Holy Roman Empire

The middle-aged man named James is a small capitalist who owns a flour mill.Ever since the Anglo-Russian grain agreement was signed, he panicked.

Before Russia's cheap grain entered, the share was divided up by the relevant capitalists.By the time James reacted, it was already too late.

Of course, it's useless to react quickly, this kind of fat is not what he is qualified to share.Originally, James purchased local wheat for processing, but it is no longer possible.

Domestic wheat is not that cheap. If the purchase price is lowered, he will probably be kicked out directly.

In order to find cheap food sources, James turned his attention to the food trading market.Affected by international food prices, the price of food here has fallen much more.

Suddenly seeing Austrian wheat on the billboard, James stopped immediately.We must know that in the past ten years, Austrian wheat has rarely appeared in the international market, and all that has been processed flour has appeared.

"Raul, what's the problem with this batch of grain? Why is the price so low? I remember that Austria doesn't export wheat. Isn't this smuggled goods?"

James asked half-jokingly, no wonder he was surprised, the main reason is that this is not an ordinary low, but low to the limit, a price beyond James' imagination.

"Mr. James, you really know how to joke. If it's really smuggling, we don't smuggle grain! This kind of bulk commodity is inconvenient to transport, and the tax rate is low. There is no need to take risks at all."

James ignored Raul's hahaha, grabbed a handful of wheat and looked at it. The preliminary judgment was that it was old grain, but this was not the reason why the price was so low.

"Stop talking nonsense, tell me what's wrong with this batch of grain? Don't tell me, there is such a bargain to take advantage of, and it's our turn!"

Raul smiled lightly, took out a newspaper and handed it to James.

"Mr. James, you can see that this batch of grain is old grain. Not long ago, the Vienna government announced the replacement of grain reserves, and the old grain in the warehouse was sold at a discount.

You are also a professional, so you must know that the price of old grain will be discounted.Now this batch of grain has been stored for more than three years, and the taste of flour will definitely be affected.

In Austria, this kind of grain is usually not processed into flour, but used to make wine, or processed into feed.

This time the Vienna government released a relatively large stockpile of grain before it flowed into the international market.The reason why it is so cheap is of course that the bureaucrats in London have done a good job.

The new grains of the Russians are so cheap, so these old grains can only be cheaper, otherwise who will they sell them to? "

It can be seen that Raul also has deep resentment towards the London government.The Anglo-Russian trade agreement directly allows companies to sign contracts with the Russians, and the business of these middlemen will naturally disappear.

If they hadn't brought old Austrian grain back for sale, they would have closed down.The price of grain on the international market is not as cheap as Russian grain.

James put down the wheat in his hand, grabbed another handful and rubbed it in his hand.

"Are you sure there is nothing wrong with these grains?"

Raul: "Of course, if there is a problem, I go to hell!"

Seeing that James was still hesitating, Lauer added: "Mr. James, if you have any doubts, you can check it yourself.

This kind of opportunity to pick up bargains is rare, and no matter how low the international food price will be in the future, it is impossible to fall to this level.

You should know that farmers all over the world would go bankrupt if they sold at that price.This has fallen below the production cost price, that's all. "

James is tempted. If there is no problem with the grain and it is just old grain, it is worth buying.Gritting his teeth, he seemed to have made up his mind.

"I want [-] tons, can it be cheaper?"

This is almost all the funds that James can mobilize, but in order to seek greater benefits, he decided to gamble.

The price of this batch of grain is 15.00% cheaper than the grain the London government got from the Russians.On the surface, it is normal for the price difference between old grain and new grain to be different. In fact, the price is too cheap.

James wisely did not explore the deep-seated reasons.Anyway, as long as he can make a fortune, why does he care so much!

……

From May, grain from Austria quickly appeared on the British market.As soon as this kind of cheap food appeared, it was sought after by unscrupulous capitalists.

Everyone is smart and knows that this price is abnormal. Some people even speculate that this is Austria's intention to sabotage the Anglo-Russian deal, but this does not prevent them from making a fortune.

