Holy Roman Empire

In order to ensure the development of the domestic economy, it is most suitable for us to continue to implement the current resettlement standard system. "

Converted according to the current currency value of Austria, this means that the annual trade surplus will reach 400 million guilders, which is obviously an ideal figure.

In fact, it will be more difficult to convert it into gold and transport it back to the mainland to use it as a reserve for issuing currency.

Jungler, the representative of Bavaria, objected: "Mr. Hans, you worry too much. The lack of gold production is not impossible to solve.

Now that the mixed standard of gold and silver has been abolished, we don't need to reserve a large amount of silver, and we can take these silver to buy gold in the international market.

At present, many countries in the world adopt the reset standard system, and there are almost no obstacles to exchanging silver for gold.

If it doesn't work, we can also increase the leverage ratio. As long as the government's reputation can be guaranteed, there will be no deficit in international trade, causing gold to flow out, and inflation will not happen.

Whether it is the gold standard or the reset standard, in the final analysis, it depends on credibility. If the government does not have enough credibility, unless it directly uses gold and silver as currency.

Moreover, the reset standard system is not so beautiful.On the surface, with more silver as reserves, we can print and issue more banknotes.

But in fact, we all know that the gold-silver ratio is changing at any time.The discovery of a new gold or silver mine is enough to change the gold-silver ratio in the market, thus bringing strong fluctuations to the currency market.

Under the reset standard system, the currency market fluctuates frequently, and the currency value changes that may occur at any time seriously affect the development of domestic commercial trade. "

The two almost talked about the advantages and disadvantages of the two standard systems. If there are enough gold reserves, the gold standard will naturally prevail.

On the contrary, you can only make do with gold and silver to reset the standard.There is no need to consider the credit standard test, which is simply not feasible in this era.

In the case of international trade settlement, if gold and silver settlement methods are not used, who will recognize "credit"?

You can't use a pure silver standard, can you?Everyone knows that the world's silver production is increasing year by year, and the gold-silver conversion ratio is on a downward trend.

If the silver standard system is adopted, the currency market is stable, but it is stable and in a long-term depreciation state.

The current speed is not so fast. By the end of the 19th century, more and more silver mines were discovered, and the currency would not collapse by then?

Saxon representative Frank asked: "Before you discuss this issue, should we find out how much gold and silver reserves the government currently has?"

"The central government of the new Holy Roman Empire plus the local governments have a total gold reserve of 382.6 tons and a total silver reserve of 8728.9 tons." Chancellor of the Exchequer Karl replied

This figure was somewhat unexpected. Many people did not know that the New Holy Roman Empire already had so much gold reserves.

This is not surprising. Since Franz succeeded to the throne, the Austrian government has subconsciously increased its gold reserves.

Specifically, when making external settlements, the gold expenditure should be reduced as much as possible and the payment should be made in silver.Anyway, under the gold and silver reset standard system, governments of all countries have the same attitude towards gold and silver.

During the Near East War, the Russians contributed a large amount of gold and silver to Austria, increasing the gold and silver reserves of the Austrian government.

In the gold and silver reserves of the new Holy Roman Empire, the Austrian government accounted for 90.00% of the share, which naturally increased the domestic gold reserves.

This gold seems to be a lot, but in fact, after the reform of the gold standard, it is only enough for the initial use. With the continuous development of the economy, this reserve needs to continue to increase.

The total amount of gold in this era was limited. Before the reform of the gold standard was implemented in various countries, most of the gold was kept in the form of luxury goods among the people.

Hearing this good news, Jürgen, the Austrian representative who advocated the reform of the gold standard, said: "Our gold reserves are already quite large. If we carry out the reform of the gold standard now, we can also purchase gold from the private sector.

At present, most countries are implementing the gold and silver standard system. If we carry out the gold standard reform in advance, we can also take the opportunity to exchange silver for a batch of gold.

Once all countries start reforming the currency standard, the price of silver, which has lost its currency status, is bound to drop sharply. In the end, it is estimated that even one-third of its current value will not be maintained.

