Chapter 123 Theo Alliance

While Carlo was traveling, the Spanish government was not idle. Considering that Spain's reform urgently needed the support of a country with a certain industrial and economic background, the Spanish government held long consultations with the Austro-Hungarian government and signed a brand new "Austro-Hungarian-Spanish Alliance Treaty".

However, this alliance was 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 the Austro-Hungarian Empire. A large amount of Spanish mineral resources and other materials can be conveniently transported to the Austro-Hungarian Empire by sea, and the Austro-Hungarian Empire's grain and other industrial products can also reach Spain by sea.

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

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

Most of the equipment for the development of Spanish industry was imported from the Austro-Hungarian Empire and Italy, and a small part was imported from the German Empire, which is also the reason for the rapid development of Spanish industry.

After signing the 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 terms of industry and economy. Anyway, it can provide help to Spain.

With the assistance of Italy and the Austro-Hungarian Empire, the speed of industrial development in Spain is still relatively fast. Railways and roads are being built everywhere, and various factories headed by steel mills and chemical plants are also being built continuously. The whole country is thriving.

However, while developing rapidly, the overall construction speed of Spain is also limited to a more 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 still has an impression of the economic crisis that will occur next year. Naturally, he must try his best to ensure that Spain's development is within a controllable range, rather than developing recklessly without restrictions.

Speaking of the economic crisis that is about to break out, the real reason is that various countries are frantically building railways, constantly stimulating the growth of domestic industry and economy.

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

How exaggerated is the development of various countries during this period? Since the end of the Civil War, the entire country has 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 31,092 miles, that is, more than 50,000 kilometers of railways.

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

It was under the wave of railway construction that the United States' pig iron production has increased from 755,000 tons in 1865 to more than 2 million tons, and coal production has increased from 22.159 million tons in 1865 to nearly 50 million tons.

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

So the question is, why does the American economic crisis affect the whole world?

First, with the development of colonization and technology, the economic ties between countries in the world are becoming closer and closer.

Second, more than half of all the funds for the construction of railways in the United States came from investments from Britain, France and other European countries, which is precisely why the US railway crisis affects the whole world.

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

Since the victory of the Franco-Prussian War, Germany has entered a period of rapid development of industrial economy. After obtaining Alsace and Lorraine, which are extremely important industrial and mineral areas in France, German industry has already had a very solid foundation.

In addition, the 5 billion francs of funds that the French gave to Germany almost for free gave Germany enough angel start-up funds for the development of German industry.

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

And 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 defeat in the Franco-Prussian War and had to pay a large amount of compensation, other European countries are basically developing rapidly.

This also led to the prosperity of the European economy from the end of 1871, and it was extremely 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 scale and influence of the Madrid Stock Exchange are not large, which is also good news.

After all, the larger the stock exchange, the greater the impact it will be in the economic crisis. Although there are a lot of funds flowing 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 in this economic crisis, and the capital of various countries also changed from a large number of small and medium-sized capital to large capital, and began to have a more profound impact on governments.

For Carlo, how to make enough benefits 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 main outbreak of the economic crisis was in the United States, and the countries affected were also countries with 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 acquire some important foreign companies and enterprises through the opportunities brought by this economic crisis.

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

As long as we can acquire these factories and enterprises that went bankrupt during the economic crisis and take the opportunity to attract some unemployed employees to come to Spain, it will be a good supplement for Spanish technical talents.

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

For the royal family, acquiring these bankrupt enterprises at a low price and reorganizing them can form giants in various industries.

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