Grain is different from other commodities, and it is not a problem to store it for three to five years.Anyway, it’s all stale grain, and it’s still stale grain if it’s released again.

The taste becomes worse, that is even a small problem.As long as the processed flour is cheaper, it will not worry about selling in the market.

It's good to be able to fill your stomach, and you want to pursue the taste of food. Ordinary British people are not so proud.

Such a high-profile action naturally attracted the attention of the London government.However, this operation was not done by Austria alone, and a group of local British capitalists participated.

It is also impossible for everyone to benefit from the deal between the London government and the Russians, and many capitalists are still the losers.

If no action is taken, it will be very difficult for them to survive when the Russian grain floods in.

Under this background, they naturally don't mind cooperating with Austria.Anyway, it is a legal trade, and the London government has no right to interfere.

Want to set restrictions to stop the dumping of Austrian grain.I'm sorry, but the congressional hurdle was not easy. For the sake of their own interests, the opponents held high the banner of free trade, leaving the Benjamin cabinet helpless.

The free trade system cannot be overthrown, it is at the heart of British economic policy.Of course, this kind of trouble has little effect on Prime Minister Benjamin.

The results of the new round of elections have come out and he is now the former prime minister.What to worry about is the Liberal cabinet being formed, which is also digging a hole for rival William Ewart Gerston.

At the critical moment of the change of term, the Benjamin cabinet responded negatively. After the transfer of power was completed, it was too late for the London government to take measures.

In just a few months, Austria has dumped 850 million tons of rye, 300 million tons of wheat, 430 million tons of corn, and 320 million tons of soybeans to Britain...

What happened in the UK has also affected the international grain market. It will be a real bloodbath, with a sudden plunge of 15.00%.

The cheap Russian food has not yet appeared on the international market, and as a result, the price has almost fallen.

At the beginning of the year, rye was still 25 Aegis/ton in the international grain market, but now it has dropped to 18.6 Aegis/ton; corn has also dropped from 18.8 Aegis/ton to 14.1 Aegis/ton...

In short, the prices of all staple foods are plummeting, and the prices of other agricultural products are also greatly affected.People's panic is the culprit behind all this.

At this point, everyone will lose money together.Everyone knows that the current price is not the lowest point yet, and after the autumn harvest, grain prices will usher in a new low point.

The supply of grain exceeds demand, and the good days of major grain exporting countries are over.Without the trigger of the Anglo-Russian grain loan agreement and the dumping of grain by the Vienna government, the agricultural crisis would have erupted slowly.

It is impossible now, the crisis will be detonated as soon as the crisis is approaching. 1872 was destined to be a tragic year, and unsalable food would become a hot topic in the second half of the year.

This is no longer a question of price, but of simply not being able to sell.The best way to stabilize food prices is to reduce food production and destroy excess agricultural products.

As a responsible big country, Austria naturally has to take positive measures. In July, the Austrian Ministry of Agriculture issued a call to the world's major grain-producing countries, hoping that all countries will reduce grain production capacity at the same time.

On August 8, the Vienna government promulgated the "Land Fallow Law", which expressly stipulates that the land for growing food must be fallow.The specific fallow time shall be determined by the local government according to the actual situation.

Laws that appear to be effective have very limited influence in reality.Austria already has a tradition of agricultural fallow, but this time it is clearly stipulated.

According to the estimates of the Ministry of Agriculture, Austria's grain production can be reduced by about two or three percentage points in this way.This is not a small figure, which can ease the crisis of overcapacity.

On August 8, the Vienna government promulgated the "Land Reclamation Law", which clearly stipulates that newly reclaimed land in the European region prohibits the cultivation of wheat, corn, rye, potatoes and other crops within five years.

These measures are far from quenching the near thirst. In any case, it is impossible to pull out the crops that have been planted in the ground.

In 1872, Austria's grain production would not decrease, and it would not affect the price of the international grain market in a short time.

Chapter 92 The Good News

International food prices plummeted, Austria's domestic food prices were also hit, and food prices plummeted.

The price of grain in Austria has always been lower than the international market, and this time it is finally in line with international standards.

