Chapter 115: After Christmas
In 1867, if any country had the happiest Christmas, it was undoubtedly Prussia.
During the second half of the year, the economy of the North German Confederation—led by Prussia—experienced significant growth.
The formation of the North German Confederation united the entire northern German region.
Prussia's critical western industrial areas were now connected to its eastern political centers by rail.
Within the federation, a unified transport and tariff system greatly reduced the costs of moving goods and raw materials.
Any factory or enterprise of considerable size benefited massively from this wave of unification.
Ernst's Hohenzollern Consortium was among the biggest winners.
In Prussia's emerging economic sectors, it joined forces with companies like Siemens to become a locomotive of German industry.
In traditional industries, the Consortium expanded aggressively through invention and innovation.
For example, in daily consumer goods, Hohenzollern products accounted for 15% of the market across Germany, including the Austro-Hungarian Empire.
Heavy industries—steel, coal, machine tools—were still dominated by legacy industrial giants of Germany.
In the financial sector, the Hohenzollern Bank, backed by the Consortium's many subsidiaries and Ernst's prior-life insight into emerging industries from the Second Industrial Revolution, had already surpassed some traditional banks.
It now ranked third in Germany.
Geographically based in southern Germany but politically aligned with the North German Confederation, and closely connected to the Austro-Hungarian royal family, the Hohenzollern state—thanks to aristocratic backing—had everything it needed to grow.
As a result, the bank's expansion across Germany went smoothly.
Its branches stretched from the Baltic Sea to Trieste on the Adriatic coast.
The bank also launched operations in St. Petersburg, Moscow, and Kyiv under the pretext of facilitating Russia's payment for the Alaska sale.
Russia was a huge market. Though generally welcoming to European investment, Ernst played it safe—limiting activity to major cities, where the business environment was more trustworthy.
In Russia's hinterlands, bureaucratic corruption made trust a luxury.
In Germany, Ernst's Hohenzollern lineage guaranteed support and credibility.
But in Russia, aside from a few aristocrats, few had heard of his tiny principality.
Beyond Russia, the bank expanded into mature markets: Britain, France, the U.S., the Netherlands, and Scandinavia.
In both economy and military, Prussia and Ernst had achieved great success this year.
Militarily, they had defeated Denmark and Austria in successive campaigns.
With earlier victories before Ernst's awakening, Prussia's army was now more confident than ever.
In the second half of 1867, the North German Confederation Constitution took effect.
The Confederation, as a new political entity, now controlled two-fifths of German territory—around 340,000 square kilometers.
Its population surpassed 24 million, roughly two-thirds of Germany's total.
By comparison, France had only 550,000 square kilometers and 36 million people—barely more than Prussia.
When factoring in industrialization, Prussia was ready to stand toe-to-toe with France.
With upgraded weaponry, industrial backing, and the integration of railways, telegraphs, and military reforms (especially conscription and the General Staff system),
the Confederation had effectively joined the ranks of Europe's great powers, just behind Britain, France, Russia, and Austria.
But based on actual combat strength—especially after Prussia's victory over Austria—Ernst believed it should rank fourth.
The Austro-Hungarian Empire, bloated and disjointed, hardly inspired confidence.
...
In short, 1867 was a very good year for the North German Confederation—from top to bottom.
Southern Germany, on the other hand, struggled.
Poor harvests made life difficult. Fortunately, East Africa offered a lifeline.
As the saying goes: "No one leaves home unless they have no choice."
For many, East Africa was the clear winner in the migration race against America.
This wasn't because America was worse—but because German migrants didn't want uncertainty.
In North America, everything was unknown.
In East Africa, they'd still be farming for a nobleman—just like home.
Southern German farmers didn't trust American capitalists, but they did trust their local aristocrats.
And Ernst, being one of them, was seen as reliable.
At worst, East Africa couldn't be worse than home.
Who knew how Americans would treat them?
After Christmas, East Africa saw a surge in southern German migration.
Young men said farewell to parents and siblings, boarding Hohenzollern Consortium wagons.
Across southern Germany, one could see Hohenzollern's hired carts—free of charge, as the colony promised.
Migrants were gathered nearby and sent to the closest train stations, following preset routes to port cities.
German migration now followed two main routes:
Northward by rail to Baltic and North Sea ports, then boarded Hohenzollern or Dutch ships to East Africa.Southward, passing through Bavaria, then by rail through Austria-Hungary to Trieste, where they joined Austro-Hungarian migrants aboard Hohenzollern ships.
Each route had pros and cons, but both required long detours along Africa's western coast.
The Consortium spent heavily to fund this wave of migration—but boosting the German population in East Africa was worth every coin.
After all, the new arrivals would create value for Ernst—it was just a long-term investment.
While monitoring immigration, Ernst stayed busy.
With most Berlin employees on holiday, senior staff held the fort.
Back home in Hohenzollern, Ernst took the opportunity to visit the Military Academy and Cultural School, bringing gifts.
These students were orphans—rootless.
To them, Ernst was family.
And as their benefactor, he wanted to show them care during the season.
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