Holy Roman Empire - Chapter 75

Chapter 75: Chapter 75: War Must Serve Politics

Translator: 549690339

Mr. Kossuth was not an economist, and neither were the high-ranking officials of the Republican Government; they had no economic sense whatsoever, they simply never considered what 200 million shields meant for Hungary!

Just because they didn’t know, didn’t mean everyone seated was unaware.

Howell, the representative of the banking consortium, questioned:

“Mr. Kossuth, do you know what 200 million shields mean?”

This question left Kossuth flabbergasted. He had thought of these nobles and capitalists haggling over prices but never expected them to ask such a question.

From a currency value perspective, 1 shield was roughly equivalent to 11.69 grams of silver, so 200 million shields would be 46.76 million taels of silver. In that era, silver had not yet decreased in value, and when converted to British pounds, it amounted to over 20 million. (The gold-to-silver ratio was about 1:10).

In 1847, Austria’s fiscal revenue was only 155 million shields (excluding Hungary), and the United Kingdom’s was just over 50 million pounds.

Before the revolution, Hungary’s fiscal income was decent if it had 100 million shields. After establishing the Republican Government, they had already spent 100 million shields of wealth.

This money was essentially from the mass sell-off of national assets, combined with government taxation. (The Emperor’s property and public wealth)

This issue had never been raised before because everyone benefited from it, acquiring industries at low prices; no one would refuse free money coming their way.

Not knowing wasn’t a problem, as the first element of a politician is thick-skinned. If one still cares about face, then one shouldn’t be a politician, especially in a republican country.

“Of course, 200 million shields is indeed a large figure, but for those seated here, it is not impossible to come up with!” Kossuth replied calmly.

Indeed, for the people present, it wasn’t just about 200 million shields; even if that number were to increase by three or five times, they could afford it.

Being able to afford and being willing to pay are completely different concepts—no one is eager to part with their money, no matter how high the interest is, because of the risk of no repayment.

With the current government’s spending speed, no amount of money could fill this bottomless pit, which is why many revolutionary governments around the world have failed.

Idealistic governments often want to do too much, and as a result, they manage nothing significant and deplete the country’s resources first.

“Mr. Kossuth, it seems you must have failed economics at school. Please, look up how much currency there is in circulation in the Hungarian market, and then answer the question!” Howell mocked.

The amount of wealth is not equivalent to the amount of currency in circulation. In fact, there is a limit to the amount of circulating money—having too much currency in circulation can devalue it, while too little can cause a currency crunch.

From an economic standpoint, withdrawing 200 million shields from circulation in Hungary at once would lead to a currency panic, followed by a bank run—then bank failures—then a financial crisis—and finally the arrival of a great depression.

This era was unlike the later ones, where people played with credit money, and transactions were done via bank transfers. Even purchasing bonds required cash. This was no longer a matter of whether they were willing to spend money, but rather that it was literally impossible for them to come up with the amount.

(Reference: In 1848, the total national savings of Austria amounted to 48 million shields, and the United Kingdom had 28.2 million pounds, with 1 pound = 9.6 shields)

Without a doubt, Kossuth had embarrassed himself this time, or rather, his team was quite naive to make such an obvious mistake.

Of course, there have been many others who have made similar blunders; it’s a common trait among those who gab: when considering problems, they tend to be quite myopic.

And Kossuth hadn’t had the chance to resolve the financial issues when the war had already begun.

On May 8, 1848, the Austrian Army from the Croatian Province was the first to launch an attack against the Hungarian Republic.

On May 9, the Austrian armies from Bohemia and Transylvania also launched their attacks against the Hungarian Republic.

On May 10, Albrecht led the Rebellion Suppression Army to the front lines, and the Austro-Hungarian War broke out in full scale.

“Fueling tactics” did not exist, and this time Kossuth’s prediction came true. Four armies launched their attacks simultaneously, and if logistic transport troops were included, the total military strength indeed exceeded four hundred thousand.

Of course, the actual number of troops committed to the offensive was at most half that number. Even so, the Hungarian Republic could not withstand it.

Vienna

On the Hungarian battlefield, victory reports were consistently delivered. Under absolute power, no amount of slogan chanting could reverse the unfavorable situation.

To ensure victory, Franz, citing the overall need, recalled Prince

Windischgrätz, the commander-in-chief of the Bohemian Corps, to serve as Army Minister and replaced him with Julius as the Commander.

Prince Windischgrätz picked up the baton and, pointing spiritedly at a map on the wall, said:

“Your Highness, the Croatian Corps led by Governor J6zsef Jellacic has now reached Lake Balaton and captured Balaton Keszthely;

General Albrecht, leading the Austrian Corps, is attacking Kop Castle;

General Julius, leading the Bohemian Corps, has just defeated the Hungarian

Popular Army and is now less than one hundred kilometers from Budapest;

General Wengigle, leading the Transylvanian Corps, is still in Debrecen due to transportation reasons.

Overall, so far, this rebellion suppression war is progressing very smoothly. The Bohemian Corps has one hundred thousand strong, and if things go well, they could launch the siege of Budapest the day after tomorrow at the latest.”

He had reason to be proud; this war was conducted under his leadership. Of course, due to communication issues of the era, the Army Department was really only able to formulate a strategy.

How exactly to fight the battle was still ultimately up to the generals in the field, subject to the constraints of military orders.

As for Prince Windischgrätz’s military capabilities, Franz wasn’t in a hurry to come to a conclusion, even though historically, Windischgrätz had lost in the suppression of the Hungarian uprising. However, the battle plan he devised now was still viable.

“Postpone the plan to attack Budapest. Let General Julius hold back the enemy, and wait for the Austrian Corps to join him, then launch the attack!”

Don’t think the Hungarian rioters are easy to bully. History shows that it was the Austrian army that met catastrophe at the last moment, eventually asking for the Russians’ help to clean up the mess.

At least the strongest fighting force of the Hungarian Republic, the student army, has not yet appeared on the battlefield.

Franz was also unclear about the current state of public sentiment in the Hungarian Republic; if the people fully supported the government, then Budapest would be a place of chaos.

“Your Highness, the rebels are nothing but a mob. In at most one week, we should be able to capture Budapest and suppress this rebellion!”

Prince Windischgrätz said excitedly, as if accusing Franz of unnecessarily meddling in military affairs and squandering an opportunity.

Franz calmly explained, “Your Excellency, the Prince, the military is to serve politics. War is merely a means, not an end..”