Holy Roman Empire

Once the British mobilize funds to leave, many domestic companies will suffer from insufficient funds, and an economic crisis will break out. "

Franz replied as if nothing had happened: "This is an inevitable result. At least we have prepared for it. There will be no money shortage in the country. As long as the normal exchange rate of the banking industry is guaranteed, the crisis will be within the controllable range."

Everyone nodded. In order to deal with the economic crisis, the Vienna government has made a lot of preparations. First, it has locked up a part of the capital so that they cannot flow out, and it has issued huge bonds to accumulate funds.

Now even if some British and French capital retreat, the Vienna government still holds a large amount of pounds and francs, which can be cashed directly without causing the outflow of gold and silver.

Chancellor of the Exchequer Carl proposed: "Your Majesty, the crisis is still under control, so can the implementation of the huge capital flow approval system be suspended.

After all, doing so will damage our reputation, and it is not necessary to do so unless it is a last resort. "

In this era, capital can flow freely between countries without any restrictions.As the first master to eat crabs, he may become a hero, and even more likely to become a martyr.

Once it is disgusted by the capitalists, it will be very unfavorable to Austria in the future international trade.

Franz thought for a while and said: "Approval is still required, and a notice can be issued, and the flow of funds exceeding 1 Aegis must be declared 3 to [-] months in advance.

We guarantee that all legal capital flows are unrestricted. Funds from sources that cannot be determined must be clearly explained and proven not to be obtained illegally before they can leave the country.

The government can find more excuses, for example: some underworld groups are transferring funds; or some corrupt officials are transferring finances...

Taking advantage of the economic crisis to implement before the outbreak of Austria, so as not to make people think that we are restricting the free movement of the economy. "

Checking the legitimacy of funds will add a lot of work to the government, but in order to fight crime, it is acceptable to increase a little cost.

As for restricting the flow of funds, this is not worth mentioning at all, you can declare in advance.At most, it adds a layer of protection to the financial market, allowing the government time to prepare in advance.

Otherwise, like the currency crisis in the United States, it is a lesson from the past.Suddenly, a large amount of foreign capital is about to leave, and the government simply has no time to react and can only swallow this bitter pill.

"Yes, Your Majesty!"

……

Apart from adding a financial firewall, the Vienna government has done nothing. It is still the era of capitalist free market economy, and excessive government intervention in the economy will arouse the disgust of many people.

Besides, Franz didn't know how to intervene.In any case, overcapacity is an indisputable fact, and this problem is simply an unsolvable problem.

In 1857, Austria's industrial production capacity was more than four times that of 1847, far exceeding the world average level. The sequel is naturally overcapacity.

This is the inevitable result of industrialization. The efficiency of mechanical production is much higher than that of manual production. The growth of the market obviously cannot keep up with the growth of industrial production capacity.

Therefore, after the first industrial revolution, every once in a while, an economic crisis will break out in the capitalist world.

Finding new markets is actually very nonsense at this time.In the context of economic crises in various countries in the world, where is there any market?

This is not the future, where there are people, there is a market.Today's productivity is limited, and the social wealth created is also limited. Most people have no purchasing power at all.

Taking the Russian Empire as an example, the population of more than 7000 million ranks first in Europe. On the surface, it seems that this is a big market.

In fact, except for the more than 1000 million nobles and free people, the rest are serfs. They have no personal freedom, so what purchasing power are they talking about?

This limited market has already been carved up. If you want to continue to increase exports, wait for the tsarist government to complete the serfdom reform!

Relying on the colonial market is also nonsense. Except for a few colonies such as India, Cuba, the Philippines, and Southeast Asia, most other overseas colonies are in a state of waiting to be developed.

The number of immigrants is small, and the locals have no purchasing power. If they want to export industrial products, they can't find buyers.

In this case, once the excess capacity appears, the economic crisis is inevitable.The best option is not to close the lid, but to let the crisis explode.

