New European Continental Situation

August 23, 1866, German territories.

Prussia and Austria signed a truce in Prague, ending the Prussian-Austrian War.

Because the war lasted only seven weeks, it was also known as the Seven Weeks' War, and it concluded with Austria's defeat.

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

As for Austria, this war not only resulted in the loss of its leadership in the German territories but also triggered a domestic political crisis.

Due to the war's failure and the rise of separatism, Austria was forced to compromise with the nobles of the Hungarian region. The Austrian Empire was about to become a thing of the past, and the Austro-Hungarian Empire was poised to enter the historical stage.

As a dual monarchy, the Austro-Hungarian Empire naturally could not compare to the dominant Austrian Empire. In terms of the future alone, the tug-of-war and struggles between the nobles of the two regions would consume a significant portion of the Austro-Hungarian Empire's energy, and Austria would essentially lose its influence on the European continent.

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

This war did have some impact on Ernst. For instance, Prussia had basically established its ruling position in Germany, and as the place where the Hohenzollern Conglomerate made its fortune, it would enter a phase of rapid development as Prussia's influence in the German territories grew.

Prussian goods would find it easier and more convenient to enter the various German states, and the Hohenzollern Development Bank would be able to conduct its business more effectively in the German territories.

The Prussian-Austrian War was a complete surprise to the entire European continent. Britain, France, and Russia had not expected Austria to lose to the rising Prussia, a new star about to emerge on German soil.

The most annoyed among them was likely the French Emperor Napoleon III. Prussia's victory also signaled the breakdown of the old European order. For example, the cooperation between Italy and Prussia this time would affect the future European landscape.

As a beneficiary of the old European order, Napoleon III naturally wanted to maintain the old system. However, he had not anticipated Austria's weakness. If he had known that Austria was merely a hollow shell, Napoleon III would have supported Austria at the start of the war.

But Prussia fought brilliantly, ending the war in a short period. Bismarck seized the opportunity and reached an agreement with the Austrians in a timely manner, preventing interference from other European countries.

At the same time, as the victor, Prussia did not impose harsh penalties on Austria. It merely demanded that Austria hand over the administration of Holstein to Prussia and requested a war indemnity that could be repaid promptly.

These lenient terms meant that Prussia and Austria, the parties involved in the war, did not become estranged due to the conflict. Instead, their relationship grew closer.

On one hand, Austria needed Prussia's support to suppress its internal separatist tendencies. On the other hand, Austria had to be cautious of the Kingdom of Italy to its south.

However, Prussia and Italy were allies, and Prussia would indeed work to reconcile the Austro-Hungarian Empire and the Kingdom of Italy in the future, easing the tensions between the two nations.

This essentially formed the embryonic shape of the Triple Alliance before the future World War I. The conflict between Austria and Italy would later become a factor in the alliance's collapse, and the outcome of the future World War I was already foreshadowed at this point.

As a significant victory on Prussia's path to German unification, the Prussian Royal Palace was filled with laughter and joy. The Junker nobles and their Emperor held a celebration, with smiles on everyone's faces.

The entire banquet was a scene of revelry, and all influential Prussian nobles sought ways to obtain an invitation to the royal palace banquet.

Constantin, Prince of Hechingen, and Prince Ernst naturally attended this event. Constantin was a member of the Prussian General Staff during the Prussian-Austrian War, and Ernst's own enterprise had played its part in the war. Coupled with his already prominent noble status, attending the banquet was effortless.

For Grand Dukes like Constantin and Ernst, whether they could attend the banquet was merely a matter of desire. Even without participating in the Prussian-Austrian War, their status as top-tier nobles would grant them entry.

Besides the Grand Dukes of Prussia, the largest contingent at the banquet consisted of Prussian soldiers, who raised their glasses to King Wilhelm I and cheered for the Kingdom's victory.

Soldiers in Prussia were respected and were the most popular profession in Prussian society. If a noble joined the army, his social status would be further elevated.

King Wilhelm I, like his ancestors, raised his glass in salute to these Prussian soldiers. Bismarck and Moltke, the two most significant contributors to the war, stood on either side of King Wilhelm I.

