In a way, France’s internal turmoil delayed the Austrian Navy’s expansion. Pre-dreadnoughts were merely transitional warships with very short economic lifespans. In the original timeline, their era of dominance lasted only about a decade. Before they even had the chance to retire, they were already outdated, making them economically inefficient. Even knowing that these warships had a poor cost-performance ratio, Franz still insisted on building them and on a large scale to boot. Until the dreadnought was developed, pre-dreadnought battleships remained formidable, far superior to any warship currently at sea. As long as Austria built them in large numbers, Britain and France would have to follow suit. Due to their reliance on naval power, they would be forced to build even more warships. A loss was a loss. But as long as his competitors lost even more, Franz was more than happy to keep this costly game going. However, in his attempt to suppress France, he underestimated the revolutionary fervor of the French people. And with a slightly unsteady hand, he accidentally struck a bit too hard, nearly bringing down the French government altogether. Under these circumstances, launching a naval arms race was impossible. No matter how much France wanted to keep up, reality simply wouldn’t allow it. Left with no choice, Franz had to slow down Austria’s naval expansion and wait for the French government to stabilize before resuming this expensive competition. There was no need to worry about France’s financial strength, at least not in the short term. Although the crisis had inflicted heavy losses, there had not been a significant outflow of wealth. The most severely affected sectors were industry and manufacturing, which made up only a little over one-tenth of France’s overall economy. Other sectors experienced relatively minor disruptions. The economic damage from this crisis was roughly equivalent to what France had suffered in the Franco-Prussian War in the original timeline. However, the present Greater French Empire was far larger than its historical counterpart, with overseas colonies providing additional support. Recovering the economy would not be difficult. The apparent financial strain was largely due to wealth becoming concentrated in the hands of a small number of elites. In particular, financial conglomerates that had aligned themselves with international capital had profited immensely. At times, having too much money could be a burden. While acquiring land domestically, these financial groups also needed new investment channels. And for them, high-interest lending was always a favorite strategy. The French government was the ideal client. Repayment ability was not a major concern. What these financial groups sought was not just interest income but the ability to influence the government through financial leverage. “When eating dinner given by others, one should have a soft mouth; when taking bribes, one should have a soft hand.” Controlling governments through debt was a classic tactic of capitalists. Despite the domestic turmoil and the fact that France’s revenue had nearly been cut in half, the French government was not short on funds, proof of just how deep its financial ties had become. As government debt piled up, its reliance on these financial conglomerates would only grow, and eventually, it might reach a point where the government could no longer function without their support. By that point, government policymaking would inevitably lean in a certain direction. Given the current situation, France’s economic outlook was bleak for the foreseeable future. To stabilize the situation, the government had to create jobs and reduce unemployment. Shipbuilding was not the best option, but it was the most suitable one. It would stimulate domestic demand while avoiding the risk of wasted investment. As long as Britain and Austria engaged in an arms race, the French government was bound to follow. Once enough pre-dreadnought battleships were built, the dreadnought era could begin, bringing another round of costly competition. The only regret was that John Bull had abandoned the Two-Power Standard too soon. Otherwise, the arms race could have drained them completely. Without the Two-Power Standard, Britain’s goal was now only to maintain a fleet 65% larger than the second-largest navy, rather than twice as large. The Austrian Navy had 84% of France’s total tonnage, meaning Britain’s planned shipbuilding ratio had dropped from 1.84 to 1.65. On the surface, this reduction of 0.19 seemed minor, which was less than an 11% cut. Based on Britain’s current shipbuilding costs, it amounted to just a few million pounds, which did not appear to be a significant burden for the British government. However, the true cost was much greater than just a few million pounds. The most expensive aspect of a navy was not shipbuilding but the subsequent expenses: port infrastructure, ship maintenance, and sailors’ salaries—all of which far exceeded initial construction costs. While the former was a one-time expense of a few million, the latter added several million annually. Even for the wealthy John Bull, this was a matter that required careful consideration. Given the current situation, France was likely to be the first to struggle under the financial strain. This is determined by comprehensive national strength. Their financial capacity has always trailed at the bottom among the three nations, and compounded by so many crises and challenges, the disparity in financial resources between them has only widened further. … In the small town of Mordo, West Prussia, the townspeople gathered around a newly posted notice. Judging by their grim expressions, it was not good news. Once the Russian soldier who had put up the notice walked away, a young man broke the silence, “Another early tax collection? This is the fifth time already! How are we supposed to survive?” After occupying West Prussia, the Russian government had initially announced tax reductions and abolished most of the levies imposed during the Kingdom of Prussia’s rule in an attempt to win over the local population. Unsurprisingly, this policy ultimately failed. The success of a policy does not depend solely on its design—the key lies in its implementation. With the Russian army’s notorious lack of discipline, even the best policies could not withstand their abuse. Under the weight of resentment, the local population continued to support the Prussiann government. The constant emergence of partisan resistance eventually wore down the patience of the Russian government. After the war ended, the Russians abandoned their efforts to win over the local population and instead imposed direct Tsarist rule. In less than a year, they had already collected taxes from West Prussia up to the year 1886. For those who could not pay, land was taken in lieu of taxes. Those without land were forced into indentured labor. This was not unique to West Prussia. Nearly all newly occupied territories faced the same fate. The root of this situation lay in the nobles granted fiefdoms by the Russian government. In reality, these fiefdoms were little more than titles as having a fief did not necessarily mean owning land. The land within the nobles’ fiefdoms originally had owners. According to the legal principle that private property is sacred and inviolable, this land was considered private financial assets, and no one had the right to seize it arbitrarily. If the nobles wanted to turn their fiefs into their own personal estates, they had to find a way to take the land from its original owners themselves. After Alexander II’s reforms, the power of local governments and the nobility had been somewhat weakened. Any changes to tax rates or the introduction of new taxes now required approval from the central government. Raising tax rates or adding new taxes was easy. The Russian government was short on money, and as long as the local authorities could collect the taxes without causing unrest, the central government had no objections. The problem was that once taxes were raised, it would be difficult to lower them again in the future. Everyone viewed this land as their own property, and if taxes couldn’t be reduced, they would have to keep paying more, which they naturally resisted. Against this backdrop, the “early tax collection” method, a traditional practice, took on new life in the newly occupied territories. An elderly man, dressed in fine clothing that marked him as someone of status, let out a sigh and said sorrowfully, “If we have no other choice, we should just give up the land. The Russians are after the land. This is just the beginning. Even if we scrape together enough money to pay the 1886 taxes, there will still be the 1887 taxes. They won’t stop until they get what they want. No estate, no matter how large, can withstand such constant exploitation. If we let go of it now, we might still have time to avoid ruin. Otherwise, we’ll lose the land and end up buried in debt.” After finishing his words, the old man turned and left, not giving the crowd a chance to argue. He had said similar things more than once, but everyone still clung to false hope, believing they could somehow hold on to their land.
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