Chapter 165: Monopoly System for Tobacco and Alcohol
After entering 1851, the situation in the Near East became increasingly tense. Russia and Austria eyed the Ottoman Empire covetously, and the Ottoman government invited Britain and France to mediate the conflict.
Putting aside the price the Ottoman Empire paid, the problem now was that the French government was busy with internal fighting, and the British alone could not deter Russia and Austria.
In the eyes of the British, the core of this Near Eastern crisis lay with the Russians. As long as they do not cause trouble, it would be easy to persuade Austria.
Under this judgment, British-Russian negotiations began. Undoubtedly, the British did not believe the problem could be solved at the negotiating table. The main purpose of initiating these talks was to buy time.
The British government had already colluded with Louis Napoleon Bonaparte. To deal with the increasingly severe Near Eastern crisis, the British decided to support Napoleon III’s rise to power.
The British wanted to buy time, and the Russians were not ready either, so negotiations began under these circumstances.
Vienna
The Austrian government was discussing the British-Russian negotiations, which affects Austria’s next strategic step. If the British persuaded the Russian Bear, the westward strategy would fail.
Metternich analyzed: “The conflicts between Britain and Russia have long existed, and the conflicts of interest between the two sides are very serious. From the Near East to the Far East, there are focal points of conflicts between the two countries everywhere.
Unless one side can make major concessions, conflict between the two countries is inevitable.
The current Near Eastern crisis is mainly caused by the Russians’ core strategy. They have prepared for so long already, it would be as difficult as ascending to heaven for them to stop now.”
After the decline of the Ottoman Empire, a voice appeared within Russia to swallow up this old empire and inherit all its legacy.
Because their appetite was too big, Russia’s plan was naturally opposed by all countries. Although they did not manage to swallow up the empire, they still got enough benefits in the last two Russo-Turkish wars.
Perhaps feeling it was too difficult to swallow the Ottoman Empire in one go, the Russians also formulated two smaller goals to accomplish this plan in stages.
First, control the Black Sea, move south to the Balkans, and occupy the two straits;
Second, firmly grasp the right to protect Orthodox Christians within the Ottoman Empire, and then encroach on the Ottoman Empire.
The core of the first stage strategic plan was to occupy the two straits. Only by controlling this golden waterway could the strategic security of the Russian Empire be assured, without worrying about being blockaded by the Ottoman Empire.
This was also the first step for Russia to move towards the ocean, the core link in its maritime strategy.
However, this most critical first step had already been cut off by the British in the 1841 London Straits Convention.
The fruits of the Russians’ half a century struggle went down the drain. The Russian government would no longer let go of the right to protect Orthodox Christians. Historically, religious contradictions triggered the Crimean War.
Now Russia and Austria are allied, and the diplomatic situation of European powers jointly suppressing Russia has changed. With France not in the picture, if they didn’t take this opportunity to occupy the straits, the Russians would never have this chance again.
The Holy Land crisis happened to provide the Russians with a full excuse for war. The reason they hadn’t launched it yet was because they were preparing for war.
Did the Ottoman government not know this? Clearly impossible. As old enemies, the Ottoman government had never relaxed its vigilance against the Russians.
The problem was that even if they knew everything, apart from passively defending, they could only hope for international mediation.
Taking the initiative to attack did not exist. If the Russians were not ready for war, neither were the Ottomans.
On paper, their army numbers were not small and looked mighty. But they knew themselves that the seemingly powerful Ottoman army was actually just a facade.
Whether fighting the Russians or Austrians, they feared both. This could not be covered up by saying the government was corrupt and incompetent. The disparity in national power could not be made up overnight.
Prime Minister Felix thought for a moment and said, “It is inevitable for the Russians to make a move. What we are unsure of now is whether they will make a move in the second half of this year or drag it out until 1852.
Not only is when the outbreak of the war uncertain, how long this inevitably large-scale war will last is also unknown.
What is most worrying is whether Britain and France will participate in the war, and how much strength they will commit if they do participate.
Until these issues are determined, any actions we take will be risky. Now we have to find ways to keep the risks within a certain range.”
This was the difference between big countries and small countries. Small countries didn’t have to consider the aftermath when formulating strategies. Winning could be easily muddled through, losing meant instant doom.
Austria was different. As long as they didn’t act blindly and recklessly, even if they failed once, they would still have a second chance. So preemptive risk control was essential.
