Holy Roman Empire

166 Development

In the midst of a lot of disturbances, in 1850, it was so quietly past.The seemingly ordinary year had a profound impact on Austria.

A large amount of foreign capital has flowed into Austria, driving the development of the domestic economy. Various factories have sprung up like mushrooms.

The most intuitive impact of economic growth is the increase in government revenue.Although many industries have given preferential treatment for tax reduction and exemption, the government has also received a large amount of tax revenue in the upstream and downstream links.

The tax on industry and commerce in 1850 increased by 8% compared with 1849, which was more than 4 million rupiah.It seems that this number is not large, but Franz is very satisfied.

This is just the beginning. It is the outbreak of tax growth until the tax holiday ends.

Obviously, the benefits brought by the development of industry and commerce will not be so small, and the supporting industrial chain of enterprises will also develop accordingly.

This is reflected in the industries of raw material production, product sales, transportation, catering and entertainment, etc., which can be seen financially.

In 1850, Austria ’s economy grew by 18.7%, and the government ’s fiscal revenue increased by 9.4%.

This number is not high. After any country opens the market, it will usher in rapid economic growth. There are examples of soaring 30% or 40%.

However, in the same period of Europe, Austria's economic development rate can be regarded as a must.

There is no doubt that the dividends brought by economic growth are directly invested in the military, and have not been able to continue to invest in reproduction.

Of course, Franz did not dare to invest in reproduction.If it were not for the limitations of communication and transportation conditions in this era, Austria's fierce economic growth rate would be faster.

It's not that economic growth is fast, it must be a good thing.For a country, the most important thing is continuous development. The economy surges in the short term, and if the market does not keep up, overcapacity cannot be avoided.

Overcapacity means that a large number of commodities cannot be sold and will rot in the warehouse.The rich companies can also cut production capacity for transformation, and the weaker companies can only go bankrupt.

Businesses went bankrupt, the number of unemployed people increased, and the market's purchasing power continued to decline. Once again, the capitalists had to continue to cut production capacity and lay off employees. The vicious cycle began and the economic crisis broke out.

To some extent, this arms race also extended the period of rapid economic growth in Austria.The military itself is a consumer group, and expanding the military is also expanding the consumer market.

Now the fastest-growing Austria is the railway. Construction started in 1849, and up to now, hundreds of sections have begun construction.

The annual growth of the railway is 265 kilometers. Do n’t get me wrong. This is not the only one that has been built now, but the railway that started in a few years. It happened to be completed in 1850.

The railway started in 1849 is still invisible to Mao. This is not the same as the highway.Road construction can be completed by pouring a section of pavement, but the railway is different, unless a section is completed, otherwise, even if the track is laid, dare not run the train?

However, by 1852, it was estimated that some roads in the plains could be opened to traffic, and whether they would be put into operation in advance. This issue was only known to the railway companies themselves.

This small question, the Austrian government will not ask too much. These private railway operations are self-financing and have nothing to do with the government.

To encourage everyone to build railways, the Austrian government also announced a tax exemption policy.From the beginning of the railway project, no railway operation tax will be levied in the next ten years.

If you want to make money, just repair the road and run it in advance. Delaying the construction period is not going to live with your wallet.

Taking advantage of the hot railway environment, the Austrian government packaged a large number of railway lines to private railway companies, and the demolition costs can be paid by the government. The prerequisite is that after the railway construction right is obtained, construction must be started within one year and within ten years To be opened to traffic.

As far as Franz knows, as of now, the Austrian government has been cheating, and the total mileage of the railway routes sold has exceeded 40,000 kilometers.

God knows how many bad-end projects will be left in the end, but the government will not lose money anyway.Even if it takes over the bad project later, is it cheaper than building it from scratch?

Railway companies are also aware of these problems, but the hot market will deceive people's eyes, and Austria's economic growth also deceives many people.

Coupled with the financial consortium's boost, it has also encouraged investors' ambitions.Many speculators are thinking of selling stocks when they reach the highest point, and making a lot of money.

If you want to speculate higher stock prices, you have to make a beautiful report.If there is only a few hundred kilometers of railways in the hands of a railway company, no matter how you brag about it, it will not attract many people.

If there are thousands of kilometers or even tens of thousands of kilometers of railroads, then there is no need to brag about it, and someone will give you a blueprint for development.

Making money by railway is only one aspect. After controlling the railway network in certain areas, even if you invest in other industries, you can use the transportation network in your hand to crowd out your peers. A conceptual business empire has emerged.

In the hottest years of European railways, there may be four or five railways operated by different companies between the two cities to compete directly in the market.

The Austrian government is still a good man. At least it has not authorized the same section to different railway companies, which has given many people the opportunity.

Is there any more profitable business in the world than "monopoly"?Even if it is a railway line with low economic value, once a market monopoly is formed, it will be a big profit!

