Chapter 257: Aegis
The wedding celebration concluded, and Franz became even busier. With so many guests arriving, how could he, as the host, not entertain them properly?
Banquets, banquets, and more banquets — Franz was beginning to feel nauseated by the constant festivities. Nevertheless, there was no choice; etiquette could not be neglected.
His several younger brothers and a group of archdukes from the House of Habsburg had become his coolies. However, these individuals seemed to be enjoying themselves, leaving Franz at a loss for words.
Amidst the joyous news of Franz’s grand wedding, the Austrian government’s difficulties in obtaining gold were overshadowed. In the eyes of the common people, an imperial wedding was far more worthy of attention than the complications of gold procurement, which only attracted the interest of professionals.
After a busy month, all the guests were finally sent off. In the process, Franz made countless promises and commitments, so many that he couldn’t even remember them. But that didn’t matter, because there were dedicated staff members to keep track.
The kings who personally attended the wedding were certainly not there simply for familial ties. In an era with inconvenient transportation and numerous aristocratic relatives celebrating marriages throughout the year, it would be impractical for them to attend every relative’s wedding. Wouldn’t they be extremely busy?
Franz had no intention of stirring up trouble on the European continent, so it was only natural for him to foster good relations with everyone.
Although these small countries did not have much power or influence, it was because of this that everyone could feel comfortable being friends!
As an emperor who advocated pacifism, Franz preferred friendly exchanges over any form of conflict or aggression. A peaceful Europe was his preference, even as the rest of the world remained tumultuous.
While Europe enjoyed tranquility, Britain and France, with time on their hands, began to meddle again in world affairs.
In 1852, Lambert, the acting commander of the East India Company, set his sights on Burma. Using the pretext that the British representative had not been received by the Chief Commissioner of British Burma, he demanded 100,000 pounds from the Burmese king and issued a war ultimatum.
Franz was left speechless at such a flimsy excuse. Whether or not someone wanted to receive a visitor was their own freedom. It was normal not to receive an unwelcome guest.
During this period, however, the British adopted a domineering attitude in the East. Even the British diplomat, Sir Harry Parkes, boldly declared, “Nowhere in the East can we be kept out of the door.”
The King of Burma was fortunate when the Near East War suddenly broke out, diverting the attention of the British government to the European continent. As a result, overseas colonial expansion activities inevitably diminished.
Having paid a sum of money, the Burmese government managed to navigate through the crisis.
Unfortunately, the Near East War did not persist, and the decadent Burmese government did not seize the opportunity to strengthen itself.
Now that the British were free again, they came knocking at the door. This time there were no other pressing matters to occupy the attention of the British government, so the war broke out without suspense.
As the war continued, British diplomat Sir Harry Parkes openly declared that Burma was now a colony of the British Empire.
This heavy-handed approach directly challenged Franz’s values and caused him to reevaluate what colonialism really meant.
In the Pacific, both Britain and France competed fiercely, with the British generally coming out on top, although the French also made some gains.
Observing the land seizures of Great Britain and France, Franz could only feel envy. The colonization of the Pacific was a great challenge for Austria.
Justice was always within the range of cannons, and Austria’s cannons couldn’t reach that far. It was too easy to become prey while attempting to catch up.
Nations such as the Netherlands and Portugal were examples. As pioneers in the colonial movement, they had to tread carefully in the face of competition from Britain and France.
Of course, grabbing food from the tiger’s mouth is also inevitable. The Dutch managed to secure the lucrative Indonesian region amidst the rivalry between Britain, France, and the Netherlands.
While there are certainly international political implications, the primary factor is that the Dutch have the upper hand in the Indonesian region. They have been there longer, which gives them an advantage over the British and French colonial forces in the same area.
If the Dutch did not have power in the region, Britain and France would not have given up the rich Indonesian territory, regardless of diplomatic maneuvering. Whether it is spices or various minerals, these are not things that anyone would willingly give up.
Currently, it is at the height of colonial division, with many unclaimed territories worldwide. Although competition is fierce, it is not as intense as it was in the late 19th century.
Austria did not join this wave of partition. Its government’s main focus remained on currency reform. At best, there is a slow outward expansion of African colonies.
These are minor issues, as the attention of various countries is focused overseas. The African continent, full of poisonous insects and ferocious beasts, has not yet attracted widespread attention, and Austria’s small actions have gone unnoticed.
Vienna Palace
The Minister of Finance, Karl, exclaimed angrily, “Your Majesty, the price of gold has suddenly plummeted, causing great turmoil in the London stock market. British financial consortium has begun to reap profits, and we were caught in the crossfire.”
The logical conclusion that whoever profits is the mastermind naturally led the Austrian government to believe that the British financial consortium was behind it.
As for the British government’s maneuvers? Either they’ve been played or they’re really economically ignorant.
The current outcome is clear: the Austrian government has to spend more money to buy gold. However, no matter how great this loss is, it is still not as significant as the cost incurred by Britain itself.
