The War Court and Lap Pillow, Austria's Mandate of Heaven

Chapter 1982 Provisional Colonial Tax System

Mexico has potential, but the Mexican government is a big problem.

If Tassan Anna can truly step back and leave things to his own devices, then Franz might actually be able to develop Mexico.

However, Tassan Anna did not think he was wrong; he even felt that Mexico could only exist because of his existence.

The Mexican government has officially become a malignant tumor parasitizing this land, but Franz has to admit that Tassan Anna is the most conscientious ruler in the land.

Mexico's elites, warlords, and churches are all the same; none of them consider this land their home, and the inhabitants are treated like livestock.

Of course, the people also have a very low sense of belonging to this country; the anti-China parties in Mexico truly hate the country in the literal sense.

Such a country has a very low ceiling, and there's a possibility of civil war, so Franz could only list it as one of the alternative options.

New Granada is indeed a land with immense potential. Franz initially had high hopes for it, but Ferdinand VIII of Spain, whom he had personally helped to the throne, did not share the same view.

As the saying goes, a great favor can be a great enmity; a debt of gratitude that cannot be repaid becomes a burden and a source of resentment for some people.

In addition, Fernando VIII was more concerned with the interests of the Kingdom of Spain itself, and any person or organization that might threaten his rule or Spanish interests was his enemy.

Fernando VIII's ambitions extended far beyond Spain; he desired an empire on which the sun never sets. While it may sound ridiculous, Fernando VIII truly always saw himself as a chess player.

However, Franz was not concerned about this loss, partly because Fernando VIII's orders might not be as effective as Franz's words in New Granada.

On the other hand, the Spanish have not made much progress in their centuries of management, and it will take at least several more decades to make this land truly useful.

As for the Omanis, they do like doing business, but their strength is simply too limited to handle such a large scale.

Franz, however, had other options, or rather, he had always bet on his colonies. Austria had invested heavily in its colonies in recent years, and this investment would only increase after the establishment of the Holy Roman Empire.

These investments were certainly worthwhile, and the Austrian Empire was now able to enjoy cheap raw materials from its colonies.

Grain was present, of course, but it made up only a very small portion. As for why, as mentioned earlier, the profits from grain were too low.

The development costs of the early colonies were too high, so in order to recoup their costs, they could only plant whatever was profitable and whatever aligned with the strategic development of the Austrian Empire, such as rubber, cotton, tobacco, and sugarcane.

Sometimes, in some colonies, it was necessary to import food. After all, Franz did not want the colonies to cause any plagues or other problems due to the indiscriminate consumption of jungle meat, and the imperial government also hoped to indirectly control the colonies through food sources.

As for the crops Franz selected for the development of the colony, not everyone could accept them.

Cassava, sorghum, amaranth, pearl millet, taro—just hearing their names tells you they don't taste good.

There's no need to elaborate on sorghum and taro; whenever these two appear in film, television, or literary works, it's always during extremely difficult times.

For people who are used to eating rice and wheat flour, the only difference between these two foods is that they are hard on the throat.

Later generations ate improved varieties that were refined, but few people used them as a staple food; most just tried them out of curiosity.

In fact, taro can also be made to go beyond the category of coarse grains by using a lot of meat, bones, sugar, cream, and spices, but the problem is that this is a colony, not a royal banquet.

In the 19th century, the exorbitant prices of those side ingredients far exceeded the price of taro itself, rendering it utterly impractical in the colonies at that time.

Cassava is similar; it was first and foremost a life-saving food source, and only then a secondary source of edible food. It is also toxic and requires cooking before consumption.

This largely prevented the food from being fed to the enemy, since not all African tribes know how to cook this kind of food, and mistakes could lead to poisoning.

In the 19th century, food poisoning was almost always fatal.

Pearl millet and amaranth were special crops chosen by Franz for areas that lacked both water and fertility.

They have many advantages: they have very low environmental requirements, their production is not high in modern times but was very high in the nineteenth century, and they are easy to preserve.

Pearl millet is just millet, but in the 19th century, there was no modern processing, so it was often eaten with the husk on, and you can imagine how unpleasant it tasted.

