Chapter 381: Integration process

The negotiations between the North and the South have not ended, but the American civil war has actually ended. Neither the European powers nor the American people want this war to continue.
This is not an individual's will to be reversed. The rest is nothing more than talking about conditions.
In order to demonstrate good faith, military operations have ceased on both the North and South sides, including ongoing military mobilizations.
Strategically, the goal of weakening the United States has basically been achieved. Now the last treaty is sent, which has divided the United States.
This is not only a good thing, it is also accompanied by a series of problems. For example: Austria's cotton and cotton spinning industries will be affected.
Taking advantage of the tight cotton supply in the international market during the American Civil War to reduce cotton production, the Austrian cotton spinning industry, which has sufficient cotton supply, has suddenly emerged, occupying the British market in Europe.
Now in Eastern Europe, Southern Europe, and Central Europe, British cotton products are gradually being squeezed out of the market.
Previously, because of insufficient cotton supply, there was a shortfall in demand for cotton spinning products, and the British were robbed of the market by Austria.
It's different now. With the end of the civil war, US cotton production will soon recover. With ample supply of raw materials, British capitalists will naturally make a comeback.
The market is the lifeblood of every industrial country. As the first country to complete the industrial revolution, the British have accumulated enough advantages. The industrial strength once exceeded half of the world.
With the completion of the industrialization of France and Austria, the proportion of British industry in the total global industry has declined, but it still ranks first in the world.
However, an embarrassing thing is that the British Empire, the world's factory, has been in a super state for a long time.
In 1864, British exports totaled 215 million pounds, while imports totaled 275 million pounds and a trade deficit of 60 million pounds.
During the same period, France's total foreign exports amounted to 2.963 billion francs, imports from the outside world totaled 2.523 billion francs, and its trade surplus reached 440 million francs. (Approximately £ 17.6 million)
The total value of Austria ’s foreign exports was 285 million Aegis, the total imports of Austria were 226 million Aegis, and the trade surplus was 59 million Aegis. (About 29.5 million pounds)
Not only France and Austria are in a super state, but even the Russians are also in a super state. In 1864, the total exports of the Russians were 187 million rubles, the total imports were 175 million rubles, and the trade surplus was 12 million rubles.
In this era, the international trade volume was small, and the Russians' grain exports exceeded half of the total exports. With this advantage, the trade surplus was realized.
Austria can have such a large surplus, and exports of agricultural products also occupy an important position. After all, people always have to eat, and the British are one of the major food importing countries in Europe.
In order to solve the trade deficit problem, successive British governments have broken their hearts. There is no way. Insufficient local resources have determined that the British are in a state of entry into the super league for a long time.
Fortunately, there are many colonies of John Bull, and this gap can be filled by plundering colonial wealth, otherwise ordinary countries will not be able to support it for a long time.
The Opium War in history was created by the British in order to smooth the trade deficit.
Now that the market has been robbed by Austrian capital, the British will certainly not give up. It's not enough to turn the table over. This conflict doesn't need to tear the faces of the two countries.
Of course it is not useful to turn your face, this is fair competition in business. At that time, the British had insufficient supplies of cotton textiles, so that Austria could take advantage of it, and John Bull had not the ability to wait for the market.
Now that the American Civil War is over, cotton production in the South may return to normal next year. Thanks to the labor output, this output may even increase further.
The geographical conditions of the Confederate States of America are unique. Their cotton acres are usually higher than in other regions.
Of course, the insufficient yield per mu can be made up by expanding the planting area, but the corresponding labor input has increased.
In history, the North won the victory. As the losers, the southern planters lost their cheap labor, cotton production was severely affected, and Indian and Egyptian cotton rushed to the market.
Of course, the most important thing is that northern capitalists need cheap industrial raw materials. Utilizing measures such as increasing tariffs and railway freight rates, American cotton has lost its market competitiveness.
At present, India's cotton production has not risen. In order to compete for labor to dig the Suez Canal, the British promote cotton cultivation in Egypt has also been blocked by France and Austria.
At this time, the only competitor of the U.S. alliance in the cotton market was West Africa.
There is no excess cotton supply in the international market. In the short term, this kind of competition is unwise, and Austria can digest most of West Africa's cotton capacity.
However, in the future, Indian cotton and Egyptian cotton will enter the market, and this competition will become fierce.
In the cotton textile industry, it is necessary to compete with the British, and the cotton market must compete with the United States, Egypt, and India. This series of economic issues, Franz had to consider in advance.
Schönbrunn Palace
"There are only two issues today. First, how can we keep our cotton textile products and market share on the European continent; second, how to protect the interests of cotton farmers?"
There were fewer industrial and commercial products in this era, and the textile industry's economy occupied a dominant position. The core industry of Austria does not include the cotton textile industry, but because of the civil war in the United States, the cotton textile industry has suddenly emerged, and this cannot be abandoned.
At present, there are more than 1.2 million workers in the cotton textile industry in Bavaria, Wurttemberg, Lombardy, and Venisi, and more than 2.5 million employees in the industrial chain.
So many people are pointing at the textile industry to eat, which directly determines that the Vienna government must protect this industry. This time the British-Austrian trade dispute is inevitable.
Not to mention the protection of the interests of cotton farmers, most of the current plantation owners in the colonies are nobles.
This is determined by Austria's national conditions. The ordinary people are limited by economic strength, and even if they open up plantations, the capitalists have no love for farming.
Because of the domestic land redemption, many aristocrats lost their land and obtained a sum of redemption money. Obviously, these money could not be left idle.
