The New European Situation

August 23, 1866, German territories.

Prussia and Austria signed an armistice treaty in Prague, bringing the Prussian-Austrian War to an end.

Because the war had lasted only seven weeks, it was also known as the Seven Weeks' War. It ended in defeat for the Austrians.

This war laid the foundation for Prussia's unification of Germany, removing Austria, the greatest obstacle on Prussia's path to unifying the German territories.

As for Austria, the war not only cost it its leadership over the German territories, but also triggered a domestic political crisis.

Defeat in the war and the rise of separatism forced Austria to compromise with the nobles of Hungary. The Austrian Empire was about to become a thing of the past, while the Austro-Hungarian Empire was about to step onto the stage of history.

As a dual monarchy, the Austro-Hungarian Empire naturally could not compare to the Austrian Empire, where one family had held sway alone. Looking only to the future, the tug-of-war and struggles between the nobles of the two regions would consume most of the Austro-Hungarian Empire's energy, and Austria would essentially lose its influence over continental Europe.

The Prussian-Austrian War had been so brief that Ernst had only made a small fortune from it. Once the war ended, the Hohenzollern Conglomerate returned to its original track.

The war still had some impact on Ernst. For instance, Prussia had essentially established its dominance in Germany, and as the birthplace of the Hohenzollern Conglomerate, the conglomerate would also enter a period of rapid development as Prussia's influence in the German territories steadily rose.

It would become easier and more convenient for the Hohenzollern Conglomerate's goods to enter the German states, and Hohenzollern Development Bank would also be able to conduct business more effectively throughout the German territories.

The Prussian-Austrian War could be said to have left the whole of continental Europe dumbfounded. Britain, France, and Russia had never expected Austria to lose to rising star Prussia. A new star was about to rise over German soil.

The most vexed of all was likely Napoleon III, Emperor of France. Prussia's victory also signaled the shattering of the old European order. For example, this cooperation between Italy and Prussia would affect the future European landscape.

As a beneficiary of the old European order, Napoleon III naturally wished to preserve it. But he had not expected the Austrians to be so useless. Had he known they were merely a shell with nothing inside, Napoleon III would certainly have supported Austria from the moment war began.

But Prussia had fought brilliantly, ending the war in a short time. Bismarck had also seized the opportunity, promptly reaching an agreement with the Austrians and preventing intervention by other European countries.

At the same time, as the victor, Prussia imposed no harsh punishment on Austria. It merely demanded that Austria hand over administrative control of Holstein to Prussia, along with war indemnities that could be paid off promptly.

Such lenient terms meant that Prussia and Austria, the two parties to the war, did not grow distant because of it. On the contrary, their relationship became even closer.

On one hand, the Austrians needed Prussian support to suppress domestic separatist tendencies. On the other, Austria had to remain wary of the Kingdom of Italy to the south.

Yet Prussia and Italy were allies, and in the future Prussia would indeed work to broker reconciliation between the Austro-Hungarian Empire and the Kingdom of Italy, easing the conflict between the two countries.

This essentially formed the prototype of the Triple Alliance before the future World War. The conflict between Austria and Italy would also become one trigger for the alliance's collapse. It could be said that the seeds of the future war's outcome had already been planted at this time.

As a major victory on Prussia's road to unifying Germany, the Prussian Royal Palace was filled with laughter and celebration. The Junker nobility and His Majesty the Emperor held a celebration, smiles overflowing across everyone's faces.

The entire banquet was a blaze of lights and wine. Every capable Prussian noble would seek out connections to obtain an invitation to the royal palace banquet.

Constantin, Prince of Hechingen, and Prince Ernst naturally attended the event as well. Constantin had been a member of the Prussian General Staff during the Prussian-Austrian War, while Ernst's own enterprises had also played their part in the conflict. Together with their already illustrious noble status, attending the banquet was as easy as turning over one's hand.

For great nobles like Constantin and Ernst, whether they could attend the banquet was merely a matter of whether they wished to. Even if they had not participated in the Prussian-Austrian War, their status as top-ranking nobles would still gain them entry.

Apart from Prussia's great nobles, the largest number of attendees were Prussian soldiers. They raised their glasses to King Wilhelm I and cheered for the kingdom's victory.

Prussian soldiers were respected, and military service was the most popular profession in Prussian society. If a noble joined the army, his social status would rise even further.

