African Entrepreneurship Record

Chapter 439: Chapter 116: Return to Europe

May 7, 1873.

The crown prince, who hadn’t yet settled in East Africa, was to return to Europe once more. This time, Ernst was aboard the merchant ship ”Lion,” a fleet entirely made up of converted armed merchant ships.

He was also accompanied by a battalion from the Royal Guard Division heading to Austria. This battalion was to act as a ceremonial guard, consisting of elite members chosen from the Guard Division for their striking appearance.

Regardless of their military prowess, they were the best in terms of looks and stature. Fine horses need fine saddles, so East Africa had arranged the finest tailors for them, crafting high-quality handmade uniforms.

This battalion from the Guard Division actually numbered three thousand, consisting mainly of infantry and cavalry. However, there was no need for Ernst to bring horses to Austria; arrangements had been made with the Austrian army to borrow theirs.

Before the departure, Constantine regretfully said, ”I won’t be going to Vienna this time. But we can’t let the dignity of the Heixinggen royal family slip. This is also a good opportunity to promote East Africa, to at least let the Austrians know we’re not a weak country. Spending a bit more money is unavoidable, don’t be stingy.”

”Don’t worry, Father. Apart from business negotiations, the main purpose of this trip to Vienna is to marry Karina. After all, marriage is no small matter, and I won’t make a half-hearted effort,” Ernst assured.

Ernst has always been prudent and pragmatic when it comes to spending, which is something Constantine worries about.

Normally, there’s no problem with being meticulous about spending. A thrifty heir is generally more reassuring than a wasteful one. However, European nobility prizes comparison and face, and Ernst’s frugal nature makes him stand out among them.

In this aspect, Constantine somewhat misunderstands Ernst. Ernst is not stingy but rather believes in using resources wisely, with East Africa being his main focus.

If East Africa prospers, even if Ernst wears tattered clothes, European nobility would still have to ”respect” him. This confidence is brought by national strength, which is why Ernst prefers to invest money in enhancing East Africa’s power rather than holding European social gatherings for networking.

Moreover, Ernst’s social circle consists mainly of the Prussian royal family, the Sigmaringen royal family (including Romania), the Austrian royal family, and the Swedish royal family. These high-ranking noble circles tend to discuss matters that transcend monetary concerns (unless one is super wealthy).

Constantine said, ”Alright, I’m just reminding you. Since I can’t get away to Vienna for your wedding, I’m somewhat uneasy.”

Constantine and Ernst had to ensure one of them stayed in East Africa. Hence, Constantine couldn’t go to Vienna for his son’s wedding, which mainly fell to Grand Duke Ferdinand (Maximiliano I).

Thus, the wedding happened in two parts: one in Austria and another in East Africa, essentially two ceremonies, with First Town having already scheduled the crown prince’s wedding.

”Hoo...” The sharp whistle of the ”Lion” sounded, signaling the formal departure of the East African Kingdom’s state visit to Austria.

It was a state visit rather than a wedding party because Ernst had other tasks. He would stay in Europe for at least half a year, with the wedding planned for year-end.

Before the wedding, Ernst’s primary responsibility was acquiring necessities for the East African Kingdom from Europe, including factories and equipment of all kinds, as well as materials like steel needed for East African railway construction.

With the outbreak of the economic crisis, countless factories in the German regions went bankrupt, leaving production equipment abandoned in warehouses and factories and prices plummeting. Steel, coal, and railway companies faced the most severe losses, all of which were urgently needed by the East African Kingdom.

With spring turning to summer, the Somali cold current began to form and strengthen, causing the surface seawater along the East African coast to flow from low to high latitudes, that is, move northward from the equator, along with the trade wind belt shifting north.

Therefore, it was smooth sailing from East Africa to the Red Sea, greatly shortening Ernst’s journey. Just days later, his fleet sailed from Dar es Salaam to the Mand Strait. The subsequent Red Sea and Mediterranean, being relatively closed, posed no stormy challenges, making for a successful voyage.

May 22, 1873.

The East African fleet arrived in Trieste.

Returning to Trieste, Ernst felt a sense of nostalgia; the city appeared notably quieter compared to last year, with reduced bustle, indicating Austria’s struggling economy.

With Ernst leading the Heixinggen consortium in unleashing a dumping offensive, a flood of goods entered the market, accelerating the Austrian-Hungarian economic crisis’s spillover to neighboring countries.

It was more intense than historically noted; without Ernst’s interference, the Austro-Hungarian economic crisis was indeed the first to erupt. However, the 19th century lacked the interconnectedness of the 21st century, as global markets weren’t yet formed. A crisis in one country wouldn’t affect others quickly.

Before the 1873 economic crisis, such phenomena typically occurred within a single country, frequently Britain. Post-1873, the crisis began to rage worldwide, culminating in the great capitalist crisis of 1929 once the global market took full shape, a situation that spurred two global conflicts in World War I and II as solutions.

In 1873, the global nations didn’t yet resort to such extremes. The economy wasn’t as tightly knit, so countries solved crises by raising tariffs, crafting trade barriers, and protecting national capital.

Moreover, countless underdeveloped regions were not yet colonized by major powers, which made these areas ideal for offloading the crisis.

However, major powers hadn’t ventured that far, or hadn’t realized it yet, as social issues stemming from the economic crisis consumed most of their governments’ focus.

Efforts particularly involved rectifying financial markets and culling weak, problematic small- and medium-sized enterprises, alongside railway nationalization. In essence, it aimed to solve employment shortages.

Due to the dumping from German and Austrian goods, European countries started imposing high tariffs, with Britain somewhat indecisive given its unique situation. Historically, Britain maintained a trade surplus, bolstering the influence of factions advocating free economies.

However, as the U.S., Russia, Germany, France, and Austria industrialize, European countries no longer rely solely on Britain, cultivating their industries. Hence, Britain’s overproduction became more severe, imbuing the crisis with depth and longevity.

Upon the East African fleet’s arrival at Trieste’s port, even a disembarking army went unnoticed, apart from a few Austrian officers managing the reception.

”Your Highness Ernst! Welcome to Austria!”

”Hmm, hello to you all.”

Ernst made a perfunctory greeting, his attention focused on the Trieste port.

At the port were long queues of the unemployed seeking job opportunities, which Ernst observed were positioned at divisions of his enterprises or agencies.

At the long queue’s end, a notice board read: ”East African Railway Company, 250 workers needed, railway workers preferred.”

”Heixinggen Tobacco Company (Trieste), 12 employees, no educational requirements.”

”East African Immigration Office, migrate to solve unemployment and avoid job insecurity, priority for family migration.”

Ernst asked several Austrian officers, ”Is Austria’s economy as bleak as it appears in Trieste?”

”Uh, we don’t really feel it. We usually stay within the military, and if it weren’t for our duty to receive you today, we wouldn’t leave the barracks.”

Ernst said, ”Alright, but next, my focus is on the personnel arrangements, including some of the East African army, whom I’ll take to Vienna. You must coordinate their transport by special train.”

”That’s why we’re here; the higher-ups have already plotted the route. The railway strain is much reduced now, so this issue can be easily resolved.”

Indeed, the economic slump decreased passenger and freight traffic on the railways. A significant cause was Venice diverting some of Trieste’s traffic. In recent years, Austria had constructed two railways to connect and control Venice, leveraging the boom in railway construction; fortunately, these were completed before the economic crisis.

While Venice’s exodus of talent and industries meant it was unlikely to surpass Trieste again, the latter’s status as Austria’s largest port was somewhat threatened.