African Entrepreneurship Record

Chapter 48: Modified: Chapter 44 - The New European Situation

August 23, 1866, German region.

Prussia and Austria signed an armistice agreement in Prague, marking the end of the Austro-Prussian War.

The war lasted only seven weeks, hence it was also known as the Seven Weeks War, ending in a defeat for the Austrians.

This war laid the foundation for Prussia’s unification of Germany, removing the major obstacle of Austria in the path to unifying the German states.

Meanwhile, Austria not only lost its leadership role in the German region due to the war but also triggered a domestic political crisis.

Faced with defeat and the rise of separatism, Austria had to compromise with the nobility in Hungary, paving the way for the Austrian Empire to become history, while the Austro-Hungarian Empire was about to take to the stage of history.

As a dual empire, the Austro-Hungarian Empire naturally could not compare with the previously dominant Austrian Empire. In terms of the future alone, the tug-of-war and conflicts between the nobles of the two regions would consume most of the Austro-Hungarian Empire’s energy, effectively diminishing Austria’s influence over Europe.

The Austro-Prussian War was so brief that Ernst only managed to make a small fortune from it. With the war over, the Heixinggen financial group returned to its usual course.

The war still had some impact on Ernst, for instance, Prussia effectively established its dominion over the German states, and as Heixinggen’s founding place, the financial group would also enter a rapid development stage with Prussia’s growing influence over Germany.

Heixinggen’s products entering various German states would become easier and more convenient, and the Heixinggen Development Bank would be better positioned to conduct business in the German region.

The Austro-Prussian War could be said to have taken all of Europe by surprise; England, France, and Russia could not have imagined the Austrians losing to the upstart Prussia, a rising star ready to rise on German soil.

The most upset would probably be the French Emperor Napoleon III. Prussia’s victory signaled the breaking of the old continental system, such as this cooperation between Italy and Prussia impacting the future continental landscape.

As a beneficiary of the old continental order, Napoleon III naturally wanted to maintain the old system, but he didn’t expect the Austrians to be so unreliable. Had he known the Austrians were all show and no substance, Napoleon III would certainly have supported Austria when the war began.

But Prussia fought brilliantly, ending the war quickly, while Bismarck seized the moment to reach an agreement with the Austrians, avoiding interference from other continental countries.

Moreover, as the victor, Prussia did not impose harsh penalties on Austria, merely requiring Austria to transfer the management of Holstein to Prussia and demanding war reparations that could be promptly repaid.

These lenient terms meant that as the parties involved in the war, Prussia and Austria did not drift apart due to the war, but instead grew closer.

On one hand, the Austrians needed Prussian support to suppress domestic separatism, while on the other, Austria needed to be cautious about the southern Kingdom of Italy.

But since Prussia and Italians were allies, Prussia would indeed strive to mediate reconciliation between the Austro-Hungarian Empire and the Kingdom of Italy in the future, easing the tensions between the two countries.

This laid the groundwork for the formation of the Triple Alliance before World War I, and the conflict between Austria and Italy would become a potential cause for the dissolution of this alliance in the future. It’s fair to say the seeds of World War I’s outcome were already sown at this time.

As a major victory on Prussia’s path to unify Germany, the Prussian palace was filled with joy and laughter. Junker nobles and their emperor held celebrations, smiles blooming on everyone’s faces.

The banquet was lavishly lit and decorated, and every influential Prussian noble sought a way to secure an invitation to the palace banquet.

As Prince Heixinggen, Constantine naturally attended this event along with Prince Ernst. Constantine was a member of Prussia’s general staff during the Austro-Prussian War, and Ernst’s own enterprise played a role in the war. Coupled with their distinguished noble status, attending the banquet was effortless.

For great nobles like Constantine and Ernst, attending the banquet was merely a matter of choice. Even without participating in the Austro-Prussian War, their top-tier noble status would grant them entry into the banquet.

Besides the great Prussian nobles, soldiers of Prussia were the largest group at the event, raising their glasses to William I and cheering for the kingdom’s victory.

Soldiers in Prussia were respected, and joining the army was among the most favored occupations in Prussian society. If a noble joined the military, their social status would be further elevated.

