longer be merciful. Of course, the Junker nobles are not monolithic.

After the unpleasantness with the Prussian Junker noble group, the Hechingen Consortium strengthened its cooperative relationship with the nobles of the South German region, and Baden, Württemberg and Bavaria became the beneficiaries.

 Germany has a federal system after all, especially the states in the South German region, which enjoy relatively sufficient autonomy, at least economically. Only in this way can they divide their opponents better.

 The competition between Germany and the Hechingen Consortium mainly occurred in the grain market, and was not too intense in other aspects. The Junker nobility was just a collective name for the German nobility.

For example, in the industrial field, the competition between the Hechingen Consortium and the Junkers is not fierce, because the Hechingen Consortium focuses on light industry and emerging industries, while the industrial Junkers aristocrats focus on the heavy industry, and the two sides develop in separate directions. .

However, the Hechingen Consortium is leaning towards East Africa in agriculture, which will inevitably lead to conflicts with the landowners Juncker nobles. Even if the Hechingen Consortium has already made concessions, this is far from the psychological expectations of the agricultural Juncker nobles. .

The Hechingen Consortium is not afraid of such competition. The Hechingen Consortium’s main investments in Germany are one in channels and the other in food processing. They do not necessarily rely on the landowners Junckers and nobles. In the words of later generations, the landowners Junckers are located in the industry. downstream of the chain.

However, food processing companies are also industrial, and industry is easily managed and controlled and is obviously less flexible than the financial industry, so it is urgent to move food processing companies to East Africa.

East Africa actually has a primary food processing system, but mid-to-high-end processing and production, mainly in Germany and Austria, has suffered setbacks in Germany. Ernst also facilitated the transfer of food processing enterprises to East Africa.

 (End of this chapter)