Chapter 65, Integration Process
The negotiations between the north and the south have not yet ended, but the American civil war has actually ended. Neither the European powers nor the American people want the war to continue.
This cannot be reversed by personal will, and the rest is nothing more than arguing about conditions.
To show sincerity, both the north and the south stopped military operations, including the ongoing military mobilization.
Strategically speaking, the goal of weakening the United States has been basically achieved. Now the last treaty is missing, which has divided the United States.
This is not just a good thing, but also a series of problems. For example, Austria's cotton and cotton spinning industry will be affected.
Taking advantage of the opportunity of tight cotton supply in the international market during the American Civil War, Austrian cotton spinning industry, which has sufficient cotton supply, emerged and seized the British market in Europe.
Now, the British cotton spinning products in Eastern Europe, Southern Europe and Central Europe are gradually being squeezed out of the market.
Previously, due to insufficient supply of cotton, cotton spinning products were in short supply, and the market was robbed by Austria. The British were helpless.
It's different now. With the end of the Civil War, American cotton production will soon recover. With sufficient raw materials supply, British capitalists will naturally make a comeback.
The market is the lifeblood of every industrial country. As the first country to complete the industrial revolution, the British accumulated enough advantages and their industrial strength once exceeded half of the world's world.
With the completion of industrialization between France and Austria, the proportion of British industry in the global total industrial volume has decreased, but it still ranks first in the world.
However, an embarrassing thing is that the world factory British Empire has been in a super state for a long time.
In 1864, the total export volume of British people reached 215 million pounds, while the total import volume was as high as 275 million pounds, and the trade deficit was as high as 60 million pounds.
During the same period, France's total exports reached 2.963 billion francs, the total imports from the outside were 2.523 billion francs, and the trade surplus was as high as 440 million francs.
Austria's total export volume was 285 million ASUS, total import volume was 226 million ASUS, and the trade surplus was 59 million ASUS.
Not only France and Austria were in a state of oversight, but even the Russians were in a state of oversight. In 1864, the total export volume of Russians was 187 million rubles, the total import volume was 175 million rubles, and the trade surplus was 12 million rubles.
In this era, international trade volume was relatively small, and Russians' grain exports exceeded half of the total export volume. With this advantage, a trade surplus was achieved.
Austria has such a large surplus and agricultural product exports occupy an important position. After all, people always have to eat, and the British are one of the most important food importers in Europe.
In order to solve the trade deficit problem, previous British governments have been worried. There is no way, and the lack of local resources has determined that the British have been in a state of super-extraordinary status for a long time.
Fortunately, John's cattle colonies are numerous, and this gap can be filled by plundering colonial wealth, otherwise ordinary countries would have been unable to hold on.
The Opium War in history was created by the British to smooth out the trade deficit.
Now that Austrian capital has robbed the market, the British will definitely not give up. It is not enough to overturn the table. This conflict does not require the two countries to break up.
Of course, it is useless to turn against each other. This is a fair competition in business. The British were short of supply of cotton textile products at that time, which allowed Austria to take advantage of the situation. John Bull did not have the ability to let the market wait.
Now that the American Civil War is over, cotton production in the south may return to normal next year. Thanks to the contribution of labor exports, this output may even increase further.
The United States of America have unique geographical conditions, and their cotton yield per mu is usually higher than that of other regions.
Of course, the insufficient yield per mu can be compensated by expanding the planting area, but the corresponding labor investment has increased.
Historically, the North won the victory, and the southern planters, as losers, lost their cheap labor, and cotton production was severely affected. They encountered India and Egyptian cotton rushing the market.
Of course, the most important thing is that northern capitalists need cheap industrial raw materials, and use measures such as raising tariffs and railway freight, which makes American cotton lose its market competitiveness.
India's cotton production has not yet increased. In order to compete for labor to dig the Suez Canal, the British promoted cotton planting in Egypt and were also hindered by France and Austria.
At this time, the only competitor of the American Alliance in the cotton market was West Africa.
There is no surplus in the international market. In the short term, this kind of competition is unwise, and Austria itself can digest most of West African cotton production capacity.
But in the future, if Indian cotton enters the market and Egyptian cotton enters the market, this kind of competition will become fierce.
Franz had to consider this series of economic issues in the cotton textile industry to compete with the British and the cotton market.
Schonbrunn Palace
"There are only two issues today. First, how can we protect our cotton textile products and market share on the European continent; second, how can we protect the interests of cotton farmers?"
In this era, there were few industrial and commercial products, and the textile economy dominated. Austria's core industries did not include cotton textile industry, but due to the American Civil War, the cotton textile industry emerged, so we cannot give up.
At present, there are more than 1.2 million workers in the cotton textile industry in Bavaria, Württemberg, Lombardy, Venice and other regions, and more than 2.5 million workers in the industrial chain.
So many people are pointing to the textile industry for dinner, which directly determines that the Vienna government must protect this industry. This UK-Australia trade dispute is inevitable.
Not to mention protecting the interests of cotton farmers, most of the planters in the colonies are nobles at present.
This is determined by Austria's national conditions. Ordinary people are limited by their economic strength, and even if they open up plantations, they are not large; capitalists have no love for farming.
Because of the domestic land redemption, many nobles lost their land and obtained a redemption money. Obviously, they could not be left to spend money.
