Chapter 778: The Growing Agrarian Landowning Class (Bonus Chapter) |
“Why is the budget so high?”
Franz was not making a fuss over nothing. The initial investment for the Near East Development Plan had already reached 200 million guilders. At this rate, the original 1 billion guilder budget would not even be enough to complete the basic infrastructure.
Without proper infrastructure, settlers could not be accommodated, and private capital would not flow in. If private investors were not attracted, relying solely on government funding for development would bankrupt the Austrian government.
Chancellor Felix explained, “The main issue is that the war has caused far greater devastation to the Near East than the government had anticipated.
Most cities have been reduced to ruins, and in many cases, restoring them is even more expensive than rebuilding from scratch. Mines, roads, bridges, and water facilities have all been destroyed by the war and must be reconstructed.
The most troublesome aspect is that local production has been completely wiped out, meaning that a significant portion of the raw materials needed for initial construction must be transported from the homeland.”
Franz had no response. Building a single new city was one thing, but the vast Near East was not something that could be sustained by just one city.
To resettle immigrants, it was not feasible to have everyone confined to urban areas. The sectors most capable of recovering quickly were agriculture, mining, and manufacturing.
Jobs were essential for keeping people in place. At this time, the service sector was still underdeveloped, and the core of the economy remained in primary industries.
After hesitating for a moment, Franz slowly said, “Announce the plan publicly and see if we can attract some investors. If local industries can be revived to some extent, reducing reliance on imported materials from the homeland, we should be able to cut costs somewhat.”
Times had changed. The Austrian government was no longer the impoverished administration that once had to stretch every guilder.
Even if the initial budget exceeded by tens of millions, Franz was only mildly surprised. An extra expenditure of a few tens of millions of guilders simply meant issuing more government bonds which was far from a financial crisis.
It was normal for the government’s initial estimates to have some discrepancies. The original budget had been made in offices, based on war reports and maps.
Now that they had taken control of the Near East and obtained firsthand information, a revised budget was bound to differ from the previous estimates.
…
Minister of War Artur Maximilian von Bylandt-Rheidt handed over a document and said, “Your Majesty, this is the list of officers and soldiers who distinguished themselves in the Near East War. It also includes the Ministry of War’s plan for postwar demobilization and compensation for casualties.
In this war, a total of 286 officers and soldiers have accumulated enough merit to be granted noble titles. Among them, 71 will receive promotions in rank.
After the war, 286,000 troops will need to be discharged. Of these, 278,000 will transition into the reserves, requiring subsidies amounting to 87.689 million guilders.
The number of soldiers killed or wounded in this war totals 14,134, with compensation payments reaching 67.6536 million guilders.
According to the land reward policy, which grants military land at twice the standard given in the homeland, 66,424 individuals qualify for military land grants. This includes fallen soldiers. An additional 84,376 individuals meet the criteria for supplementary land allocations.
Based on the preferences of the soldiers or the families of the fallen, a total of 150,359 personnel have applied for military land grants, amounting to 11.7648 million hectares.
Some personnel have opted to pay the difference for additional land. The funds collected from these transactions can largely offset the costs of demobilization subsidies and casualty compensation.”
Auxiliary forces were not included in these statistics. If they had been, the numbers of wounded and fallen soldiers could have been ten times higher.
In a country like Austria, war was often the best opportunity to change one’s fate. The Near East War had produced over 200 new “lucky ones” who had risen through the ranks.
Advancing in rank was actually more difficult than receiving a noble title. Each step required exponentially more military merit, making the climb increasingly challenging.
This was not unique to Austria. In any society, the higher one climbed, the narrower the road became.
Military land grants remained as popular as ever, which put Franz at ease. Since the Near East was filled with vast tracts of unclaimed land, he had no objections to distributing it freely.
The appeal of military land grants was not just due to their tax benefits but also because they conferred a prestigious social status.
As long as one met the eligibility requirements, no one would willingly forgo the opportunity. While these lands could not be sold, leasing them posed no issue at all.