Using a tactic where you kill a thousand enemies but lose eight hundred might be risky, but employing a tactic where you kill a thousand enemies and lose eight thousand is a strategy only someone truly ignorant of military matters would dare to use.
In the wake of the stock market turmoil, the London Stock Exchange has fallen by 7%, wiping out tens of millions of pounds in wealth. The number of bankruptcies has risen, adding more than a hundred thousand people to the unemployment list.
The only beneficiary seems to be the British financial consortium. Not only did they make a substantial profit, but they also strengthened their monopoly in the industry.
After extensive data analysis, Karl naturally concludes that Austria has been adversely affected. The amount of gold purchased is lower than expected, and the government’s currency reform efforts have been affected, with the primary losses being in terms of time.
Franz thought for a moment and said, “Don’t worry about them. As long as the price of gold returns to normal, we will start buying. As soon as the gold/silver ratio goes up more than 5%, we’ll stop immediately.
We’ll take what we can get. After all this turmoil, we must be prepared for a prolonged battle. When the price of gold goes down, we buy; when it goes up too much, we sell.
Since the British dared to disrupt the gold market, let’s let the market continue to be chaotic and see whose losses are greater in the end.”
Others may be unaware of the dangers of blind currency appreciation, but how can Franz not know it? As the price of gold rises, the value of the pound sterling naturally increases, leading to a subsequent rise in the cost of British industrial and commercial products.
Do not be deceived by these seemingly insignificant points; in reality, this means a decline in the profits of the British export trade. As the capitalists experience reduced profits, a decrease in investment and an increase in the exploitation of the working class are inevitable.
It may be manageable for a day or two, but over time social contradictions accumulate. Even if British families can hold out for a while, economic development will slow down without a solution.
This problem can be resolved in two ways. Either wait for the Austrian government to complete the gold standard reform and for the sake of their own interests, naturally contribute to maintaining the stability of the gold market.
Or, alternatively, allow the Austrian government to acquire enough gold. Once the quantity is sufficient, there will be no need to continue buying.
“Yes, Your Majesty!” replied Karl.
After a pause, he added, “Your Majesty, the currency of the New Holy Roman Empire has already been designed. Here is a sample for your review.”
The new version of the Rhenish guilder features the emblem of the Habsburg monarchy and the emperor’s portrait on the front. On the reverse are vast landscapes that resemble an artistic map of the New Holy Roman Empire.
Whether it’s aesthetically pleasing or not doesn’t matter to Franz; what matters is the political symbolism. As long as the symbolism is there, even if it’s a little uncomfortable, it doesn’t matter, because everyone will probably appreciate it anyway.
After examining it carefully, Franz asked, “How is the value of the new Rhenish guilder determined?”
When issuing currency, the value is often determined by market demand. If the value is too low, it’s unacceptable because it would mean the face value would have to be increased. On the other hand, if it’s too high, it’s also problematic because it would make exchange very inconvenient.
Karl replied, “After our initial research, we came up with three proposals:
The first proposal suggests that 1 Rhenish guilder is equal to 3.66 grams of gold, about half the value of the pound;
The second proposal is that the Rhenish guilder and the pound be of equal value, equal to 7.32 grams of gold;
The third proposal suggests that the Rhenish guilder and the franc have the same value, about 0.29 grams of gold.
The main reason for such a design is to facilitate the convenient settlement of international trade. At present, our main trade partners are Britain, France and Russia. The Russians use metallic currency directly, which eliminates the need for currency exchange.”
In fact, this is the simplest method of determining the value of the currency. The values of the pound sterling and the franc have been thoroughly researched by Britain and France and are currently circulating quite well in the market, being the two most common currencies in the world in the current era.
If the Austrian government wants to innovate and introduce a new currency value, it’s not impossible, but it would require extensive research and consume valuable time.
After some thought, Franz said, “Let’s just go with what Britain and France have done. If we come up with something completely different, we don’t know how the outside world will criticize it. So let’s go with 3.66 grams.
It’s convenient for settlements, and the number is also auspicious. For now, the denominations will be 1 guilder, 5 guilders, 10 guilders, 20 guilders, 50 guilders, and 100 guilders. If needed later, we can always add more.”
In this casual manner, Franz decided on the new currency values.
The full name is the Holy Roman Empire Rhenish Guilder, abbreviated as “Rhenish Guilder” or “Aegis,” just one stroke away from being a movie title.
This name also has its origins. The Rhine River is the mother river of the Germanic region, and the most widely used currency in the Germanic region before was the Rhenish guilder issued by the Rhine Confederation.
Of course, to show the Austrian government’s determination to unify Germany, the Rhenish guilder couldn’t be abolished. Otherwise, the nationalists within the German Federal Empire would be displeased.
In this era, the purchasing power of the aegis is still very strong. Apart from the guilder, there also needs to be smaller currency units.
1 guilder = 100 schillings = 10,000 groschen
With so many units, it ensures that even the cheapest goods can be paid for with currency.
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