Chapter 267: Gold Rush (Bonus Chapter)
No one could resist the temptation of gold. Ever since Baron Falkner discovered the first gold mine, it seemed as if God had opened a door and gold mines of various sizes were discovered one after another.
The scope is no longer limited to the Guinea region. Gold mines have also been discovered in Ghana, C?te d'Ivoire (Ivory Coast), Mali, and other regions.
Even the most conservative nobles in Germany could not resist. They sent their family members to organize overseas development groups to compete for this huge cake.
Vienna Palace
Lopez, the chairman of the German Cultural Exchange Association, said: “Your Majesty, recently many German nobles have expressed their goodwill to us, hoping to participate in this competition for gold mines. What do you think about letting them participate as well?”
After the Paris Conference, Franz ordered the formation of the German Cultural Exchange Association, whose main purpose was to continue to raise the banner of reunification.
It is very popular among the youth, arts, and education circles in Germany. Through the association, the Austrian government organizes the German Cultural Exchange Conference every year.
Not only people from the New Holy Roman Empire, the German Federal Empire, and the Kingdom of Prussia, but also people from independent countries like Switzerland, Belgium, and the Netherlands participated.
The conference venues also rotate among the member states of Germany. The funds are nominally from civilian donations, but in reality, a large part of it is provided by the Austrian government.
The German nobles mentioned by Lopez were probably not from the domestic nobility of the New Holy Roman Empire, since those families interested in such matters had probably already joined. Instead, these nobles probably came from other regions.
“As long as they identify with the Germanic culture, anyone can join, whether they are nobles, civil organizations, or individuals. You can promote that point.
The land we are developing in Africa is not only for the New Holy Roman Empire but also to open up living space for the entire German nation.
We welcome every compatriot to join and contribute to our second homeland.
The Austrian government is formulating laws to encourage immigration. All German immigrants will enjoy the best conditions.”
Franz was still worried about the lack of immigrants, so how could he refuse them to join?
At that time noblemen who ventured into gold mining wouldn’t go alone. Without organizing an armed team, even if they discovered a gold mine in Africa, they wouldn’t be able to defend it.
The abolition of serfdom in the German region has not been so long ago, and the influence of the nobles has not yet dissipated. If they take the lead in organizing armed immigrants, it will be much more effective than government propaganda.
As long as they can lure people, Franz is not afraid of them leaving. At worst, he can distribute land. This has no appeal to capitalists but is very different for poor ordinary immigrants.
Are you afraid that farms won’t be able to retain people? After all, there was plenty of unclaimed land in Africa. First, they could do some logging and sell the timber, and then they could develop farms and plantations.
Once one is lured, a whole family is lured. For people who can’t even eat their fill back in their home country, suddenly they have their own farm. They certainly won’t hesitate to immigrate!
While conditions in the United States might be better, there was also a lot of uncertainty. Achieving ownership of one’s own farm could take a lifetime for many.
In Africa, Emperor Franz had a lot of land to distribute. The prerequisite was to overcome local diseases that posed a high personal risk.
To increase the number of immigrants, Franz had to arouse people’s patriotic enthusiasm. “Building a second homeland” was the government’s slogan for immigration.
……
Guinea
The Royal Bank has been established on the African continent for more than a year. Since the stabilization of the colonial outposts, the Royal Bank has opened branches here, becoming one of the first banks to enter the Austrian colonies.
Now they have added another service — providing loans to cash-strapped mine owners. Developing gold mines requires substantial investment, and most prospectors cannot come up with the necessary funds. As a result, there is a need for loans.
While everyone else was rushing to find gold mines, Franz did not follow suit. He was well aware that not everyone who prospected for gold would necessarily make a profit. Providing logistical services, however, would undoubtedly be profitable.
Newly rich mine owners who had just discovered gold were the bank’s most valuable customers. With gold mining rights as collateral, there was no need to worry about their ability to repay.
……
The bank’s account manager, Tendris, smiled and said, “Lord Baron, these are already the most favorable loan conditions. If you don’t believe me, you can go out and inquire. In Neubruck, is there any other financing channel with lower interest rates than the Royal Bank?”
Baron Falkner shrugged and said, “Mr. Tendris, the Royal Bank is the only bank in the entire Neubruck area. Where can I go to inquire?
If there are other financing channels outside, they must be usurious loans from the underworld. You can’t possibly follow in their footsteps as that would damage the glorious image of the great Emperor Franz!”
Baron Falkner also knew that he didn’t have much room to negotiate. At present, there was only one bank in the entire Austrian colonial territory of Africa, and he could not possibly go back to the mainland just to get funding.
Time was of the essence in the development of gold mines. The sooner they started development, the sooner they could extract gold and make a profit.
He certainly had not forgotten the mountain of debt back home, with his family fief as collateral. Although the land does not produce much income, he does not want to become the prodigal son who lost his inheritance.
Unfazed, Tendris replied, “Lord Baron, you have quite a sense of humor. Is there any reason to doubt the credibility of the Royal Bank?
