Chapter 519: Storm

On March 22, 1872, Britain and Russia signed the "Britain-Russia Bilateral Trade Agreement", "Britain-Russia Grain Mortgage Agreement", "Britain-Russia Financial Mutual Trust Agreement" ...
Except that there is no alliance, it has become a fact that the Tsarist government has moved closer to the British.
According to the treaty, the Russians are already part of the sterling-gold system, and the hegemony of the pound's international currency has been formally established.
As a cost, the British will provide 150 million pounds of interest-free loans to the Tsarist government within the next five years, and the Russians will use agricultural products to pay off their debts.
Everyone knows that the so-called loan is just an excuse. The loan issued every year is exactly equivalent to the agricultural products exported by the Russians, which is essentially a huge order contract.
Nothing more than these agricultural products from Russia are cheaper, and the London government has waived import duties. With low prices, it has seized the markets of other agricultural exporting countries to the UK.
The first is Austria. As the world's largest exporter of agricultural products, Austria's losses are undoubtedly the largest. Sixty-five percent of the total British agricultural imports each year come from Austria, and now this market can almost be declared dead.
"Free trade", just listen to it, if it is true, it will be finished. The British population screamed terribly, related to specific interests, or decisively thrown aside.
If Austria wants to keep the British market, agricultural prices now need to be cut at least to survive the competition.
Affected by the British-Russian Treaty, the international agricultural market has been diving since April. The capitalists went to inventory, sold, and accumulated cash flow, fearing that they would be frozen to death in the winter of agricultural products.
As the protagonist of the center of the vortex, Franz was not so nervous. Although it was not expected that the British would suddenly make a shot, the international agricultural market was affected, and the Vienna government had expected it.
At the previous annual working conference, the Vienna government formulated a plan to reduce grain production, mainly focusing on wheat, corn, and beans, which are agricultural products with large production capacity in Russia.
At the Vienna Palace, the Agricultural Economic Conference, Franz picked up his baton and drew a curve on the world map.
"The Russians are coming, the British are helping, and the agricultural cold winter is here. This is a challenge for Austria. We must do everything possible. Hols, first talk about the plan of the Ministry of Agriculture.
The Minister of Agriculture, Halls, got up from his seat, adjusted his clothes, and put on a serious and tense expression. Obviously, the topic was very heavy.
"Since two years ago, the Ministry of Agriculture has been preparing for the return of Russian agricultural products to international markets.
To this end, we have adopted various measures, including adjusting the industrial structure of agricultural products, reducing the output of staple grains, clearing stocks, and developing animal husbandry.
These measures can only alleviate our losses, but they cannot cure the problem from the source. The international agricultural market is so large that we cannot survive the crisis by reducing production capacity.
The agricultural winter breaks out, and agriculture in all countries is uncomfortable. There is no need for us to pay for it.
The current collapse in agricultural product market prices was mainly caused by the Russians. In this case, we pushed the boat down the river to make the crisis more violent.
The Ministry of Agriculture plans to halve international food prices in the next three years, overcoming agricultural production in European countries.
Although Russia's agricultural production capacity is large, they lack the ability to resist risks. The tsarist government has limited financial resources and it is impossible to provide protection for farmers.
Once the food price collapses, it will inevitably lead to a wave of bankruptcy among farmers. If we are lucky, we can also rebuild the Russian agricultural production system.
In order to make up for the losses of domestic farmers, the Ministry of Agriculture proposes to suspend agricultural taxes, food transaction taxes, agricultural product export duties, and prohibit churches from imposing tithes. At the same time, a minimum guaranteed price for grain is set to ensure that farmers will not lose money. "
Destroying the agricultural production systems of European countries, in addition to worrying about being profited by fishermen, is more because the Vienna government does not want to pull this hatred.
Austria has taken the largest share of the international grain export market. Anyway, it has taken the biggest benefit. Why do we have to do things absolutely?
Now it's easy to do. The Russians who jumped out, just propaganda, you can throw the black pot into the tsarist government, and by the way, a wave of British people. Anyway, their reputation is stink, and they don't care about Dora's hatred.
The British-Russian agreement is the best evidence. They directly discounted the price of grain exports by 30% and exempted customs duties. The governments of the two countries directly participated in the trade and undermined the free trade system. This is the root cause of the loss of food production in European countries.
Properly dumped at a low price, no one can wash it. Someone took the lead in lowering the price, and the following trend was inconspicuous. If a price war broke out accidentally and the price was lowered, that was no way out.
The United Kingdom and Russia have joined forces to crack down on Austrian grain exports. Rather than keep domestic grain prices stagnant, it is better to keep prices to a minimum.
Once the international food prices are cut, I don't know if the British food merchants will still perform the contract. This kind of loss-making trading is not liked. In case the British break their contract, there will be a good show at that time.
It seems that it is only impacting the food production systems of various countries. In fact, this is also destroying the closer relations between Britain and Russia. Nothing breaks an alliance more than a conflict of interest.
Moreover, Britain and Russia are not allies. It is only for the sake of interest that once the conflict of interests of both parties outweighs the benefits brought by the partnership, it is difficult to separate the two.
Everyone was lost in thought and began to digest what Hols had just said.
"Having food prices dropped by half, how much will it affect the country, will it cause a large number of farmers to go bankrupt? Will it involve the entire agricultural system? How much capital will be invested?"
The question was raised by Prime Minister Felix. Agriculture has always been a pillar industry in Austria, and it must not be ignored by the Vienna government. If the play collapses, the sequelae will be very serious.
"My Excellency, please rest assured. Our Ministry of Agriculture has conducted a special assessment. After the suspension of the collection of agricultural taxes, tithes, grain trade taxes and grain export duties, international grain prices have been cut, and the impact on the country has been minimized.