After the colony was opened, many conservative aristocrats set their investment goals on plantations. Perhaps the profit of planting land in later generations is not high, but in this era, the return on investment in plantations is not much lower than that of other industries.
Cotton plantations are no exception. A large number of nobles gather. As the spokesperson of the noble interest group, Franz naturally has to consider their interests.
This also concerns everyone's enthusiasm for opening up colonies. The ruling class will surely desperately defend the colonial system when it is profitable, and vice versa.
The Minister of Economic Affairs Andrew replied: "Your Majesty, our Ministry of Economy has prepared an emergency plan. When necessary, we can use political means to defend the domestic and Russian market issues.
Southern Italy is in a civil war, and the already small market is now shrinking, and it will not be the focus of the British counterattack.
The rest is Central Europe, including the German Federation, Prussia, Switzerland, and the Netherlands. This is the main battlefield of this trade war.
French capital may also join. In recent years, the French economy has also developed very well. Under the condition of ensuring the supply of raw materials, their cotton spinning products are also market competitive.
In order to improve the market competitiveness of cotton textile products, the Ministry of Economic Affairs believes that these first-line manufacturers can be granted tax refund subsidies when necessary. "
Simple and rude, but very effective. Everyone's production technology is almost the same, the quality of the product can't be distinguished, and there is still not much advantage in production cost. To gain an advantage in market competition, we can only fight for policies.
Historically, the British cotton industry collapsed under the subsidies of various countries. The manufacturing industry is fighting for cost and quality. Once the technological advantage is lost, competition becomes cruel.
In this regard, Franz was powerless to fight a part of the British market. Now the time has come for competition, and everyone can only fight for strength.
The only benefit is that the British cotton industry is larger. Once the financial subsidies are played, for every one million in Austria, the British will pay three million.
In this way of losing both players, under normal circumstances, everyone will not play. After all, there are so many industries in a country that it is impossible to concentrate resources on one industry.
Agriculture Minister Christian said, "Cotton is closely related to the cotton textile industry. As long as the domestic cotton textile industry does not fail, the cotton plantation economy in West Africa will not collapse.
In order to increase the competitiveness of West African cotton, we can think of ways to reduce taxes, such as reducing or even eliminating trade taxes between the colonies and the homeland. "
Throughout European countries, Austria definitely attaches the greatest importance to the development of colonial economy. However, no matter how important it is, it is not as good as the local ones.
In order to avoid cheap crops in the colonies, it has impacted the local agricultural market. From the beginning, there was a trade tax between the homeland and the colony, which was only slightly lower than the foreign tariff.
There has been a call for economic integration in the Vienna government. The nobles who invested in plantations have always wanted to bring the colonies into their homeland for their own benefit.
At present, the governance models in West Africa, Congo, and Nigeria have begun to move closer to the country, and some colonial cities are adopting the same laws as those in the country.
As the first-generation colonizers, the feelings of everyone and the local people are still very strong. Many people are advancing the integration process, and Franz himself is one of the supporters.
However, because of all aspects involved, the Vienna government did not dare to declare the colony into its native territory, but the best-developed colony has begun to implement the province system.
Compared with the domestic, these colonial provinces have greater rights and even have certain military rights. Reducing the right of the colonies to trade with the local community is undoubtedly a step forward in the integration process.
After pondering for a moment, Franz raised the question: "In theory, there is no problem, but the reduction of the local and colonial trade tax also involves the process of the integration of the second German and the local.
Let's start with this issue and test the reactions of various circles in China. At the same time, organizing economists to carry out a comprehensive demonstration must understand how much this impacts on the local community. "
This is to make the problem obvious, and to push it forward: the legal basis for the integration of the colony and the native land is the reconstruction of the second German homeland proposed by Franz.
Since the African colony was the second home of Germany from the beginning, it would be no problem to merge with the first home.
However, these are the speculations of the people, the official has not expressed their stand. The main force in promoting the integration process is also in the private sector, and groups and individuals involved in colonial interests are promoting this plan.
The driving force is not small, and the opposition groups are more powerful. Mainly local small and medium aristocrats and farmers, they are afraid that the cheap agricultural products of the colonies will be sold back to the locality and harm their interests.
However, the situation is somewhat unexpected. Agricultural products in the Austrian colonies are not cheap, at least not as competitive as local agricultural products.
On the one hand, the lack of labor in the colonies caused high labor costs; on the other hand, it was mainly new development land, and the initial output was not high.
The most important thing is that the two major grain growing areas in Austria are very fertile, and the infrastructure such as water conservancy and transportation is complete, which is not comparable to the colonies.
As for the future? Franz can responsibly say that once fertilizers are born, the profit from farming will further decline.
With or without the impact of colonial agricultural products, indigenous agriculture will be affected. In many grain importing countries, the use of chemical fertilizers has increased grain production, and the international grain market will shrink sharply in a short period of time.
In this respect, Austria cannot develop chemical fertilizers, and even if it is developed, it cannot be put into production.
The longer the delay, the better it is for Austria. Before the industry develops to a certain level, it is easy to cause catastrophe if you make changes rashly.
Grain output is not as much as possible, and the market capacity is so large. Once it exceeds the boundary, it is necessary to look forward to sighing.
This is historically the case when the inventor of fertilizers was German. The United States, Austria-Hungary, and Russia, grain exporters, haven't they invented fertilizers to ask for help?
Of course, the Germans never dreamed of it. They invented chemical fertilizers, but the biggest beneficiaries were the French, which directly freed the French from the food dilemma and became one of the major food exporters in Europe.
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