Chapter 154: Many Things Grow In The Garden That Were Never Sown
Ever since the establishment of the Holy Roman Economic Alliance, the economies of the member states have been closely interconnected, and trade volumes between the alliance countries have seen rapid growth.
Taking Bavaria as an example, in 1850, total trade with Austria increased by 23%, with imports growing by 32% and exports by 7%.
For the Kingdom of Bavaria, this meant a trade deficit of 8 million guilders with Austria, which severely affected the development of Bavaria’s capitalist economy.
However, it’s important to note that situations have two sides. Due to geographical proximity, Austria’s trade with other states in Southern Germany has to pass through Bavaria for transit. This, in turn, has also boosted the development of Bavaria’s domestic transportation and logistics industry.
Whether it’s a loss or a gain is difficult to say for sure. However, one thing is certain: those engaged in import and export trade are profiting.
Many of these individuals have a common trait: they are often powerful local factions, predominantly from the nobility. European nobility, for the most part, do not discriminate against business; they don’t shy away from dealing with wealth.
To ensure the smooth establishment of the economic alliance, Austria naturally courted a significant portion of these powerful noble families. It’s the efforts of these individuals that drove the establishment of the economic alliance.
Interests are always the best catalyst, and even though Bavaria is aligning diplomatically with the Kingdom of Prussia, it hasn’t seen a significant impact on economic ties.
Maximilian I certainly didn’t dare to tamper with the interests of these powerful groups. If trade were to be cut off, the royal family would be among the biggest losers, and it might lead to internal unrest.
The fervor for building railways in Austria inevitably affected the Kingdom of Bavaria as well, and there was a growing call for privately-funded railway construction.
Under the facilitation of the German Economic Exchange Organization, economic experts proposed a main railway line connecting the various states in Southern Germany which quickly garnered attention and heated public discussions.
Numerous economic experts and scholars came forward to promote the idea of becoming a railway powerhouse, listing a series of benefits associated with railway construction.
The public discourse also captured the attention of capitalists, especially those involved in the transportation sector who were well aware of how profitable railways could be.
Bavaria did have some railways, but they were far from being a comprehensive network. What it truly lacked was a main railway line that would traverse the Kingdom of Bavaria from east to west.
From an economic development perspective, establishing such a main railway line would significantly boost Bavaria's economic growth.
Munich.
Internally, within the Royal Bavarian State Railways, discussions were underway regarding the construction of this main railway line.
Following the recommendations of economists, the railway was planned to extend westward into Baden and eastward to merge with the Austrian railway network in Salzburg.
The current discussions focused on the technical and economic feasibility of the project. The Royal Bavarian State Railways was a state-owned enterprise, so efficiency was naturally a bit lower.
Engineer S?ll replied with a serious expression, “From a technical perspective, there shouldn’t be significant issues. Apart from a few sections where we’ll need to take detours, constructing this railway shouldn’t pose major technical challenges.”
Indeed, from a technical standpoint, there shouldn’t be significant difficulties. This so-called main line is approximately three to four hundred kilometers, and most of it traverses the Bavarian plains.
“But what about the economic aspect? Let’s not forget that we have the Danube River between us and Austria. Water transport plays a vital role in trade between our two countries.
Now, in building this railway, our primary objective is to make money. Can our railway compete with water transport?” inquired the Railway Company’s President, Molka.
Business Operations Manager Wilkes responded, “It’s true that water transport is cost-effective, but the reach of the Danube River is limited. The river’s course is beyond human control, unlike our railway, where we can extend the tracks wherever needed.
Once this railway is completed, we will have control over the economic lifelines of the entire Southern Germany. Given the current volume of commercial transportation, achieving profitability is not a concern.
If we’re worried about the risk, we can also consider external investment through issuing shares. There are plenty of people interested in investing in this railway project.
If we don’t proceed with the project promptly and obtain the railway construction rights from the government, we might end up losing out to others.”
It shouldn’t be assumed that state-owned enterprises have no competition. During this era, private individuals in Bavaria can also build railways as long as they can afford it. They can build them as they please.
