Holy Roman Empire

Chapter 476: Testament of Friendship

Franz was pleased to see his subordinates’ fighting spirit. Success or failure was irrelevant. What mattered most was the positive and proactive attitude, which deserved encouragement and promotion.

Austria had grown significantly, increasing its margin for error. The outcome of the Anglo-Boer War would not affect the nation’s overall situation anyway. lat𝒆st chapt𝒆rs at free𝑤ebnovel.com Only.

Of course, success was preferable, as it would crush British ambitions and prevent another war once the gold mining commenced. These days, colonizers had no resistance in the face of profit and needed to experience failure to understand their limits.

Finance Minister Karl handed Franz a report, saying with a troubled expression, “Your Majesty, this is the military expenditure for the past two months of the Anglo-Boer War, totaling 12.486 million guilders.”

War is indeed a gold-devouring beast. Even for a local conflict, the average monthly expenditure was six million guilders. The cost of a full-scale war would be astronomical.

Saving on military expenses was impossible. Weapons and ammunition were transported directly from the homeland, with transportation alone being a significant cost.

In reality, the current military expenditure was already low. At least Franz did not have to pay salaries or pensions for the cannon fodder units. Otherwise, the cost would have been several times higher.

But no matter how much was saved, these people still needed food and clothing. Replacing outdated muskets and equipping them with new sabers and spears also incurred costs.

Franz looked at the report. The expenses for the tens of thousands of cannon fodder units accounted for approximately 23% of the total military expenditure, while the remaining costs were for the few thousand “Boer Republic” troops.

Even in defense of their homeland, soldiers still needed to be paid. Even the nobles’ private armies who brought their own supplies still had a share of the military pay. Pensions were also distributed uniformly according to the Austrian regular army standards.

Franz did not skimp on these expenses. He personally vetoed the government’s cost-saving plans. In theory, soldiers could be recruited without pay, with war spoils divided afterward as compensation, as had been the practice in Europe for centuries.

However, Franz understood that times had changed. Occasionally recruiting feudal nobles for combat might work, but after a few instances, the emperor might find himself without support.

Loyalty can be worn down, and people’s hearts can change. If the war was won and there were enough spoils to distribute, it would be acceptable.

But if the war resulted in losses and the spoils were insufficient to cover everyone’s expenses, complaints would be inevitable. After suffering a loss once, people would only pay lip service the next time.

The Anglo-Boer War naturally doesn’t have the problem of insufficient spoils; once the gold mines are opened, there will be enough for everyone. However, this means the government won’t have much say in the matter.

If nobles provided the funds and fought the battles, what right did the government have to interfere? At least during the tax exemption period stipulated by colonial law, the Austrian government could not benefit from it.

In their situation, oblivious to the underground treasure trove of gold, scarcely any aristocrat would be bold enough to stake so much.

With a monthly expenditure of six million guilders, even the high-ranking nobles of the Holy Roman Empire would not take that risk.

If the money runs out before the war ends, they’d be left to cry on their own. There have been many such cautionary tales in continental Europe, where many noble lords started wars only to run out of money halfway through.

The Habsburg dynasty had experienced this in the past. Even as emperors, they were forced by creditors to avoid returning home. Of course, it was mainly due to caring too much about face. If they simply refused to pay their debts, what could a few merchants really do?

Half of the anti-Semitic movements in Europe originated from this. Nobles unable to repay debts, unwilling to bear the stigma of defaulting, simply turned against Jews, eliminating their creditors in one fell swoop.

Now with the government backing them, everyone’s risk is reduced to a minimum, and they don’t have to worry about unexpected losses leaving them penniless.

In recent years, many nobles have succeeded on the African continent, but even more have failed. Those who didn’t know how to manage risks and were overly ambitious now had grass growing over their graves.

Any colonial empire is built upon a vast pile of bones. In later periods, the collapse of colonial empires was primarily due to the unwillingness of people to continue shedding blood for the colonies.

Ultimately, it all comes down to the distribution of benefits. The bureaucratic elite and capitalists took almost all the benefits, leaving the rest with barely any scraps. Who would want to continue risking their lives for that?

Looking at the major colonial empires, it was rare to hear about colonial losses in the early stages of their establishment. Instead, it was after several decades, or even centuries, of operation—when the empire started to decline—that losses became frequent.

Was it because the wealth created decreased? Or did the costs of governance really skyrocket to the point where income could no longer cover expenses?

