Persian Empire 1845

Chapter 344 European Tensions

The New York City draft riots spiraled out of control, even heading towards Wall Street, forcing the New York Stock Exchange to close.

This threatened the interests of local bankers and factory owners, who realized that the Northern government could no longer protect their interests, but did not want to join British-ruled Canada, so they decided to push for New York's independence.

Both the New York State Legislature and the New York State Legislature were Republican-controlled, but lacking funds, these legislators were essentially out of office. To avoid being abandoned by their financial backers, many switched sides, leaving the Republican Party to form a new party—the Libertarian Republican Party. They advocated for moderate reform and were less enthusiastic about the emancipation of slaves.

Because of their defection, the Republican Party lost control of the legislature. Meanwhile, the Democrats reinstated a bill for New York State independence, which received support from the Liberal Republican Party. The bill passed and was prepared for a public referendum.

The decisive battle that would determine the fate of both the North and South governments ultimately ended in mutual destruction.

Tactically, the Southern government was victorious, suffering fewer casualties; strategically, the Northern government was victorious. In a protracted war, the North could have worn down the South. However, at this point, the entry of Britain and France, the near-collapse of the economy, and the growing calls for secession shattered the Lincoln administration's last vestiges of hope.

Moreover, the Northern government has already invested over $6 million, with economic losses reaching $14 billion. Such expenditures are unprecedented in any history. The Southern government has also spent $4 million, most of which was borrowed from Europe.

Both the North and South economies have collapsed; Northern factories have gone bankrupt, and Southern exports have plummeted to zero. The only solution now is for both sides to negotiate. Capitalists don't want to destroy America; it's not in their interest. Everyone here is a pragmatic adult; since success is inevitable, it's better to cut their losses now.

Compromise now, and the federal government can still maintain a favorable position in the negotiations. If it drags on, and other countries all enter the fray, the situation will be completely different. The Southern government is also preparing for peace talks; they don't know the cost of living until they're in charge, and the South's savings are running low, so it's best to reach an agreement as soon as possible.

In London, Palmerston made a final appeal in Parliament.

"This is our last chance. The British Empire should not be surpassed by a country on the other side of the ocean. Their territory and their property were given to us. Now that they want to defeat our country, our country must take them back."

The Prime Minister's words garnered considerable support from members of parliament, and given the many vested interests within the Confederate States of America, Parliament ultimately decided to send 30,000 men to Canada. He wanted what France had.

However, Europe was in turmoil at this time. Uprisings had broken out in the Kingdom of the Two Sicilies, the Papal States, Spain, and Portugal, and riots of varying degrees had also occurred in Switzerland, France, Ireland, and other regions. Most of these organizations had recently returned from the United States, especially the Irish mafia, which nearly brought Britain to its knees.

It's no secret that Americans fund revolutionary organizations; their influence is undeniable. However, nothing major has happened, and this secret has remained unspoken. But judging from the current situation, Lincoln is also preparing to end the war with the South while Europe is preoccupied.

However, tensions were indeed rising in Europe at this time, most notably between Denmark and Prussia in the north. The trigger was the Schleswig-Holstein question.

During the First Schleswig War (1848-1851), the German-speaking populations of South Schleswig and Holstein were suppressed for opposing Danish rule, fueling anti-Denmark sentiment among Germans. Now, the situation in Schleswig and Holstein remains volatile, providing Prussia, having suffered setbacks in the previous war, with a sense of mission and unwavering conviction to launch a new round of intervention. While the diplomatic situation during the First Schleswig War was favorable to Denmark, things changed drastically after 1860.

In 1856, Russia, which had actively intervened in the First Schleswig War, suffered a defeat in the Crimean War against Britain and France, and was forced to halt its involvement in Central and Western European affairs. Britain and France, at this time, were focused on overseas expansion and had no time to return to aid Denmark. Austria, with its delicate relationship with Prussia and which had long sought to vie for dominance in German affairs, chose to set aside its prejudices and join Prussia in fighting Denmark under the banner of German nationalism. Meanwhile, Sweden, Denmark's northern neighbor whom it had always considered its "elder brother," saw its king call for aid, but its parliament refused to send troops, leaving Denmark undeniably isolated.

Bismarck, upon coming to power in Prussia, famously declared in parliament: "Everything in the world needs iron and blood to solve." This marked the beginning of the iron-fisted policy.

At this time, King Frederick of Denmark was preparing to implement a new constitution, which angered the German communities in both regions. Bismarck proposed a motion within the German Confederation, which was eventually passed, allowing the Confederation to send troops to occupy Holstein. The Danish army retreated north, reaching the border between Schleswig and Holstein. However, this was vetoed by Denmark.

“Your Majesty,” said Chancellor Monrad, “Prussia and Austria have issued an ultimatum to our country, demanding that we immediately withdraw the new constitution.”

Frederick turned around, his face grim: "By what right do they interfere in my internal affairs?"

“They say it’s to protect the rights of Germans,” Monrad explained, “but in reality, it’s just a pretext for their annexation of Schleswig-Holstein.”

Frederick pondered carefully: "If we withdraw the new constitution, it would be tantamount to recognizing these two regions as German territory."

“But if we don’t withdraw,” Monrad hesitated, “Prussia and Austria might start a war.”

“If Prussia and Austria join forces, we have no chance of winning.” He turned to Monrad, “We must immediately seek help from Britain and France.”

“But Your Majesty,” Monrad said with difficulty, “Britain and France are busy with their overseas colonies and are probably too preoccupied to attend to us.”

Frederick realized what was happening: "Yes, they're all busy, too busy to even help their allies. But we still have to do it, discuss it with other countries, and if necessary, reach out to Russia."

"Yes"

Frederick VII announced the abolition of the articles in the Danish constitution affecting Holstein and Lauenburg, while retaining those concerning Denmark and Schleswig. This could only worsen the situation, and the Prussian army was ready; a major war was imminent.

(End of this chapter)