Marshal Radetzky shook his head and said, “If we want to control risks, then after the Russo-Turkish war breaks out, we can only wait for the war to escalate and not make a move before the French intervene. What if the French don’t participate? Do we have to give up this plan?”
Prime Minister Felix affirmatively said, “It depends on the determination of the British. If they want to, they will definitely find a way to pull the French into the fray.”
This conclusion was the same as Franz’s. After all, Louis Napoleon Bonaparte rose to power relying on the British!
Historically, he himself had a severe Anglophobia, and often acquiesced to the British on many occasions. During his reign, one could hardly see the French government butt heads with the British.
Franz thought for a moment and said, “The key to the success of this strategy lies in secrecy, catching all countries by surprise, creating a fait accompli, and forcing Britain and France to recognize it.
As long as the plan is not exposed, we hold the initiative, and when and whether to take action is decided by us.
After the Russo-Turkish war breaks out, whether Britain and France will participate in the war is beyond our control, but the Ottomans must be more anxious.
Pulling Britain and France into the war is their only choice to get out of the crisis. If necessary, we can let the Ottoman Empire know that our goal is only the Danube River Basin.”
Deceiving the Ottomans, Franz had no psychological pressure at all. If he told them that the Austrian government had no interest in them this time, the Ottoman government probably wouldn’t dare believe it even with the sweetest words.
It was better to expose some false information and let the Ottomans believe it to be true. Compared to the Russians who wanted to swallow them up, Austria’s appetite was undoubtedly much smaller.
Once they distinguished the main and secondary enemy, the Ottoman government’s choices were few. Being bitten by Austria was nothing but a scratch, but being bitten by the Russians would mean death or being crippled.
…..
Minister of Finance Karl suggested: “Your Majesty, in order to deal with the upcoming war, the Ministry of Finance suggests implementing a tobacco and alcohol monopoly system to raise more war funds.”
Austria had war funds to unify Southern Germany, but whether it was enough to face intervention by various countries was uncertain.
The Austrian Empire was huge, and had long passed the stage of adventurism. Franz also disliked taking risks and would not recklessly start a war with just a few months of war funds.
So from the beginning, the strategic plan took into account the intervention of the powers, with the worst case being fighting Britain, France and Prussia at the same time.
Of course, this was based on Russia and Austria being allied. To fight them all alone, Franz was not so reckless as to do that, and the Austrian government was not so confident either.
In war, the side with greater numbers always had some advantage, especially when two-front, or even three-front combat could occur.
With greater numbers, military spending would naturally be higher as well. Raising as much war funds as possible was very necessary.
The most direct approach was to levy war taxes, but Franz would not do so unless war had already broken out. He was a principled person.
“How much more income can be generated after implementing the tobacco and alcohol monopoly system?” Franz asked concernedly.
After thinking about it, Karl replied: “Based on the current domestic economic development, after implementing the tobacco and alcohol monopoly system, at least 35 million guilders or more in additional income can be generated every year.”
On top of existing fiscal revenues, being able to generate an additional 35 million guilders in income showed the huge profits of tobacco and alcohol.
“Prime Minister, what do you think?” Franz asked.
35 million was enough to impress Franz. He had already agreed internally. Now asking the Prime Minister’s opinion was to have the cabinet be responsible for implementing this plan.
Prime Minister Felix answered without hesitation: “Your Majesty, special circumstances call for special measures. The government will work on ‘convincing’ the capitalists. I’m sure they will understand.”
Clearly, everyone’s bottom line was the same. In order to increase fiscal revenue by 35 million guilders, everyone did not mind sacrificing some people’s interests.
Whether the capitalists whose interests would be damaged could think it through was no longer important. Anyway, they had no political voice.
Historically, what the Austrian government implemented was a salt and tobacco monopoly. But the honorable Franz had already included salt and grain in the list of necessities of life in the previous social reform bill.
To allow the people to fill their stomachs and not revolt, the prices of these necessities were strictly controlled by the government.
With prices unable to be raised, including salt in the monopoly would not increase revenue much either. The Ministry of Finance naturally chose alcohol, another item with higher profits.
These two goods were not necessities. It was fine even if prices were a little higher. Smoking and drinking less was also good for health.
This was Franz’s true thinking. Although he smoked and drank himself, it did not prevent him from guiding the nation and nurturing the correct habits.
Franz thought for a moment and said, “Since this is the case, the government should legislate and implement the tobacco and alcohol monopoly as soon as possible.”
“Yes, Your Majesty!” Prime Minister Felix replied.
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