NOVPUBIn the gold standard era, lacking sufficient reserves of gold was unthinkable. Even though England, France, and Austria were allies, should currency reform in France run into problems, the first to take advantage of the situation would be the Anglo-Austrian two countries. 𝒏𝒐𝒗𝒑𝒖𝒃.𝙘𝒐𝒎
This isn’t to say that other countries were on good terms with France, only that they lacked the strength to provoke France. In a world where might made right within the range of cannon fire, having a stronger fist still had many advantages.
Napoleon IV asked with confusion, "Gold prices have always been high; wouldn’t that affect England and Austria too?"
Both the pound sterling and Divine Shield were gold standard currencies; as gold prices rose, the pound sterling and Divine Shield rose in value as well, and an increase in currency value would equally affect the export trade of England and Austria.
finance Minister Allen answered helplessly, "Your Majesty, the main international currencies right now are the pound sterling and Divine Shield, and the rise in their value minimizes any impact on them.
On the other hand, we suffer more. As the currency’s value fluctuates, more and more capitalists choose to hold pounds sterling and Divine Shields, causing the franc’s market share to continuously decline."
This is the power of currency hegemony. Although Divine Shield and pound sterling are competitors, when it comes to maintaining the gold standard system, the interests of the two countries are aligned.
Beyond market share, in the international import and export trade market, England and Austria also occupy the vast majority of the share, leaving other countries no choice but to hold large amounts of pounds sterling and Divine Shields.
This is similar to the future currency hegemony of the United States. Everyone knows holding large amounts of dollars will get them ’shorn like sheep’, but there’s no choice—if you want to engage in international trade, you must hold them.
Unlike other countries that can make concessions on currency issues to seek support from England and Austria for gold standard reform, France can only stubbornly resist to the end.
This is not only a matter of pride but also involves international status and a considerable amount of interests. The moment the Paris Government yields, the world will no longer be dominated by the three great powers standing together, but rather, subjugated to England and Austria split between them.
Without a doubt, the Paris Government must not compromise on this issue; otherwise, the French public would denounce them as a National Traitor.
After pacing a few steps, Napoleon IV said fiercely, "If we cannot buy enough gold from the international market, then we must find a way with the countries on the gold and silver bimetallic standard.
Selling off silver in exchange for gold; they want to drive up the price of gold, right? Then let’s join in the escalation. The current market exchange ratio between gold and silver is only 1:23.5, so grind it up to 1:30, even 1:40.
With gold prices skyrocketing against silver, the value of the pound sterling and Divine Shield will also soar, exceeding the market’s threshold for endurance. They’ll have no choice but to sell gold to settle the currency’s value."
This is a tactic that would damage both sides. A sudden surge in currency value is bound to impact export trade. England and Austria would not have an easy time, and neither would France under the bimetallic standard.
Apart from a handful of financial capitalists making a profit, it could be said that there would be no victors. All nations participating in international trade would be victims of unstable currency values.
It must be said that Napoleon IV was ruthless enough; if he wasn’t allowed to join the game, then he’d be willing to flip the table, ensuring no one could play happily.
Finance Minister Allen hurriedly urged, "Your Majesty, this must not be done. We have yet to complete currency reform, and an explosive increase in the gold-silver exchange rate would first impact the franc.
If they refuse to compromise and let the market take its toll, the franc’s credit system will collapse first, and countries that have not completed the transformation to the gold standard will suffer heavy losses as a result.
For England and Austria, the establishment of the gold standard system in exchange for short-term economic losses is acceptable."
We are not yet in the era of free trade, and as the two largest colonial empires in the world, the biggest trading partners for England and Austria are their own colonies.
No matter how much impact the increase in currency value brings, as long as the internal circulation system is not disrupted, England and Austria can withstand it.
Moreover, there are not a few countries that have completed gold standard reform. As currency values change in sync and counterbalance each other, trade is not affected.
On the other hand, countries under the gold and silver bimetallic standard system fare worse. Drastic exchange rate changes direct make many import and export businesses unprofitable, and some may even operate at a loss.
foreign Minister Montero agreed, "Allen is right. If we engage in driving up the price of gold, we’ll fall right into the enemy’s trap.
Even with insufficient gold reserves, we can still find solutions from other countries. There are also several countries that haven’t completed the gold standard reform, and we can surely exchange enough gold from them."
