Holy Roman Empire

Chapter 150: The Rule-Abiding Tsar

Any reform comes with a cost, and Franz quickly realized this. As the victims of his military reform, Franz’s three younger brothers came to protest.

It was clear that the three young rascals were subjected to his brutal suppression, as they left speechless and slinking away.

In fact, Franz also wanted to establish a school for young noble officers but had to temporarily abandon the idea due to financial constraints.

There was no other way; this was determined by Austria’s national circumstances. Currently, the cost of military education for noble children is borne by the nobility themselves. If the government were to establish a school for young noble officers, then the expenses would fall on the government’s shoulders.

The education of these noble children couldn’t be taken lightly. It required an elite curriculum that came at a substantial cost. The annual education expenses for tens of thousands of noble children could easily reach tens of millions of guilders, and even surpass a hundred million.

In addition to military and academic subjects, they needed instruction in etiquette, arts, horsemanship, hunting, fencing, religion, and social events, among others.

This elite education was something regular noble families couldn’t afford. So, what was the solution?

The answer was quite simple: the parents themselves would educate their children, or they would have their children learn from relatives and friends.

These were established noble families with the means to provide their children with such high-quality education. However, the nouveau riche nobility didn’t have the capability to offer their children this kind of education. They couldn’t cultivate the noble qualities so people referred to them as upstarts.

In Austria, like the rest of Germany, regular schools also included basic military training in addition to academic subjects. It was a tradition that mimicked the behaviors of the ruling class.

As the saying goes, “imitation is the sincerest form of flattery,” and it’s a common social phenomenon for people to imitate the behaviors of the ruling class. While Austria’s compulsory education schools might have had poor conditions, they still included basic military training.

The disbandment of the “juvenile officers” was just a minor episode in the military reform, and its actual impact wasn’t significant. These honorary officers didn’t receive salaries from Franz’s coffers.

A significant part of the military reform was focused on the logistical management system. With the continuous advancement in military weaponry, the demands for logistical supplies have also increased. The traditional logistical support system was no longer sufficient to meet the needs of modern warfare.

In simple terms, a specialized logistical support system has been established, and the logistical units within the military have been expanded.

It’s worth mentioning that a medical support system has also been introduced into the Austrian military. It’s considered an important part of the logistical system, with medical and health units established in every battalion and dedicated field hospitals at the division level.

Unfortunately, the medical system is still somewhat underdeveloped, and the current structure is more of a theoretical one. The number of medical personnel in field hospitals remains limited, primarily focusing on safeguarding the lives of officers.

According to the current situation, Franz estimates that it will take at least three to five years for these units to be fully staffed, and training medical personnel will also take time, even for simple battlefield first aid.

Considering the medical technology level of that era, having some medical and healthcare infrastructure is better than having none. Franz doesn’t expect them to be able to treat seriously wounded soldiers, as long as they can save the lives of lightly wounded soldiers, it would be sufficient.

In that era, the mortality rate on the battlefield was indeed very high, and one of the main reasons for it was infection from external injuries, as there was a lack of advanced antibiotics. As for alcohol, Austria was not short of it at the time.

Not long ago, Franz even sent people to produce the miracle drug penicillin, originally planning to make money by selling it.

Unfortunately, even if they can produce penicillin using primitive methods, this penicillin is not the same as the life-saving penicillin G, as it involves some specialized knowledge.

The scientists involved in the production were indeed amazed, but experiments must continue. If they cannot find the right balance, the miracle drug intended to save lives could turn into a deadly poison.

Historically, penicillin was discovered in 1928, but it wasn’t until late 1940 that clinical trials were completed, with research interruptions in between.

When they will be able to stabilize the properties of the drug and produce the most suitable penicillin for human use is a matter of the scientists’ efforts, and Franz acknowledges that there’s little he can do in this regard.

Bringing laboratory products into industrial production is indeed a challenging process. Historically, due to the outbreak of World War II, there was a significant acceleration in the development of drugs. From the laboratory confirmation of efficacy in 1940 to industrial production starting in 1942, the Americans set a new record in the history of drug development.

Franz doesn’t believe that Austria’s current industrial technology can compare to the Americans during World War II. If they manage to achieve this goal within ten years, it would be a cause for celebration.

Franz could only sigh, realizing that anti-Japanese dramas were causing more harm than good.

The Americans achieved mass production of penicillin in 1943 and then supplied it to the Allies. It’s really a mystery where the penicillin that the Japanese seized from a fake drug dealer came from, as it seemed to be available earlier than laboratory-produced penicillin.

