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Chapter 266: Sensation
Chapter 266: Sensation
Chapter 266: Sensation
After a week of investigation, Father Bartig made the final judgment, “Congratulations, Baron. You are about to become rich. This is an alluvial gold deposit. The alluvial sands on the surface contain 8 grams of gold per ton and sampling of the ore underneath shows an astounding 16 grams of gold per ton.
This gold deposit extends for two kilometers along the river, and the estimated reserves may reach up to 50 tons. As long as it is reported to the colonial government, it is yours.”
When they heard the news, everyone was excited. Such a rich vein was rare in Austria.
The ecstatic Baron Falkner forcibly suppressed his emotions and immediately declared, “Not only will I get rich, but we will all get rich. Everyone, please be assured that the original agreement remains valid. This gold mine belongs to all of us, including the young men who sacrificed themselves to find it.
I can use the honor of the Stryi Family to assure everyone that once the registration is completed in the colony, half of the profits from the gold mine will be yours. Now, let’s work together to defend this gold mine that belongs to us!”
The discovery of a gold mine also meant that the most dangerous time had arrived. In overseas colonization, conflicts arising from huge interests and unequal distribution were common.
Forget about internal conflicts, even leaks before securing ownership from the colonial government were very dangerous.
In the face of immense profits, betrayal and internal conflict were not uncommon. In the vast expanses of Africa, the most dangerous adversaries were not the jungles or the cannibalistic indigenous tribes, but the large numbers of fellow colonizers.
Baron Falkner’s financial resources were limited, and he spent most of them on providing weapons and equipment for everyone. As a result, he couldn’t afford to pay salaries.
Without money, he had to rely on the promise of a share of the profits from the gold mine as the main incentive to keep the team together.
Clearly, the Stryi Family’s reputation still carried weight with these men. Were it not for long-standing notions of status, the atmosphere would be even more heated.
“Generous Baron, please be assured that we will defend the gold mine with our lives!”
“Esteemed Baron, don’t worry. The mine will not be lost as long as we still draw breath!”
……
The crowd reassured him with a cacophony of assurances.
After receiving their assurances, Baron Falkner smiled with satisfaction. To ensure the safety of the gold mine, he had to register and report to the colonial authorities.
Even with ownership established, that did not mean the gold mine was safe. In Africa, there was no shortage of desperados, making the security of the mine a top priority.
For some weaker colonial teams, even if they discovered a gold mine, they lacked the strength to exploit it and could only sell it to the colonial government in exchange for a one-time reward.
Obviously, Baron Falkner was not a shortsighted man. Selling the gold mine to the colonial government might net him 500,000 to 600,000 guilders at most, but if he were to exploit it himself, the final profit could reach several million guilders.
……
After Baron Falkner secured ownership of the gold mine, news of the discovery in Guinea quickly made its way back to the home country.
Schönbrunn Palace
Franz, who was busy making babies, was also excited by the news. A gold mine meant wealth, and it was expected that Guinea would soon experience a gold rush.
Franz had some recollection of the Gold Coast in the Gulf of Guinea, but the exact location of the gold mine was unknown.
Many geographical names from the future did not exist in this era, and even if he remembered them, they wouldn’t be of any use.
Just like the gold mine discovered in Guinea now, whether it was in the future region of Guinea or not, was a big question mark.
The African continent was still an unclaimed land. The colonial governments had no concept of sovereignty. Whoever occupied it owned it, and that was that.
It was at the Berlin Conference that the future boundaries of the African nations were established. Before that, the various regions had no clear borders. Whoever occupied it, it belonged to them.
The harsh reality caused Franz to give up the dream of digging for gold to strike it rich. However, the news of gold was still an excellent way to attract immigrants.
Among gold prospectors, only a very small number ever struck it rich. Most of them ended up spending all their money without finding gold, eventually having to stay in the colonies and find work to sustain themselves.
Africa is known, among other things, for its vast tracts of land. With an abundance of labor, developing the local land can yield profits that far exceed the output of one or two gold mines.
A maid’s voice sounded: “Your Majesty, the cabinet ministers have arrived.”
“Yes, I’ll be right there,” Franz replied.
The allure of the gold mines was enormous, especially for a large rich vein, attracting many covetous glances that even the Austrian government cabinet was no exception.
When gold is converted into money, its appeal is greatly diminished. One ton of gold is worth only 273,200 guilders, and fifty tons of gold is worth just over 13 million guilders.
In reality, there are costs associated with mining gold, and the final net profit may only be around 3 to 4 million guilders. In addition, mining gold takes time, and the average annual return may only be around 100,000 to 200,000 guilders.
For Franz, this could be considered a relatively small sum. For the Austrian government, it’s just one day’s worth of annual revenue.
Clearly, the calculations are not that straightforward. The primary use of gold for the government is as a reserve to issue currency, harboring much greater potential profits.
……
The Minister of Finance, Karl, said confidently, “Your Majesty, a large gold mine has been discovered in Africa. After analysis by geological experts, there may be other gold mines in the surrounding areas. The colonial government has already blocked the news.
If we organize manpower now for a comprehensive survey, there will certainly be huge profits. The African colonies can turn losses into profits immediately.”
Franz was puzzled. He hadn’t heard of a large concentration of mines in Guinea. The discovery of one large gold mine wasn’t surprising, but the discovery of an entire region of gold mines should have caused a sensation.
However, Franz was not in a hurry to deny the finance minister’s words. In this era, the colonies were all developing freely. If a colonization team had gone beyond Guinea and discovered gold, he would not find it strange at all.
Guinea was not large. Colonization forces could not be expected to operate within the borders of the future. Only they knew how far out they went.
The Minister of Colonies, Josip Jela?i?, suggested: “Your Majesty, the Gulf of Guinea has long been known as the Gold Coast. Now that gold has been discovered again in Guinea, it means that the gold in this region has not been fully exploited.
