Chapter Summaries

Prussian leaders argued over how to respond to Austria’s military pressure and whether to trade territory for Vienna’s support. As the military faction gained influence, the debate exposed how territorial concessions would serve Junker landowners while threatening civilian officials and capitalists.

• McKet argued that Austria would avoid war because a conflict would draw in Russia and risk French intervention, while Roon insisted Austria might accept the Rhineland in exchange for German unification.
• Moltke proposed exchanging interests with Austria to secure its support or acquiescence, while McKet objected that concessions such as Silesia and Prussian Saxony would provoke public anger.
• The government and military reversed their earlier positions as the military faction gained power and favored a controlled territorial settlement.
• Prussian leaders considered moving people and property out of ceded lands, using legal noncooperation, and leaving Austria with little but empty territory.
• Junker nobles favored concessions because they needed workers for East Prussia and newly occupied lands, while civilian officials opposed them to protect capitalist interests.

Franz and his ministers considered Russia’s request for Austria’s support in restoring the prewar status quo and assessed the political crisis facing Alexander II. Franz predicted that Alexander would purge corrupt officials and pursue limited reforms, leaving Russia a potential long-term rival to Austria.

• Foreign Minister Wessenberg told Franz that Russia wanted Austria to support restoring the prewar status quo without territorial concessions or reparations.
• Franz rejected Russia’s request, telling the Tsarist Government to secure agreement from all parties itself or abandon the idea.
• Prime Minister Felix argued that Russia’s collapsing economy and domestic unrest meant the Tsarist Government could not continue the war.
• Franz predicted that Alexander II would purge bureaucrats, blame them for the defeat, and use the upheaval to weaken conservatives and undermine the rebellion.
• Felix warned that Russia’s conservatives would remain powerful and limit Alexander II’s reforms.
• Franz concluded that even limited reforms and industrialization could turn Russia into a major power and a serious rival to Austria.

At the London Peace Conference, Russia faced a united front of hostile countries and turned to Austria for help. Wessenberg advised Russia to secure neutral support and accept concessions on peripheral issues, leaving Clarence-Ivanov to contemplate the loss of Eastern Europe and Russia’s future revenge against Prussia.

• More than twenty countries gathered in London on April 22, 1867, where Russia’s delegation found itself opposed by an Eight-Nation Alliance and most of Europe.
• Clarence-Ivanov secretly asked Wessenberg to use Austria’s influence to improve Russia’s diplomatic position.
• Wessenberg rejected the blank Royal Bank check at first and advised Clarence-Ivanov to court Sweden-Norway, the German Confederation, Belgium, Spain, and Portugal.
• Clarence-Ivanov handed Wessenberg the check, and Wessenberg advised Russia to abandon peripheral disputes and settle the war quickly.
• Clarence-Ivanov realized Russia might have to give up territory in Eastern Europe and regarded Prussia as its foremost future enemy.

Franz weighed Austria’s response to Britain’s planned invasion of Ethiopia and ordered arms secretly sold to the Ethiopian ruler, Theodore II, so he could resist more fiercely. The chapter left Austria preparing to exploit the conflict and claim territory from Ethiopia.

• Britain established the Dominion of Canada to strengthen its influence in North America, while Austria prepared to monitor and confiscate American investments in Central America.
• Franz reviewed Ethiopia’s position as Britain moved to seize it and asked the Colonial Ministry how Austria would respond.
• Josip Jelačić said Austria planned to claim territory from Ethiopia, whose forces were greatly outmatched by Britain’s.
• Franz ordered people to secretly sell arms to Ethiopia so its resistance to Britain would intensify.

Franz saw the Ethiopian War as a chance to drain British manpower, while the London Peace Conference struggled to resolve the territorial dispute between Russia, Prussia, and Poland. Britain, France, and Austria sought an end to the war to protect their massive loans, leaving the peace negotiations deadlocked and the risk of renewed fighting in Eastern Europe high.

• Franz viewed the Ethiopian War as an opportunity to inflict heavy casualties on Britain and weaken its colonial reach.
• At the London Peace Conference, Clarence Ivanov secured armistices with several states, and Russia ended its war with the Ottoman Empire by abandoning its Caucasus claims.
• Prussia and Poland demanded Russian territory in Eastern Europe, including Lithuania, Belarus, Latvia, and parts of Ukraine, while the Tsarist Government rejected their terms.
• Britain, France, and Austria met privately, but their conflicting views on Prussia and Poland complicated efforts to weaken Russia and settle the dispute.
• Reslin sought to persuade France and Austria to join Britain in pressing for peace, as the three creditor powers feared that renewed war could turn their large loans into bad debts.

