Chapter 145： Despicable means (1/2)

At the same time as the railway plan was launched, Franz did not forget the other two core industries, but in these two industries, the government directly intervened much less.

To some extent, the manufacturing industry can be viewed as a whole. The agricultural product processing industry can be separated separately, without other factors, simply being able to make money.

At present, the largest source of foreign exchange for the Austrian Empire is agricultural exports. These include exports of refined agricultural products and exports of original ecological agricultural products.

There is no doubt that the grain export profits after processing are much higher, which can drive a large number of people to employment and bring a lot of taxes to the country.

From the perspective of economic development, this is the growth point of GDP. Franz also counts on the profits from agricultural exports to make up for the trade deficit.

In international trade, the Austrian empire has been in deficit for most of the time, which is also the main factor that causes the continuous depreciation of the Austrian Shield.

This year's currency is not the credit system of later generations. It is completely real gold and silver. In international trade settlement, everyone uses gold and silver.

International Monetary? The pound was barely counted, but it did not reach the status of the late 19th century, and most countries and regions did not recognize it.

In this context, the continued trade deficit will cause wealth to flow out and affect domestic economic development.

After the Franz administration, in order to allow the normal development of the domestic economy, the value of the Austrian rupiah was stabilized.

Finding ways to calm the trade deficit as soon as possible has become the government's top priority.

If the Austrian government can achieve trade balance in the short term, it can only earn value-added products by exporting refined agricultural products.

In August 1849, the Austrian government issued a rule: to reduce the tax rate of agricultural product processing enterprises by two points, and also announced that after 1850, the original ecological agricultural product export tariffs will be increased by one point.

In order to encourage more people to invest in this industry, the Austrian government also stipulates that newly established agricultural processing enterprises enjoy tax-free treatment in the first year and half-tax treatment in the next three years.

Affected by this policy, Austria added 221 agricultural processing companies in the later months of 1849, including Franz.

Austria is already a big exporter of agricultural products. It has natural advantages to develop agro-processing industries. Encouraging policies will suffice.

The manufacturing industry is troublesome. The scope is too broad. In some areas Austria has advantages. Most industries have begun to fall behind.

However, this backwardness is only relative to the British who have completed industrialization. Austria's industry in Southeast Europe still has an advantage.

In Franz's view, advancing the development of manufacturing is actually accelerating the pace of industrialization, and mechanized production has too much advantage over handicrafts.

This can't be done in a short time, but the government still supports heavy industries, such as the steel industry and machinery and equipment manufacturing industries.

This care is not only about lowering tax rates, but also local governments will help solve infrastructure problems, such as industrial water and transportation problems.

To develop the manufacturing industry, the most important thing is to live with loneliness. Not to mention one year, even if it is three or five years, you may not see results.

Innovation?

It is too early to say that this problem. Before the completion of industrialization, Austrian manufacturing followed the path of plagiarizing the British. Of course, there were occasional unexpected gains and it was also pleasant.

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In general, from the second half of 1848 to the end of 1849, the economic reforms carried out by the Austrian government were aimed at removing obstacles to domestic economic development.

As a unique country with a semi-planned economy and a semi-market economy, Austria achieved remarkable economic results in 1849.

The most intuitive feeling of the citizens of Vienna is that the price of food has fallen, which is 15% lower than in 1847.

Don't look at this data. It seems inconspicuous. In fact, this is very important in industry. The decline in food prices means that the cost of supporting workers is reduced.

The reduction in the cost of living has also made the lives of citizens at the bottom better. Many people have insignificant savings in their hands. Some people choose to save and others choose to consume.

One or two are inconspicuous. When more people come together, it is not a small number. The prosperity of the market has increased.

These inconspicuous consumptions were finally fed back into industrial production. Naturally there was production in the market, which promoted the increase of industrial capacity.

If this impact is negligible, then without internal tariffs, the market in Hungary will be open and the impact will be significant.

No matter how economically backward, there are more than 10 million people. After liberation of serfs and redemption of land, these people became property owners.

Buying power naturally has purchasing power. Perhaps this market has not fully grown yet, but the increase in total consumption is an indisputable fact.

Without tariffs, the competitiveness of Austrian industrial and commercial products in Hungary has greatly increased, and the expansion of the Hungarian market has naturally stimulated the development of domestic industry and commerce, and there has been a small prosperity.

According to the statistics of the Ministry of Industry, the industrial capacity of Austria in 1849 increased by 15% compared with 1847. This figure is unexpected and reasonable in Austria.

Industrial capacity cannot be achieved in a leaps and bounds, and it takes time to expand production. This era is no better than future generations. Equipment can be obtained immediately after placing an order.

The next few years will be the outbreak of Austrian industrial capacity.

In addition to the expansion of the domestic market, the establishment of the Holy Roman Economic Alliance, the domestic industry and commerce has a wider market, which will naturally stimulate industrial production.

While Franz was thinking about a better future, bad news came.

”His Majesty, there is news in St Petersburg that the Russians have run out of patience.

A week ago, after the Prussian government announced a national mobilization, Tsar Nicholas I made a tit-for-tat decision, and the Russian Empire's army was marching towards the Prussian border.

Yesterday morning, the Russian Foreign Ministry issued a 72-hour ultimatum to the Prussian ambassador to Russia.

If nothing else, the Prussian government would soon compromise with the Russians and they would not dare to fight the Russians now. ”Metternich frowned.

It is in Austria's interest that the Russian-Prussian confrontation because of the Danish war not only consumes the strength of the Prussian government, but also worsens the Russian-Prussian relationship, highlighting the importance of the Russian-Austrian alliance to the Russians.

But the Russians were impatient, so the Prussian government could not hold on.

At first, the Prussian government also had confidence in the annexation of the two principalities of Schleswig-Holstein, and after seeing the tough attitude of the Russians later, their confidence gradually decreased.