Rise of Empires: Spain.

Chapter 123 Theo Alliance
While Carlo was traveling, the Spanish government was also busy. Considering that Spain's reforms urgently needed the support of a country with a certain industrial and economic foundation, the Spanish government held long consultations with the Austro-Hungarian government and signed a new "Austro-Hungarian-Spanish Alliance Treaty".

However, this alliance is not a true military alliance, but more like an economic and diplomatic cooperative alliance.

This alliance treaty greatly strengthened the economic exchanges between Spain and Austria-Hungary. Spain's large amount of mineral resources and other materials could be easily transported to Austria-Hungary by sea, and Austria-Hungary's food and other industrial products could also reach Spain by sea.

In addition to strengthening economic cooperation, the two sides also held consultations on tariff issues and agreed to jointly reduce tariffs and strengthen economic exchanges between the two countries.

What Spain was more interested in was naturally the more advanced industry and other scientific and technological technologies of the Austro-Hungarian Empire.

Most of the equipment for Spain's industrial development was imported from the Austro-Hungarian Empire and Italy, and a small part was imported from the German Empire. This is also the reason why Spain's industrial development was relatively fast.

After signing an alliance with the Austro-Hungarian Empire, the Spanish government also signed a similar alliance treaty with the Italian government.

Although Italy's overall strength is not as good as that of the Austro-Hungarian Empire, it also has a certain scale in industry and economy. At least it can provide assistance to Spain.

With the assistance of Italy and Austria-Hungary, Spain's industrial development speed was relatively fast. Railways and roads were being built in various places, and various factories, led by steel mills and chemical plants, were also being built continuously. The whole country was thriving.

However, while developing rapidly, the overall construction speed of Spain was also limited to a relatively reasonable range.

There is no way. The name of the 1873 economic crisis is too loud, and its impact on the world economy is second only to the Great Depression that began in 1929.

Carlo is still aware of the economic crisis that is about to occur next year, so he naturally wants to try his best to ensure that Spain's development is within a controllable range rather than developing recklessly without restrictions.

Speaking of the impending economic crisis, the real reason is that various countries are frantically building railways, which constantly stimulates the growth of domestic industry and economy.

As we all know, when the scale of industrial production is far greater than consumption demand, an economic crisis will follow.

How exaggerated was the development of various countries during this period? After the end of the Civil War, the entire United States entered a new wave of industrial development.

In the seven years from 1865 to 1872, the total mileage of railways built in the United States exceeded 31092 miles, or more than 5 kilometers of railways.

This is nearly 10 times the size of Spain's existing railways, and the Americans took only seven years to build such a huge railway mileage, which is enough to show how exaggerated the development of American industry was during this period.

正是在修建铁路的浪潮之下，美国的生铁产量从1865年的75.5万吨已经增长到了超过200万吨，煤炭产量从1865年的2215.9万吨增长到了接近5000万吨。

Spain's current industrial scale is not even a fraction of that of the United States, while the US industry is still growing at an extremely exaggerated rate, which is precisely the reason for the outbreak of the economic crisis.

So the question is, why does the US economic crisis affect the whole world?
First, with the development of colonization and technology, the economic ties between countries around the world are becoming increasingly close.

Second, more than half of all the funds used to build railways in the United States came from investments in Britain, France and other European countries. This is precisely why the American railway crisis affected the entire world.

Moreover, the problem of overproduction is not only seen in the United States, but also in other European countries.

Since Germany won the Franco-Prussian War, it has entered a period of rapid industrial economic development. After acquiring the extremely important industrial and mineral areas of Alsace and Lorraine in France, German industry has already had a fairly solid foundation. In addition, the 50 billion francs of funds that the French gave to Germany almost for free provided sufficient angel start-up funds for the development of German industry.

Under such circumstances, it would be strange if German industry did not develop at a blowout rate.

The British are no worse. As the most powerful country in the world, Britain's industrial development speed is also relatively fast. At this point in time, Britain is still the most powerful industrial country in the world, and it will take a long time for the United States and Germany to catch up with Britain.

It can be said that, except for France, which lost its industry and mineral resources after the Franco-Prussian War and had to pay a large amount of reparations, other European countries were basically developing rapidly.

This also led to the European economy entering a period of prosperity starting in late 1871, and it was even more prosperous in 1872.

This economic crisis is likely to affect Spain, and Carlo also attaches great importance to it.

Spain also has a stock exchange. The Madrid Stock Exchange was established in 1831 and has a history of more than 40 years.

However, compared with the exchanges in Vienna and London, the Madrid Stock Exchange is not large in scale and influence, which is good news.

After all, the larger the stock exchange, the greater the impact it will be in an economic crisis. Even though a large amount of money flows in and out of the London and Vienna stock exchanges every day, when the economic crisis breaks out, there may be thousands of bankrupt companies.

The economic crisis that broke out in 1873 is also considered to be a sign that capitalism has changed from free development to monopoly. After this economic crisis, a large number of small and medium-sized private enterprises faced bankruptcy and were eventually acquired by larger enterprises.

Monopoly giants emerged one after another during this economic crisis, and the capital of various countries also transformed from a large amount of small and medium-sized capital to large capital, and began to have a more profound impact on governments of various countries.

For Carlo, how to make enough profit in this economic crisis is a question that needs to be considered.

The good news is that for Spain, which has a small industrial and economic scale, the impact of this economic crisis is ultimately limited.

The economic crisis mainly broke out in the United States, and countries affected were relatively strong economies and industries such as Britain and the Austro-Hungarian Empire.

Spain does not have to worry too much about the impact of the economic crisis. Instead, it can take advantage of the opportunities brought about by the economic crisis to acquire some important foreign companies and enterprises.

Although these companies have gone bankrupt, the technology and employees they possess are real.

As long as we can acquire these factories and companies that have gone bankrupt during the economic crisis and take the opportunity to attract some of the unemployed employees to come to Spain, it will be a good supplement to Spain's technical talents.

At the same time, the means of production and some equipment of these companies and enterprises can also accelerate the development of Spanish industry.

For the royal family, by purchasing these bankrupt companies at low prices and reorganizing them, they can form giants in various industries.

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(End of this chapter)