Franz used Austria’s leverage over Prussia to secure a treaty transferring Silesian Region and Prussian Saxony to Austria for 38 million Divine Shield, plus relocation expenses. The treaty seemed like a diplomatic victory, but Prussia later moved away nearly all the factories, workers, nobles, and peasants, while Austria softened its opposition to Prussia’s demands at the London Peace Conference.

• Franz learned that the Tsarist Government was nearing a compromise and ordered Felix to pressure Berlin into honoring its terms.
• Robson and McKet negotiated over the price and political conditions for transferring Silesian Region and Prussian Saxony.
• On August 11, 1867, Robson and McKet signed an agreement selling both regions to Austria for 38 million Divine Shield, with an additional 10 million for relocation expenses.
• Franz accepted Prussia’s two-year handover period, and Vienna celebrated the treaty as a diplomatic victory.
• Half a year later, Austria discovered that Prussia had relocated nearly all the factories, workers, nobles, and peasants from the transferred regions.
• The Vienna Government tacitly approved many of Prussia’s demands at the London Peace Conference after accepting the benefits of the deal.

Prussia secured an armistice with Denmark and then forced Russia to surrender vast territories, while Poland gained independence and emerged as a potential great power. The chapter ended with Prussia maneuvering to place William I on Poland’s vacant throne despite opposition from France, Austria, and Poland’s cautious parliament.

• Prussia and Denmark signed an armistice on September 1, 1867, with Denmark receiving a symbolic payment and Prussia relinquishing claims to Jutland and the Skagerrak Strait.
• Prussia, Poland, and Russia signed an armistice on September 26, with Russia recognizing Poland’s independence and ceding extensive territories without paying reparations.
• Prussia acquired Lithuania, Latvia, and most of Belarus, while Poland received the remaining territories, including Warsaw and much of Western Ukraine.
• Poland became an independent kingdom with more than 15 million people, but its provisional government faced a shortage of skilled talent and argued over who should become king.
• William I of Prussia emerged as the leading candidate for Poland’s throne, but France, Austria, and Poland’s parliament opposed or feared the prospect of a shared monarch.
• The Berlin Government used Prussian-trained Polish troops and a strong pro-Prussian faction to keep the succession debate unsettled, while Prussia prepared to pursue the throne or leave it vacant.

After the London Peace Conference, William I reshaped Prussia’s government while Alexander II purged officials responsible for Russia’s defeat. Franz used the struggle over Poland’s future to teach his eldest son Friedrich about politics, leaving Friedrich puzzled by the possibility of a Prussian-Polish merger.

• William I appointed Marshal Moltke as prime minister after Prime Minister Frank resigned, aiming to weaken the military’s grip on government.
• Alexander II ordered corrupt officials to repay stolen funds and be exiled to Siberia instead of executed.
• Franz stopped his brothers from pursuing the Polish throne and judged that Poland’s position between Russia, Austria, and Prussia left it with few safe choices.
• Franz asked Friedrich what he would do as King of Poland, and Friedrich said he would abdicate because he did not know how to rule.
• Friedrich proposed that Prussia recover and integrate its gains before Russia regained strength, and Franz urged him to study William I’s plans and the possibility of a merger with Poland.

The great powers maneuvered over Poland’s crown as protests turned into a deadly attack on Parliament, weakening the Polish government and deepening suspicion between Poland and Prussia. Alexander II revealed that Russia had engineered the crisis to drive a wedge between them and improve Russia’s diplomatic position.

• Napoleon III and the Gotha Family withdrew from Poland’s royal contest as the great powers backed competing candidates.
• Polish protestors surrounded Parliament, and Speaker Alex angrily demanded to know what they wanted as the legislature remained deadlocked.
• On November 11, 1867, a march turned into an assault on Parliament that killed seventeen legislators and injured Speaker Alex and dozens of others.
• The Polish government launched a crackdown, while Franz suspected Prussia had orchestrated the violence to increase its influence in Poland.
• William I questioned Moltke, who blamed Austria as the likeliest culprit, though William suspected the explanation was uncertain.
• Alexander II disclosed that Russia had engineered the crisis to fuel mistrust between Poland and Prussia and strengthen Russia’s prospects for future allies.

After nine years of construction, the deeper and wider Suez Canal opened to navigation, despite costs that had more than doubled the original estimate. The opening brought commercial excitement and strategic relief to Austria, while Franz judged that its ship capacity would keep it useful into the dreadnought era.