After this failure, Franz immediately abandoned the idea of making money by selling medicine.

In an era where biotechnology, medical technology, and industrial technology all fell short of the requirements, and without a systematic approach at his disposal, what could he do?

……

St. Petersburg.

Ever since the Russian-Austrian Secret Treaty was signed, the Russians have been gearing up for war.

The Russian government was not foolish; they were well aware that after the recent upheaval in Europe, where various countries were busy consolidating their power and undertaking social reforms, it was the perfect opportunity for them to expand.

“Finance Minister, when will we be able to raise enough funds for the war?” a discontented Nicholas I inquired.

Preparing for war naturally required money. After almost a year, the Treasury had still not managed to gather enough funds for the war, which understandably left Nicholas I dissatisfied.

In the eyes of future generations, Russia, seen as a backward agrarian nation, was considered one of the poorer great powers. However, during this era, the Russian Empire was by no means poor, with a fiscal income of as much as 200 million silver rubles.

One gold ruble was equivalent to 10.3 silver rubles, and approximately half a tael of silver.

As a feudal monarchy, the industrial and agricultural development of the Russian Empire was indeed not particularly advanced. Nevertheless, they had one advantage: abundant mineral resources.

In the mid-19th century, the Russian government discovered vast reserves of gold and silver in the newly acquired territories. In 1840 alone, the Russian government minted 439.9 million silver coins and 134 million gold coins.

The extensive production of gold and silver coins not only demonstrated the financial might of the Russian government but also had another unfortunate reason – their paper currency was not reliable.

During the reign of Alexander I, Russia followed the trend and issued paper money. However, European merchants believed that the Russian government lacked credibility and refused to use the paper ruble. As a result, the value of paper rubles depreciated rapidly.

In 1817, Alexander I and the Russian government changed its monetary policy, prohibiting the issuance of paper money. They adopted a policy of withdrawing paper currency from circulation and gradually recalled the paper money in circulation.

With paper currency trade effectively halted, the reliance shifted to gold and silver coins. The return to the gold and silver standard immediately gained favor among European merchants.

From these data, it seems that the Russian government of this era should be quite wealthy, with 100 million silver rubles before the devaluation, which is not a small amount, much higher than Austria before the reforms.

As a feudal monarchy, the Russian Empire did not have many social welfare expenses to cover, and the government’s main expenditures were for the military and administrative agencies, which should have been sufficient.

Nicholas I and Franz faced a common social problem - corruption. Even in prosperous countries, if this problem cannot be solved, there is no hope for a wealthy treasury.

“Your Majesty, this expense is too huge; it might have to wait until the second half of next year,” replied the Finance Minister, Fyodor Vronchenko.

Nicholas I furrowed his brow and asked, “Hasn’t a war tax already been levied once?”

“Your Majesty, the nobility has not yet paid this war tax. They insisted on paying it after the outbreak of war, which is why the current war tax falls below our expectations,” explained Fyodor Vronchenko.

This is all part of normal operations. Collecting taxes from the nobility in the Russian Empire has always been a challenge. The Tsar’s reputation isn’t the best, and the nobility is wary of being deceived by the Tsar. Unless the war has already broken out, it’s difficult to collect taxes in advance.

Of course, if Nicholas I were more forceful, he could have collected the taxes in advance, but this would have affected domestic unity and stability.

However, Nicholas I wouldn’t do that. Everyone in Europe has a very clear understanding of their rights and obligations.

During wartime, the Tsar has the right to levy war taxes, and the nobility has an obligation to pay these taxes. However, since the war has not yet broken out, it’s challenging to collect these taxes in advance.

“Can’t we have them pay their taxes ahead of time in various areas?” Nicholas I asked with a furrowed brow.

“Your Majesty, we have commercial contracts in place. If we were to demand advance tax payments, the cost to us would be too great,” Finance Minister Fyodor Vronchenko patiently explained.

Indeed, this is what is known as the “tax-farming” system.

Nowadays, most European countries have abolished this system, but due to the vastness of Russia, the government finds it too costly and challenging to directly collect taxes. Thus, the tax-farming system has not been abolished in Russia.

Nicholas I furrowed his brow and said, “Well, let it be. We still need time to gather strategic resources. However, the Ministry of Finance must hurry up with raising military funds. I don’t want our military actions to be delayed due to lack of funds.”

Unlike other tsars, Nicholas I was a responsible individual who didn’t like breaking rules. Once he set a goal, he would persistently pursue it.

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