How do you describe amaranth seeds? Franz's first impression of it in his previous life was that it was grass seeds.

At this point, it's probably unnecessary to say more. Compared to these things, rye, potatoes, peas, and onions don't seem so bad.

With the development of the colonies, especially the expansion of population and industry, the shift towards agricultural industries was inevitable.

In fact, there was strong opposition within the Austrian Empire to this matter, with many believing that food was the best way to control the colonies.

As long as the colonies are not allowed to grow food, they will have no basis for independence and will not repeat the mistakes of the thirteen North American colonies.

However, Franz's view is wishful thinking. Just because they don't allow it, doesn't mean they can't plant it! These officials are too naive!

Rather than being forced to relax the conditions, it's better not to set obstacles in the first place. Few people in the colonies are currently growing wheat and other food crops, not because Franz forbids it, but because it's unprofitable.

Imagine a group of people crossing oceans, risking their lives. What are they doing it for? Would they be willing to do something that doesn't make money?

Policies can suppress human nature, but they cannot replace it. Therefore, Franz always guided human nature with policies, rather than dictating it.

Especially after the Suez Canal opens, these colonies can readily replace the ecological niche of the United States and Russia in the Holy Roman Empire.

However, the tax rate for the colonies has always been a point of contention within the imperial government; in the past, when Franz held absolute power, no one would discuss such matters.

Everyone felt that this was the emperor's own business, and even though Franz brought it to the forefront, the officials showed little interest, with many thinking it was just a formality.

However, as time went on and the colonies expanded, more people recognized their potential, and large amounts of capital and ambitious individuals began to flock to the colonies to develop them.

In particular, Franz's several purges, coupled with the comprehensive crackdown on capital by the various states before the unification of the Holy Roman Empire, led to the first small peak in the Holy Roman Empire's colonies.

A large population, along with a vast amount of capital, arrived in the colonies.

The arrival of this group alerted the imperial officials, who were already determined to give them a taste of the empire's iron fist before they could even establish themselves.

At this time, the Shinra Empire was newly established and was still in the process of transition. Many people were trying their best to exploit loopholes, while the Imperial Government was busy plugging the holes.

Historically, this group might have lacked experience, but by this time they were seasoned veterans. Almost everyone was certain that once a zero-tariff policy was implemented, someone would import large quantities of grain from the colonies to disrupt grain prices within the empire. This was because it was profitable and easy to do. After all, grain was readily available in this era, and such a necessity was consumed relatively quickly.

With the existence of price controls, prices are stable, returns are promising, and risks are controllable, making it practically a perfect financial product.

Furthermore, within the Austrian Empire, the imperial government had the capacity for unified acquisition and regulation.

Things have become complicated now that it has become the Shinra Empire. Although the empire has grown larger, its control and administrative capabilities have been weakened in a roundabout way.

The situation in the colonies was also becoming more complicated, whereas previously there was only Franz's Royal Overseas Development Company.

This is essentially a monopolistic state-owned enterprise; at least Franz himself wouldn't deliberately disrupt the empire's market.

However, after Austria became the Holy Roman Empire, the room for maneuver for those with ulterior motives increased significantly.

In the past, officials would have kept quiet about such backdoors and made a fortune.

However, the emperor at this time was Franz Joseph I, and few in the entire empire's bureaucracy dared to truly underestimate him.

Few people would dare to exploit such an obvious loophole, since Franz could easily bankrupt them. If someone dared to exploit it, they would dare to report it, since who wouldn't want credit delivered to their door?

In the eyes of the imperial officials, such a thing was entirely detrimental to the empire.

But economists and nationalists see it differently, which raises a paradox: are colonies considered territory, and are the people in colonies considered citizens?

This matter can lead to completely different conclusions depending on the perspective. Ideally, there should be no tariffs, but reality is not a fantasy, so we can rule that out.

From a colonial and localist perspective, protective tariffs should be imposed, but these options are clearly not within Franz's purview.

This simplifies the issue; Franz should view it from the perspective of the colonial power and nationalism.

Therefore, unequal tariffs are the only solution, which can maximize the core interests of the empire while serving the core concept of the nation.