After the colony was opened, many conservative nobles set their investment targets on plantations. Perhaps the profits of farming in later generations were not high, but in this era, the return on investment in plantations was not much lower than other industries.
Cotton plantations are no exception, with a large number of nobles gathering. As the spokesperson for aristocratic interest group, Franz naturally has to consider their interests.
This also affects everyone's enthusiasm for opening up colonies. In profitable circumstances, the ruling class will definitely strive to maintain the colonial system and vice versa.
Minister of Economic Affairs Andrew replied: "Your Majesty, our Ministry of Economic Affairs has made emergency plans. When necessary, we can use political means to protect the domestic and Russian markets.
Southern Italy is in a civil war, and the already small market is now shrinking further, which will not be the focus of the British counterattack.
The rest are the Central European regions, including the German Federation, Prussia, Switzerland, the Netherlands and other regions, which are the main battlefields of this trade war.
French capital may also join. France's economic development has also been very good in recent years. While ensuring the supply of raw materials, their cotton products are also competitive in the market.
In order to improve the market competitiveness of cotton textile products, the Ministry of Economic Affairs believes that tax refund subsidies can be given to these first-line manufacturers when necessary."
Simple, rough, but very effective. Everyone's production technology is almost the same, and they cannot distinguish between product quality, and there is still not much advantage in production cost. If you want to gain an advantage in market competition, you can only compete for policies.
Historically, the British cotton-spinning industry was destroyed by subsidies from various countries. The manufacturing industry is competing for cost and quality. Once the technical advantages are lost, the competition becomes cruel.
Franz is powerless in this regard. He fought a time difference to grab part of the British market. Now the time is up, so everyone can only compete for strength.
The only benefit is that the British's cotton spinning industry is larger. Once they have financial subsidies, the British will have to pay three million for every one million Austria pays.
Under normal circumstances, everyone will not play this kind of game of losing both sides. After all, a country has so many industries, it is impossible to concentrate resources on one industry.
Agriculture Minister Christian said: "Cotton and cotton textile industry are closely related. As long as the domestic cotton textile industry does not collapse, the cotton plantation economy in West Africa will not collapse.
In order to enhance the competitiveness of West African cotton, we can find ways to tax revenue, such as reducing or even eliminating trade taxes between colonies and the local area."
Looking at European countries, Austria definitely attaches the most importance to colonial economic development. However, no matter how much it pays attention, it is not as good as the local one.
In order to avoid cheap crops in the colonies, it hit the local agricultural market. From the beginning, there were trade taxes between the local and colonies, but they were slightly lower than foreign tariffs.
There have always been calls for economic integration in the Vienna government. The nobles who invested in plantations always wanted to include colonies in their own country for their own interests.
At present, the dominance model of West Africa, Congo and Nigeria has begun to move closer to the country, and some colonial cities are adopting the same laws as those in China.
As the first generation of colonists, everyone has a very strong relationship with the local people. Many people are advancing the process of integration, and Franz himself is also one of his supporters.
However, because it involves all aspects, the Vienna government dared not rashly announce the inclusion of colonies in its homeland, but the best-developed colonies have begun to implement the provincial system.
Compared with the country, these colonial provinces have greater rights and even have certain military rights. Now reducing the trade rights between the colonies and the local area is undoubtedly a step further in the integration process.
After pondering for a while, Franz asked: "There is no problem in theory, but reducing local and colonial trade taxes also involves the integration process between Second Germany and the local government.
This question first makes a noise and tests the reactions of all walks of life in China. At the same time, organize economists to conduct comprehensive argumentation, and it is necessary to figure out how big the impact this will have on the local area."
This is to make the problem clear and before this, the legal basis for promoting the process of colonial and local integration was Franz's proposal to recreate the second home of Germany.
Since the African colony was Germany's second home from the beginning, there is no problem merging with the first home.
However, these are all speculations from the public, and the official has not made any statement. The main force in promoting the integration process is also among the public, and groups and individuals involving colonial interests are promoting this plan.
The power of promotion is quite strong, and the opposition group is even stronger. The local small and medium-sized aristocrats and farmers are the main ones, who are afraid that the cheap agricultural products of the colonies will be resold to the local area and harm their interests.
However, the current situation is somewhat unexpected. The agricultural products in the Austrian colonies are not cheap, and at least they are not competitive compared with local agricultural products.
On the one hand, the colonies lack labor, which caused high labor costs; on the other hand, the newly developed land was mainly due to the fact that the early output was not high.
The most important thing is that the two major grain planting areas in Austria are currently very fertile, and the infrastructure such as water conservancy and transportation is complete, which is not comparable to that of colonies.
As for the future? Franz can responsibly say that once fertilizer is born, the profits of farming will further decline.
Whether there is any impact on colonial agricultural products, local agriculture will be affected. Many grain importers use fertilizers to increase grain production, and the international grain market will shrink sharply in a short period of time.
In this regard, Austria cannot develop fertilizers, and even if they are developed, they cannot be put into production.
The longer the delay, the more beneficial it will be to Austria. Before the industry develops to a certain level, it is easy to cause disasters.
The more grain output, the better. The market capacity is so large. Once the boundary is exceeded, you will sigh at the grain.
This is a matter of historically speaking, as the inventor of fertilizers was Germans. Isn’t it self-invested to invent fertilizers, the United States, Austro-Hungary, and Russia?
Chapter completed!