Holy Roman Empire - Chapter 476

Chapter 476: Chapter 49, Witness of Friendship
 

The younger brothers have a fighting spirit, and Franz was pleased to see it flourish. Success or failure is not important, what matters most is the spirit of positivity, which is worth encouraging and promoting.

Now, Austria too was large in family and business, with a greatly increased tolerance for mistakes. The outcome of the South African War was insignificant to the country’s overall situation.

Of course, success would be better as it would crush the ambitions of the British in one fell swoop. Otherwise, after the commencement of gold mining, the British would harbor unrealistic fantasies and another war could erupt.

Colonists were completely powerless in front of interests at this time; only after experiencing defeat would they realize the immensity of the world.

Finance Minister Karl handed Franz a report, saying with a worried frown, “Your Majesty, this is the military expenditure for the South African War over the past two months, totaling 12.486 million Divine Shields.”

It was true that war was a gold-devouring beast. A mere local conflict consumed over six million Divine Shields monthly on average; a full-scale war would be unimaginable.

It was impossible to cut military expenses. Troops were sent on a long campaign, and weapons and ammunition were shipped from home, with transportation costs alone being substantial.

In fact, current military expenses were already low. At least the cannon fodder army did not require Franz to pay salaries or pensions, otherwise the figure would have increased several times over.

However economical, these men still needed clothes and food, and replacing obsolete firearms and spears still incurred costs.

Looking at the report, Franz saw that the expenses of about a hundred thousand cannon fodder troops accounted for approximately twenty-three percent of the total military expenditure, with the rest being the costs of the few thousand troops from the “Boer Republic.”

Even though they were defending their homeland, their pay could not be less. This included the aristocratic private army that brought their own provisions; they all received a share of the military salary. Pensions were also distributed uniformly according to the standards of the Austrian regular army.

Franz did not economize in this aspect; he personally vetoed the government’s cost-saving plan. In theory, one could recruit aristocrats to fight without pay, just dividing the spoils after the battle, as had been the practice on the European Continent for ages.

But Franz knew that times had changed. Recurring calls for the fief aristocrats to battle were feasible only occasionally—after several times, the Emperor might no longer find anyone to answer the call.

Loyalty could not withstand constant erosion, and people’s hearts changed. If the war was won and there was enough spoil to divide, then it might be all right.

But if the war resulted in a loss, and the spoils were insufficient to compensate for everyone’s losses, complaints would be inevitable. After being cheated once, people would act in compliance while shying away the next time.

The South African War naturally did not suffer from a lack of spoils; with the gold mines, there was a share for everyone. But in this case, the government would no longer be involved.

After the nobility spent their money and effort to conquer it, why should the government interfere? At least within the tax exemption period defined by colonial law, the Vienna Government could not benefit from it.

Put yourself in another’s shoes: without knowing that there was a wealth of gold underground, few aristocrats would dare to invest so much.

Spending over six million Divine Shields a month, even the top aristocrats of the Shinra Empire could not take such a risk.

If the money was spent and the war was not over, they could only cry over their own fate. European history offers many such cautionary tales, with aristocratic lords running out of money halfway through a war with others.

The ancestors of the Habsburg dynasty experienced it themselves; even as Emperors, they were pressed by creditors to the point of not daring to return home. Of course, that was mainly because they cared too much about face; if they had simply defaulted on their debts, what could a few merchants really do?

Half of the anti-Semitic movements in Europe came from this. Unable to repay their debts and unwilling to tarnish their reputations as defaulters, the nobility found it easier to be anti-Semitic, eliminating creditors en masse and solving the problem.

Now, with the government guaranteeing the bottom line, everyone’s risk was minimized, and there was no need to worry about catastrophic losses due to unforeseen events.

In recent years, there have been quite a few successful aristocrats in Africa, yet there were even more who failed. Those who did not understand risk control and were greedy for achievements are all covered in grass on their graves by now.

Any colonial empire is built on a vast pile of bones, and the main reason for the collapse of colonial empires in later generations was the lack of willingness to continue shedding blood for the colonies.

Ultimately, it came down to issues of benefit distribution; bureaucrats and capitalists divided nearly all the profits, and the rest had not even soup to drink. Who would want to continue risking their lives?

Looking at the great colonial empires, at the beginning of their establishment, there were few claims of loss-making colonies. It was only after decades or even centuries, when the empire was on a downward trend, that losses became frequent.

