Holy Roman Empire - Chapter 154

Chapter 154: Chapter 41: Accidentally Planting Willows, Willows Provide Shade

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Since the establishment of the Holy Roman Economic Alliance, the economies of the member states have been closely interconnected, and the import and export trade volume between the alliances has rapidly soared.

Take Bavaria, for example, in 1850, the total import and export trade volume with Austria increased by 23 percent, with imports growing by 32 percent and exports by seven percent.

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For the Kingdom of Bavaria, the trade deficit with Austria in 1850 had expanded to eight million shields, severely impacting the development of the Bavarian capitalist economy.

Of course, there are two sides to every coin. Due to geographical reasons, Austria had to go through Bavarian transit for trade with other sub-states in the South German Region, which also drove the development of the transportation industry within Bavaria.

Whether this resulted in a loss or profit is difficult to say. However, one thing is certain, those engaged in import and export trade made a profit.

These people shared a common trait—they were mainly local powerhouses—nobility. European nobility did not disdain commerce. They would not turn their backs on money.

To ensure the successful establishment of the Alliance, Austria naturally drew in a portion of the influential nobility, and it was these individuals’ efforts that promoted the establishment of the economic alliance.

Interest is always the best catalyst. Even now, although Bavaria has aligned with the Kingdom of Prussia in foreign affairs, it remains completely unaffected economically.

Maximilian I wouldn’t dare disturb the interests of the powerful groups. If he cut off trade, the royal family would be one of the biggest losers. It might even lead to unrest at home.

The railway construction boom in Austria inevitably affected the Kingdom of Bavaria, with louder calls from the public for the construction of railways.

With the facilitation of the German Economic Exchange Organization, an idea for a mainline railway connecting each principality in the South German region was proposed by economic experts.

This proposal quickly sparked public debate, with countless experts and scholars coming forward to advocate for the railway powerhouse theory, listing a series of benefits from railway construction.

The social debate also attracted the attention of capital investors, especially those engaged in the transportation industry who knew how profitable railways could be.

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It’s not that Bavaria lacked railways; they just did not have a well-developed railway network, nor did they possess a mainline railway traversing east to west across the Kingdom of Bavaria.

From the perspective of economic development, establishing such a mainline railway would greatly promote Bavaria’s economic growth.

Munich

Inside the Royal Bavarian Railway Company, they were discussing the construction of this mainline railway.

Following the economists’ suggestions, this railway extended westward to Baden and eastward joined the Austrian rail network at Salzburg.

The discussion now focused on the technical and economic feasibility. The Royal Bavarian Railway was a state-owned enterprise, and its efficiency was inevitably slightly lower.

Engineer Serl answered with a serious face, “Techincally, there are no major problems. Aside from a few sections that necessitate detours, there are no significant technical difficulties in constructing this railway.”

Technically, it was indeed not very challenging. This so-called mainline was, in fact, only three or four hundred kilometers long, and most sections ran through the Bavarian Plain.

“And economically? Don’t forget that we have the Danube River between us and Austria. Water transport plays an important role in trade between the two countries.

Now, the main reason we’re constructing this railway is to make a profit. Can our railway compete with water transport?” asked Morca, the railway company president, with concern.

Wilkes, the commercial operations manager, replied, “It’s true that water transport is cheaper, but the Danube River’s reach is limited. The river is beyond human control, unlike our railway; we can build wherever we want.

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Once this railway is interconnected, we will hold the economic lifeline of the entire South German region. With the current volume of commercial transport, achieving profitability is not a problem at all.

If we are worried about risks, we can also issue shares to the public. There are many out there eager to invest in this railway.

If we don’t act quickly to initiate the project and secure construction rights from the government, we might lose out to someone else.”

Don’t think state-owned enterprises don’t face competition. In this era in Bavaria, private individuals can construct railways as long as they have the money—they can build however they please.

Competition wasn’t fierce at this time. If it were the early 20th century, it’s quite possible that several railway companies would be competing with each other between two cities.