Survival of the fittest, the strong survive and the weak perish.This is also the driving force to promote scientific and technological progress. Enterprises that do not want to stand still and be squeezed to death by competitors must replace equipment in time and eliminate backward production capacity.

Even if it is a copycat company, it must work hard. If it is not fast enough, imitation ability is not strong enough, and the cost is not low enough, it will die.

Time flew by and by the end of 1857 the economic crisis had spread from England to France.By the beginning of 1858, the economic crisis continued to expand to Belgium, Austria, Germany...

In the entire European continent, except for the Russian Empire, which has not yet completed reforms, no one can survive alone.Under the blow of the economic crisis, all countries suffered heavy losses.

Chapter 34 Transferring the Crisis

After the outbreak of the economic crisis, the mines planted by Franz exploded, unfinished projects emerged in an endless stream, and the Vienna government cleaned up the mess everywhere.

There is no way, the economic crisis is too destructive. As the first global economic crisis, this crisis is much more serious than previous economic crises.

In 1857 alone, there were more than 90.00 bankrupt companies in the United States, and the stock market was directly cut in half. In some industries with serious overcapacity, stock prices plummeted by [-]%.

European countries are not much better, but the economic crisis spreads later, and the governments of various countries have time to react.

It's a pity that there is no such thing as government intervention in the economy in this era. Everyone is waiting for the crisis to break out, and losses are inevitable.

Affected by the economic crisis, many capitalists' capital chains were broken.If you have no money in your pocket, no matter how unwilling you are, you can only reluctantly cut your flesh.

The initial investment can be regarded as charity, and the performance bond is directly in vain.

The unfinished government projects are only a small problem. Anyway, these projects are not imminent, and construction at night will not kill people.

Moreover, the powerful capitalists still gritted their teeth and persisted.The more people invest, the more reluctant they are to give up. In itself, these projects are still high-quality projects.

This kind of persistence is crucial to the windy and windy Austrian economy.It has directly allowed many companies in the related industry chain to survive and avoided the continued deterioration of the economy.

Prime Minister Felix said in a deep voice: "Your Majesty, up to now, as many as [-] domestic companies have filed for bankruptcy, and [-] companies are on the verge of bankruptcy, including the five major railway companies.

The stock market directly fell by 40.00% 70.00, among which the railway stocks fell the most severely. Affected by the US railway bubble, many investors lost confidence in the railways, and the market value evaporated by [-]% [-].

The textile industry, manufacturing industry, financial industry, and steel industry all suffered heavy losses. Affected by the economic crisis, even the export of agricultural products shrank by a quarter.

Compared with the same period last year, the industrial output value fell by nearly 30.00%, and it is still in a state of continuous decline.

The number of unemployed people in China has reached more than 98, and it will sooner or later exceed one million.If the economic situation does not improve, this situation will continue to deteriorate. "

All walks of life were hit by the economic crisis, and companies went bankrupt on a large scale. Franz didn't care at all. These were all expected.

How can the wild economic development model have no sequelae?If it weren't for the Near East War that allowed Austria to seize the British and French markets in the Russian Empire, the economic crisis would have broken out long ago.

The crisis in Austria began at the time of the post-war economic transition.

If it were not for the opening of overseas colonies, the reform of the gold standard system, the influx of colonial gold brought a large amount of currency, and the government’s increase in infrastructure construction, then this economic crisis did not start from the United States, but from Austria.

Other problems can be dealt with slowly, but the unemployment problem is imminent and must be solved immediately, otherwise it will cause very serious social problems.

Franz thought for a while and said: "According to the original plan, the government will take over the unfinished construction projects and let the workers resume work first.

At the same time, the government interviewed the suspended railway companies, either they figured out their own way to solve the funding problem and resume construction immediately;

The Colonial Department should act as soon as possible. The economic crisis is the best opportunity to organize immigration. Not only Austria, but the entire German region is your scope of work.