Prince Constantin and Prince Karl Anton, these Grand Dukes of Prussia, also stood at the front, with Ernst following behind his father.

After King Wilhelm I read the declaration of victory, he stated that this victory signified that the Kingdom of Prussia would ultimately lead the German territories towards greater unity and make important contributions to Germany's prosperity.

Following the speech, the hall erupted in warm and sustained applause.

The latter half of the event was for free mingling. Those who could attend the banquet were either prominent figures or the children of nobles.

Ernst also encountered some acquaintances, such as Leopold and other nobles. As a young man, Ernst could still attract some attention. He was now a financial marvel among the nobility.

Although Ernst could not earn military merit on the battlefield as a soldier, in this era where wealth was increasingly important, achieving great financial success would lead people to seek his favor.

If an ordinary person had created such a financial miracle, they would not have been respected by the nobility. Because they were not of noble birth, even if they achieved what was difficult for ordinary people, they would at best be considered parvenus by the nobility.

Ernst was different. As a member of the top nobility by birth, Ernst's great wealth was seen as an example of a noble entrepreneur working with his own hands.

Noble status in Europe did not mean a lack of desire. It is well-known that there is a considerable amount of one-upmanship among European nobles. Even a country like Prussia was not immune. In Europe, nobles incurred enormous expenses to display their distinguished status, especially those who were concerned with appearances. Even top nobles had a great need for money.

Therefore, it was common for European nobles to borrow money. This was one reason why Jews thrived in Europe; even some European kings borrowed from Jews.

If they couldn't repay their debts, everyone would form a very negative impression of the Jews. In fact, this was partly their own doing. As an outsider group, Jews were already marginalized in Europe, and they did not actively seek to assimilate.

Moreover, Jews often engaged in usury and money laundering, unsavory business practices. As the debtors, European nobles, or ordinary Europeans who borrowed from Jews, the entire European society harbored a hostile attitude towards Jews.

However, Jews did possess a certain cunning. The industries they engaged in were indeed quick to generate money, and they were quite cohesive, giving them an advantage in business information. Thus, they grew larger and larger. Whenever finance was mentioned, people would associate it with Jews.

Jews, as representatives of the wealthy and unbenevolent in Europe, were universally disliked. Ernst's Hohenzollern Development Bank was one of the few major banks in Europe not affiliated with Jewish conglomerates.

Now, everyone knew that Ernst possessed substantial wealth. While he usually had no shortage of money, if he were to need it, he would have an alternative, preventing Jewish banks from unilaterally increasing their exploitation.

Furthermore, as a fellow noble, Ernst himself would not feel comfortable charging these nobles excessively high interest. In a short period, many nobles took out loans from the Hohenzollern Development Bank.

Some nobles, due to their poor business management, were indeed unable to repay their debts in a short time. Ernst had no choice but to pursue the debts.

However, there were some unexpected benefits. Since they couldn't repay the loans, they could introduce and guarantee the deposit services of the Hohenzollern Development Bank to the people in their territories.

This way, the Hohenzollern Development Bank unexpectedly entered some markets it had previously been unable to access. Thus, everything has its pros and cons.

As for the nobles' debts, there was not too much concern. When granting loans, the Hohenzollern Bank had already screened its clients. Generally, collateral was in the form of real estate, so the difficulty of obtaining loans from the Hohenzollern Bank was considered above average among European banks. Even if someone couldn't repay the debt, Ernst could temporarily seize some of their assets to offset some of the losses. If they could repay the debt later, they could reclaim the mortgaged assets. Therefore, despite the higher difficulty, the Hohenzollern Development Bank maintained a good reputation among the nobility.

Watching his son interact with a group of nobles, Constantin inadvertently felt that his son had grown up, capable of developing independently outside of his protection and achieving considerable success.

Thinking of his own age, Prince Constantin couldn't help but worry. He was already over sixty. If Ernst married too late, would he not get to see his grandchildren? Prince Constantin thought to himself that it was time to find a suitable match for Ernst.