Chapter 460 Conflict
Since the Age of Discovery, the prosperity of commerce has been inseparable from ports. Excellent ports can better promote economic development, and the population has gathered along the coast. The change brought about by the Industrial Revolution was the rise of railway transportation, which greatly improved land transportation capabilities and allowed inland areas to develop.
However, this kind of development is much more restrictive than maritime transportation. Railway construction is restricted by various factors, which has also caused disputes between regions. Areas where railways pass can drive regional economic development and even directly create new cities. However, if railways do not pass through, even ancient cities may decline as a result.
“Many areas in East Africa had railways first and then settlements. Such villages and towns formed along the railways are likely to continue to flourish if the railways do not decline in the future.”< br>
“Not only that, railway construction has The transportation efficiency in East Africa has more than tripled. In the past, we needed a lot of manpower and livestock to transport goods to the seaport area. Now inland areas only need to transport goods to the nearest train station, and then the goods can be exported to the seaport via rail. .”
"Railway construction in East Africa has been a loss-making business from the beginning, with investments made without considering returns. But now we have seen the benefits of this investment, that is, the interior is developing rapidly and the gap between the east and west of the kingdom is narrowing. This has a positive significance for the rule of the kingdom."
...
"Since 1875, we have found that the German government has significantly strengthened its targeting of our companies, especially those named. The difficulties faced by companies in Hechingen have increased significantly. Obviously, we have become a piece of fat in the eyes of the German government, and the Bismarck government obviously turns a blind eye to our interests."
"Bismarck represents. The Juncker group behind Germany, the barbaric growth of our Hechingen in Germany in recent years has obviously stimulated the Juncker landlords.”
“And just yesterday, someone in the German Parliament proposed to increase tariffs on agricultural products. , among which the agricultural products of our East African Kingdom are the focus.”
Constantine and Ernst listened silently to their subordinates' reports. It was obvious that the Germans could not sit still!
Ernst: "Father, look! I said that the surname Hohenzollern cannot be our protective umbrella. When we chose to develop in East Africa, we were actually completely separated from it. The original group has become their competitor. ”
The group Ernst refers to is the Junkers aristocracy. The business scope of the Junkers aristocracy cannot be said to be completely the same as that of the Hechingen Consortium, but it is also true. Not bad at all.
The market means that I eat one more portion and you eat one less portion. Obviously, the Hechingen Consortium is too large and has too much market share, which seriously threatens the business of the Juncker nobles.
Constantine: "I only had a telegram with William I this year, and he promised not to embarrass the East African Kingdom!"
Ernst: "The Prussian royal family and the Prussian government should be viewed separately. Their interests are not consistent. The Prussian royal family is fundamentally subject to the will of the country. This is the basis of their existence."
Kang Standing: "What to do now?"
Ernst: "No Is there any good way but to gradually withdraw investment from Germany and transfer the money to other regions?”
After all, the Hechingen Consortium is not East Africa, so East Africa can’t do much if the Hechingen Consortium is targeted. Just like Jewish capital, capital has no motherland. There is no father here, but there is a place for the father.
Constantine: "Then where are you going to invest your money?"
Ernst: "Austro-Hungary, the Far East, and Argentina are the three regions."
East Africa was not mentioned, but East Africa has always been the largest bloodletting tank for the Hechingen Consortium. The Austro-Hungarian market is actually still there. It is true that political centralization is not strong, but the more it is like this, the less constrained capital is by the government. The Rothschild family is very prosperous in Austria. Needless to say, the Far East has a huge market and deep cooperation with East Africa. Especially after the East African fleet visited, they became more polite. Argentina has a good future. At least it can follow Britain and the United States.
Constantin sighed: "Oh, let's do it!" As the instructions from the Hechingen Bank headquarters were issued, part of the funds in Germany flowed to other countries, and in response to Germany's pig killing behavior , East Africa is also preparing to stop purchasing German steel after the contract expires, and instead increase its purchasing efforts from the Austro-Hungarian Empire.
A large amount of capital fled, causing a small-scale panic in the capital market. However, now is the Great Depression, and this panic spread instantly, eventually triggering a new round of crisis.
The German government, which had just recovered, immediately felt the pressure. As a large amount of money was lost from the German market, the unemployment rate increased again.
William I asked: "What's going on? Didn't the economy just pick up?"
Bismarck said confidently: "Your Majesty, don't worry, it's an economic crisis now, so some things are happening. Trouble is nothing It’s such a big deal, everything is under control.”
That is to say, in fact, the Hechingen Consortium mainly withdraws from the German agricultural investment market, and coincidentally, the Hechingen Consortium withdraws in front of it. Someone has taken over the business left behind by the Hechingen Consortium.
However, these businesses are not so easy to take over. The Hechingen Consortium used to cooperate with them, so it would set aside a certain share for the Juncker nobles to help them sell their products in the international market.
It is no longer necessary now. Many sales channels established by the Hechingen Consortium, especially the supermarket system, can replace more goods with agricultural products from East Africa.
The Junker nobles had better have their own sales channels to sell their goods, otherwise the losses will definitely be huge. Ernst will not show mercy anymore. Of course, the Junker nobles are not monolithic. .
After the unhappiness with the Prussian Junker noble group, the Hechingen Consortium strengthened its cooperative relationship with the nobles of the South German region. Baden, Württemberg and Bavaria have all become beneficiaries.
After all, Germany has a federal system, especially the states in the South German region. They enjoy relatively sufficient autonomy, at least economically. Good at dividing opponents.
The competition between Germany and the Hechingen Consortium mainly occurs in the grain market, and is not too fierce in other aspects. The Junker nobility is just a collective name for German aristocrats.
For example, in the industrial field, the competition between the Hechingen Consortium and the Junkers is not fierce, because the Hechingen Consortium focuses on light industry and emerging industries, while the industrial Junkers aristocrats focus on the heavy industry, and the two sides develop in separate directions. .
However, the Hechingen Consortium is leaning towards East Africa in agriculture, which will inevitably lead to conflicts with the landowners Juncker nobles. Even though the Hechingen Consortium has made concessions long ago, this is far from reaching the agricultural capacity. to overcome the psychological expectations of the nobles.
The Hechingen Consortium is not afraid of such competition. The Hechingen Consortium’s main investments in Germany are channels and food processing. They do not necessarily rely on the landowners Juncker nobles. In the words of later generations, The landowners, the Junkers, are at the lower end of the industrial chain.
However, food processing companies are also industrial, and industry is easily managed and controlled, and is obviously not as flexible as the financial industry. Therefore, it is urgent to move food processing companies to East Africa.
East Africa actually has a primary food processing system, but mid-to-high-end processing and production, mainly in Germany and Austria, has suffered setbacks in Germany. Ernst has also facilitated the transfer of food processing enterprises to East Africa.
(End of this chapter)