• Franz bought up falling Suez Canal shares, while the canal company borrowed from banks with French and Austrian government guarantees.
• After engineers declared the project ready, Lesseps ordered the dam blown apart and seawater joined the Red Sea and Mediterranean Sea.
• People in Venice debated the canal’s tolls, commercial value, and strategic purpose, with one young man arguing it would boost shipping and trade.
• Franz reviewed the canal’s dimensions and concluded that its depth and width would allow dreadnoughts to pass, making the costly investment strategically worthwhile.

The British Government debated how to answer the Suez Canal’s strategic and commercial impact, rejecting a direct seizure as too risky and considering buying shares instead. In Paris, Napoleon III weighed occupying Egypt, with ministers warning that delay could let Britain or Austria take control and undermine France’s Mediterranean strategy.

• Edward warned John Russell’s cabinet that France and Austria could use the canal to threaten British interests in India and the Pacific, while Agawar described the growing commercial disadvantage to British goods.
• Steve proposed taking the Mandeb Strait or seizing Egypt or Sinai, but warned that Austria’s garrison and the risk of war made those options difficult.
• Reslin urged Britain to buy shares in the canal company, while Edward argued France and Austria could refuse to sell and pushed for naval pressure.
• Napoleon III considered sending troops to occupy Egypt, and Edmond-Leboeuf argued that French forces could secure the country or canal quickly.
• Abraham warned Napoleon III that Britain or Austria might seize Egypt if France waited, threatening its Mediterranean strategy.

The opening of the Suez Canal helped trigger Britain’s Canal Crisis, as a stock market crash and severe overcapacity drove banks and industries into collapse. In Vienna, Franz learned Austria also faced major overproduction, and the cabinet prepared to clear state-owned inventories while leaving weaker private businesses to fail.

• The Suez Canal’s opening sent London markets plunging, sparked bank runs, and helped expose Britain’s existing overcapacity.
• Britain’s railway, shipbuilding, and textile industries contracted sharply, bringing bankruptcies, unemployment, protests, and a political crisis for John Russell’s cabinet.
• Franz asked Prime Minister Felix what Austria would do as the crisis spread from Britain.
• Felix said the cabinet would order state-owned enterprises to dump surplus goods abroad and explained that Austria’s capacity exceeded domestic demand by about thirty percent.
• Franz accepted that weaker firms would fail and chose not to interfere, expecting the crisis to push capital toward emerging industries.

Tom recognized that widespread discounting signaled an impending economic crisis, while Citibank and other banks moved to protect profits by tightening credit and preparing to short the market. The crisis spread worldwide, damaging industries and trade and escalating tensions between Prussia and Poland over grain tariffs.

• Tom noticed steep discounts across New York and warned Elena that hard times were coming, though Elena reassured him about his job prospects.
• Citibank President James told executives that Austrian and British goods were flooding America and proposed halting lending, collecting risky debts early, selling securities, and shorting stocks.
• As banks tightened credit, American businesses cut production and laid off workers, while the postwar boom abruptly ended.
• British dumping spread the crisis across Europe, prompting countries to raise tariffs as businesses collapsed and international markets shrank.
• The crisis hit Belgium, Poland, and Prussia, while falling grain prices intensified competition between Polish and Prussian exporters.
• After Polish capitalists secretly sold grain in Prussia, the Berlin Government imposed tariffs to protect Junker interests, worsening tensions with Poland.

As the economic crisis drove conflicts and wars across several continents, Spain’s worsening conditions helped spark a military-backed uprising against Queen Isabella II. Isabella fled to France, leaving Franz and his advisers to assess the uncertain succession and rule out an Austrian Habsburg claim.

• Economic turmoil intensified trade conflicts and wars across Europe, Africa, and Asia, while the British faced widespread blame for dumping goods.
• In September 1868, Burjos and General Prim agreed that a Hohenzollern prince would take Spain’s throne, forming the September Alliance against Isabella II.
• On September 17, Francisco Serrano led an uprising in Cádiz; after government forces were defeated, Isabella II fled to France on September 28.
• Franz convened a high-level meeting, where Foreign Minister Wessenberg reviewed the possible successors to Isabella II and Prince Leopold’s support among the Spanish military.
• Franz ruled out Austrian Habsburg princes as candidates because other nations would oppose their accession.

Franz’s government prepared cautiously for possible European conflict while Spain’s provisional government struggled to choose a king and maintain order. Spain’s troubles worsened when an uprising broke out in Cuba, with the United States openly supporting the rebels as its own economy faltered.

