Holy Roman Empire

Chapter 126: A Cruel Society

No matter how convincingly Karl argues, the fundamental reality remains unchanged: in order to accelerate industrial development, there must be a willingness to sacrifice agriculture.

The original accumulation of capital is bloody, and while expanding markets abroad, there is also a need for internal exploitation.

This is the destiny of the era, and as a ruler with ambitions of becoming an emperor for the ages, Franz is fated to play this role. On the surface, the Austrian government may not have directly exploited the farmers.

They only imposed a mere 5% agricultural tax, which was among the lowest in continental Europe at the time.

In reality, in addition to the agricultural tax, there was also a 10% tithe collected in the name of the Church.

There couldn’t be any more. The Austrian government was primarily dominated by the nobility, and policies had to lean towards the ruling class. It was already quite challenging to get them to pay taxes together.

However, for most common people, they also had to pay a land redemption fee, which was the heaviest burden. Ironically, this burden was voluntary.

The Austrian government did not force peasants to redeem land; it was entirely voluntary. The government’s rental income from the land was only 30%, and after deducting taxes, it was only 15%, indicating no intention of oppressive exploitation.

If someone wanted to redeem land, they had to pay a redemption fee equal to 20% of the land’s income, payable over forty years or in cash.

If the government had forced peasants to pay this land redemption fee, bearing such a heavy burden, it’s likely that many would have been highly resistant, and there could have been widespread discontent.

However, when peasants were allowed to voluntarily purchase land, the situation changed. They felt grateful to the emperor for enabling them to acquire land.

Even if the burden was heavy, people were still better off than in the serfdom era. They could fill their stomachs while also possessing a certain amount of disposable property.

Of course, they also worked harder. Working for nobles was often seen as drudgery, and people would do as little as possible. But now, working for themselves, nobody slacked off. If they could cultivate ten acres of land, they wouldn’t settle for just five.

Everyone aimed to earn more money, pay off their land redemption fees early, and enjoy a better life.

That’s right; in the eyes of the peasants, having land meant having a good life.

After Franz came to power, the Austrian government simplified its taxation system considerably. Various convoluted taxes were gradually abolished.

Apart from the 5% agricultural tax, other taxes were no longer a concern for the peasants; they wouldn’t be levied against them.

The tithe didn’t count either; it was collected by the Church and had nothing to do with the great Emperor.

Now, the government wants to use low grain prices to buy the interests of various states’ groups, which is beneficial in the long run, increasing Austria’s market share in agricultural products.

In modern times, Americans engage in low-price dumping, which proves to be profitable. Even if they don’t make money in agriculture, they’ve gained substantial returns elsewhere.

Indeed, the Americans wouldn’t persist in such practices if they were constantly losing money. They aren’t in it for charity, and who can bear year after year of losses?

If they wanted to, the Americans could certainly join other major grain-producing countries and collectively raise grain prices. They’ve done it before. There must be larger interests at play for them to continue low-price dumping.

On the surface, the Austrian government’s wholesale of low-priced grain might appear to be detrimental to local interest groups. However, the situation changes when Austria gains control over the grain supply in various states.

Whether the governments of other countries like it or not, they must politically align with Austria, and they have no choice in this matter.

No matter how great the strategic vision may be, the farmers and nobility who initially cultivated grain become the sacrifices, as the Austrian Empire doesn’t provide grain subsidies.

“How do we strike the right balance here? If we set the price only slightly lower than international grain prices, it might be acceptable. But if it’s significantly lower, it could dampen domestic grain production enthusiasm,” Prime Minister Felix remarked with a furrowed brow.

From the perspective of personal interests, he should oppose this measure, but as Austria’s prime minister, he couldn’t solely consider immediate gains.

Karl’s persuasion appeared to have succeeded, as everyone understood that Austrian grain production was about to surge. It was clear that domestic demand alone wouldn’t suffice, and if they don’t seek markets abroad, they would be left with surplus grain rotting in warehouses.

The people’s thinking has indeed become somewhat one-sided. In situations like this, there isn’t just one solution. For example, they could consider reducing taxes on agricultural products and increasing competitiveness in grain prices.

Alternatively, they could develop complementary industries such as brewing, livestock farming, or engage in deep processing of grain.

“Prime Minister, this loss is only for the short term, for the next few years. Given the current circumstances, if we lower grain prices by 20% according to international prices, we can enter the market early and seize market share.

Once we dominate the market, we can gradually raise prices. The losses incurred now will be recovered in the future.

Furthermore, the government can encourage the export of processed products, focusing on high-value-added products to safeguard everyone’s interests,” Karl analyzed earnestly.