Was it because less wealth was generated? Or did governing costs skyrocket to the point where expenses exceeded income?

Clearly, decades-old colonies could generate more wealth. Yet, government fiscal revenue rarely increased much, with the money ending up in private pockets instead.

On the other hand, expenditures were constantly rising. The already fallen Portuguese is one example; to Franz’s knowledge, the Portuguese colonial system could no longer bring wealth to the government.

Not just Portugal, but the ruling costs of all major colonial empires are increasing, albeit most of the colonies’ tax revenue can still bear the expense.

The growing decay of bureaucratic groups and the greed of vested interests are almost insurmountable problems. Similar issues exist in the homeland, so what more for the colonies?

The rising economic liberalism has already started to attack the colonial system, arguing that it brings heavy financial burdens to the government.

It can’t be said to be foresighted, as these individuals mainly do not directly benefit from the colonial system and thus stand on moral high ground to criticize vehemently.

In Franz’s view, this is a typical case of “eating from a bowl and scolding the cook after.” They are clearly enjoying the dividends from the colonial system but refuse to acknowledge it, still believing that maintaining colonial rule is costly.

Little do they know, the Industrial Revolution consumes people, and the primitive accumulation of capital is bloody, whether external or internal.

In the 19th century, there was no so-called free trade; the British only chanted slogans in hopes that other countries would open their markets to them.

Of course, as long as they maintained a competitive edge, they didn’t mind opening their markets to other countries. But once that advantage was gone, they’d turn their backs and refuse to recognize anyone.

Otherwise, in the original timeline, why would the Germans need to challenge the old world? It was nothing but a lack of industrial raw materials and dump markets, driven by capital to wage war.

When the English and French liberals got what they wanted and rid themselves of the decaying colonial system, what they met wasn’t revival but a rapid downfall.

With their homeland’s narrow size and scarce resources, industrial development was inherently restricted, forcing them to deindustrialize in a futile attempt to quench their thirst with poison.

These issues are not troublesome for the time being. Before the colonial system enters an era of major losses, such calls wouldn’t gain traction.

No matter how loudly free trade is championed, it requires everyone’s cooperation. If everyone is practicing trade protectionism, and you go for free trade alone, wouldn’t that be a hastened demise?

Franz calmly said, “Don’t worry, we have a preliminary understanding of South Africa’s geological conditions.

The local land is fertile and the climate is pleasant, and the mineral resources are also relatively rich; the future development potential is still promising.

After comprehensive evaluation, the South African region should be the land with the highest development potential on the African continent. The current investment will pay off before long.”

Franz did not mention the issue of gold. Until the dust settles, it’s best not to cause unnecessary complications. After all, driving the British out of Africa is also one of Austria’s national policies.

Finance Minister Karl explained, “Your Majesty, no matter how good the development potential is, that’s a matter for the future; we’re not lacking in land with endless development potential.

In reality, land that has most resources readily available isn’t necessarily a good thing. Without proper preparation, it might become an unmanageable problem in the future.

The urgent matter at hand is to end this war as soon as possible. The French have stabilized the situation in Italy; our goal of alleviating their pressure has been achieved, and there is no need to continue the stalemate with the British.”

This statement was correct; too many resources could also be a curse. If a colony had everything, its dependency on the Empire would decrease.

Franz, thoughtful, nodded. It seemed that fragmenting South Africa was imperative. It was necessary to promptly implement a provincial management system to replace the current South African Governor’s Office, to prevent future regional clustering.

“The war is not for us to worry about anymore; the officers and soldiers at the front also hope to end the war in time for Christmas. It will all be over in about a month, and it’s unnecessary to add pressure on them.

The Ministry of Foreign Affairs should find an opportunity to remind the French that we have fulfilled our agreement, this time tying up half the British Army for them.”

This statement was faultless; numerically, the British troops deployed in the South African region had surpassed half of the total army strength.

Good deeds need to be acknowledged; how would others know about them otherwise? The more you contribute, the greater the rewards should be—this is an era of equivalent exchange.

Even close brothers keep clear accounts, let alone allies. Such matters are better kept in the open.

Although nations discuss only interests and speak of France and Austria’s friendship, this too is a testimony to the friendship between the two countries.

It might not seem significant now, but it could be necessary in the future. It’s enough to sway teenagers prone to hero-worship. When nurturing the Pro-Austrian Faction in France, this kind of propaganda material is needed.