Holy Roman Empire - Chapter 267

Chapter 267: Chapter 16, Gold Rush

No one could resist the temptation of gold. Ever since Baron Feckney discovered the first gold mine, it seemed as if God had opened this door, and one gold mine after another was discovered successively.

The scope had long extended beyond the Guinea region, with gold mines being found in areas such as Ghana, Ivory Coast, Mali, and others.

Even the most conservative nobility of the German Region couldn’t help themselves, and they sent their family members to organize overseas expansion groups, heading out to compete for this lucrative opportunity.

Vienna Palace

Lopez, the chairman of the German Regional Cultural Exchange Association, said, “Your Majesty, many nobles from the German Region have recently expressed goodwill to us, hoping to join the gold mine competition. Do you think we should let them in?”

The German Regional Cultural Exchange Association was established by Franz’s orders after the Paris conference, with the main purpose of continuing to wave the flag of unification.

In the German Region, the association was very popular among youth groups, the cultural and educational sectors, and through this organization’s coordination, the Vienna Government organized a cultural exchange annually.

Not only did people from the New Holy Roman Empire, the German Federation Empire, and the Kingdom of Prussia participate, but individuals from independent nations like Switzerland, Belgium, and the Netherlands also took part.

The meeting locations rotated among the various sub-states of the German Region, and though the funds were nominally from civil donations, in reality, most of it was allocated by the Vienna Government.

The nobility of the German Region mentioned by Lopez naturally weren’t nobles from inside the New Holy Roman Empire; those families interested had already joined. It was more about those from other areas.

“Anyone who identifies with German culture can join, whether they are nobility, civil organizations, or individuals. You can promote this.

The land we are expanding in the African Continent is not just for the New Holy Roman Empire, but for the survival of the entire Germanic people.

We welcome every compatriot to join and contribute to the construction of our second homeland.

The Vienna Government is drafting legislation to encourage everyone to emigrate, and all immigrants from the German Region will enjoy the most favorable conditions.”

Franz was still worried about not having enough immigrants; how could he possibly refuse their participation?

In this era, nobles going to pan for gold was not just an individual endeavor. Without organizing an armed team, if you found a gold mine in the African Continent, you wouldn’t be able to defend it.

The serfdom in the German Region had only recently been abolished, and the influence of the nobles had not yet dissipated. Having them organize armed immigration was much more efficient than government propaganda.

As long as people were cheated into going, Franz was not afraid they would leave. If necessary, land grants were an option. While this held no allure for capitalists, it was different for poor, ordinary immigrants.

A farmstead could retain people, couldn’t it? After all, if there was anything the African Continent didn’t lack, it was no man’s land. First, they would fell trees for timber, then open up plantations.

To cheat one was to cheat a whole family. People who couldn’t get enough to eat back home, on suddenly owning their own farmstead, would they hesitate to emigrate?

The conditions in the United States might be better, but they were also full of uncertainties. For many, the dream of owning their own farmstead was unachievable even after a lifetime of struggle.

It was much better in the African Continent. Emperor Franz had plenty of land to distribute. The condition was to overcome local diseases, and the risk to personal safety was very high.

To increase the number of immigrants, Franz had no choice but to stir up patriotic fervor, with “building a second home” as the government’s slogan for immigration promotion.

Guinea

The Royal Bank had been established on the African Continent for over a year. Since the colonial foothold stabilized, the Royal Bank opened a branch there, becoming the first bank to enter the Austrian Colonies.

Now they had another business venture, offering loans to mine owners who lacked funds. Mining developments required massive investments, and most would-be prospectors could not afford such costs, resulting in loan demands.

While everyone else rushed off in search of gold mines, Franz didn’t follow the crowd. He was very aware that those looking for gold mines might not make money, but those providing logistical support certainly would.

Newly-minted mine owners were prime clients for the banks, having gold mine rights as collateral, there was no need to worry about their ability to repay.

The bank’s customer manager Teddis said cheerfully, “Baron, this is already the most favorable loan condition available.

If you don’t believe it, you can go out and ask around. In the New Brook area, is there a financing channel with lower interest than the Royal Bank?”

Baron Feckney shrugged, “Mr. Teddis, there’s only one bank in the entire New Brook, which is the Royal Bank. Where else do you expect me to inquire?

If there were other financing channels outside, they would surely be loansharking by the underworld. You surely can’t be considering learning from them, that would tarnish the great image of His Majesty Franz!”

Baron Feckney was well aware that he had little room for bargaining. Currently, in the Austro-African Colonies, there was only one bank available, and he couldn’t possibly run back to the homeland for financing.

For gold mine development, time was of the essence. Being one day ahead in development meant extracting gold one day earlier, and realizing profits one day sooner.

He had not forgotten the debt he had back home, with the family estate as collateral. Although the land’s income was not high, he had no desire to be seen as a profligate who lost his family’s heritage.

Teddis said without changing his expression, “Baron, you really have a sense of humor. Is there really any need to question the credibility of the Royal Bank?”