Franz would not admit that he used everyone's mentality to flick capitalists to invest in railways.Monopoly operation is possible, which avoids the waste of resources brought about by market competition. As long as it does not affect the development of the domestic economy, Franz does not mind the emergence of monopoly enterprises.

If the freight rate is too high, which affects the domestic economic development, then the people who make the rules can also modify the rules, for example: Price Bureau, Railway State-owned ...

The Austrian government will never tell investors about these discordant issues, otherwise how could the British consortium be fooled over?

Americans have done things, and Franz does n’t mind following it.No matter how much, you fooled you to repair the railway first, and then, after the railway is completed, there is no use value, then you can consider the problem of turning your face.

In Franz's view, the maximum profit of public facilities projects carried out in Hong Kong in the past life should not exceed 15%, which is a good policy.

If the Austrian government copied it, should the people support it?As for railway companies, 15% of their profits can also make them very moist.

When investors can recover the construction cost, this question is not known.Anyway, the investors in the front have earned it, and the follow-up players have always been unlucky.

The development of the railway has naturally stimulated the steel industry. A group of steel companies have expanded their production capacity in preparation for a slice of the next feast.

In order to effectively integrate resources and enhance the competitiveness of enterprises, the Austrian Ministry of Industry ordered in March 1850 to merge seven state-owned steel companies into the Austrian Iron and Steel Group.

The first giant steel company in Austria with an annual output of 12,000 tons of raw steel and 184,000 tons of iron was born.Art processing, with an annual output of 200,000 tons of steel, the world's first steel group was born.

Whether this is the world ’s No. 1 steel group is still a question to be verified, but it is an indisputable fact that becoming the No. 1 steel company in Austria is where half of the steel production capacity of the entire Austrian Empire is located.

At this time, countries with more than 100,000 tons of steel production in the world have single digits, and countries with more than one million tons are British.

If not everyone stayed at this level, the Austrian media did not dare to brag about it. In general, journalists of this era still have a good temper.

After the merger, these steel plants began to divide their labor, and according to the geographical location of each place, give full play to their own resource advantages to integrate production capacity.

Simply put, according to the quality of iron ore, those who are suitable for steelmaking are all used for steelmaking. Those who are suitable for ironmaking will be used for ironmaking, and do not engage in mixed production mode.

The most important thing is to bring together the core technologies of several enterprises, and use each one's strengths in industrial production.At the same time, a smelting technology research and development department was formed to promote technological innovation.

According to the plan, the capacity of the Austrian Steel Group will increase to 240,000 tons in 1851, to 320,000 tons in 1852, and to exceed 450,000 tons in 1853 ...

None of these plans are chaotic. They are completely formulated according to market needs. How to grab orders without expanding production capacity?

The construction of the railway network in Austria, but a piece of fat, related companies do not want to bite.

According to the calculation of 60 kilograms of steel for one meter of railway, 60,000 kilograms of steel are needed for one kilometer, which means that the Austrian railway network plan requires more than two million tons of steel.

With such a good opportunity, if the iron and steel enterprises don't expand their production capacity, they will have their brains flooded.

In order to support steel companies, the Austrian government has decided not to withdraw profits from this newly formed group within the next five years, and has also invested a million dong to invest in technological innovation.

Not only steel companies, many related industries are desperately expanding production capacity, and Franz is also making a lot of money.

Do n’t look at small things like sand and gravel. Actually, anyone who has done engineering knows that the profit of these small things is not low at all.

According to preliminary estimates, each kilometer of railway concrete will consume more than one hundred thousand tons of gravel aggregate, and the stone needed for the thick layer of gravel is an astronomical figure.

Any large amount of commodities will increase profits, and these insignificant little things are actually no less profitable than steel plants that produce rails.

But most of the time, it is scattered in the hands of countless retail investors, and it looks unremarkable.Franz only used the prophet to make a pre-arrangement for monopoly operations.

Of course, he will not admit to monopolizing things.If you do n’t believe you can check the contract between the railway company and the Austrian mining group, you can prove that the monopoly does exist.

It's just that the insiders will not say that the media will not even report.

External explanation: The Austrian Mining Group is only an agent. These mines are distributed in the names of dozens of companies. In order to avoid vicious competition, they jointly established a group to negotiate with the railway company.

That's right, that's the case. In order to avoid being pressured by the railway company, everyone joined together.Didn't look at the final transaction price, is it almost the same as the market price?

If it is a monopoly, it must be a price increase. Since there is no substantial price increase, it is not a monopoly.

What is lying down to make money, in 1850 Franz finally felt it.For this humble business, he earned an annual profit of 1.23 million rupiah.

This is just the beginning. With the advancement of railway construction, he can lie down and make money for a long time in the future.

It is a pity that the railway construction is completed, and these wild gravel mines have no market. If you want to make a big profit, you have to wait for the construction of the road network.Judging from the current situation, there is no need to look forward to the next 30 to 40 years.