• Prime Minister Felix warned Franz that the unresolved Spanish and Polish successions could heighten tensions, and Franz ordered limited war preparations without expanding the army excessively.
• Napoleon III’s opposition removed Amadeo and other popular candidates from Spain’s succession contest, while Franz chose not to intervene.
• After the revolution, Spain’s provisional government disbanded Isabella II’s police, and Madrid descended into widespread crime and disorder.
• A large Cuban uprising erupted in October 1868, threatening Spain’s finances and the wealth of its nobles and capitalists.
• The United States backed Cuban independence organizations on a large scale as federal capitalists sought an escape from the economic crisis.

The chapter explained why the European powers supported Spain against the American Federation’s influence in Cuba, then followed Franz spending time with his sons at Schönbrunn Palace. It ended with Peter excitedly planning to continue building ships after Franz promised him a shipyard if he graduated with honors.

• The United Kingdom, France, and Austria backed Spain’s claim over Cuba because they feared the American Federation’s growing potential and wanted to contain it.
• At Schönbrunn Palace, Franz told Friedrich to keep his brothers from falling into the artificial lake.
• Peter celebrated aboard a makeshift boat he had built, and Franz ordered a photographer to capture the spectacle.
• Peter called his iron-wok-like boat the Franz, and Franz teased him before encouraging him to study shipbuilding properly.
• Franz promised Peter a shipyard if he graduated with honors, and Peter made him swear not to take the offer back.

After Maximilian I asked Franz for help following a disastrous defeat in Mexico, Franz refused to lend money and instead arranged to manipulate French public opinion. Exaggerated reports of the French army’s defeat sparked nationwide demonstrations, leaving Napoleon III under pressure to retaliate and restore France’s prestige.

• Maximilian I wrote to Franz complaining about France’s demands for compensation and asking for assistance after Mexican forces and the French army were defeated by rebels.
• Franz refused to lend Mexico money and advised Maximilian I to hire the French commander to suppress the rebellion, paying with Mexican mines.
• Franz ordered Tyrone to leak news of the French defeat so the French public would demand action.
• Paklun and Cross read exaggerated reports claiming tens of thousands of French troops had been beaten by Mexican rebels.
• The French Government failed to contain public anger, and demonstrations spread from Paris across France as the news circulated through Europe.
• Napoleon III faced pressure to retaliate because France’s reputation and political influence depended on proving its military strength.

On Christmas Eve 1868, electric streetlights made Vienna the first city celebrated as a “City That Never Sleeps,” a spectacle that spread across Europe through newspaper reports. The story ended with British and French observers comparing themselves unfavorably with Vienna.

• August watched Vienna’s bright streetlamps with his son, who asked how electric lamps worked and said he wanted to become a soldier rather than a scientist.
• Vienna’s electric companies expanded across Austria, but high wiring costs kept electricity expensive and beyond most workers’ means.
• Franz’s government supported the electric industry, which helped Austria’s copper and rubber businesses grow during the economic crisis.
• Vienna illuminated its streets on Christmas Eve, 1868, and telegraph reports made the “City That Never Sleeps” the subject of European newspaper headlines the next day.
• European newspapers implied that electric lighting was widespread throughout Vienna, prompting British and French observers to resent the city’s achievement.

Vienna’s citywide electric lighting put pressure on London and Paris to follow, but both cities faced enormous costs and political resistance. London left the project to its municipality, while Paris announced a municipal electric company to light the city.

• Benjamin Disraeli learned that electrifying London would cost at least £75 million and rejected central government funding, leaving the project to the London municipal government.
• Molito explained that Vienna’s power grid used high-output generators and was built by the Austrian New Energy Electric Company with royal investment.
• Paris Mayor Barco struggled with debt and rejected electric companies’ costly proposals to build the city’s power network.
• The Austrian New Energy Electric Company focused on Vienna rather than expanding into cities where low customer density made electricity prohibitively expensive.
• The Paris Government announced the establishment of the Paris Electric Company and declared that Paris would be lit up.

Eriksen reported that Paris Electric Company had agreed in principle to license Austrian New Energy Electric Company's patents but demanded exclusivity. Mark Oliver offered an exclusive license for an additional one million Divine Shield as the company hurried to profit from technologies that competitors could soon copy.

• Eriksen told Mark Oliver that negotiations with Paris Electric Company had reached a preliminary agreement, but the French demanded an exclusive license.
• Mark Oliver instructed Eriksen to offer exclusivity in exchange for an additional one million Divine Shield in patent fees.
• The company relied on city licensing fees and technology transfers because fees based on households and factories were difficult to verify.
• Austrian New Energy Electric Company promoted the Age of Electricity in Paris and London to encourage cities to adopt its system.
• The company sold its patents while it could because foreign competitors could reproduce the technologies quickly once they became public.