Ch. 536Making Do

Prussia stirred Polish resentment against Austria while trying to keep Poland strong enough to serve its interests. Facing a grain glut and Austria’s proposed production cuts, Alexander II agreed to limit Russia’s future grain capacity but refused to reduce existing output.

  • The Berlin Government revived the history of Poland’s partition in the newspapers, blaming Russia and Austria while concealing Prussia’s role.
  • Chris Basham told Alexander II that Austria had proposed an 8% reduction in grain production capacity among major exporters.
  • Manilov argued that Russia could not force farmers to cut production and called Austria’s proposal a scheme to pressure the Tsarist Government.
  • Chris Basham warned that losing Austria as a grain market would leave Russia with few buyers for its surplus.
  • Alexander II agreed to adopt Austria’s fallowing measures and barred grain cultivation on newly reclaimed land for five years, but rejected cuts to existing capacity.

Ch. 537The Age of Great Consolidation

The agricultural crisis drove European governments and landowners to pursue tariffs, grain reserves, and production cuts, while Prussia struggled to fund grain purchases. Prussia’s proposed Land Fallowing Act favored the Junker Nobility, and Austria’s existing land laws stood as a barrier to similar land consolidation.

  • After the autumn harvest worsened the grain glut, European countries raised agricultural tariffs and destroyed surplus products, while the Vienna Government bought domestic grain for strategic reserves.
  • The Junker Nobility urged William I to expand Prussia’s grain reserves, but Moltke said the government lacked the funds to pay farmers.
  • Melanie Griffiths presented a Land Fallowing Act that William I recognized would favor nobles and push independent farmers into bankruptcy.
  • Melanie Griffiths argued that agricultural bankruptcies were inevitable and that the act would let Prussia pass through the crisis sooner.
  • European estate owners and capitalists adopted similar land-consolidation policies, while Austria’s Prohibition of Land Annexation Act restricted the sale of small plots and limited large estates’ expansion.

Ch. 538Food = Labor

Gladstone’s government faced pressure from British grain capitalists to abandon their contracts with Russia after domestic grain prices fell, but it needed the Anglo-Russian deal to preserve Britain’s monetary influence. The government bought the grain at above-market prices, keeping the transaction intact, while Franz welcomed the damage to European agriculture and the chance to draw laborers to Austria’s colonies.

  • British grain capitalists pressured Gladstone’s government to purchase their contracted grain and establish strategic reserves rather than honor the Russian deal at a loss.
  • Gladstone agreed to support the reserve proposal if Parliament funded it, while La Rook Lloyd described the capitalists’ promised campaign donations and other benefits.
  • On October 21, 1872, the Liberal Party helped pass the strategic grain reserve proposal, and on October 24 the London Government halted the Anglo-Russian transaction.
  • After symbolic negotiations, the London Government purchased the treaty grain above market price, allowing the Anglo-Russian transaction to proceed.
  • Franz accepted the unexpected British grain reserves as a minor setback and welcomed the agricultural crisis as a way to attract foreign labor to Austria’s colonies.

Ch. 539Austro-Polish Conflict

After Poland demanded that Austria return its formerly Polish territories, Franz and his ministers debated the cause of the confrontation and Austria’s response. Franz ordered a warning to Poland, leaving military action as a threat rather than an immediate plan.

  • On December 21, 1872, the Polish Government demanded that Austria return the Polish lands it had occupied or face consequences.
  • Franz convened a cabinet meeting and asked why Poland had issued such a forceful diplomatic note.
  • Wessenberg explained that Austria’s tariffs had sharply reduced Polish agricultural exports and worsened Poland’s domestic crisis.
  • Prime Minister Felix urged a forceful response, while Karl questioned the benefits of military action against Poland.
  • Franz ordered the Polish Government to suppress anti-Austrian activity before Christmas or face an Austrian military parade in Warsaw.