Competition isn’t too fierce in this era, but by the early 20th century, there might be several railway companies competing between two cities.
After a moment’s pause, Molka made a decision: “Since everyone is on board, let the engineering department move forward with the railway project, produce the design drawings, and have the operations department immediately apply to the government for the right to construct this railway.”
The Royal Bavarian State Railways, despite being a state-owned enterprise, had its fair share of stakeholders who were instrumental in promoting this railway construction.
While it might not compare to Austria’s grand plans for thousands of kilometers of railway, once this mainline was completed, it would inevitably lead to the development of supporting branch lines.
Building over a thousand kilometers of railway during this era was undoubtedly a major project, and the interests involved were far from insignificant.
……
In the Munich Palace, plans for the construction of a major railway artery have already been presented to Maximilian I. It’s not just from the Royal Bavarian State Railways, but also from the Bavarian Watson Railway Company.
Interests always serve as the best catalyst, and it’s evident that there won’t be just a few people eyeing this railway. If the Bavarian government doesn’t make a decision promptly, they can expect to receive even more applications for railway construction in the future.
In this era, the military value of railways has not yet received significant attention, and Maximilian I has not considered the military threat that Austria might pose to Bavaria after the railway is built.
Mainly, considering it wouldn’t change the situation; the power disparity between the two sides is too great. Munich is only a little over 70 kilometers from the Austrian border, and the notion of national defense security concerns is simply a fallacy.
Over such a short distance, even on foot, it would take at most two days, whether there’s a railway or not. Relying on transportation to obstruct an Austrian invasion is less reliable than hoping for international intervention.
Maximilian I places significant importance on domestic economic development, and he is also internally supportive of building a railway that can stimulate domestic economic growth.
Furthermore, this railway doesn’t just bring economic benefits to Bavaria. It also expands their political influence and solidifies their position among the German states.
“Building this railway would require coordination with several countries along the route. Are there any diplomatic issues?” Maximilian I inquired.
The Foreign Minister replied, “Your Majesty, according to the rules of the Holy Roman Economic Alliance, allied nations investing in railway construction and their domestic railway companies are entitled to equal treatment. We can communicate with the governments of these countries.
If they have railway companies willing to participate, we can work together, each completing the construction of sections within our own nations and establish a joint railway operating company.
If no railway companies are interested, we can also invest in building this railway according to local legal regulations.”
……
Vienna.
Upon receiving the Kingdom of Bavaria’s railway construction plan, Franz’s initial reaction was that the Bavarian government had gone mad.
Building such a railway would make it easier for Austria to invade, right? After careful consideration, Franz realized he was overthinking it.
Bavaria’s territory was relatively small, and its capital, Munich, was already close to Austria. With or without this railway, it wouldn’t eliminate the military threat Austria posed.
The railway, at best, made Austria’s military actions more convenient, but not against Bavaria. Rather, it facilitated Austria’s campaigns in more distant German states like Baden and Württemberg.
Franz smiled and said, “If the Bavarian government wants to build this railway, let them go ahead. If they need our cooperation, we will cooperate with them. If they lack funds, they can raise money on the Vienna stock exchange.”
He didn’t mention the benefits that the completion of this railway project would bring to Austria. Some things are best kept quiet for the sake of future gains.
When the German Economic Exchange Organization initially proposed pushing for this railway’s construction, Franz had already prepared for strong opposition from the Bavarian government.
He was also prepared to use public opinion to force the Bavarian government to build this railway. But now, the Bavarian government has taken the initiative.
For Franz, it couldn’t be better. Naturally, the Bavarian government will be responsible for coordinating the relationships among the Southern German States, and the Austrian government won’t have to do anything to enjoy the benefits.
As for the Royal Bavarian State Railways, which will earn huge wealth from this railway in the future, Franz is very generous in saying that they deserve it.
If this railway brings convenience to the unification of the Southern German region for Austria, then Franz doesn’t mind awarding them a large medal.
He might even consider renaming it the Royal Austrian Railway Company in honor of their outstanding contributions to the cause of German unification.
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