William I paid homage to these Prussian soldiers, just as his ancestors did, raising his glass to them. Bismarck and Mochi, two pillars who contributed significantly to the war effort, stood on either side of William I.

Meanwhile, Prince Constantine and Prince Karl Anton, these high-ranked Prussian nobles, stood in the front row, with Ernst following behind his father.

When William I read aloud the declaration of victory, he stated that this victory signified the Prussian kingdom’s eventual lead in bringing the German region towards greater unity and prosperity.

His speech concluded to resounding applause that echoed endlessly in the hall.

In the latter half of the evening, free activities took place. Everyone at the banquet was distinguished, either notable figures or noble children.

Ernst also encountered several acquaintances, such as Leopold and some other nobles. As a young man, Ernst could indeed draw some attention, for he had emerged as a wealth miracle among the nobility.

Even though Ernst did not acquire military honors by fighting on the battlefield, in this increasingly wealth-driven era, achieving substantial financial accomplishments led others to actively seek alliances with Ernst.

If it were an ordinary man creating such a wealth miracle, he would never earn respect from the nobility because he wasn’t born noble. Even if he achieved something unattainable for commoners, he would still be seen as a mere upstart in the eyes of the nobles.

Ernst was different. As part of the elite nobility from birth, Ernst’s great wealth was seen as a model of nobles venturing into entrepreneurship through their industrious efforts.

In European nobility, status didn’t mean they had no other desires. It’s widely known that the nobles in Europe were highly competitive, and even Prussia couldn’t escape it. In Europe, to showcase their esteemed identity, the nobles’ expenses were extremely high. Especially those who were obsessed with face value, even the top nobles would have a substantial demand for money.

Therefore, borrowing money among European nobles was common. This is one reason Jewish bankers thrived in Europe since even some European kings would borrow from them.

If debts couldn’t be paid back, it would greatly tarnish everyone’s impression of Jews. In truth, it was the Jews’ own fault for not giving up integrating into mainstream society. Although initially marginalized as outsiders, they were further pushed to the fringes of Europe.

Moreover, Jews often engaged in unethical financial activities, such as money laundering or usury, stirring up resentment across Europe from those indebted to them, whether noble or commonfolk.

However, Jews indeed possessed some cleverness. The industries they engaged in were indeed profitable, and being tightly-knit afforded them advantages in business information, allowing them to grow ever larger. Mentioning finance, people naturally thought of the Jews.

Jews were seen as callous rich in Europe and loathed by many, while Ernst’s Heixinggen Development Bank was one of the few major banks not linked to Jewish financial groups in Europe.

Now everyone knew that Ernst had amassed substantial wealth. In times of financial abundance, things were stable. In scarcity, he always had an alternative route and was not subject to unilateral exploitation from Jewish banks.

As fellow nobles, Ernst was also reluctant to demand high interest from these nobles, resulting in many nobles turning to Heixinggen Development Bank for loans in a short span.

Some nobles struggled with managing finances effectively and couldn’t repay their debts immediately. Ernst couldn’t realistically demand payment in a short time frame.

Although unintended, there were unexpected benefits, too. If you couldn’t pay off debts, you could introduce and endorse the savings business of Heixinggen Development Bank to your domain’s populace.

This way, Heixinggen Development Bank unexpectedly entered markets it previously couldn’t reach, underscoring that every cloud has a silver lining.

And the nobles’ debts were not overwhelmingly concerning. During the loan acquisition process, Heixinggen Bank had already chosen clients selectively, generally with immovable assets as collateral, making the bank’s lending difficulty arguably on the higher end among many European banks. Even if someone couldn’t pay, Ernst could temporarily seize part of their assets, offsetting some losses. If debts could be offset later, the mortgaged assets could be returned, thus maintaining a positive reputation for Heixinggen Development Bank within noble circles despite the challenges.

Watching his son engage with a group of nobles, Constantine inadvertently felt his son had grown up, ready to independently advance beyond his protection, achieving commendable success.

Thinking of his age, Prince Constantine couldn’t avoid feeling concerned. He was already in his sixties; if Ernst delayed marriage too long, he might never see his grandchildren. This contemplation led Prince Constantine to consider finding a suitable match for Ernst.