Chapter 631: Deterrence
In addition, there were fees for using the wooden tracks and wages for the laborers.
Baden had a population of just over two million, so these revenues alone would be enough to significantly raise the standard of living for the entire nation.
Frederick composed himself, forcing a smile.
"Your Royal Highness, the cost of building these wooden tracks... as you know, my country's financial situation, I'm afraid we cannot afford such a sum."
"You needn't worry." Joseph raised his wine glass in a gesture towards him. "France's Central Bank will provide you with a 900,000-franc loan for track laying. You only need to provide the laborers."
Frederick's lips curved upwards in excitement. He raised his glass and clinked it against Joseph's.
"To French-Baden friendship! I truly don't know how to express my gratitude, Your Royal Highness, the Crown Prince. You are forever my most sincere friend, and may God bless you!"
Joseph took a sip of wine, then set his glass down, adopting a serious expression.
"Your Majesty, once such an important trade route is established, I fear it will attract the covetous gaze of certain ill-intentioned nations, who might even go so far as to wage war and cause destruction."
Before he could inquire, Joseph continued with a firm tone, "To protect this trade route, our two nations should preemptively rehearse how to repel invaders!"
"What? What do you mean?"
"I propose that France and Baden each contribute an army to conduct joint military exercises along the trade route."
"Is... is that really necessary?" Though Frederick hadn't heard the term "joint military exercise" before, he could roughly infer its meaning.
Joseph nodded. "This concerns our country's 900,000-franc investment. We must make certain nations see our resolve to defend this trade!"
The implication was clear: no military exercise meant no 900,000-franc loan, and no Baden as a trade hub.
Frederick hesitated, asking, "Your Royal Highness, we will only conduct exercises, the troops will absolutely not cross the border, and after the exercises, the French forces will withdraw back into France?"
"That is correct. We can first sign a joint military exercise agreement, formalizing all these details."
Frederick breathed a sigh of relief. Finally, swayed by the enormous promise of profit, he raised his glass to Joseph.
"Here's to a successful joint military exercise."
...
Hesse-Darmstadt.
Marburg.
Ernst Werner von Lützke, Upper Hesse's Chief Diplomatic Advisor, who was also the highest authority on foreign affairs there, looked at Bailly with the eyes of a shrewd merchant.
"Ten million francs, I must admit, that is indeed very tempting."
Bailly added with a smile, "And with only three percent interest."
Lützke leaned back and shook his head. "Even a larger loan cannot resolve the severe trade imbalance my country faces with France."
He spread his hands. "You know, loans always run out eventually, and then they must be repaid. After that, our country's trade deficit will only continue to grow."
Bailly frowned inwardly. 'He had previously reached agreements smoothly with Württemberg and Augsburg. However, Upper Hesse, backed by the North Germany trade zone, proved far more difficult to deal with.'
Fortunately, the Crown Prince had analyzed various possible scenarios with him before his departure. He immediately responded according to the plan, "You can absolutely use this money to promote the development of domestic industries."
"Oh? Could you elaborate?"
"For example, by subsidizing industries with growth potential," Bailly said. "Workshop owners, having secured funds, can improve their production processes, acquire more advanced equipment, and even increase workers' wages, encouraging them to work more diligently."
"A few years ago, our country's industries, such as papermaking and iron smelting, also lacked competitiveness. It was through subsidies that they gradually improved."
Lützke nodded instinctively. What the Frenchman said seemed quite logical.
However, Joseph hadn't told him that directly subsidizing factories rarely, if ever, leads to industrial progress. Instead, factories tend to become dependent on the profits generated by subsidies, and if the subsidies were ever withdrawn, they would likely go bankrupt quickly.
Bailly continued to offer advice, "You see, with just 1.5 million francs, you could purchase hundreds of steam engines from the French United Steam Engine Company. Oh, I can even help you secure a discount."
"These steam engines will help your wool textile industry achieve a breakthrough."
Lützke finally seemed swayed. 'He knew that the British and French textile industries had achieved significant cost reductions by relying on steam engines. Perhaps Hesse could follow the same path.'
He looked at Bailly once more and nodded. "I will report this matter to the Grand Duke."
...
March 10, 1792.
The signatory nations of the Rhine-Seine Treaty gathered at the Karlsruhe Palace to begin voting on a proposal concerning the entire trade landscape.
Wilberforce, acting as the British negotiator, stood before the floor-to-ceiling window, whispering to Count Rheinfels, the Austrian representative.
This British Second Secretary of the Treasury, deeply embroiled in the "inciting slave revolts" scandal, had been forced to accept this assignment to temporarily leave Britain and weather the storm.
"You needn't worry about the Frenchmen's petty maneuvers," he said with a confident smile. "Our country can also provide those loans. Even if the amount is slightly less, those nations will consider the benefits of renegotiating trade agreements, and should side with us."
Count Rheinfels still seemed uneasy. "Baden and Württemberg will almost certainly listen to the French. Augsburg and Upper Hesse must both vote in favor to ensure Britain's inclusion in the treaty."
"Tomorrow, I will approach their representatives again, to ensure—"
Boom— A dull, thunderous boom in the distance interrupted him, followed by several more resounding thuds.
Wilberforce and the Austrian exchanged glances. He frowned.
"Sounds like cannons?"
Count Rheinfels motioned to a guard by the door.
"What's going on over there?"
Before the guard could reply, a Baden court official approached, his face beaming with smiles. He bowed.
"Please don't be alarmed, gentlemen; that's the "Steadfast Will" joint military exercise."
Meanwhile, in another hall on the western side, Lützke, the representative from Upper Hesse, frowned.
"Joint military exercise?"
"It's an exercise conducted by our country and France to protect trade routes. A combined force of 50,000 troops is involved," the court official explained eagerly. "If you're interested, you could go to the northern outskirts to observe."
Lützke hesitated briefly. He instructed his attendant to prepare a carriage, and then set off for the northern part of Karlsruhe.
As the carriage continued forward, the scent of gunpowder in the air grew stronger. When private residences were almost out of sight, a sudden, rapid drumming reached them from ahead.
The coachman hastily reined in the horses. Then they saw a troop of soldiers, clad in crisp white uniforms and carrying Auguste Pattern Percussion Rifles on their backs, marching past the carriage in orderly formation.
Supply wagons were interspersed within the column, and cavalry troopers continuously patrolled back and forth on both sides of the formation, or loudly relayed orders.
Lützke waited for a full hour, as the marching column consisted of tens of thousands of soldiers. His carriage, before this massive army, was like a lone leaf tossed in a surging tide.
Just after the last of the soldiers disappeared from view, a Baden officer approached the carriage. After first inquiring about Lützke's identity, he then pointed to a small hill not far away. 0s is the source.
"If you are interested in the exercise, that is an excellent vantage point."
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