The Near East was more remote compared to the Austrian homeland, but the standards had been relaxed. Grant recipients were entitled to double the usual land allocation, with even higher compensation for mountainous or forested regions.
Compared to overseas colonies, these lands, being close to the homeland, were far more desirable. Not everyone was eager to venture far from home. Proximity to familiar territories was always an advantage.
Despite its somewhat barbaric past, the former Ottoman Empire was still viewed as a more respectable option than a desolate backwater.
From this perspective, serving the Austrian Emperor was a worthwhile endeavor. Soldiers were rewarded with both wealth and land.
As long as they survived, a few military campaigns could turn them into landowners. With a bit of luck, they might even rise to nobility.
Even for those whose military achievements fell short, land grants remained an option, though on a smaller scale.
In non-core territories, individuals were also allowed to purchase land at a discounted rate while still enjoying the privileges of military land grants.
This policy was originally introduced when the Austrian government faced financial difficulties. Unable to afford generous pensions, Franz had implemented this special system as a solution.
Originally, this policy was meant to be phased out. However, Austria’s rapid expansion had left it with vast tracts of unclaimed land.
Undeveloped land held no real value, and relying solely on the government for development was insufficient. Franz had no desire to be a nominal landlord with vast but unused holdings, so the policy remained in place.
With the addition of over a hundred thousand new farm owners, and factoring in their families, the number of immigrants easily reached one to two million. With these loyal settlers forming the core of governance, the Near East would remain stable even as millions more immigrants arrived.
Austrian sociologists had observed that farm owners had the highest birth rates, with some particularly prolific families capable of producing enough children to form an entire soccer team.
With relatively comfortable living conditions, minimal financial stress, and few entertainment options in the countryside, they became the driving force behind Austria’s population growth.
Amid the global rise of the bourgeoisie, Austria’s landowning class was also expanding. The newly ennobled military aristocracy injected fresh energy into this social group.
For years, Austria had been the world’s largest agricultural exporter, controlling three-quarters of Europe’s agricultural exports. This dominance provided a solid economic foundation for the growth of its farm-owning class.
Franz paid little attention to the expansion of this class, as its potential growth was inherently limited by land availability.
Its ability to defy global economic trends and continue expanding was largely due to Austria’s territorial acquisitions. Once all available land was developed, the expansion of the farm-owning class would naturally reach its peak.
However, as long as Austria remained strong and maintained its geopolitical advantages, its monopoly over the European agricultural market would ensure that this class remained a significant force.
By forming a political alliance with the nobility, Austria would be able to suppress the bourgeoisie for a long time to come.
As staunch supporters of imperial authority, these landowners were always ready to take up arms and serve as the backbone of the nation’s military strength.
With such pillars in place, even if suppression became impossible, overturning the system would still be an option.
In theory, such a situation was unlikely to arise. The Austrian bourgeoisie lacked real power, not only because they had no military backing but also due to the presence of state-owned enterprises and the imperial financial conglomerates, which acted as an effective counterbalance.
Anyone who became too ambitious and forgot their place would quickly find themselves bankrupt. Franz could bring down even the most powerful financial groups within the existing legal framework.
In the capitalist world, capital dictated power. With industries like water, electricity, energy, and transportation firmly under state control, even the most formidable tycoons would be powerless.
The only alternative would be abandoning industry to focus solely on finance, but such a shift would make them insignificant. The true strength of financial conglomerates lay not just in their wealth but in their control over countless livelihoods.
Without these foundations, money would be nothing more than a number, and their influence on society would be greatly diminished.
Franz took the document and gave it a quick scan. Then he said, “Distribute the cash immediately and have the government expedite the land grants.
Given the unique circumstances of the Near East, the designated regions can be confirmed first, but the specific land allocations should be postponed. The relevant departments must ensure clear explanations to the recipients.
As for the noble ennoblement ceremony, schedule it for the day before Christmas. The cabinet will handle all necessary arrangements.”
***
https://postimg.cc/gallery/PwXsBkC (Maps of the current territories of the countries in this novel made by ScH)