From the perspective of long-term development, stable currency value is very important. The British took the first step. If we don’t keep up, we will suffer later. "

The gold standard system was originally proposed by the British. As early as 1823, the British began to engage in the gold standard. They had enough overseas colonies, and the gold mined from the colonies was enough to support their implementation of the gold standard.

Most European countries cannot do this. Although everyone knows the benefits of the gold standard, they dare not follow up without sufficient gold reserves.

The gold and silver reset standard system is a substitute for insufficient gold reserves. If the new Holy Roman Empire enters the gold standard era, then this topic cannot be avoided.

Frankfurt representative Hans shook his head and said: "Currency reform is a matter of great importance. If you take one step forward and then want to recover it, the price you pay will not be a little bit.

Even now that we are scanning goods in the international market, the amount of gold we can obtain is limited, and it is not easy to exchange one hundred and eighty tons back.

The gold standard system has been established, and we can support it in the early stage.But in ten years, twenty years, or even longer, what should we do when we find that the gold reserves are insufficient? "

After listening to Hans' explanation, Franz finally understood why they firmly opposed the reform of the gold standard. In the final analysis, there was still insufficient gold reserves.

The development of the new Holy Roman Empire is very fast. Now that the economy has developed, the currency circulation required in the market will naturally increase.

In this era, increasing the circulation of money is not just about printing notes. It is also necessary to have sufficient reserves, or to put enough gold and silver there, so that the people can rest assured of the government's credibility.

Once the idea of ​​obtaining gold from the colonies entered Franz's mind, it became obsessed.

This is the most effective and reliable method. South Africa has the most gold mines. Unfortunately, the British have already occupied the coastal areas. Unless they can go inland, they can only look into the distance.

Franz dismissed this unreliable method after thinking about it.The African interior is not easy to mix, it is a real wild place.

Even if the transportation is opened up and the gold mine is finally developed, it will still be contested by European countries.Austria is not the British Empire, but it has no ability to cut off everyone from the sea to share the spoils.

Franz didn't want to make wedding dresses for others, so he spent a lot of money and invested a lot of money. In the end, everyone came to share it together, and maybe Austrian costs would not be recovered.

Thinking about other regions again...

Chapter 3 Output

Before proposing the reform of the gold standard, Franz had considered the issue of gold reserves. The best choice was naturally to occupy the gold producing areas and organize manual mining by himself.

It is a pity that the major gold producing areas in the world have nothing to do with the new Holy Roman Empire, most of which are in the hands of the British.

Gold mines that were easy to mine in this era are mainly distributed in South Africa, Russia, Canada, Australia, the United States, Zimbabwe, Ghana, Brazil, Colombia, the Philippines, Papua New Guinea and other regions.

There is no way, the entire European continent lacks gold mines, and even if there are, most of them have been developed. Now the remaining gold mines are buried underground, and open-pit gold mines no longer exist.

Franz is not an encyclopedia, so it is impossible to clearly remember the location of every gold mine. Naturally, it is impossible to find out all the gold mines that exist in the country.

Compared with the low output of gold, Austria's silver output is much better. Under the gold and silver reset system, it is silver that supports the value of the Austrian currency.

After a difficult game, the new Holy Roman Empire barely passed the gold standard reform system.This was the result of Franz's failure to intervene, and there was also a dissenting vote within the Austrian government.

In any case, the reform of the gold standard is a matter of time, and early start can also grab some gold. If everyone starts grabbing gold later, the price paid will be high.

Large gold mines are not within the control range, but small gold mines are not absent. In addition to the mainland, the two colonies of Austria, Guinea and Congo, also have many gold mines.

Leaving aside the underground gold mines, the open-pit gold mines produced by alluvial river beds can always be mined, right?

Franz's expectations are not high. There are a few tons of output per year, just to make up for the domestic gold gap.

As for other gold mining areas, we should wait for the British to suppress the Indian uprising before making small moves. It is better to be quiet now so as not to become a target.