“You should be aware that the operating costs of conducting business on the African Continent are much higher than at home. Right now, New Brook is in need of everything, and we hardly have any business there.

The interest rates are slightly higher than our domestic rates precisely because they include the operating costs. Once New Brook’s economy gets on the right track and our customer base has grown, the interest rates will naturally decrease.”

Baron Feckney said helplessly, “Mr. Teddis, but your loan interest rates are not just a little high—they’re one and a half percent per month, which is three times higher than the domestic loan interest rates.

Even the highest-risk commercial loan interest rates are not so high. I have put up part of the gold mine’s rights as collateral; you don’t need to worry about any default.”

Teddis shook his head and said, “Baron Feckney, that’s not how you do the math. This is the African Continent, where risk is always present.

The threat from native tribes to the gold mines, the threat of various national diseases—though your gold mine reserves aren’t bad, the mining environment is not good, and accidents can happen at any time.

If the worst-case scenario happens, we will lose everything.

The Royal Bank is a humane bank; if force majeure prevents you from fulfilling the contract, we will simply take the collateral and not pursue your personal responsibility.

In fact, we have already shared some of the risk for you. By the time that situation arises, the rights to the gold mine will be worthless.

Moreover, if you encounter certain troubles during the mining process, the Royal Bank will shield you from external pressures. If you give up this service, then the interest rates can be negotiable.”

The last point was what most appealed to Baron Feckney, as bringing the Royal Bank into play could shield him from the prying eyes of hungry wolves.

As for being swallowed whole by the Royal Bank, he wasn’t worried at all. A single gold mine wasn’t significant enough to risk the credibility of the Royal Bank.

After hesitating for a moment, Baron Feckney said, “I can pay in gold, surely that would warrant some discount?”

Teddis replied with a smile, “Of course, we can settle at 98% of the international market price of gold, which is the biggest discount available.

I assure you, the price of gold in New Brook in the future will not exceed 95% of the international gold market price, which is a common situation for all gold-producing regions.”

After a brief contemplation and feeling that the price was reasonable, Baron Feckney no longer hesitated and directly picked up a pen to sign his name on the contract.

After the deal was completed, Teddis continued to promote, “Baron Feckney, I believe you also need mining machinery, and it’s available right here in New Brook.

We have a collaboration with the Austrian Machinery Group. If you haven’t made a purchase yet, you can go see for yourself; the quality is definitely as good as any similar products.”

Baron Feckney replied politely, “Thank you, I’ve long heard of the reputation of the Austrian Machinery Group back home. As long as the price is right, I would be very happy to work with them.”

The relationship between the Royal Bank and the Austrian Machinery Group was of no interest to Baron Feckney. How the big players made money was not for him to consider.

But now he did need the machinery, and ordering from home would take months to arrive.

As long as the price isn’t exorbitant, he would accept. The profits from the gold mine were enough to cover all these expenses; his only shortage was time.

After a great number of gold mines were discovered, a gold rush erupted. Entering 1856, the local situation slipped from the control of the Vienna Government; British, French, Dutch, Portuguese, Spaniards, and Americans all joined the gold rush frenzy.

Almost every day, prospectors from around the world arrived, and within just one year, the population of the Golden Gulf in Guinea increased by nearly two hundred thousand people.

This number was just the beginning; even more people were coming from all over the world, and the conflicts among immigrants, along with the disputes between governments, began to multiply.

Especially in the Ghana region, where the influence of the great powers was intertwined and the largest number of gold mines were discovered, it became the focal point of conflicts between nations.

Austria, having started its actions earliest, undoubtedly gained an advantage, at least in terms of the sheer number of immigrants.

At that point, propaganda started to play a role. The German Federation Empire and the Kingdom of Prussia had too little say in this round of competition, as most German immigrants flocked under the flag of the New Holy Roman Empire.

Adding the early settlers in the area, the population of the New Holy Roman Empire’s colonies in the Golden Gulf of Guinea surpassed two hundred thousand, exceeding the total number of prospectors from all countries.

The saying “strength in numbers” was not wrong, at least when it came to searching for gold mines; they took the lead in occupying a large number of mines.

In response to the colonial disputes, Emperor Franz appointed the Governor of the Gulf of Guinea, integrating all prospectors from the Germany Region into the reserve forces, while also increasing a division of infantry at home.

With a single command, Emperor Franz could mobilize an army of a hundred thousand men, enough to sweep through all the colonies in the region belonging to competing nations.

Austria had the advantage on land, England and France had the advantage at sea, while Spain, Portugal, and the Netherlands might not have been strong, the stake they held was not large.

How to handle the relations among nations had become the primary task for all the parties involved. Monopolization was impossible, as no one had the capability to face so many enemies alone.

Moreover, while the benefits of the gold mines seemed alluring, due to the limitations of mining technology, the region could extract at most 180 tons of gold a year. After deducting the costs, the remaining profits were clearly insufficient to cover the expenses of a war.