Now, while the news hasn’t leaked out, let’s send troops to occupy the entire region and then slowly search for gold mines!”
Franz shook his head, drew some lines on the map, and asked: “We can expand in the Gulf of Guinea, but the British, Portuguese, Dutch, and French all have outposts along the coast.
We can’t get into conflicts with so many countries at once. The best method is to avoid these outposts and expand inland. Is that feasible?”
The name Gold Coast was too well-known. Although few new gold mines had been found there in recent decades, it had already become the center of the African slave trade, with slave traders from various countries gathering there.
Though their individual strength might not be formidable, once united they could pose a significant challenge. Moreover, it was a delicate situation where one move could trigger the involvement of the various countries behind them. If Austria wanted to monopolize the Gold Coast, it would be nothing but a pipe dream!
Josip Jela?i? replied confidently, “Your Majesty, most of the colonial strongholds established by these countries in the region are private endeavors, not organized by their governments.
We can send in private armed groups to compete with them. Even if we don’t drive them out, it is possible to establish additional strongholds in the coastal areas.
As long as we have a sufficient number of immigrants in the local population, we will seize the initiative in colonization. Before there is a widespread discovery of gold mines, the involvement of various governments will be limited.
As long as we build up enough of an advantage before then, things can be negotiated later. Nothing more than everyone sharing interests, dividing territory according to actual strength in the region.”
Private armed groups were the main force in the overseas colonization activities of nations. Even when they skirmished, there was room for maneuver. Governments would not be directly drawn in.
After a moment’s hesitation, Franz circled several regions on the map of Africa and then said, “Let’s make these areas our contested targets. They are all regions which may have significant amounts of gold.
But our primary goal is not gold. The most valuable asset in Africa is the undeveloped fertile land, followed by some natural minerals, and finally gold.
Even if the gold is plentiful, what can we do? The annual extraction is limited, and it’s not worth investing a significant amount of resources and getting into conflicts with other countries.
So if the situation is unfavorable, we should just let it go. There may be gold in the coastal areas, but there is even more in the inland areas.
We may not have the capability to extensively develop the inland, but authorizing private organizations to act freely for development is a good idea.
If other countries focus their efforts on competing for Ghana and the Ivory Coast, then we can take on the challenging task of Nigeria. It’s a good opportunity to clarify our interests in West Africa.”
Everyone was shocked when they heard Franz’s explanation. Only a land power like Austria could say such a thing. If it were a maritime power, such talk would be nonsense.
It’s not that everyone is short-sighted, but the reality is that gold mining can be profitable in just one or two years, while plantations and cash crops can take five to six years to see results.
It also required a sufficient number of immigrants. Unfortunately, the major colonial empires were all short of people. Their domestic populations were already inadequate; where would they find the ability to develop colonies?
Small countries like the Netherlands and Portugal with less than 5 million people didn’t even need to be mentioned. Even Great Britain and France had only about 30 million people, growing at a snail’s pace. With so many colonies, there was no way to develop them all.
Austria, on the other hand, is in a better position. With fewer colonies and a substantial domestic population, coupled with a higher population growth rate than Western Europe, it has the human resources necessary for in-depth development.
Finance Minister Karl reminded: “Your Majesty, if the government relinquishes the monopoly on the gold mines, I’m afraid our colonies will be operating at a loss for a long time.”
“This kind of loss is within our tolerance. Giving up the benefits of monopolizing the gold mines can bring a large influx of immigrants.
By artificially controlling the situation, the gold rush can last at least five to six years. As long as a third of these prospectors decide to stay, our foundation on the African continent will be solid,” Franz replied calmly.
Not everyone involved in the gold rush may make money, but those who provide logistical support to the prospectors are likely to profit.
What the government needed was to establish a colony with long-term and sustainable development, not a colony that prospered because of gold mining and then declined when the gold was exhausted.
Is the colony really in the red? The answer to that question depends on how you calculate it.
If we simply calculate tax revenues and administrative and military expenses, the books may show a loss. However, the gold rush will also create a local market that will expand the sales of Austrian domestic industrial and commercial goods.
For example: tents, kettles, shovels, hardware, ships…
With so many related industries receiving orders, massive tax revenues would inevitably be generated and fed back into the annual revenues.
Even if it doesn’t completely cover the losses, the government can buy gold locally, use it as a reserve currency, and collect currency taxes. That way, there should still be a profit, right?
Many colonies of various countries are running at a deficit, but they haven’t given up. It’s clear that there are hidden benefits behind the scenes.
……
The Austrian government lifted the news blockade. News of the major gold discovery in Guinea quickly spread throughout the new Holy Roman Empire and then throughout Germany.
This was only the beginning. Following Baron Falkner’s discovery of the gold mine, others began to find gold mines as well, although these mines were not as large.
But that didn’t matter, as long as there was a gold mine. Even some mines with so little gold that they had no mining value were shamelessly advertised by the unscrupulous Colonial Ministry.
After all, they were all gold mines. The authorities only announced the reserves and gave vague figures for the gold content of the ore.
For example: 0.8~45 grams. The gold content of 0.8 grams per ton might not even be the lowest amount in actuality, but the 45 grams per ton would undoubtedly be the highest, perhaps even far exceeding the actual highest gold content.
This data was enough to fool the masses. The gold content varied from ore to ore, and such a wide range was normal. Even the crappiest gold mine could occasionally produce high-grade ore!
The media cooperated seamlessly in the propaganda. Stories of someone becoming rich overnight during the gold rush were circulated, and Baron Falkner became a well-known figure, known to everyone as an overnight millionaire.
As for the wealth that is still underground and the cost of mining gold, the media has chosen to ignore these facts.