Not only is the price of grain falling again, but the prices of other agricultural products are also falling.Capitalists are already working hard to drag the market, but it is still in vain in the face of huge supply.

With the turmoil in the international grain market, a large amount of raw grains were sold to the market, which also affected the export of finished grains.

Taking flour export as an example, not only the price fell by [-]% compared with the same period last year, but the total export volume also shrank by [-]%.

This is the aftermath of the old grain dumped by the Vienna government to the UK. The British capitalists who got cheap raw materials worked hard to produce, crowding out the original market.

There is no way to do this, the flour cannot be stored for a long time.If you want to disrupt the grain trade between Britain and Russia, you can only use raw grain to attack.

Falling prices and shrinking exports have made life difficult for companies engaged in agricultural export, especially the low-tech processing industry.

In the Austrian agricultural product processing industry, a huge industrial chain has also been formed.The number of industrial workers exceeds 300 million, and the number of enterprises engaged in flour processing alone exceeds 80.

Tens of millions of farmers are also involved behind this, and the impact on the grain processing industry will inevitably affect the purchase of new grain.

In the Palace of Vienna, Franz put down the documents in his hands and picked up the teacup. A faint smoke rose and the fragrance overflowed.

"The domestic market must be stabilized as soon as possible. The price of international raw grain transactions has plummeted, and the transaction price of finished grains will also plummet soon.

The capitalists cannot last long.In the face of interests, few people can remain rational, and the finished grain market will not be stable for long.

The international market cannot be controlled, and it counts as much as we can keep, and we don't have to worry about temporary gains and losses, but we must stabilize the local and colonial markets.

The growth rate of domestic food consumption is nearly [-]%. As long as we last for two or three years, when the bankrupt tide of farmers in European countries breaks out, we will be able to survive the crisis.

However, the government still needs to adopt more active policies and cannot wait for the market to adjust spontaneously.We don't have so much time to waste, otherwise the advantages accumulated in the early stage will be wasted in vain. "

The main reason for the increase in consumption is population growth, followed by economic development and the increase in people's income, which leads to an increase in consumption.

The absorption of immigrants from European countries proposed by Franz before is actually a means of increasing food consumption.

Of course, the main purpose of absorbing immigrants is still for labor.The area of ​​Austria's colonies is already very large, and to develop these places requires a large population.

Even the African continent, which is the most valued, after so many years of hard work and immigration, the total population of Austrian Africa is just below [-] million.

This number is far from enough, and other colonies are even worse, because the population is too small, and even the most basic development cannot be done.

Secretary of Agriculture Hals stood up, took out a report from the folder, walked up and handed it to Franz.

"Your Majesty, the Ministry of Agriculture proposes to raise import tariffs on agricultural products to prevent foreign agricultural products from impacting the local market; at the same time, it implements a minimum protective price for grain purchases, and implements the recommended guiding price for domestic finished grain prices.

For the finished grain export enterprises whose interests have been damaged, the Ministry of Agriculture suggests that they should be given tax rebates and subsidies for the export part to make up for part of the losses.

These are specific measures, and there are corresponding supporting plans.After the plan is implemented, the sales price of local agricultural products will stabilize in the shortest possible time. "

Increased import tariffs on agricultural products, this is aimed at the Russians.In recent years, grain exports from the Russian Empire have only decreased, not completely disappeared.

It's just that this part of the grain did not directly enter the international raw grain market, but was sold to a grain processing company in Austria. After processing, it was sold to the international market, including resale to the Russian Empire.

Austria is able to occupy a share of up to 70.00% in the international agricultural product export market, and the contribution of the Russians is also indispensable.

Now that the production capacity of the Russians has exploded, Austria can no longer eat it. In addition, countries have increased their food production crazily over the years, and the international market is oversupplied. Naturally, the Ministry of Agriculture prioritizes protecting the interests of its nobles and farmers.

The minimum protective price for grain purchase is also one of the measures to protect the interests of farmers.Including the sales guide price of local finished grains later is also a part of it.