You should be aware that the cost of doing business on the African continent is much higher than in our home country. Currently, Neubruck is in its infancy and we have hardly any business here.
Interest rates are slightly higher than in the home country, mainly to amortize operating costs. As the economy in Neubruck becomes more stable and our customer base grows, these interest rates will naturally come down.”
Baron Falkner said helplessly: “Mr. Tendris, your loan interest is not just a little higher, 1.5% monthly interest is a full three times higher than domestic loans.
Even for the highest-risk commercial loans, the interest is no more than that. I have pledged part of the property rights of the gold mine as collateral. You really don’t have to worry about defaulting at all.”
Tendris shook his head and said, “Baron Falkner, you can’t calculate it like that. This is the African continent, and there are always risks.
Threats from indigenous tribes to the gold mine, threats from diseases in various countries. Your gold mine reserves may be good, but the development environment is challenging, and accidents can happen at any time.
In the worst-case scenario, we will suffer irreparable losses.
The Royal Bank is a compassionate institution. If you are unable to meet your obligations due to force majeure, we will only take possession of the collateral without pursuing your personal liability.
In fact, we have already shared the risks with you. At that point, the property rights to the gold mine would be virtually worthless.
In addition, if you encounter difficulties during the mining process, the Royal Bank will shield you from external pressures. If you decide not to use this service, we can still negotiate the interest rates.”
The last point was the most appealing to Baron Falkner. Bringing the Royal Bank into the picture might deter the prying eyes of hungry wolves.
As for whether he would be swallowed up by the Royal Bank, he is not worried at all. A small gold mine is not even worth the Royal Bank staking its reputation on.
After a moment’s hesitation, Baron Falkner said, “I can pay with gold. Can I at least get a discount?”
Tendris smiled and replied, “Certainly, we can settle at 98% of the international market price for gold, and that’s already the maximum discount.
I can assure you that the future price of gold in Neubruck will not exceed 95% of the international gold market, which is common practice in all gold-producing regions.”
After pondering for a moment and feeling the price was decent, Baron Falkner did not hesitate further. He directly picked up the pen and signed the contract.
After the transaction was completed, Tendris continued his sales pitch, “Baron Falkner, I believe you’ll need mining equipment as well, and there are ready-made options in Neubruck.
We have a partnership with the Austrian Machinery Group. If you haven’t made any purchases yet, you might want to check them out. Their quality is definitely equal to or better than any similar products.”
Baron Falkner replied politely, “Thank you. I’ve heard of the Austrian Machinery Group’s reputation in the mainland. As long as the price is reasonable, I’m more than willing to work with them.”
Baron Falkner wasn’t interested in delving into the relationship between the Royal Bank and the Austrian Machinery Group. How big shots make money wasn’t his concern.
However, he did need machinery now, and ordering from the homeland would take months, which was impractical.
He was willing to accept as long as the prices were not exorbitant. The profits from the gold mine were more than enough to cover all these investments, and all he lacked was time.
……
The discovery of large quantities of gold led to a gold rush. After the year 1856, the local situation was no longer under the control of the Austrian government. People from various countries, including the British, French, Dutch, Portuguese, Spanish, and Americans joined the gold rush.
Almost every day prospectors were rushing in from all over the world. In just one year, the population of Guinea’s Gold Coast increased by nearly 200,000.
This number was only the beginning, as more people continued to arrive from all corners of the world. Conflicts among immigrants and between governments also increased.
Especially in the region of Ghana, where the influence of great powers was complex and the number of discovered gold mines was the highest, it became the focal point of conflicts between different powers.
Austria, which acted first, undoubtedly gained an advantage, at least in terms of the number of immigrants.
At this time, propaganda played a role. The German Federal Empire and the Kingdom of Prussia had little influence in this competition. The majority of German immigrants gathered under the banner of the New Holy Roman Empire.
Combined with the earlier immigrants in the region, the New Holy Roman Empire’s total population in its colonial territories in Guinea’s Gold Coast colonial surpassed 200,000 at this point, exceeding the combined total of gold prospectors from other countries.
The saying “strength in numbers” is absolutely true, at least when it comes to searching for gold mines, as it provided a clear advantage by allowing the preemptive occupation of a large number of gold mines.
To deal with colonial conflicts, Franz appointed a governor for the Gulf of Guinea, incorporated all German prospectors into the reserves, and raised a division of infantry troops to the domestic garrison.
It can be said that Franz could mobilize a force of up to a hundred thousand troops with a single command, enough to sweep away all colonial territories of other nations in this region.
Austria had the advantage on land, while Britain and France had the advantage at sea. Spain, Portugal, the Netherlands, and other countries, though not as powerful, also had a share of the interests.
How to manage relations with various countries became the primary task of all parties involved. No one country could dominate alone, as no one could face so many enemies.
In addition, the gold mines might look very tempting, but due to the limitations of mining technology, only about 180 tons of gold could be mined annually in this region. After deducting costs, the remaining profits were clearly insufficient to pay for the war expenditures.
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