After a pause, Morca made a decision: “Since everyone agrees, the engineering department should expedite the railway project proposal and produce the design drawings. The operations department must immediately apply to the government for the construction rights to this railway.”

Though the Royal Bavarian Railway Company was a state-owned enterprise, in reality, there were quite a few who shared in its profits—it was these people who were the driving force behind the construction of this railway.

It might not compare to Austria’s grand plans for a railway network spanning tens of thousands of kilometers, but once this main line was completed, the necessary branch lines would inevitably follow.

In this era, a railway extending over a thousand kilometers was undoubtedly a major project, and the interests involved were far from insignificant.

At Munich Palace, the plan to build a major railway artery had already been presented to Maximilian I. It wasn’t just the Royal Bavarian Railway Company’s proposal; the Bavarian Watson Railway Company had also submitted an application.

Interest is always the best catalyst. Those eyeing the railway were clearly not limited to these few, and if the Bavarian Government delayed its decision, they would surely receive even more applications for railway construction in the future.

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The military value of the railway had not yet been recognized in this era, and Maximilian I had not considered the military threat Austria might pose to Bavaria after the railway was built.

Thinking about it was of no use anyway; the disparity in strength between the two was too great. Munich was only a little over seventy kilometers from the Austrian border, rendering the so-called national security issue absurd.

At such a short distance, even marching by foot would take at most two days—it made no difference whether there was a railway or not. Hoping that transportation could hinder an Austrian invasion was less reliable than hoping for international intervention.

Maximilian I placed great importance on domestic economic development and internally supported the construction of a railway that could promote the nation’s economic growth.

Moreover, this railway brought more than just economic benefits to Bavaria; it also expanded their political influence, solidifying their status within the German Confederation.

“To build this railway, we need to coordinate with several states along the route. Are there any diplomatic issues?” Maximilian I asked with concern.

The Foreign Minister replied, “Your Majesty, according to the provisions of the Holy Roman Alliance, investing in railway construction between ally states is treated the same as investing in domestic railway companies. We can communicate with the governments of these states.

If there are railway companies within their own nations willing to participate, then we can all join together, each completing the construction of the sections within their own borders, and establish a joint railway operating company.

If no railway companies are willing to participate, we can also invest in the construction of this railway in accordance with local legal provisions.”

Vienna

Upon receiving the railway construction plan from the Kingdom of Bavaria, Franz’s first reaction was that the Bavarian Government had gone mad.

Building such a railway facilitated an Austrian invasion, didn’t it? After checking several times, Franz realized he was overthinking it.

Bavaria, with its small territory, was too close to Austria. Whether the railway existed or not couldn’t eliminate the military threat from Austria.

It was simply that, with the railway built, Austrian military operations would be more convenient—but this was not for Bavaria’s benefit, rather it made things easier for using troops further away in Baden, Württemberg, and other states of the German Confederation.

Franz said with a smile, “Regarding the same request from the Bavarian Government, since they want to construct this railway, let them do it. We will cooperate wherever necessary.

If they lack funds, we could let them raise capital on the Vienna Stock Market.”

He certainly didn’t say how much benefit the completion of this railway would bring to Austria—that was a matter of quietly making a fortune.

You see, when Franz had originally instigated the Teutonic economic organizations to push for the construction of this railway, he was prepared for strong opposition from the Bavarian Government.

He even planned to use public opinion to force the Bavarian Government to build the railway. Now, just as the public efforts were getting underway, the Bavarian Government had taken the initiative.

For Franz, having the Bavarian Government spearhead the railway construction was more than ideal. The relations with the South German States were naturally their responsibility to coordinate, and the Austrian Government needed to do nothing but enjoy the fruits of their labor.

As for the Royal Bavarian Railway Company, which would reap huge profits from this railway in the future, Franz magnanimously acknowledged their entitlement.

If this railway facilitated the unification of the South German Region under Austria, Franz wouldn’t mind awarding them a grand medal.

Perhaps the Royal Bavarian Railway Company could even be renamed the Royal Austrian Railway Company, to commemorate their outstanding contribution to the unification of Germany.