To put it simply, the government sets a retail price range for finished grains, and companies can only set prices within this range.

Prior to this, the Vienna government had a maximum price limit for agricultural products, and now it has added a minimum price limit.

"Free market economy", unfortunately Austria has a market economy, but not a free market economy.It is not once or twice that the government intervenes in the market.

Of course, if it is an industry that has nothing to do with the international people's livelihood, the Vienna government will never intervene. For example: within crafts and luxury goods, they are all free.

After briefly reading it, Franz nodded and shook his head.

"The following plans are good, but the increase in import tariffs on agricultural products cannot be implemented for the time being. We have raised tariffs, and the Russians will definitely take countermeasures and increase tariffs on Austrian industrial and commercial products.

This turmoil is enough to be limited to agriculture, and if it spreads to other industries, the consequences will be even more difficult to control.

We can restrict the implementation of the minimum grain purchase price, only for local and new grains of the year; tax rebates and subsidies for enterprises are also limited to products processed from local grains.

In order to prevent enterprises from fraudulently obtaining subsidies, once they apply for tax refund subsidies, enterprises are prohibited from purchasing foreign agricultural products within six months. "

Franz still remembers that one of the important reasons why Germany and Russia turned against each other in the original time and space was because of tariffs on agricultural products.Of course, the current situation is different. The Russians have no confidence to turn against Austria.

It is not beneficial to just blindly intensify the conflict. Although the market in the Russian Empire is not very good due to the poor economic development, it is also an important sales market for Austrian industrial and commercial products.

Moreover, the Russia-Austria alliance has not yet disintegrated, and the trade agreement signed by the two countries is still valid.Unless it is a breach of contract, raising tariffs is a joke.

It is clearly stipulated within the scope of the agreement that each increase in tariffs shall not exceed 5.00% of the original tax rate, and the same product can only be adjusted once within three years.

The tariff on trade in agricultural products between Russia and Austria is 4%, and this rate is increased by 5.00%, which is 4.2%.Just improve it a little, Franz might as well not adjust.

The tsarist government raised taxes on Austrian industrial and commercial products many times, but it did not change the fact that Austrian goods filled the shelves of Russian stores, which is enough to illustrate the problem.

Within the scope of the treaty between the two parties, no commodity can have a tariff rate of more than ten percent, and most of them are only a few points.

If you want to get over the past, it is a breach of contract.This kind of treaty was signed by Franz with great difficulty in fooling the Russians. How could he voluntarily break the contract?

From this aspect, the overall view of the Minister of Agriculture still needs to be improved.However, Franz was very tolerant of this small problem, and the technocrats should not be too demanding.

In other abilities, Halse's performance is very average, but he is very powerful in the professional field.During his years in charge of the Ministry of Agriculture, Austrian agriculture has improved qualitatively.

Optimizing the agricultural industrial structure, promoting new agricultural technologies, improving the agricultural industrial chain, etc., were all completed under his auspices.

Austria's agricultural overcapacity is now due to Halls' contribution.Of course, this cannot be blamed on him.It is too difficult to change farmers' planting habits while still making money.

The agricultural crisis in the original time and space lasted for more than 20 years, forcing one farmer after another to go bankrupt before rebalancing. The difficulty in this can be imagined.

Planting cash crops is not a one-sentence question, but also be able to guarantee income.Unfortunately, due to the opacity of market information, no one can make this guarantee.

Austria is not a planned economy. Farmers grow whatever they want.There is a shortage in the market this year, and next year it may rot in the field and no one wants it.

In contrast, food is considered a stable product.Maybe the rate of return could be a little lower, but it won't lose everything.

After a short pause, and after digesting Franz's words, Colonial Minister Stephen took out a document and handed it to Franz.

"Your Majesty, gold mines have been frequently discovered in South Africa recently, and these discovered gold mines are quite amazing in terms of quality and reserves.

This is a report submitted by Viscount Fickney, Governor of South Africa. It is preliminarily judged that this is a gold mine group that is larger in scale than West Africa, and its reserves may exceed that of the United States. "