Find a way to encourage bankrupt people to immigrate to the colonies. At this time, Americans are also in an economic crisis, and no one will compete with you for immigration.

Order the colonial government to speed up and expand to Nigeria and Congo. I authorize them to organize civilian armed forces to participate in the battle and expand our sphere of influence as soon as possible. "

As long as the normal construction of these projects resumes, the relevant upstream and downstream enterprises will survive, and most of the domestic unemployment problem will be solved.

The industry in this era is actually relatively single, and the surrounding industries of these projects have already included most of the industries in the country.

Franz swallowed unfinished infrastructure construction projects because they could not find a successor and had to be taken over by the government to continue construction.

The railway company was not eaten up by one bite. In addition to the high market value of the railway company and the high cost of acquisition, the more important reason is that the railway company is trading at a loss.

Since the Vienna government has packaged and authorized a series of lines to the railway company, the "money future" of the railway company has not been so bright.

The shrewd consortiums retreated as early as the first time the US economic crisis broke out, and now they are all speculators who were slow to respond.

It is naturally impossible for Franz to help them solve the problem. You must know that the railway company will not see profits in the next ten years.This kind of long-term project is not supported by anyone, and the financial pressure is too great to rely on the investment of the Vienna government alone.

If possible, he would rather let private capital complete all the railways of the new Holy Roman Empire than the current compromise public-private partnership.

Relying on a series of capital operations, Austria has added more than 800 kilometers of railways in less than ten years, and the total railway mileage of the entire New Holy Roman Empire has exceeded [-] kilometers.

If it is invested by the government, it is estimated that the Vienna government cannot even complete half of the project. This is the power of money, and the poor Vienna government cannot afford such a large project.

Even now, the Vienna government cannot afford such a huge investment.The current infrastructure construction is carried out with debt.

It directly made Austria the fourth largest debtor country in the world after Britain, France and the United States. In the next few decades, the Vienna government will have to work hard to repay its debts.

War is the best way to divert the crisis, but it is a pity that the African continent is a little far away, otherwise Franz would not mind taking over a few indigenous kingdoms to survive this economic crisis.

However, the expansion of Shidang is still necessary, not to mention the plundering of wealth, at least the land for resettling immigrants must be snapped up first.

The German region is overpopulated, not for a day or two, and the Austrian region is still relatively good. It has sent hundreds of thousands of immigrants to the Balkan Peninsula, and tens of thousands of immigrants to the colonies. The population pressure is not too great.

It is different in other parts of Germany. Every time the economic crisis breaks out and unemployment emerges, it is the time of mass immigration.

This time, the economic crisis happened in the United States. It is estimated that they just want to immigrate at this time, and they will not be welcomed.

Josip Jeracic replied: "Your Majesty, our Colonial Department has formulated an immigration plan. In order to attract immigrants from the German region, we have proposed two immigration methods:

First, accepting government employment, immigrants go to the colony to open up farms, and the specific location is arranged by the government. All immigration costs are borne by the government, and they do not need to worry about work issues.

Of course, this requires the signing of a five-year labor contract, and I offered a salary 20.00% higher than that of the local government, during which the government provided one free family leave.

Second, free immigration, whoever chooses to settle in any of our colonial strongholds, the government will subsidize half of the ticket fee. "

Franz nodded, this is the best condition the Vienna government can provide.The main purpose of opening up these farms and plantations is to keep rewards for meritorious officials.

After all, the local land is limited, and even the canonized nobles are mostly titles in name only. Many lands are owned, and it is impossible to award them.

Then it is inevitable to use the colonial land as a fief.Not everyone has a family background, and if they are authorized with a piece of land, they will be able to develop it.

Heroes from civilians or fallen nobles have limited net worth, and they did not have the ability to develop fiefdoms in the past, so it is also a good choice to use the developed farms or plantations as fiefdoms.

If you develop it yourself, you may be able to obtain hundreds of square kilometers, or even thousands of square kilometers of fiefdom, and if you obtain a ready-made farm, it will only be tens of hectares, or even hundreds of hectares.