In response to the grain purchase market, the grain purchase price will fall by about 20%. The Ministry of Agriculture will supervise, and if the market turbulence exceeds this magnitude, we will directly intervene in the acquisition.
As the cost of grain production varies from place to place, it cannot be generalized. In the plains of Wallachia with better natural conditions, there are even small profits. And some provinces with poor natural conditions will probably lose money.
The bankruptcy of peasants will definitely happen. With the development of the times, the small peasant economy will inevitably be destroyed. This original production model is too expensive to compete with mechanized farms.
The per capita land area of ​​farmers in China is relatively high. Usually, when people plant, they all use multiple crops in parallel and have a certain ability to resist risks. Large-scale farmer bankruptcy will not erupt in Austria.
To complete this plan, the funds required are still relatively large, at least 120 million Aegis, and at the same time, about 21 million Aegis will be reduced financially every year, and the government will need to fill 15 million Aegis holes in education. "
In the end, the problem is still a word of money. Once this plan is launched, the era of relying on agriculture to make up for industry and education is over.
In fact, Austria's agricultural tax has always been very low, as long as it is 5%, it is the lowest level among the major agricultural producers in continental Europe.
The grain export tariff is as high as 15%, but the finished product grain export tariff is only 3% to 5%. It is adjusted according to the actual situation, and at the lowest level, it has also been levied 1%.
Affected by this policy, Austria basically exports refined processed grains, and rarely exports directly.
Other related taxes are also very low. Grain transaction tax is 5%. Vehicle and vessel transportation tax is exempted. There are almost no additional taxes.
Even so, these taxes account for a significant portion of Austria's fiscal revenue, which has declined in recent years and is still a significant number.
Franz was caught in the calculation, and it was easy to invest 120 million SHIELD operating funds. One-time investment crowded it. It is really impossible. You can also use bank loans or issue bonds. This money is already difficult. Austria.
The trouble is that fiscal revenue has decreased and education expenditure has increased. This 36 million Aegis is not a one-time loss, but it will be lost forever.
"Temporary exemption" is actually permanent for the time being. After the dividend period in agriculture is over, it is time for the industry to subsidize agriculture.
This means that Austria's fiscal revenue has shrunk by 8.3% and fiscal expenditure has increased by 6.1%.
After listening to the plan of the Ministry of Finance, the Minister of Finance Carl frowned, and after a moment of silence, put down the drinking glass in his hand.
"It's too radical. To break down the agricultural production systems of European countries, it is not necessary to be so extreme. It is enough to hit international food prices to the point where farmers in various countries are not profitable. There is no need to have one step at all.
In the field of agricultural production, we have the advantage, and the cost of food production is the lowest in continental Europe. We also have a complete industrial supporting system, which can get more profits.
Farmers in various European countries have started to lose money. In fact, domestic farmers still have a certain profit. As long as we drag on, they will not be able to support it.
Inferring from economics, the Russians are likely to be the first to fail. Unless the Tsarist government pays to subsidize agriculture, otherwise the high cost will make Russia's agricultural products lose market competitiveness.
As long as we grasp this degree, we do not need to pay too much at all. Now it is only necessary to reduce grain export tariffs and exempt agricultural taxes, and it can withstand the first wave of shocks.
The Russians' grain has not been exported to the United Kingdom. Now let's release our reserve grain first, hit the international market and hit the price to the British and Russian transaction prices, and then see if the British will fulfill their contracts.
If the contract is not fulfilled, the Russians will be in bad shape. I do n’t know if the wallet of the Tsarist government will be able to bear it, and the pile of grain cannot be sold. The consequences are very serious. "
It is hard enough to have professionals. This is not the price of food, but the finances of the Tsarist government. Once large-scale slow-moving grains appear, Alexander II will be out of luck.
There is no way, there will be food left in the hands of farmers. Either the government collects the grain directly and then rots it in the warehouse;
Once the market is full, no matter how cheap it is, no one dares to take over. Every time an economy breaks out, capitalists pour milk into the river just to avoid price collapse.
Now Carl's plan is to crush British food prices one step before the British-Russian deal is completed.
International food prices are naturally not immune, and Austria will suffer heavy losses. But as long as the British default, then the Russians who have suffered heavy losses will certainly not give up. Maybe there is nothing to do with the London government, but to withdraw from the pound-the gold system is inevitable.
At that time, even if the tsarist government is no longer willing, it can only join the Aegis, the gold system, with a scrutiny. Losses in the grain market can be recovered in the financial market.
Hols frowned, questioning: "What if the British fulfilled the contract? The benefits of currency hegemony are not a little bit, and they have no reason to give up."
Carl smiled calmly: "That's all that all grain exporting countries have had a hard time this year. Even if the international grain price hits a 30% discount, the Austrian impact on exporting processed grains is not so great.
Don't forget, the food finishing industry itself still has a dozen points of profit, and these companies can also share some of the losses.
In general, the price of raw grains has fallen by 70%, and domestic agricultural production can still maintain its capital. This is enough. I don't think that at the current price of grain exports, Russian farmers can make money.
The price that the government needs to pay is only a part of the reserve grain and the reduction of fiscal revenue by 8-10 million Aegis.
If it directly impacts the agricultural systems of European countries, the Russians can only be fooled by ordinary people, and politicians will still be clear.
If they take countermeasures and artificially increase grain import tariffs, what can cheap grains do in addition to increasing their fiscal revenue? "
This is a reality, and it's common to flip the table in front of interests. In order to protect domestic agriculture, it is normal to adopt trade barriers.
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