Empire Rise: Spain

Chapter 124: The Looming Economic Crisis

After this economic crisis, the industry and economy of various countries will be sluggish for a period of time, and this period is also a good opportunity for Spain’s industry and economy to catch up.

Who to catch up with? In fact, Spain’s industry is currently at a mediocre level.

Catching up with the great powers is somewhat difficult, and comparing downward with countries like Belgium and the Netherlands gives some advantage, making it difficult to choose a target to catch up with.

But as the saying goes, slogans are shouted out; whether they can catch up or not is not important—what matters is shouting the slogan.

Setting a relatively difficult goal for the Spanish people can also unite them as one, striving together for this goal.

Before the economic crisis broke out, the securities trading markets in Europe and America had a period of prosperity.

Carlo naturally would not miss this opportunity; this period of prosperity is also a great time for the royal family to make money.

The prosperity period is still quite long. If following historical development, this prosperity period will last at least another year or more.

During this time, any company registered and listed on the stock exchange can make a fortune.

Any enterprise related to railways and industry can easily borrow large amounts of funds from banks for construction. During this time, many countries did not have a national bank to manage the banking industry; basically, it relied on private banks to issue national debt.

Although this also promoted economic prosperity, this prosperity was too free and undisciplined, clearly not under the control of various countries’ governments.

The economic crisis erupted amid this uncontrolled rapid development of the economy and industry, and similarly, because the national power was hard to control in the early stage, the impact was relatively severe.

The reason the Spanish National Bank was established so early was precisely to control the development of Spain’s economy in a timely manner, allowing Spain to avoid the impact of the economic crisis as much as possible.

Of course, completely avoiding it is impossible. But every bit of reduced impact increases Spain’s chances of becoming powerful.

After all, economic crises are unavoidable for every country. When other countries are suffering from the economic crisis, if Spain can still develop steadily, the gap will be further narrowed.

Since entering 1872, Carlo had people enter the London Stock Exchange and the Vienna Stock Exchange to purchase large quantities of stocks of those newly registered companies.

In the stage of economic prosperity, the value of these stocks will maintain relatively stable growth. Basically, as long as you buy them, you won’t lose money; this is also the reason why numerous capitals are frantically pouring in.

Of course, it is precisely this frenzy that accelerated the outbreak of the economic crisis. To ensure that the royal family’s money can safely withdraw from the stock exchange, Carlo instructed the Royal Security Intelligence Bureau to investigate the situation in the United States and European countries.

As soon as the industry and railway construction in various countries enter a stagnation phase, whether due to accidents or precursors to the economic crisis outbreak, the royal family’s capital must withdraw from the major stock exchanges in Europe.

Although temporary withdrawal may lead to reduced income, it is still better than having that money rot in the stock exchange after the economic crisis erupts.

It is worth mentioning that after the alliance treaty was signed between Spain and the Austro-Hungarian Empire, Spain not only welcomed some capital from Austria but also many immigrants from the Austro-Hungarian Empire.

No matter what, the Austro-Hungarian Empire is a populous country in Europe. In 1872, the population of the Austro-Hungarian Empire had broken through 37 million, which is more than twice the total Spanish population.

Although the relatively stable environment has allowed Spain’s population growth to make some progress compared to Queen Isabella’s reign, limited by the small total population scale, Spain’s total population is currently around 9 million.

After welcoming certain Italian and Austro-Hungarian Empire immigrants, it is expected that Spain’s future population growth will improve.

However, to see Spain’s population break through 20 million, it may take at least more than a decade.

Currently, the Spanish government does not have plans for large-scale introduction of immigrants; the introduced immigrants are mostly technical talent, including talent in education and medical treatment.

This is also unavoidable. Spain is originally a multi-ethnic country; introducing more people from other ethnic groups would definitely affect Spain’s stability.

Although Spaniards make up the majority of Spain’s total population, Spaniards are also composed of Castilians and Aragonese.

Before fully assimilating Catalans and Basque people, Spain will not engage in large-scale immigration.

Of course, excluding the populations from those former Spanish colonies in Latin America. Those people theoretically also have Spanish bloodlines; they speak the Spanish language and are more easily assimilated into Spaniards.

Among the immigrants Spain currently obtains each year, more than 30% come from Italy, nearly 20% from the Austro-Hungarian Empire. In addition, about 30% come from other European regions, and only 20% of immigrants come from former colonies in Latin America.

Although the colonies in Latin America have all become independent, it is still very necessary to maintain good relations with these already independent American countries.

Spain has a natural advantage among these countries; these countries are innately closer to Spain. Carlo’s goal is not to turn these countries back into colonies, but through cooperation with these countries, to expand more markets for the future industrialized Spain.

As long as Spain’s influence in these American countries remains, Spain is still the third colonial power next only to Britain and France.

This is also the reason why the United States launched the Spanish-American War in history. Although Spain lost most of its colonies in America, this does not mean that Spain’s influence has disappeared.

America’s dream is to build the entire America as America’s backyard, so it is naturally impossible to allow a country like Spain with considerable influence to stand behind South American countries.

However, Carlo will not give the United States so many opportunities. After Spain becomes powerful in the future, it will not fear threats from Americans.

If Americans dare to challenge Spain’s status, Carlo wouldn’t mind using Americans to re-demonstrate Spain’s power.

Spain’s weakness is relative; current Spain is not a weak country, let alone Spain after completing reforms and building an even stronger industry and economy.

Carlo is confident that Spain can regain great power-level military strength within 10 years and return to the seat of the great powers within 20 years.

There are still 40 years until the outbreak of World War I; by the time World War I breaks out in this world, Spain may have grown into a top great power next only to Britain, France, and Germany, and will naturally have the qualification to play on the world chessboard.

Second update, seeking support!