At that time, the Austrian railway ship will also come out, occupying the first-hand advantage. Once a few ironclad ships are sent to the colony, it will be different to seize the right to speak in the colony after they have the regional naval advantage.

Don't look at the British navy as the number one in the world, but they also have many colonies to guard.After being scattered all over the world, in addition to dominating important sea areas, the remaining areas depend on the input of various countries.

Before the discovery of gold mines, the value of these areas and after the discovery are completely two concepts, and it is not worth fighting for by all countries.

According to Austria's business model, as long as it has operated locally for more than ten years and sent 10,000+ immigrants, it will not be afraid of competitors.

War also requires costs. Unless it is a huge mine like South Africa, a gold mine with a reserve of [-] tons is really not enough for a local war between two big countries.

Even if the gold in South Africa accounts for half of the world, the most important colony of the British is India. The reason is very simple, and gold mining is also costly.

Even at its peak, the benefits gained by the British in South Africa were still less than one-fifth of that of India, and the two are simply not comparable.

Naturally, Franz couldn't put the cart before the horse and go all out to get gold, no matter what the cost.To put it bluntly, gold is only a manifestation of wealth, and other industrial raw materials are also wealth.

The most critical core is to develop domestic industry. In history, Germany was so short of gold reserves, didn't it also develop?

The speed at which humans create wealth in the industrial age is far beyond what a few gold mines can match. Self-development is the most important thing.

After the two world wars, the British still held India, South Africa, Australia, Canada and other regions in their hands. Didn't they obediently give up world hegemony in the end?

After confirming the gold standard reform, Franz left the rest to the cabinet.

……

Franz still underestimated the impact of the gold standard reform. Not to mention the heated discussions in the country, it also caused a sensation in the European continent.

London

The new Holy Roman Empire suddenly started the reform of the gold standard, which immediately attracted the attention of the British government.From the perspective of the development of the capitalist market economy, the gold standard system will be more conducive to international trade.

For the British, as long as the new Holy Roman Empire joined the gold standard system dominated by them, their pound currency hegemony would take another big step forward.

In this era, the British had the largest gold reserves in the world, and London was the largest financial center in the world. Once all countries adopted the gold standard system, the pound-gold settlement system they established would become the mainstream of the world.

Countries that lack gold reserves have to buy sterling as a reserve to stabilize the currency value.In international settlement, the use of pound sterling is naturally indispensable.

Once the British pound becomes the world currency, the benefits it will bring will not be a star, which will lay the foundation for the British's world hegemony.

If you know it, you know it, this is a conspiracy.Even if he knew the plan of the British, Franz would still hold his nose and admit it.

You can't ignore the domestic economic development in order to prevent the British from establishing hegemony, right?The exchange ratio of gold and silver changes frequently, which is obviously not conducive to the development of industry and commerce.

No. 10 Downing Street, affected by the failure of the Near East War, changed its owner again.In the power struggle at home, George's cabinet had gone, and it was Lord Granville's cabinet for the Whigs.

The Prime Minister Palmerston in history was very unfortunately finished in the last political turmoil. In addition to the failure of the Near East War, he himself was the initiator of the war, so it is naturally impossible to make a comeback.

As a political party representing the interests of the financial and business circles, the Whig Party was also a vanguard in promoting the gold standard system, and their shadows were indispensable in the reform of the gold standard in later generations of European countries.

Prime Minister Granville was a little surprised and said: "The Austrians, who have always been conservative, actually took the lead in starting the reform of the gold standard system this time.

I don't deny that Austria's joining the gold standard system is good for Great Britain, but this abrupt change is still somewhat unacceptable. Do you think the reform of the Vienna government can be successful? "

Foreign Secretary John Russell replied: "Your Excellency, the reform of the gold standard by the Vienna government is more due to power struggles, and the central government wants to strengthen its control over the state governments.

The new Holy Roman Empire is essentially inheriting the legal system of the Holy Roman Empire. Naturally, it is inevitably restricted, and the governments of various states have great autonomy.

Up to now, the Vienna government has only obtained unified diplomatic power and military command in wartime. Now the Vienna government wants to take back the right to mint coins, so it started the reform of the gold standard system.