Ch. 540The Unpopular Throne

After Otto I died, Franz faced a vacant Greek throne and sought a Wittelsbach heir to preserve Austria’s influence despite Greece’s instability and rising anti-Austrian sentiment. He offered favorable succession terms while weighing the risks, and he began considering Greek cotton cultivation as a way to address Austria’s agricultural crisis.

  • After Christmas, Franz learned that Otto I of Greece had died without a son, leaving the Greek throne vacant.
  • Franz asked Prime Minister Felix to identify a suitable heir, and Felix named Otto I’s brothers and nephews while noting that the brothers had renounced their rights.
  • Franz ordered continued negotiations with the Wittelsbach Family and offered to resolve the succession problems without requiring conversion to Eastern Orthodoxy.
  • Foreign Minister Wessenberg warned Franz that deep intervention could provoke Greek resistance and draw Britain, France, and Russia into the succession dispute.
  • Franz said the Empire’s support must bring equal returns and suggested that a Catholic king could be installed if the Wittelsbach Family refused.
  • Franz considered promoting cotton cultivation in Greece, which could supply Austria with raw materials and markets for grain while helping ease the agricultural crisis.

Ch. 541A Bold Gamble

The Wittelsbach Family weighed whether to reclaim the Greek throne as Austria’s support made a peaceful return possible. In Warsaw, Dąbrowski’s government debated how to answer Austria’s threat, and he chose to gamble that an apology and concessions would avert intervention.

  • Franz favored supporting the Wittelsbach Family because its surviving influence in Greece could help its heir stabilize the country.
  • After Austria’s fierce reply to Poland’s diplomatic note, Dąbrowski reprimanded Foreign Ministry officials and heard Walery Wróblewski blame a dead young clerk for secretly altering the document.
  • Walery Wróblewski reported that Britain and France urged Poland to apologize, pay compensation, and suppress anti-Austrian protests, while Prussia offered no clear commitment.
  • Badlewski warned that Russia might join Austria and urged compromise, but Dąbrowski argued Austria would gain little from invading Poland and would prefer an apology and economic concessions.
  • Dąbrowski decided not to suppress the patriotic movement, betting that Austria would accept Poland’s apology and tariff concessions rather than escalate the dispute.

Ch. 542Unlucky Bastard

Franz confronted Agriculture Minister Hols after Austria’s plan to reduce grain production fell short, and Hols proposed promoting household livestock raising to consume more grain. Franz exposed a flaw in the proposal: farmers could raise animals on grass, so it might increase meat production without using more grain, leaving Hols to reconsider how Austria could shift the agricultural crisis’s costs elsewhere.

  • Spring planting data showed that Austria’s grain acreage had fallen by only 1.3%, far below the Ministry of Agriculture’s target.
  • Franz reviewed plans to attract European emigrants to Austria’s colonies, while leaving Austria proper’s smallholders out of the effort to force land consolidation.
  • Franz asked Hols how the Ministry of Agriculture would respond to the failure to reduce grain production.
  • Hols proposed encouraging farmers to raise livestock at home so they would consume more grain and increase the supply of meat.
  • Franz questioned whether farmers would feed grain to animals that could live on grass, and Hols realized the proposal might fail to increase grain consumption or could create a livestock crisis.

Ch. 543Poll Tax

Governor Fikeni responded to South Africa’s labor shortage by raising the poll tax and proposing to send those unable to pay to the mines, while Austria’s cabinet debated how to shift the agricultural crisis onto another country. Franz decided to negotiate with Prussia and Russia and cooperate with whichever offered Austria the better terms.

  • Governor Fikeni ordered the mainland to recruit one thousand government employees and 3,800 veteran police officers for South Africa after resignations left the colonial government short-staffed.
  • Kaspar-Timso reported that South Africa had discovered extensive mineral deposits but lacked the millions of laborers needed to develop them.
  • Governor Fikeni raised the poll tax to one Divine Shield per person per month and extended taxation to non-Austrian citizens, with exemptions for immigrants who learned German and pursued citizenship.
  • Prime Minister Felix explained that attacking Poland or the Ottoman Empire risked conflict with Russia, Prussia, the United Kingdom, and France.
  • Franz ordered the Foreign Ministry to approach Prussia and Russia and offer Austria’s cooperation to whichever country paid more.

