Empire Rise: Spain-Chapter 49: 5 Billion In Reparations Fresh Out Of The Oven

Under the influence of the Parisian Citizens uprising, the French Government of National Defence soon signed a new set of indemnity terms with the Germans.
This set of indemnity terms was even more exaggerated than the previous draft, with the indemnity alone reaching a terrifying scale of 5 billion francs.
In mid-April 1870, the two sides signed this new set of indemnity terms in Frankfurt, also known as the 《Frankfurt Peace Treaty》.
The treaty stipulated that France would cede Alsace and Lorraine along with the Metz fortress to Prussia, and voluntarily abandon sovereignty over Alsace and Lorraine.
Within the next three years, the French Government would need to pay Germany 5 billion francs in indemnity. This indemnity would be converted at a rate of 1 Prussian thaler to 3 francs and 50 centimes.
The reason for converting it to Prussian silver coins was to prevent the French from reducing their payments by depreciating the franc.
There is no doubt that the French were absolutely capable of doing that.
5 billion francs is not a small amount; converted to pounds sterling, it still reaches as high as 200 million.
200 million pounds sterling—what an exaggerated concept?
The current capital ships are ironclad ships, with costs generally ranging from a few hundred thousand pounds sterling to several hundred thousand pounds sterling.
If this funds were all used to build ironclad ships, it would be enough for Prussia to possess hundreds of powerful ironclad ships.
Although building a navy is not that simple—training navy soldiers, and having the soldiers become familiar with warship operations and cultivating qualified combat effectiveness all require a long time.
But this already proves the enormous scale of these funds. For Prussia, which had just defeated France, this funds were like a gift of timely help, allowing Prussia to rapidly carry out industrial construction and thereby join the world’s top great powers.
In fact, from this aspect alone, one can see that Prussia’s growth into the German Empire and becoming the world’s second great power after the United Kingdom was greatly contributed to by the French.
Prussia’s industrial foundation was not strong, and the French delivered the industrially powerful Alsace and Lorraine region.
Especially the Lorraine region, which possesses abundant iron ore resources. The Germans, relying on Lorraine’s iron ore and the Ruhr Area’s coal mines, allowed the German Empire’s industry to surpass France in a short time.
Developing industry requires massive funds, and the French thoughtfully prepared 5 billion francs for the Germans.
Without such considerate help from the French, Germany might still have risen, but the speed would absolutely have been much slower.
However, this also demonstrates, in a certain aspect, the foundation of old colonial great powers like Britain and France.
The French needed to pay a full 5 billion francs in indemnity within three years, which also represents that the Prussians believed France had the ability to gather 5 billion francs within three years.
Just this point alone means France has surpassed most countries in the world.
At least the current Spain has no ability to gather 5 billion francs. Not to mention three years—even if given ten years, it might not be possible to gather it.
Although he had long known that the indemnity the French needed to pay reached 5 billion francs, after truly learning the contract terms signed between Prussia and France, Carlo still couldn’t help but feel somewhat surprised, as well as envious of Prussia.
That was a full 200 million pounds sterling in funds.
What Spain currently lacks most is funds, which is also the only factor troubling Primó’s reforms.
After defeating the Carlist faction, voices opposing reform within Spain have gradually weakened. But due to the lack of funds, the progress of reforms has always been very slow, making it impossible to achieve Primó’s expectations for reform.
Fortunately, Primó still has sufficient rationality. Plus, with rebellions frequent in Spain during this period, the reform plan formulated by the government is not too radical, and the overall trend of Spain’s reforms remains steady with progress.
After Prussia obtained a whopping 5 billion in indemnity, Carlo’s desire to cling to Prussia’s thigh grew even stronger.
The current Prussia—or rather Germany—already possesses all the conditions to become a top great power, and will be a top great power in Europe for the next 40 years.
If it could cling to Prussia’s thigh and obtain Prussia’s support in industry and funds, Spain’s reforms would also proceed more smoothly.
As for support from Britain and France, Carlo had not even considered it.
The British fundamentally do not want to see Spain rise, because once Spain rises, it will inevitably develop the idea of recovering Gibraltar.
Gibraltar relates to British control over the Mediterranean Sea; they are fundamentally impossible to abandon their occupation of Gibraltar.
This also means that Britain and Spain have irreconcilable conflicts; unless one of them is no longer among the great powers, Britain and Spain cannot maintain peace.
France naturally goes without saying. As France’s neighbor, Spain is better off the weaker it is.
No country is willing to see its neighbor become extremely powerful, so the French naturally cannot support Spain’s reforms and industrial expansion.
Looking across all of Europe, the ones that can support Spain’s reforms and industrial construction are only left with Germany, Russia, and Italy.
Germany has intense conflicts with France; even just to cause some trouble for the French, the Germans would support Spain’s reforms.
Russia has conflicts with the British, so it naturally also wishes to see Spain’s rise. But at this time, Russia is not much better off than Spain; its own reforms are not thorough, let alone providing funds to support Spain.
The remaining Italy, due to Carlo coming from the Italian Royal Family, plus Italy and Spain having the common enemy France in North Africa, can thus join together.
But the Italian Royal Family is originally the main family; the great powers that can form marriage alliances are only Germany.
However, Carlo would not force marriage alliances. Although there are considerations of political interest, Carlo also does not hope to marry a wife he does not like.
If he could encounter a marriage alliance object he likes, and who is helpful to the royal family and Spain, that would naturally be a win-win.
A few days passed quickly, and Carlo still had some gains.
First is the financial enterprise that Carlo values greatly: the situation of the Royal United Bank.
In one week of operation, the total number of depositors has broken through 5,000, with total savings reaching 13 million pesetas, and per capita savings of 5,31 pesetas.
Although per capita savings has dropped from 40,000 on the first day to less than 6,000 now, this is a good thing for the Royal United Bank.
Because this represents that commoner depositors are increasing, and the Royal United Bank is gradually gaining credibility in the hearts of Madrid citizens.
After all, Madrid’s population is not large; having just over 5,000 depositors in a short time already proves the public’s trust.
Although nobles have contributed more among them, the public’s trust is more of an incentive for Carlo; at least it proves that support for the House of Savoy and Carlo among Spaniards is gradually increasing.
Second update, seeking support!