Holy Roman Empire-Chapter 994 - 8, Tumor

Chapter 994 -8, Tumor

The news of another revolution breaking out in Paris spread, and the entire European world was dumbfounded. First, the Revolutionary Party had sealed the fate of the Bonaparte Dynasty, then the radicals within the Revolutionary Party had done the same to the Revolutionary Party’s government, and now it was unclear which party was in the process of unseating the radical government.

If one counted the Royalist Coalition outside the city, France had now become a gathering place for the various factions of the era. News reports about it were laborious to write, let alone for the ordinary people to understand.

While the general public could enjoy the spectacle, politicians were busy with work. With the situation this chaotic, this year’s war indemnity was certainly not to be expected.

No matter which government came to power, they wouldn’t be able to turn up money in the short term. The countries that had relied on French compensation to subsidize their domestic finances were now thoroughly disappointed.

In the Vienna Palace, Franz, who had just reached a compromise with Belgium, was now both troubled and happy. There was no helping it, as the number of people coming to borrow money had been on the rise.

If it were just ordinary commercial loans, it would be straightforward to refer them to a bank. As long as they could afford the interest and had sufficient collateral, the financial system of the Holy Roman Empire could help them secure financing.

With France’s defeat and Paris’s decline, the financial centers on the European Continent had shifted to a dual dominance of Vienna and Frankfurt.

Finance also needs to be linked to politics. After the end of the wars in Europe, the Anglo-Austrian two countries conducted secret negotiations about the international situation and post-war reconstruction.

The result was, of course, self-evident. Looking at the organizational structure of the Continental Alliance, if the two sides had come to an agreement, Britain would not have been excluded from the alliance.

Without a doubt, it was a pyrrhic conclusion. Excluded from the circle, Britain’s influence on the European Continent had dropped to its lowest point in nearly two hundred years. With some influence still over maritime nations, mainland countries no longer took Britain’s opinion into account.

The Holy Roman Empire had achieved political victory, but suffered a heavy blow in the economic arena. Not only had the financing plan in London failed, but even the Divine Shield had faced a run on it, with its value dropping by five points at one point.

Taking a hit without fighting back was not Franz’s style. As the British ran on the Divine Shield, the Vienna Government responded in kind with an assault on the British Pounds.

Both were gold standard countries, and then an amusing scene ensued. On one side, gold was exchanged from Shinra with Divine Shields and transported back to the British Isles, while on the other, gold was exchanged in Britain with Pounds and shipped back to Shinra.

Both were countries with large gold reserves, and after much back-and-forth, the general populace was left dizzy, with neither side able to best the other.

Of course, this was only on the surface; in reality, the Vienna Government had still taken a loss. With the financing plan a failure and a need to stabilize the value of the Divine Shield, the government had to tighten its belt.

Affected by this, the pace of post-war reconstruction in regions such as Alsace and Lorraine was also impaired. If the big brother was having a hard time, it was even worse for the little brothers.

Of course, it wasn’t impossible to secure financing. Although the British Government disapproved of everyone, the UK consortium was still very welcoming of the god of wealth. It’s just that the interest rates were now a tiny bit higher than usual.

Regardless of whether other countries could accept it, the Vienna Government would rather tighten its belt than borrow high-interest loans from the British.

Hard times are always temporary. Capital chases profit, and no one is willing to give up the big cake that is Europe’s reconstruction. Even if the British Government was not supportive, nothing could stop capitalists from pursuing profit.

Especially the capital that had initially flowed from Europe into the London market, began to flow back to the European Continent, passing through the financial markets of Vienna and Frankfurt, and into post-war reconstruction projects.

Although the money was available, not just anyone could borrow it. In a sense, in the capital markets, both nations and individuals abide by the principle that “the strong get stronger, and the weak get weaker.”

The wealthier the country, the easier it was to borrow money; the poorer the country, the harder it was to secure funding.

The Vienna Government, with its robust family fortunes, naturally was a prime customer in the capital markets, while tragedies befell the destitute Belgium, Sardinia, Lucca, Tuscany, and other countries. Due to insufficient creditworthiness and a lack of adequate collateral, they found themselves in a funding dilemma.

Franz was more than willing to display the magnanimity of a big brother once or twice, but when everyone rushed to borrow money, Franz was troubled.

In fact, this was not the first time these nations had borrowed money. Since the war against France, these younger brothers had essentially been financially supported by the Vienna Government.