Ch. 544Deception and Intrigue

Austria weathered the agricultural crisis through profitable processed food exports while Poland’s attempt to redirect public anger into an anti-Austrian dispute spiraled into unrest. Prussia chose to wait, hoping the crisis would force Russia or Poland into a conflict that Austria would not start.

  • The chapter explained that Austria’s secondary food products and packaged snacks softened its losses as processed grain exports declined.
  • Polish officials apologized to Austria, but leaked details about a politically motivated death sparked protests outside the Austrian embassy in Warsaw.
  • Prime Minister Dąbrowski sent police to contain the marchers, and clashes forced the Polish Government to suppress the anti-Austrian movement.
  • The Vienna Government accepted Poland’s apology, though its diplomatic activity heightened tension across Europe.
  • William I and Foreign Minister Jeffrey Friedman concluded that Austria was signaling that Prussia or Russia should make the first move.
  • William I ordered Prussia to wait, arguing that the agricultural crisis would burden Russia and that whoever provoked conflict would alienate Britain and France.

Ch. 545The Tsar's Choice

Alexander II weighed Russia’s grain glut and falling prices against Austrian pressure to cut exports, while ministers debated the risks to trade, debt repayment, and farmers. He chose to work with Austria at any cost, leaving the Tsarist Government to seek a joint response to the agricultural crisis.

  • European politicians called for tariffs on imported agricultural goods, while the Austrian Agricultural Processing Enterprises Association urged Russia to reduce its grain exports.
  • Kristanval argued that Russia should maintain export volumes and proposed using unsold grain to repay foreign debts, but Chris Basham warned that doing so would wreck diplomatic agreements.
  • Manilov warned that a prolonged agricultural crisis could bankrupt tens of millions of Russian farmers and said the immediate priority was preventing mass ruin.
  • After considering the ministers’ arguments, Alexander II ordered the Foreign Ministry to negotiate with the Vienna Government and draw Austria into Russia’s response.

Ch. 546Trifles

During a family hunt at Vienna Palace, Franz reflected on Austria’s industrial growth and kept watch over his troubled brother Maximilian. The family celebrated when Empress Helen announced that Charlotte was pregnant, potentially giving Maximilian’s unsettled Mexican claim a lawful heir.

  • Franz described how electricity and industry had spread through Austria, Paris, and London while he hunted with his family.
  • Archduke Charles scolded and struck Maximilian, whose longing to return to Mexico had begun to ease.
  • Franz let Charles discipline Maximilian and noted that his other brothers helped manage the Habsburg Family’s relations with European royal houses.
  • Empress Helen announced that Charlotte was pregnant, delighting the family and raising the possibility that her child could inherit Mexico’s throne.

Ch. 547Ambition Amid Existence

The South African Colonial Government recruited 4,800 civil servants and police officers, prompting factory worker Stevie to consider the position as a chance to improve his life. Meanwhile, Franz weighed Russia’s proposal for joint action and heard warnings that a war against Poland or the Ottoman Empire could draw Austria into a wider conflict.

  • The Vienna Government posted a notice offering 4,800 colonial government and police positions under strict service contracts and generous compensation.
  • Stevie read the recruitment notice and saw the South African job as a better prospect than remaining an ordinary factory worker.
  • The Habsburg Family held a banquet while Maximilian celebrated the prospect of becoming a father, and Franz stayed away to attend to state affairs.
  • Franz ruled out joining Russia against Prussia and asked his advisers to assess cooperation against Poland or the Ottoman Empire.
  • Wessenberg warned Franz that either campaign offered Austria little gain and risked intervention by other European powers.

