Rise of Empires: Spain.

Chapter 112 Military and Industrial Assistance
A very important issue in the reorganization of banks is to integrate some existing small banks into a large joint bank under government control.

Those private capitals can choose to continue to join large joint banks. Such government-controlled banks will also receive support policies, and will definitely not lose money in future development.

Or they can choose to exit in time. After the integration, their shares will be acquired by the government and the royal family, which can also guarantee their own costs.

As for whether they can make a fortune by taking advantage of the banking industry rectification, it is basically impossible. The royal family and the government are not fools, so they will not let these private bank capitals find opportunities to exploit loopholes in this major rectification.

While rectifying the banks, the government was also preparing to establish the Spanish National Bank. Since its establishment, the Royal United Bank has been welcomed by a large number of Spaniards, and the government naturally could not give up this opportunity to make a lot of money.

In addition, a bank with a truly official background can not only serve as a benchmark for the financial industry, but also achieve control over the banking industry. Therefore, an official bank is very necessary.

After discussions with Carlo, the Spanish National Bank officially entered the preparatory stage. The royal family will invest 850 million pesetas and hold 45% of the shares in the upcoming national bank.

The Spanish government invested 1000 million pesetas and held 55% of the shares of the National Bank. The operation of the National Bank is supervised by the government and the royal family does not participate.

The Spanish National Bank and the Royal United Bank will join the Spanish Monetary Board, which will control the issuance of the Spanish peseta.

In other words, the National Bank and the Royal United Bank will serve as the two major official banks in parallel in Spain, and will have the power to issue and control currency.

The government will not interfere with the operation of the Royal United Bank, and the royal family will not interfere with the operation of the National Bank. However, both parties can control the issuance of Spanish currency through the Currency Issuance Committee, with the aim of achieving win-win cooperation in the financial industry.

The purpose of doing this, of course, is to completely control Spain's financial industry through the cooperation of the two major official banks.

No matter how powerful the bank capital is in the future, it will not be stronger than the combination of the two official banks. The royal family and the government control the two major bank capitals. Royal capital and national capital will become the largest capital in Spain, thus preventing capital from infiltrating the country.

For Carlo, although the establishment of the National Bank will affect the business of the Royal United Bank to a certain extent, it will not be a loss overall.

After all, he also owns 45% of the shares of the National Bank, and 45% of the National Bank's income belongs to the royal family.

Moreover, the development of the banking industry also requires competition. If the Royal United Bank is the only dominant bank, it will not be a good thing for the development of the Spanish financial industry, and it will be more likely to breed corruption and embezzlement.

Of course, even with competition, corruption and embezzlement are inevitable. In order to prevent this phenomenon from harming the two major banks, the Currency Issuing Committee, in addition to the two official banks, also has controls from the royal family and government departments to clear out the scum in the bank at any time.

In other words, Carlo’s influence on the government is not high at present, otherwise supervision of government officials should be put on the agenda.

Corruption occurs in every government and it is impossible to eliminate or avoid it. Although the current government originated from a revolutionary government, sitting in a high position for a long time will definitely give rise to other ideas.

In the future, when Carlo has certain powers, he will formulate more stringent policies and play a more supervisory role on the government.

In addition to the development of the banking industry, Carlo is also concerned about the development of the military industry.

After receiving military and industrial support from the Austro-Hungarian Empire, Spain will also usher in a golden period of development in the military industry.

The development of military industry certainly cannot rely solely on the Royal Arsenal. Military factories under various government backgrounds and private military factories are also very important contributors.

In the military industry, the most important thing is innovation and improvement. It is necessary to develop more military factories to form a competitive situation, at least to ensure that Spanish weapons will be constantly updated in a competitive environment.

If the competition was not fierce, the Royal Arsenal would not be so keen on developing new weapons. After all, selling old weapons could make money, so why bother developing new weapons that were more expensive?

Therefore, for the development of the country, there must be competition in the military industry, and the intensity of competition can only be high, not low.

Carlo would rather see his Royal Arsenal at a disadvantage in the competition than see it dominate the market and ultimately put Spain's weapons development at a disadvantage.

The military and industrial assistance provided by the Austro-Hungarian Empire is divided into two parts.

The first part is that the Austro-Hungarian Empire will provide Spain with production lines for existing rifles and artillery technology. The reason why the Austro-Hungarian Empire is willing to provide production lines for rifles and artillery is actually because it sees the backwardness of existing rifles and artillery.