Like his forefathers, King Wilhelm I raised his glass in salute to the Prussian soldiers. Bismarck and Moltke, the two meritorious officials who had contributed the most to the war, stood respectively at King Wilhelm I's left and right.

Prince Constantin and Prince Karl Anton, along with the other great Prussian nobles, stood in the front row, while Ernst followed behind his father.

After King Wilhelm I read out the declaration of victory, he stated that this triumph represented how the Kingdom of Prussia would ultimately lead the German territories toward greater unity and unification, making an important contribution to Germany's prosperity.

When the speech ended, thunderous applause erupted through the hall and continued without end.

The latter half of the banquet was free time. Those able to attend were all distinguished figures, or children of noble families.

Ernst also encountered several acquaintances, such as Leopold and other nobles. As a young man, Ernst still attracted quite a bit of attention. He was now the noble world's miracle of wealth.

Although Ernst could not earn military merit on the battlefield as a soldier, in this era when wealth was becoming increasingly important, achieving immense financial success would also draw people eager to curry favor.

If an ordinary person had created such a miracle of wealth, he would not receive the nobility's esteem. Since he had not been born noble, even if he achieved things beyond the reach of ordinary people, he would at most be regarded by nobles as an upstart.

But Ernst was different. As one born into the ranks of the highest nobility, Ernst's immense wealth made him a model of a noble building an enterprise through the labor of his own hands.

In Europe, noble status did not mean one desired nothing more. As everyone knew, the European nobility had a rather severe culture of competing in extravagance, and even a country like Prussia could not escape it. In Europe, nobles spent enormous sums to display the grandeur of their status. Those nobles who would rather die than lose face, even the highest-ranking among them, had tremendous need for money.

Thus, borrowing money was commonplace among Europe's nobility, and this was one reason Jews had been able to thrive so spectacularly in Europe. Even some European kings borrowed from Jews.

When debts could not be repaid, people formed an extremely poor impression of Jews. In truth, the Jews had brought this upon themselves. As outsiders, Jews had already been pushed to the margins of Europe, yet they still did not take the initiative to abandon themselves and integrate into it.

Moreover, Jews often engaged in unclean business activities such as usury and money laundering. Whether European nobles in debt or ordinary Europeans who had borrowed from Jews, European society as a whole was filled with hostility toward Jews.

Yet Jews truly did possess some cleverness. The industries they pursued did indeed bring in money quickly, and they tended to stick together, giving them an advantage in business information. Thus, they grew larger and larger. At the mention of finance, people would think of Jews.

As Europe's representatives of the rich who showed no mercy, Jews were loathed by idle men and dogs alike. Ernst's Hohenzollern Development Bank, meanwhile, was one of the few major European banks unrelated to Jewish conglomerates.

Now everyone knew that Ernst held vast wealth. It was fine when they lacked no money, but if they did, they had at least one more avenue available and would not have to let Jewish banks unilaterally intensify their exploitation.

Furthermore, as a fellow noble, Ernst himself felt embarrassed to charge these nobles excessive interest. For a time, many nobles indeed borrowed from Hohenzollern Development Bank.

Some nobles were poor at managing their finances and truly could not repay their debts in a short time. Ernst indeed had no way to press them for payment so quickly.

But he also gained some unexpected benefits. Since they could not repay their debts, they could at least introduce and guarantee Hohenzollern Development Bank's deposit services to the people in their territories.

In this way, Hohenzollern Development Bank unexpectedly entered markets it had previously been unable to access. Thus, everything had both good and bad sides.

Ernst was not overly worried about those nobles' debts either. When issuing loans, Hechingen Bank had already selected its clients, generally requiring real estate as collateral. Therefore, Hechingen Bank's lending standards ranked above average among Europe's many banks. Even if someone truly could not repay, Ernst could temporarily seize part of his other assets to offset some of the losses. If the debt could later be repaid, the mortgaged assets could be reclaimed. Thus, although its standards were relatively high, Hohenzollern Development Bank still enjoyed an excellent reputation among the nobility.

Watching his son interact with the nobles, Constantin suddenly felt that his son had grown up. Ernst was already able to leave his protection and develop independently, and he had achieved good results.

Thinking of his own age, Prince Constantin could not help feeling worried. He was already over sixty. If Ernst married too late, would he not be unable to see his grandson? It was time to find Ernst a marriage match, Prince Constantin thought.