Ch. 548A Grand Game of Chess

Franz and his ministers devised a new strategy to distract Europe from Austria’s real ambitions in Africa after the German Unification Strategy lost credibility. They planned to use a prolonged conflict with the Ottoman Empire and Prussian ambitions in Poland and Russia as a smokescreen, while weakening Prussia by shifting the Rhineland to the German Confederation.

  • Franz said Austria needed a new grand strategy because European powers no longer believed it could unify the German region.
  • Prime Minister Felix proposed using the recovery of the Holy Land or a campaign against the Ottoman Empire to draw attention away from Austria’s true aims.
  • Franz proposed encouraging Prussia to pursue Poland and Russia, with Austria eventually purchasing Russian territory after Prussia weakened the Tsarist Government.
  • Foreign Minister Wessenberg proposed that Prussia sell the Rhineland to the German Confederation to ease its financial crisis and limit its industrial strength.
  • Franz approved the Rhineland plan and ordered the Foreign Ministry to refine it, preferably using Britain to carry it out.

Ch. 549Prelude

Austria pursued its long-term plans while quietly encouraging Prussian intrigue against Poland. Marcel Jensen and William I backed a secret scheme to annex Poland, but William intended to preserve the German Federal Empire and the Rhineland and use the British to thwart any plan that threatened them.

  • Marcel Jensen told Prussian radicals that Austria and Russia might move against the Ottoman Empire, prompting debate over how Prussia should respond.
  • Marcel Jensen proposed annexing Poland while Austria and Russia were occupied, offering concessions to Austria, France, and Britain to win recognition.
  • Little Moltke and others questioned the plan, but Marcel Jensen argued that Prussia could imitate Austria's creation of the New Holy Roman Empire by establishing a fait accompli.
  • Marcel Jensen reported the radicals' support to William I, who ordered them to advance the plan secretly and wait for the next Near East War.
  • William I privately decided that Prussia must annex Poland without surrendering the German Federal Empire or the Rhineland, and considered leaking the scheme to the British.

Ch. 550Storm Clouds Rise Over the Balkans

Alexander II and Austria prepared to attack the Ottoman Empire while other European powers responded to the growing military tension. Franz weighed Austria’s broader plans and ordered preparations to intervene after a revolution in Athens captured Prince Ludwig.

  • Alexander II secured Austria’s agreement to attack the Ottoman Empire, and the Vienna Government promised supplies for 150,000 troops in exchange for a large share of the spoils.
  • Russia’s military preparations stirred Prussia, Poland, and the Ottoman Empire, while Franz planned a gradual campaign against the Ottomans and monitored Napoleon III’s failing health.
  • Franz considered how France might be drawn into a conflict after Napoleon III’s death and how Austria could exploit French expansionism.
  • Tyrone reported that rebels in Athens had defeated government forces and captured Prince Ludwig before he could take the Greek throne.
  • Franz ordered the General Staff to prepare an armed intervention in Greece and summoned cabinet ministers to a meeting.

Ch. 551Suspects Everywhere

Franz investigated simultaneous unrest in Greece and Bulgaria and suspected that a hidden sponsor was trying to distract Austria and Russia, though the Ottoman Empire appeared to be the likeliest culprit. He chose to keep watching as the upheaval stabilized grain prices, with London futures rising five percent.

  • Franz learned that Greek royalists and republicans were competing for power after capturing Ludwig, and he suspected someone had engineered the unrest.
  • The Bulgarian Revolutionary Alliance launched an anti-Russian uprising in Sofia amid nationalism, an agricultural crisis, and rumors that Russia had blocked grain purchases.
  • Franz considered the timing of the Greek and Bulgarian revolts too convenient to be coincidence and weighed how Austria might respond without damaging its international standing.
  • Tyrone told Franz that Ottoman merchants had funded weapons for both movements, but Franz ordered continued surveillance because many governments and private interests could be behind the unrest.
  • Grain prices rose five percent on the London futures market after news of the coup and uprising spread on September 13, 1873.