Although the time is a bit rushed, Austria made a fortune during the Near East War, and now the Vienna government should have enough funds for currency reform.

In the absence of accidents, there should be no major problems for the new Holy Roman Empire to join the gold standard system. "

After contemplating for a moment, Prime Minister Granville asked: "The gold standard reform requires not only funds, but also a large amount of gold reserves. Presumably the Vienna government will soon purchase gold in the international market.

However, the international market is changing, and gold is a scarce resource. Now it is time to increase the price. The Austrians may not be able to buy enough gold reserves.

But how about we give the Austrians a loan to help them reform on the gold standard, given Anglo-Austrian relations? "

There is no doubt that Prime Minister Granville is ready to do something.As the banker in the international gold market, the pricing power of gold exchange for silver is in the hands of the British.

As long as the British manipulate the price of gold, it will be difficult for Austria to acquire enough gold.

Once enough gold cannot be obtained, the Vienna government can only accept loans from the British, and then establish a standard system of the "sterling-gold system".

This will greatly improve the international status of sterling and lay the foundation for the settlement of sterling in international trade.

Anglo-Austrian friendship, that is a joke.When it is in line with the interests of the United Kingdom, it is a deep friendship; once the interests are contrary, no matter how deep the friendship is, it can become an enemy.

Historically, Britain and Austria have always been in a quasi-alliance relationship. Supporting Austria and opposing Russia has been a national policy of the British Empire for nearly a hundred years.

At the beginning of the 20th century, in order to contain the Germans, the British turned around and compromised with the Russians, abandoning this traditional ally.

After a long silence, the Chancellor of the Exchequer, George Gray, replied: "The prime minister's proposal is good. Let the new Holy Roman Empire join our currency system, and the rest will be easier to handle."

Obviously, whether Austria accepts the loan is only a minor issue. The most important thing is to let the Vienna government recognize the "sterling-gold system" and join the pound as an international currency settlement system dominated by them.

For the huge benefits brought by the pound becoming an international currency, the British began to export pounds crazily in the middle and late 19th century, using various means to get governments to recognize the hegemony of the pound.

In history, the world hegemony of the British Empire was actually based on the currency hegemony of the British pound. The British obtained a lot of benefits by issuing the British pound.

In later generations, when the colonial empire of the British Empire collapsed, it was also the currency hegemony that collapsed first. In order to compete for currency hegemony, the Americans also resorted to the big trick of exporting US dollars.

From investing in Europe after World War I, giving Germans blood transfusions to restore their vitality; to the European aid plan after World War II, they are all fighting for currency hegemony.

The Americans have given up the vast colonies of the British, but only the currency hegemony is firmly in their hands, and the interests in it can be seen in general.

Prime Minister Granville asked with concern: "Sir Russell, how likely do you think the Vienna government is to accept our goodwill?"

After contemplating for a moment, John Russell replied with a smile: "It all depends on how high our bid is!

Although the economy of the new Holy Roman Empire is large, it is at a disadvantage in terms of gold reserves. On the road to establishing international currency hegemony, they are not qualified to participate in the competition.

Except for the French who may threaten us in this regard, no country in Europe has this kind of strength. Of course, if the Russians complete internal reforms, they are also a threat. "

After hesitating for a moment, Prime Minister Granville made a decision: "Then our speed must be faster, and we must win over more countries before our competitors react."

Chapter 4 Storm Rises

Vienna Palace

Franz's wedding has officially been put on the agenda.On this issue, he can't help himself. More than 5000 million people in the new Holy Roman Empire are looking forward to it.

The auspicious day of the zodiac must be chosen. If the day is bad, cloudy and rainy, wouldn't it tell everyone that God doesn't like this couple?

Putting it in ordinary people's homes, it is also a bad luck to encounter such a situation. If a fanatic is involved, the wedding may be cancelled.If it is placed on the royal family, let alone, this is a huge political scandal.

Although the influence of theocracy has been greatly reduced, this feudal superstition still prevails in conservative Austria.