Tariffs can effectively maintain the stability of the imperial market, while also giving the imperial government a strong regulatory capacity and protecting the empire's core interests.

As for those colonies established to serve the empire, sacrificing the interests of the majority and the overall interests for the benefit of a few and the local, that is putting the cart before the horse.

Of course, colonies are not devoid of development, but rather should be developed at the appropriate time.

At this time, the basic development of the colony was not yet complete, and it would only make us a laughing stock if industry were introduced rashly.

However, he wouldn't stop others from doing business; if someone could truly surpass Franz's imagination, that would be a good thing.

However, the overall pace of development of the colony still had to be controlled by Franz.

The future development direction of colonies can also be guided by policies and taxes. For example, if the empire's food shortage increases one day, it can take the opportunity to transform.

Franz's decision to implement unequal tariffs did not surprise Finance Minister Baron Brooke, as he did not believe that the colonists could adhere to the same bottom line as the emperor himself.

Instead of pinning our hopes on those vague and uncertain bottom lines, it would be better to draw a red line through law that no one would dare to cross.

"Your Majesty, we certainly know this is the bottom line, but those with ulterior motives will definitely make a big fuss about it and sow discord between the local and central governments."

Franz nodded; Baron Brooke made a good point. He certainly wouldn't have done that back in the Holy Roman Empire.

After all, Franz had spent a great deal of effort over the years to abolish internal tariffs, and countless people had died in the process. The German Customs Union and the Apennine Customs Union were established for this purpose.

How could he possibly start all over again now?

“Baron, you seem to have forgotten one thing. Localism does not exist in our country’s colonies.”

Franz's words seem utterly unreasonable, even somewhat self-deceptive. However, what he said was true: the Austrian Empire did not have a strong colonial regionalism.

Franz chose a different path from the very beginning of establishing the colonies, which had a retro feel compared to modern colonial methods, but was different from the corporate system (mandate system).

Austrian Empire's colonies were more like a hybrid of military camps and companies. Even in the colonies, there was only a distinction between citizens and laborers, and naturally, few people cared about the so-called colonial rights.

Baron Brook had a limited understanding of the colonies; he was more concerned with whether the tax policies could be implemented properly. Since Franz had no objections, he had none either.

“Your Majesty, if you are confident in eliminating these problems, we are determined to carry them out. However, there have indeed been similar cases in history, so please take note.”

Franz nodded; he understood what Baron Brook meant.

"Baron, please rest assured, I am not so arrogant, and we are different from others."

“Then I have no problem. I will work with my subordinates to draft a detailed tax form and then submit it to Mr. Böhm-Bawerk’s team for review.”

In fact, as times have changed, tax systems have become increasingly complex. The days when high-ranking finance officials would rush to complete reports overnight are long gone, and the complexity of fiscal planning is now beyond Franz's direct grasp.

New plans issued by the Ministry of Finance must first be reviewed by an internal team of experts, and then compiled and organized by Franz's staff before being delivered to Franz.

In terms of efficiency, it is much slower than before. Things that could be settled in a few days now take months or even half a year to come.

Franz was also keeping an eye on this. He knew that these people weren't slacking off, but they had to slow down the progress due to the so-called procedures and absolute correctness.

However, Franz had his own method. He planned to first introduce a set of temporary laws in the colonies, use them to test the waters, and then correct any mistakes.

Franz's approach immediately drew collective opposition from imperial officials and the legal community, who felt that his approach was extremely short-sighted, that it would trample on the authority of the law, and that it would easily breed corruption and even lead to rebellion.

Opposition grew louder and louder, with many experts unable to accept a law that could be amended, even if it was only applied to colonies or only to economic matters.

However, Franz remained unmoved. He never believed that the law was equivalent to the truth, and that admitting and correcting mistakes was the right path.

Other countries might not accept this, but the Austrian Empire was not a typical modern state, and even its authority did not entirely derive from the law.

Furthermore, this is only a special law for a transitional period. If it cannot be changed in a few years or even decades, it will prove that the Holy Roman Empire is not capable of ruling this colony.

Franz had other options; he didn't necessarily want to develop it into territory. He could also deconstruct it into a source of raw materials, a strategic point, and a residential area.