Ch. 552Feudal Remnants Are Powerful

Franz discussed Austria’s response to recovering grain prices and the unresolved agricultural surplus with Agriculture Minister Hols. He directed the ministry to reduce grain production, encourage cash crops and voluntary agricultural cooperatives, and pursue discreet measures to support farmers and raise competitors’ costs.

  • Franz told Hols that Austria still needed to cut grain production and could rely on strategic reserves if shortages arose.
  • Hols proposed a European agricultural summit to unite capitalists and large farm owners in stabilizing grain prices.
  • Franz questioned whether summit agreements would be enforceable and suggested discreetly considering tariffs and organizing large farm owners to pressure the government.
  • Franz ordered Hols to promote cash crops and voluntary agricultural cooperatives so farmers could negotiate collectively and choose their own leaders.
  • Hols agreed to continue and replicate successful cooperative models.

Ch. 553Trust Your Judgment

Austria completed the African Southwest Railway, while Franz sent Crown Prince Friedrich and Prime Minister Felix to its opening instead of attending himself. In Paris, Napoleon III questioned Crown Prince Eugène about the Balkan turmoil and warned him to distrust Austria and Britain, leaving Eugène to consider the risks of dealing with France’s rivals.

  • Austria completed the 7,476-kilometer African Southwest Railway after more than a decade of construction and massive government investment.
  • Franz stayed away from the railway opening because of seasickness, while Crown Prince Friedrich and Prime Minister Felix attended despite Franz’s concerns about their health and experience.
  • Napoleon III asked Crown Prince Eugène who had orchestrated the Greek coup and Bulgarian uprising, and Eugène suspected the Ottoman Empire had acted to delay its enemies.
  • Napoleon III argued that the Ottoman Empire was too weak to have directed the Balkan events and warned Eugène that Britain or Austria was more likely responsible.
  • Napoleon III advised Eugène to scrutinize apparent benefits from Austria and recalled how France had been drawn into the costly annexation of Italy.
  • Napoleon III warned Eugène that Britain and Austria were not to be trusted as allies, citing the British betrayal of France during the Near East War.

Ch. 554Playing Dumb

Franz remained unconcerned by the Balkan unrest while Alexander II struggled to contain the Bulgarian rebellion and identify its backers. Russia publicly blamed the Ottoman Empire as Austria uncovered the British, French, and Austrian connections behind the arms shipment.

  • Franz reflected on Austria’s history of suppressing rebellions and remained at ease as unrest spread through the Balkans.
  • Alexander II learned that a Russian division had been routed by Bulgarian rebels and ordered Kafukis to crush them and find their backer.
  • Kafukis described the tangled evidence implicating several countries, and Alexander II ordered Russia to blame the Ottoman Empire publicly while continuing a secret investigation.
  • Austria traced the rebels’ weapons to its Field Arsenal and discovered that British handlers, French funding, and Austrian arms merchants had enabled the shipment.
  • Franz resolved to increase surveillance of major capitalists but took no direct action against the arms merchants.

Ch. 555Operations Without Bottom Lines

Franz watched speculators drive up grain prices amid manufactured shortage fears while Austria stabilized domestic retail prices and excluded small investors from securities trading. As the Bulgarian uprising faltered and Russia redirected troops against it, Franz rejected Ottoman peace talks and pressed for a March war, insisting it must not be framed as a religious conflict.

  • Franz observed that grain speculators had been lured into a price surge by financial syndicates and sensational reports of overseas harvest disasters.
  • Austria stabilized domestic retail grain prices, while securities regulators raised the minimum capital threshold to 500 Divine Shield and Franz ignored speculation in stocks and futures.
  • The Tsarist Government sent forces intended for the Ottoman front to Bulgaria, where the uprising declined after more than two months and insurgents retreated to the mountains.
  • Foreign Minister Wessenberg told Franz that an Ottoman envoy sought negotiations, but Franz refused and ordered Russia to accelerate preparations for a March war.
  • Wessenberg reported Russia's proposed justifications for war, including Ottoman support for the Bulgarian revolt and a holy war, but Franz rejected religious conflict and chose revenge as Austria's reason.
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