You never realize the extent until you do the calculations and then you’re startled. These tiny nations each turned out to be billions in debt. Considering their economic conditions, repaying the loans seemed like a matter for the next century!

If this were the only issue, it wouldn’t be unacceptable. With rich political returns, an extended timeframe for capital recovery didn’t pose a significant problem.

The key issue was that economic development needed direction and post-war reconstruction wasn’t just about having money. Although Belgium had suffered severe losses, its industrial foundation remained intact; given the funds, it could quickly recover.

The Italian Area met a real tragedy, however, with no resources or industrial base to speak of. Even developing agriculture was a beaten path, and most crucially, their limited land couldn’t sustain such a population.

When they were associated with the French, aside from a small amount of handicraft, they mainly acted as a market for goods and provided labor.

With the collapse of the French Empire, this fragile industrial chain also broke down. The Holy Roman Empire only needed a market for its goods, not the excess labor.

No matter how cheap, it was futile. The economy hadn’t yet reached the point where it could create enough jobs, and to let these people in was to invite trouble.

Their only choice was to utilize cheap labor to develop labor-intensive industries lacking technological content, thus stimulating domestic economic growth.

The problem was that it was useless for Franz to know this; the rulers of the various countries needed to understand this themselves, combining it with their actual situations to formulate effective economic policies.

However, the world is full of people lacking self-awareness. Among the seven Italian Sub-States, not one had taken the right path.

One after another, these arrogant individuals believed themselves to be smarter than the rest, following the trends of the times. They dabbled in high-tech like electricity and internal combustion engines right away, and some even dared to embark on cutting-edge projects like airplanes and battleships.

Well, that was on Franz. The Vienna Government had long adopted the policy of striving to be a technologically advanced country, and this had now become a societal consensus, influencing the younger brothers as well.

It’s not wrong to say, but technology development also required an industrial base. With no foundation, rushing to the forefront meant courting disaster.

The money they had managed to borrow had been squandered by these overambitious individuals. And Belgium, which had the best industrial base, was the first to pick up the outdated capacities the Vienna Government intended to phase out.

With the younger brothers causing concern, the headache naturally fell upon the elder. Nobody’s money came from a windfall. With the way they were wasting it, billions would disappear before yielding any results.

With so much money at stake, wouldn’t it be better to focus on developing their own country? Only an imbecile would lend it out to be thrown away like chaff.

Good advice often falls on deaf ears, but it doesn’t always have an effect. Franz didn’t think a reminder would awaken this bunch, who had suffered too little from society’s harsh ways, and convince everyone to return to the right path. He naturally wouldn’t engage in such thankless work.

Franz asked, “If we refuse to grant them loans, how big of an impact will it cause?”

Foreign Minister Weissenberg replied, “There won’t be much impact diplomatically. The civil war in France is nearing its end, and the situation on the European Continent has largely stabilized. A few ripples won’t affect the international dynamics.

Given the current situation of the Italian countries such as Sardinia, Lucca, Modena, Parma, Tuscany, the Papal State, and the Two Sicilies, it’s entirely reasonable to deny them loan assistance.”

Nobody has decreed that the leader must always provide for its subordinates. The Vienna Government hasn’t taken anything from these countries; on the contrary, it helped them gain independence and provided substantial financial aid—its support has already been more than enough.

Anyone who feels ungrateful and covets more will have to see if the Empire’s iron fist agrees.

If anyone wants to revolt, they should first ask which country dares to take them in. The current situation in Europe is very clear: Holy Roman Empire’s dominance is unquestioned, and anyone who reaches into this domain must be prepared to have their claws cut off.

This 𝓬ontent is taken from freeweɓnovel.cѳm.

Economy Minister Reinhardt noted, “The economic problems are significant. In fact, the capitalist economic market’s supply and demand issues appeared some time ago but were delayed by the European wars.

The current market boom is based on a huge bubble fueled by wartime profits. Any issues could lead to the bubble being burst.

Without loan support, the economy in the Italian Area will collapse quickly. It could very likely become the catalyst for sparking the brewing economic crisis.”

No one can predict an economic crisis, that is impossible. In fact, prior to every economic crisis, there are always warning signs. The first reaction of those in the know is not to issue a warning but to withdraw in advance.

Indeed, issuing warnings is futile as well. The market always needs someone to take the fall; the bursting of the bubble will inevitably bury a large group of people. What can change is only who gets buried.

A great depression following a major war is simply a natural law of economics. The reason such a depression hasn’t occurred is primarily due to the economic support of the Holy Roman Empire.