Obviously, colonies that had been operated for decades were capable of creating more wealth. However, the government’s revenue barely increased because most of the money went into private pockets.

Meanwhile, various expenses continued to rise. The declining Portuguese are an example of this. As far as Franz knew, the Portuguese colonial system no longer brought wealth to their government.

It’s not just Portugal; the governance costs of all major colonial empires are constantly increasing. It’s just that the tax revenue from most colonies can still bear these expenses.

The growing decay of the bureaucratic elite and the greed of interest groups are almost insoluble problems. Similar issues exist even in the homeland, so how could they not exist in the colonies?

Now, the rise of free trade advocates has begun to criticize the colonial system, claiming it brings a heavy financial burden to the government.

This isn’t necessarily foresight; these people mainly don’t benefit directly from the colonial system and thus criticize it from a moral high ground.

To Franz, this is a typical case of “biting the hand that feeds you.” They enjoy the benefits of the colonial system yet refuse to acknowledge it and claim that maintaining colonial rule is costly.

They fail to realize that the Industrial Revolution is exploitative, and the primitive accumulation of capital is bloody. It is merely a choice between exploitation at home or abroad.

There was no such thing as free trade in the 19th century. The British merely touted it as a slogan, hoping other countries would open their markets to them.

Of course, as long as they maintained a competitive edge, they didn’t mind opening their markets to other countries as well. But once that advantage disappeared, they would turn their backs without hesitation.

Otherwise, why would the Germans in the original timeline challenge the old world order? It was because they lacked industrial raw materials and markets for their products, driven by capital to start the war machine.

When the free trade advocates in Britain and France finally got their wish and freed themselves from the decaying colonial system, it didn’t bring about a renaissance but rather a rapid decline.

With a small land area and poor resources, industrial development is inherently limited. Faced with cruel reality, they have no choice but to de-industrialize, drinking poison to quench their thirst.

These issues are not troublesome for now. Before the colonial system enters an era of massive losses, such calls won’t gain traction.

No matter how loudly free trade is proclaimed, it still requires everyone to cooperate. Nowadays, everyone practices trade protectionism. If you alone switch to free trade, aren’t you afraid of a quick demise?

Franz calmly said, “Don’t worry. We have a basic understanding of South Africa’s geological conditions.

The land there is fertile, the climate is pleasant, and mineral resources are relatively abundant. The potential for future development is still promising.

After a comprehensive evaluation, South Africa should be the most promising land on the African continent. The current investment can be recouped in the near future.”

Franz didn’t mention the issue of gold. Until the dust settles, it’s best not to stir up additional trouble. After all, driving the British out of the African continent is also one of Austria’s national policies.

Finance Minister Karl explained, “Your Majesty, regardless of the development potential, that is a matter for the future. We are not in need of another piece of land with unlimited potential.

In fact, such land, abundant in resources, might not necessarily be a good thing. If we do not prepare in advance, it might become too big to handle in the future.

The urgent task is to end this war as quickly as possible. Now that the French have stabilized the situation in Italy, our purpose of alleviating pressure for them has been achieved. There’s no need to continue this stalemate with the British.”

This is a valid point. Having too many resources isn’t necessarily beneficial. With everything at hand, the dependency on the empire diminishes.

Franz nodded thoughtfully. It seems that fragmenting South Africa is inevitable. The provincial system should be implemented quickly to replace the current South African Governorate to prevent regional unity in the future.

“We don’t need to worry about the war anymore. The soldiers on the front lines want to finish the war quickly and celebrate Christmas. It’s just a month’s time; there’s no need to add more pressure on them.

The Foreign Ministry should find an opportunity to remind the French that we have fulfilled our agreement by holding up half of the British Army.”

This statement is not wrong. In terms of numbers, the troops the British have invested in the South African region have exceeded half of their total army strength.

Doing good deeds also requires recognition. If you don’t mention it, how will others know? The more you contribute, the more you should gain. This is an era of equivalent exchange.

Even close brothers need to keep clear accounts, let alone allies. It’s better to be transparent about such matters.

Even if countries only speak of interests, when talking about Franco-Austrian friendship, this is also a testament to the friendship between the two countries.

It may not seem to have much effect now, but it might be needed in the future. It’s enough to use to impress the idealistic youth. When cultivating pro-Austrian factions in France, this kind of propaganda material will be needed.

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