There is no such thing as losing money or taking advantage of it, and land reclamation also requires investment.On this question, Franz will not push others.

The plantations that were first opened up in the Guinea colony are now seeing returns. After all, growing food, cotton, and peanuts, these one-year crops are still very effective.

After the output, the Vienna government made a big publicity, claiming to open up the second home of the new Holy Roman Empire, emphasizing the fertility of African land.

Many people's perception of the African colonies has changed. The concept of the poisonous insect continent has faded, and prosperity has entered everyone's minds.

This is not a lie. The African continent really has a lot of fertile land. The colonies opened up by Austria are relatively wealthy, and the climate conditions are also suitable for human survival.

Mobilizing the people to emigrate now can not only develop overseas colonies, but also solve the domestic unemployment problem and divert the economic crisis.

Chapter 35 See also Transactions

The sudden economic crisis has made it even more difficult for the precarious Sudanese government.

Although the Ottoman Empire was still an agricultural country, the withdrawal of funds by British and French capital still dealt them a heavy blow.

In desperation, the Sudanese government was forced to make concessions, and the only problem was money.

Ade fought hard and said: "Your Excellency, your offer is too low, there is no such cheap land in the whole world!"

Johannes said calmly: "Your Excellency, don't worry, our quotation is based on the price of land transactions in the international market.

Not long ago, we were negotiating with the Russians. They intended to sell Alaska, more than 150 million square kilometers of land, and the Tsarist government only offered 400 million Aegis. Our bid was already very sincere. "

That's right, the Russian Foreign Minister proposed to sell Alaska.This piece of land can't make much money at all, but there are still worries about the British coming.

However, Nicholas I objected, and His Majesty the Great Tsar felt that selling the land would damage his glorious image, so the matter was shelved.

This incident has also caused a stir internationally. As a diplomat who cares about international affairs, Ade is no stranger to it.

"Your Excellency, Alaska is just a big block of ice, worthless at all!"

Johannes shook his head and said, "Alaska still produces leather, the Bering Strait is rich in fishery resources, and the southeast and central south have a temperate climate and are rich in timber.

Moreover, there is also an inland basin, which we have sent people to investigate. The Matanuska Valley area has fertile land, which is very suitable for agricultural production.

Referring to the Nordic region, it is not a problem for this piece of land to feed tens of millions of people.Libya, by contrast, is all sand.

The land we want to buy is only a few islands. If your country is worried that the price is too low, we can kick out the Libyan area and calculate it separately.

Then we bid 2 million Aegis for a total island area of ​​more than 2000 square kilometers, which has already broken the world record for the land transaction price of Dazong. "

Ade was stunned. Alaska was like a block of ice in his mind, and the population living on it in this era may not necessarily exceed [-].

It turned out that Johannes actually found such a valuable thing. These were not made up, but completely provided by the Russians.

Wang Po knows how to boast when selling melons, and the Russians are no exception. In order to get a good price, it is very natural to exaggerate a little.

If you have nothing, why sell it for money?Even with so many resources, the Russians' quotation is still only 400 million Aegis, so you know how worthless the land is in this era.

To put it bluntly, everyone is not short of resources now, only the developed land is valuable.No amount of resources are worthless until they are developed.

Who went to Alaska to fish, log, and farm when his brain was flooded?It doesn't matter if it freezes into a dog, the key is that the local land development cost is still high.

The land in the chosen country is too fertile. After the development of the Great Plains of the United States, there will be too much food to eat, and we have to worry about unsalable food every year.

In this context, the land in Alaska will naturally lose its agricultural development value, and idiots will invest in agriculture in the past.

Not to mention in this era, the coastal plains have not been fully developed, and the development cost of inland basins is so high, only fools will run to develop them.

Otherwise, the Russians would have organized immigration there long ago, so why worry about being robbed by the British?