However, this support comes with its own risks. Just like a tumor in the body, the longer it remains, the greater the damage it will cause.

There’s no choice; some things must be faced head-on. Having just become the dominant power in Europe, the Vienna Government also needs time to consolidate its position.

It just so happened that a covert conflict with the British broke out; if an economic crisis erupted at this time, the commanding presence that the Holy Roman Empire had so painstakingly established would be diluted.

Perhaps sensing the danger, the Gladstone Government wanted to withdraw completely, not wanting to detonate a crisis toward the end of its term. After a tentative flurry of activity, they decisively pulled back.

After hesitating for a moment, Franz slowly said, “Enough! This was bound to happen eventually; there’s no need to stubbornly resist any longer.

Inform the governments of the various countries that if they wish to obtain loans, they must submit a comprehensive economic development plan to persuade the banks. We no longer have the ability to provide guarantees for them.”

Frankly speaking, Franz was the last person who wanted an economic crisis to occur. As the world’s largest economy, the Holy Roman Empire alone occupied half of the capitalist world’s economic share.

Once an economic crisis broke out, the Holy Roman Empire was bound to suffer the heaviest losses. In contrast, those economically backward feudal agricultural nations would be relatively less impacted.

But there was no alternative, relying on the power of the government to delay the outbreak of the crisis also had its limits. No one knew when this cancer would detonate, and rather than waiting for others to do it, it was better to take the initiative and burst it oneself, thus retaining some control.

As for shifting the crisis, that was certainly necessary to do. The problem was that today was different from the past; with the economic volume of the Holy Roman Empire being so large, even if a shift were made, no one would be capable of taking it on.

As an aftermath of the warfare on the European Continent, it was supposed to have erupted at the end of the war. The fact it had been dragged out until now was already quite an achievement.

Even though the government had intervened in the economy many times, a crisis was still a crisis, and it would not simply vanish with a few administrative orders. In short, Franz had to swallow this bitter fruit.

The only difference this time was that it wasn’t a simple case of overproduction. Rather, it was an imbalance in the development of various industries. Mainly due to war impacts, military-related industries had developed excessively.

Market self-elimination equaled an economic crisis; the smart ones had already made enough money and had withdrawn from the related fields. Now, the remaining dreamers, still hoping to strike it rich, were all fantasizing about an escalation of either the French civil war or the Japanese and Spanish conflict.

Whether they could make a fortune or not, the war certainly wouldn’t escalate. Neither London nor Vienna was prepared for war.

War wasn’t child’s play, and unless forced into a corner, without certainty, who would foolishly declare war on a major power?

As long as the Anglo-Austrian two nations didn’t directly fall out, regardless of how the proxy wars were fought, their scale would not be extensive. It was already difficult enough to help clear inventories, so anyone hoping to profit from war should go home, wash up, and go to sleep!

…

Foreign Minister Weisenberg: “Your Majesty, although the Japanese and Spanish war is still in a tense state, from the current situation, it appears that the Spaniards have very little hope of victory.

According to data from the Governor of Southeast Asia, since the outbreak of the war, the Spanish Expeditionary Army has suffered 27,000 casualties, including 3,400 navy personnel; while the Japanese Army has lost 39,000 men, with over 5,700 of them being navy officers and soldiers.

The Spaniards hold the advantage in the exchange ratio, but this advantage is not significant. The Japanese have the geographical advantage, and their military reinforcements are much faster.

If there is no major change on the battlefield and the attrition continues, Spanish defeat is just a matter of time.”

The advantage in the exchange ratio was not because the Spanish Army was better in combat, but due to the disparity in weapons and equipment. If we say there is a decade of technological gap between both navies, then the difference in land forces, weaponry, and equipment is an entire era.

To be able to achieve nearly a 1.4:1 combat record with a whole era of technological disadvantage in weaponry and equipment, Franz began to suspect whether the Japanese were cheating.

The Spaniards had also done their homework; the Continental Alliance had imposed a material blockade on Japan early on. Even if some smuggled equipment fell into the hands of the Japanese Army, it would not be much.

On this point, Franz had a say, as the navy of the Holy Roman Empire was often patrolling key maritime passages such as the Suez Canal and the Strait of Malacca; most of the smuggled arms ships would have already cooled off halfway through.

Even if they could still obtain equipment from the British, in these days, the leading suppliers of land forces’ equipment were Shinra Empire, followed by France. The weaponry of the Lobster Soldiers was indeed not very impressive.