Napoleon IV nodded thoughtfully, showing his agreement. Preferring to sell another’s life over seeking poverty, he didn’t mind which method was used as long as the problem was solved.
When European countries reformed to the gold standard in the original timeline, due to a lack of sufficient reserves, the challenge was ultimately addressed through external plunder.
Now history has returned to its original path, and the French Empire, quiet for many years, would once again bare its fangs to the outside world.
...
The French gold shortfall wasn’t large and could be resolved through external plunder; other European countries weren’t so lucky.
Not every nation possessed the strength to resolve issues through colonial plunder, and many had to compromise with England and Austria for their support in currency reform.
In the Vienna Palace, witnessing the favorable situation before him, Franz felt it was somewhat surreal. The British willing to share currency hegemony with Austria, was this a joke?
The inaction of John Bull made Franz even more troubled; he believed the British were definitely plotting something, it just hadn’t been discovered yet.
Paranoia, perhaps there was some! Being more vigilant was always right; better to be busy for nothing than to be unprepared and suffer later.
...
As winter passed and spring arrived, the earth burst forth with vitality. Each year at this time, Franz would take his family out for a spring outing.
This year was no exception, but this time the destination was special. Jerusalem, an ancient and legendary city, was the final stop of this trip.
Due to the special nature of the destination, there were more participants than usual. Such as: the elderly Archduke Carl, Empress Sophie, and the retired Uncle Ferdinand I and his wife.
This weighed heavily on Franz; these old folks were not young anymore, and the slightest mishap on the road could force him to return home to arrange their funerals.
Persuasion was out of the question; these were the true believers. Just as Uncle Ferdinand had said, "My greatest wish is to plant the Habsburg flag in Jerusalem."
Ok, many emperors of the Habsburg dynasty had said the same thing, only they were unlucky to have faced the peak of the Ottoman Empire and had not succeeded.
Now the opportunity had come, and they could not wait. Even his father, who usually wasn’t much for ambition, said that if he happened to die in Jerusalem, it would be perfect to be with God.
If not for Franz’s intervention, they would have rushed there as soon as the armistice was signed. Faced with a bunch of religious fanatics, Franz felt helpless.
Since Austria had recovered Jerusalem, the number of people from Europe making pilgrimages to Jerusalem had increased significantly, with tents set up not just inside but also outside the city.
To solve the accommodation problem for pilgrims, the Jerusalem City Management Committee was forced to change their original demolition and reconstruction plan, renovating and modifying the buildings in the city.
Most buildings were converted into inns and hotels. They were renovated in the shortest possible time and then opened for business.
Before Franz could react, Jerusalem had become Austria’s most famous tourist city, and all promotion, planning, and advertising were superfluous.
This trip to Jerusalem for the coronation was mainly for show and to impress, so naturally, the pageantry would be extravagant.
To prepare for this ceremony, the Vienna Government spared no expense. Massive manpower and material resources were invested without concern for cost, and Franz estimated the final expenses could be as high as tens of millions of Divine Shields.
Don’t think it’s too expensive; all the investment was worthwhile. Apart from other considerations, after the recovery of Jerusalem, Austria’s rule was even more secure. In light of this positive news, all sorts of chaotic ideologies and thoughts lost their market.
That was only domestically; internationally, Austria’s prestige also surged dramatically. The growth in soft power couldn’t be measured in monetary terms.
On April 3, 1875, Franz set off from Vienna with his whole family, beginning their pilgrimage.
No sooner had they boarded the train than complications arose. First, Uncle Ferdinand I fell ill, but that could only be considered a minor issue; he fell ill every day, and everyone was used to it.
Then Empress Sophie fainted, and after much chaos, the doctor concluded it was due to the fast speed of the train—motion sickness.
Without discussion, they had to slow down. Franz’s special train was the fastest of the era, theoretically capable of reaching speeds of eighty miles per hour.
Of course, that was in theory. The railway wasn’t perfectly level and had to slow down on mountainous and curved sections. The average speed was about forty to fifty miles per hour, which was still considered fast at the time.
After slowing down, things improved significantly. What was supposed to be a journey from dawn to dusk took until the following day to reach Venice, delaying the transportation schedule as well.
This was a minor issue; it just meant the Venice to Vienna railway would be closed for one more day, not a great loss. The real test began upon arriving in Venice; aside from Franz, the seasick emperor, there were also a family of elderly and children to consider.
