Kossuth was not an economist, and the upper echelons of the Republican government also lacked economic savvy. They had never thought about what 200 million guilders meant to Hungary!
They did not know, but it did not mean that the others did not know. Howell, the representative of the banking group, questioned.
The representative of the banking group, Howell, asked, "Mr. Kossuth, do you know what 200 million guilders means?"
This question stunned Kossuth. He had also thought that these great nobles and capitalists would bargain, but he did not expect them to ask this question.
In terms of currency value, one guilder was equivalent to 11.69 grams of silver. 200 million guilders was 46.76 million taels of silver. In this era, silver had not depreciated yet, so it was more than 20 million pounds. (Around 1: 10)
In 1847, Austria's revenue was only 155 million guilders (excluding Hungary), and the United Kingdom's revenue was only more than 50 million pounds.
Before the revolution, Hungary's revenue was considered good if it had a revenue of 100 million guilders. After the establishment of the Republican government, it had spent 100 million guilders of wealth.
This money was basically obtained from the sale of a large number of state-owned assets, plus the taxes levied by the government. (The emperor's property and the public property of the people)
No one had raised this question before, because everyone had a vested interest in buying property at a low price. No one would refuse money that was delivered to their doorstep.
It did not matter if they did not know. The first element of a politician was to be thick-skinned. If one still cared about being thick-skinned, one should not be a politician, especially a politician in a republic.
"Of course, 200 million guilders is indeed a large number, but it is not impossible for everyone here!" Kossuth replied calmly.
Indeed, for everyone present, 200 million guilders was not a problem. Even if it was three or five times more, they could still afford it.
Being able to afford it and being able to afford it were two completely different concepts. No one was willing to take out their own money. No matter how high the interest was, they could not afford to borrow money without returning it.
According to the speed at which the new government spent money, no amount of money could fill this bottomless pit. This was also why many revolutionary governments in the world had failed.
An idealized government wanted to do too many things, but in the end, it emptied the country before anything was done.
"Mr. Kossuth, when you were in school, you probably failed in economics. Please check how much money is circulating in the Hungarian market, and then answer this question!" Howell said sarcastically.
How much wealth you have doesn't equate to how much money you have. In fact, there is a limit to the amount of money circulating in the market. If there is too much money circulating, it will depreciate. If there is too little money circulating, there will be a money shortage.
From an economic point of view, if 200 million guilders were to be transferred from Hungary at once, Hungary would be in a money crisis. What followed would be a bank run, a bank bankruptcy, a financial crisis, and a great depression.
This era was different from the future. Everyone played with credit currencies, and they could directly transfer money to the bank. Buying bonds required cash. It was no longer a matter of whether they wanted to pay, but it was impossible for them to do so.
(Source: In 1848, the total national savings of Austria was 48 million guilders, and that of the United Kingdom was 28.2 million pounds, 1 pound = 9.6 guilders.)
There was no doubt that Kossuth had lost face this time, or rather, his team was all noobs and had made such an obvious mistake.
Of course, there were many people who had made similar mistakes. This was a common characteristic of people who talked big. When considering a problem, they were often very one-sided.
…
Before Kossuth could solve the financial problem, the war had already begun.
On May 8, 1848, the Austrian army of the Croatian province launched the first attack on the Republic of Hungary.
On May 9, the Austrian army of Bohemia and Transylvania also launched an attack on the Republic of Hungary.
On May 10, the rebel army led by Albrecht arrived at the front line, and the Austro-Hungarian War began in full swing.
This time, Kossuth's prophecy had come true. The four armies attacked at the same time. If the logistics and transport troops were added, the total force really exceeded 400,000.
Of course, only half of the troops were actually involved in the attack. Even so, the Republic of Hungary could not hold on.
The news of victory on the Hungarian battlefield spread like wildfire. With absolute strength, it was no longer possible to reverse the unfavorable situation by shouting slogans.
In order to ensure victory, Franz also transferred back the commander-in-chief of the Bohemian army, Prince Windisgrätz, as the Minister of War, and replaced him with Julius as the commander-in-chief.
Prince Wendisch Gretz picked up the baton, pointed at a map on the wall, and said in high spirits:
"Your Highness, the Croatian army led by Governor Josip Jelačić has now arrived at Lake Balaton and captured Balaton Kelestur.
The Austrian army led by General Albrecht is attacking Kapburg.
The Bohemian army led by General Julius has just defeated the Hungarian People's Army and is now less than 100 kilometers away from Budapest.
The Transylvanian army led by General Windisgrätz is still in Debrecen at this time because of transportation.
In general, so far, the rebel war has been progressing very smoothly. The Bohemian army has 100,000 troops. If all goes well, they can launch the siege of Budapest the day after tomorrow. "
He had reason to be proud. This war was carried out under his leadership. Of course, because of the communication in this era, the Ministry of War was actually only formulating a strategy.
As for how to fight, it was still a real general outside, and military orders were not followed.
Franz was not in a hurry to draw conclusions about Prince Windisgrätz's military ability. Although he lost in the suppression of the Hungarian rebellion in history, the battle plan he had formulated now was still feasible.
"The battle plan to attack Budapest will be postponed. Let General Julius suppress the enemy and wait for the Austrian army to converge with them before launching the attack!"
Don't think that the Hungarian rebels were easy to bully. In history, the Austrian army failed at the last moment and finally asked for help from the Russians to clean up the aftermath.
At least the most powerful student army in the Republic of Hungary had not yet appeared on the battlefield.
Franz also did not know how the people of the Republic of Hungary were now. If the people fully supported this government, then Budapest would be a hell field.
"Your Highness, the rebels are just a motley crew. In a week at most, we can capture Budapest and suppress this rebellion!"
Prince Windisgrätz said excitedly, seemingly accusing Franz of meddling in military affairs and delaying the battle.
Franz calmly explained, "Your Highness, military affairs serve politics. War is only a means, not an end."
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