This deal is something only the Austrian government dares to do. Other grain-exporting countries don’t have as many state-owned enterprises capable of controlling grain export prices.

Capital is profit-driven, and the agricultural sector has a low barrier to entry. Capitalists typically prioritize immediate gains over future profits.

They focus on the present and might not even make it to the future if they get outcompeted by rivals along the way.

……

The strategy of “low-price dumping” had been set. It was a strategy driven by the pursuit of interests, and who could resist such temptations?

Franz merely furrowed his brow, signaling his approval. Reality could be cruel, and without sufficient benefits, how could they entice others to join their cause?

Fortunately, in this era, industrialization wasn’t as highly regarded, and capitalists had limited influence under the feudal system. Otherwise, the cost of Austria establishing this economic alliance would have been even greater.

……

Planning might be easy, but implementing the plan in detail is never that simple. The much-publicized Austrian civil service examination began on December 21, 1848.

To avoid difficulties in supervision and rampant cheating in remote areas, the Austrian government decided to hold all examinations in Vienna.

The first examination was for the Ministry of Finance, not because they wanted to stagger the exams, but because the Austrian government didn’t have such a large venue.

Unlike the multitude of schools and classrooms in modern times where exams can be easily accommodated, there weren’t as many suitable spaces available back then. Many people had to take their exams in open-air squares.

Even the square in front of Franz’s palace was borrowed by the government to serve as an examination venue.

On the rooftop of the Vienna Palace, Franz gazed through a telescope at the candidates queuing up for entry, feeling a myriad of emotions.

There was a time when he was also part of the examination throng, with repeated failures and countless attempts. His fate had already taken a turn before the results of his last attempt came out.

With a sigh, Franz put down his telescope and descended from the castle. By this time, the examinations had already begun.

In the examination hall, candidates were diligently answering questions. Some were deep in thought, some wrote furiously, and some scratched their heads. The invigilators quietly patrolled the aisles.

This was Austria’s first civil service examination, and the invigilators were highly professional. However, the pressure they unintentionally imposed on the candidates was immense.

Armed soldiers acted as invigilators, and for those with poor nerves, just the sight of this setup might have been unnerving.

As time ticked away, the bell signaling the end of the exam rang, “Ding, ding, ding.”

“Everyone immediately stop writing, leave the examination hall. Violators will have their exam results invalidated,” the invigilator’s cold voice echoed.

Dejectedly, one by one, the candidates left the examination hall. Clearly, most of them didn’t feel confident about their performance, with many leaving large blank spaces on their papers.

Outside the examination hall, there was a clamor as groups of three or five gathered together, lamenting.

“Weigel, how did it go for you?”

“What can I say? Who knows why the Ministry of Finance’s questions were so biased? It’s like they were testing us on everything. How about you?” Weigel sighed.

Politics, history, culture, economics, military affairs, religion, geography, mathematics, music, fine arts, international events... All these subjects are present on the examination papers.

Although specialized knowledge predominates, the wide range of topics on these exams has seriously dampened everyone’s morale.

“Me? I’m preparing for the next exam. Regardless of the position, I must pass one, or else I won’t be able to explain it back home,” said Raul with a serious expression.

The passing rate for this exam has already been announced, with a high fifty percent. Those who don’t pass will belong to the eliminated half.

Nobles are all about face, and openly competing and becoming part of the eliminated group can be quite a blow to their pride. They might find it hard to hold their heads high for a long time.

Fortunately, during this era, there weren’t many commoner scholars. Otherwise, if they were to lose to commoners, the pressure they bore would likely be even greater.

“You’re worried about not being able to explain things to Elena, aren’t you? You’ve certainly boasted a lot in front of her,” Weigel bluntly pointed out.

Having his lie exposed, Raul shrugged it off, saying, “So what? I’m just an underachiever, failing the exam is normal. Having a high-achieving graduate like you from the University of Vienna taking the exam with us is already unfair.”

Weigel replied calmly, “Are you trying to say that if I don’t pass, you’ll laugh at me forever? Don’t worry, that won’t happen!”

Weigel did have confidence in passing the exam, but what he aimed for was the ranking. Passing with a perfect score versus passing with a minimum score of 50 points made a big difference.

Those with better scores would stay at the headquarters, while those with lower scores would be assigned to other places. This was practically an open secret. It wasn’t unfair since everyone’s scores were earned through their own efforts.

The Austrian government valued efficiency, and as soon as the exams ended, the grading process began. Once the results were ready, they were immediately posted publicly, and candidates were admitted based on their scores.

If two candidates had the same score, then family connections might come into play. Higher social status often led to preferential treatment, and there wasn’t much room for argument.