Chapter 114: After Christmas
In 1867, if there was one country that could be considered the happiest, it would be Prussia. During the latter half of the year, the North German Federation led by Prussia experienced significant economic growth.
The formation of the North German Confederation effectively connected the northern regions of Germany into a unified entity. The industrial heartland in western Prussia and the political center in the east were now linked by a network of railways. This integration of transportation and unified tariffs within the Federation greatly reduced the costs associated with moving goods and raw materials across North Germany. As a result, large-scale factories and enterprises reaped significant benefits from these unified policies.
Ernst's Hechingen Consortium, with its innovative products and inventions, was a major beneficiary of these developments. In the realm of daily necessities, Hechingen products claimed a 15% market share in the broader German market, which included the Austro-Hungarian Empire. Meanwhile, traditional heavy industries such as steel, coal, and machine tools remained firmly in the hands of the established German industrial and commercial giants.
In the financial sector, Hechingen Bank, leveraging the numerous companies under the Hechingen Consortium and strategic investments in emerging fields of the second industrial revolution based on Ernst's memories from his previous life, successfully caught up with some traditional commercial banks. The bank now held the third position in the German region, after making substantial progress.
Geographically situated in South Germany, Hechingen enjoyed a close relationship with the Austro-Hungarian Empire's royal family and benefited from the support of nobles from various regions. This, coupled with the assistance of the nobility, facilitated Hechingen Bank's expansion throughout Germany, from the Baltic Sea coast to the Adriatic Sea coast in Trieste.
Hechingen Bank also conducted business in major Russian cities such as St. Petersburg, Moscow, and Kiev, making strategic choices about where to establish branches to ensure the safety and reliability of its operations in the vast Russian market.
While Russians were generally welcoming of European companies investing in their country, Ernst exercised caution and chose to operate in key cities rather than risk dealing with the unreliability of local officials in remote areas.
Hechingen Bank also conducted business activities in other countries, including Britain, France, the United States, the Netherlands, and Nordic countries with well-established market rules. Ernst's well-thought-out approach to international expansion contributed to the bank's continued success.
Prussia's military achievements, including victories over Denmark and Austria, had bolstered the confidence of the Prussian army. Additionally, the victory achieved by Prussia before Ernst's awakening had further instilled confidence in the military.
The second half of 1867 marked the effective implementation of the "North German Federal Constitution," establishing the North German Federal Republic as a new political entity. The territory of this republic encompassed two-fifths of the entire German region, covering 340,000 square kilometers and boasting a population of more than 24 million.
In comparison, the French mainland measured only 550,000 square kilometers, with a population of just over 36 million. Given the level of industrialization, Prussia was now in a strong position to challenge France.
The North German Confederation had crossed the threshold to become a new European power. It was ranked behind only Britain, France, Russia, and Austria in terms of influence. Prussia's recent military successes, innovative weapons and equipment, industrial production advantages, the application of inventions in the military, and military reforms had all contributed to this achievement.
While Ernst recognized the North German Federation (Prussia) as the fourth-ranked world power, the large size of the Austro-Hungarian Empire might give it a bluffing appearance. However, the empire's actual capabilities were questionable, especially considering its previous performance in conflicts.
Despite these achievements, life for ordinary people in South Germany remained challenging. Food shortages were still a significant issue, and many residents sought opportunities in the East African colonies as a means of survival.
The East African colonies had become the preferred destination for South German immigrants, outcompeting the United States in this wave of migration. While conditions in the United States were favorable, German immigrants were wary of the uncertainties associated with a move to North America. East Africa, on the other hand, offered familiar farming opportunities under the protection of German nobility.
Ernst's local aristocratic status in South Germany further instilled confidence in immigrants. Temporary carriages provided by the Hechingen Consortium transported these immigrants to nearby gathering points, from which they proceeded to train stations en route to seaport cities.
There were two primary routes for German immigrants to East Africa. The northern route followed railways and involved ships departing from Baltic and North Sea ports such as Hechingen. The southern route passed through Bavaria and led to Trieste in the Austro-Hungarian Empire before joining Hechingen's ships.
These two routes had their advantages and disadvantages, but both involved circumnavigating the west coast of Africa. While the Hechingen Consortium bore significant freight costs, the overall goal was to bolster the German population in East Africa, a long-term investment that Ernst believed would pay off.
While overseeing immigration tasks, Ernst continued to monitor the progress of students at the Hechingen Military Academy and Cultural School. These students were orphans without family, and Ernst considered himself their only relative. He prepared gifts and planned to inspect the two schools to ensure the well-being and development of these young individuals.