The Austro-Prussian War and the Franco-Prussian War have proven that muzzle-loading rifles are outdated products, and now it is the era of breech-loading rifles. The Austro-Hungarian Empire is also developing products related to breech-loading rifles, so it doesn’t matter what the existing muzzle-loading rifles are. Although the Austro-Hungarian Empire is not behind the world in artillery, it is at least behind the Prussians.

The steel cannons used in large quantities by the Prussians played a huge role in the Franco-Prussian War, and the Austro-Hungarian Empire also had the idea of ​​imitating them.

This is also the reason why the Austro-Hungarian Empire was willing to share these technologies. After all, these technologies would be completely outdated in a few years.

In addition to the previous agreement with the Spanish government, Spain's progress in these weapons over the next ten years should also be shared with the Austro-Hungarian Empire, which can be regarded as an investment by the Austro-Hungarian Empire.

Of course, since it was an investment, the Austro-Hungarian Empire must have paid more than this.

In addition to rifle and artillery production lines and related technologies, the Austro-Hungarian Empire will also provide hundreds of weapons technology experts to be stationed in Spain for five years.

This was the real investment made by the Austro-Hungarian Empire, which helped Spain quickly master the technology of rifles and artillery, and at the same time jointly developed new rifles and artillery.

Such cooperation was a win-win for the Austro-Hungarian Empire. Using outdated products and technologies, plus some technical experts, they could bring about military progress for the entire Spanish industry in the next ten years.

Although Spain is not a great power and does not have strong military strength, it at least has a certain foundation.

Moreover, it is the technological progress in the next ten years. With the help of the Austro-Hungarian Empire, Spain may be able to make certain breakthroughs in weapons technology.

Of course, even if Spain did not make any major breakthroughs in military industry, the Austro-Hungarian Empire would not lose much. After all, these backward products were not worth much, and more than 100 technical experts only needed to stay in Spain for five years.

In Carlo's view, the military industry cooperation with Austria-Hungary could achieve a win-win situation for Spain and Austria-Hungary. First of all, the more than 100 technical experts provided by Austria-Hungary were crucial to the development of Spain's military industry.

Even with more than 100 technical experts, Carlo was confident that he could develop Spain's own bolt-action rifle ahead of schedule.

Of course, these technical experts would not have access to Spain's research on machine guns. Carlo was relatively relieved that the machine gun was developed by Maxim, the father of automatic weapons, and his brother.

There is no need for the help of the Austro-Hungarian Empire in this regard, and naturally there is no need to share technology with the Austro-Hungarian Empire.

Spain could still share rifle and artillery technologies with Austria-Hungary, especially artillery, where technical experts from Austria-Hungary were needed to help Spain learn the most advanced artillery design ideas.

Carlo naturally did not want to let go of these more than 100 Austro-Hungarian experts. Without saying too much, Carlo's plan was to have at least half of them stay in Spain to work in five years.

Although it is somewhat unethical to poach talents in this way, these more than 100 people are technical experts in weapons design from the Austro-Hungarian Empire and are very helpful to Spain.

Moreover, when the Austro-Hungarian Empire sent these 100 people, it was naturally prepared for these people to be won over. It was impossible for the Austro-Hungarian Empire to turn against Spain for these 100 people, so the people who should be won over still had to be won over.

According to the information provided by the Austro-Hungarian Empire, most of these technical experts were engaged in rifle and artillery design. If Spain could be won over in the future, some of them could be selected to join the research and development of machine guns.

I believe that with the help of more talents, the development of the Maxim machine gun will be accelerated. I believe that the Maxim machine gun in this world will be born earlier and will burst into glory before the First World War.

The bad news is that the Royal Arsenal is destined to not be able to allocate all the weapons technology experts. For the development of other military factories, it is necessary to reserve enough technical experts for other military factories.

Because there are only more than 100 technical experts, the value of these more than 100 people will definitely be squeezed out. They will go to several larger military factories in Spain to help these military factories master the technology of rifles and artillery that were the source of the Austro-Hungarian Empire.

These technical experts will then be assigned to major military factories according to their size, and the factories will develop new rifle and artillery technologies.

Considering the size of the Royal Arsenal, the number of technical experts that can be assigned to it will definitely be the largest. In the future, the standard rifles used by the Spanish army will be selected from the products of these military factories step by step, and the best rifles will be selected.

The reason why several other military factories were allowed to participate is to cultivate more military factories to compete with each other. Only competition can continuously generate innovation in this industry and continuously improve weapon technology.

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(End of this chapter)