Vienna, Privy Council meeting room.
Several days had passed since Fugger returned from Venice. After Laszlo had dealt with the matters related to reopening the land trade route to Venice, he finally found an opportunity to convene a special meeting to discuss future development.
Over the past decade, Laszlo was constantly troubled by international disputes, wars, imperial affairs, vassal state affairs, religious affairs, and many other issues. Before he knew it, Austria had come a long way.
Due to being in a state of war or preparedness for war for a long time, Austria's economic growth for a considerable period relied entirely on plunder, war gains, and heavy taxation.
Most of this increased revenue was invested in military expenditure, maintaining a large army, fortifying military strongholds, developing military technology, and building a respectable navy.
As government agencies were continuously improved, administrative expenses also gradually expanded.
Although this central government, built from scratch, was mostly inefficient in administration, it was good that it allowed Austria to break free from the shackles of the feudal system and take the first step towards becoming a military-fiscal state.
The two major categories of expenses mentioned above, along with royal expenditures, collectively formed the three major money-consuming beasts of Austria's finances.
Although Laszlo had tried his best to avoid extravagance and waste, maintaining a large court of over five hundred people required a significant amount of money.
Beyond these expenses, the remaining money would then be used for investment and construction.
The heavy military expenditure in the past often left the Vienna government with not much money.
It was not until recent years that Laszlo, through the All-Austria Conference, fixed the total tribute of over two hundred thousand florins submitted by various states, and gradually improved the collection system for various direct and indirect taxes. Coupled with military demobilization and an extended period of peace, Austria's financial situation finally saw significant improvement.
Of course, all the money saved was nominally part of the royal private treasury. For Laszlo, a monarch who didn't much care about the distinction between the national treasury and his private treasury, this money was still to be spent.
As for how to spend it, his ministers seemed to have different ideas.
"Emperor, let's expand the army."
Marshal Adolf, ahead of everyone else, stated the answer Laszlo expected.
"Adolf, we have three legions, a cavalry army, and many vassal state troops at our disposal. There's no need to consider expanding the army for now."
Laszlo reluctantly rejected the proposal.
How long has it been since the demobilization, and now we're talking about expanding the army? Isn't this a contradiction?
"Marshal, professional soldiers are everywhere. We don't need to spend a lot of money to support more troops.
If you ask me, if soldiers were valuable people, they wouldn't be idling away in camps for five florins a month.
What we need are more farmers, artisans, and merchants, not soldiers who make our neighbors glare at us."
Archbishop Georg, the Court Chancellor, said this, which made Laszlo frown slightly.
"Archbishop, Austria's army makes our enemies fear us and our people feel safe. You shouldn't belittle them like that."
Georg opened his mouth, but seeing Laszlo's serious expression, he could only nod in agreement.
He had a capable assistant who had served as a military doctor for the Independent Army. According to that person, the Emperor occasionally showed concern for soldiers, but most of the time he was thinking about where to find more replacements.
In Georg's view, most professional soldiers were useless to society, like caterpillars and weeds that destroy flower buds and all beautiful things on earth. Even if they died, there was no harm, and demobilizing them could save a large sum of money.
This money could be spent in better places.
Ignoring Marshal Adolf's angry gaze, the Archbishop offered his own suggestion: "Emperor, Vienna's population has exceeded forty thousand, but the newly constructed urban areas are in very poor condition, and the old city also needs some adjustments.
The city council suggests clearly dividing functions in the newly built areas, widening main urban roads for commercial transport, and adding public wells and drainage ditches to improve urban sanitation.
Graz, Linz, Innsbruck, and other regional capitals also hope to receive more investment to support urban construction.
Also, for the reconstruction of Zurich, perhaps increased investment could help it recover its former scale more quickly."
"Hmph, these cities all enjoy autonomy, so this money shouldn't come from the Emperor.
If we are to invest in Vienna's construction, we should heighten and reinforce the walls surrounding the inner city and add defensive cannons. In Linz, we should build military docks and barracks to facilitate the rapid deployment of troops and supplies from the eastern regions to the front lines.
In Graz, we should expand the armory and arsenal. The Brenner Pass in Tyrol also needs construction—widening roads and adding mountain supply stations to facilitate the rapid movement of our army between the Empire, the East, and Italian battlefields.
As it has been for hundreds of years, finances must first meet military needs and royal expenditures, and only then will other areas be considered."
Marshal Adolf argued righteously.
Laszlo carefully listened to his suggestions, some of which were indeed quite reasonable.
Strengthening Vienna's defenses was unnecessary for now; Laszlo couldn't think of anyone who could reach Vienna's walls at the moment.
However, using the Danube River for water transport to gather resources and building mountain roads in Tyrol would not only benefit military operations but also clearly promote commerce.
Especially the mountain supply stations Adolf mentioned, after the Swabian War, Laszlo had actually always had such a plan, but had not had the conditions to implement it.
Marching in mountainous terrain incurs significant losses. If small supply stations could be built every few dozen li, the logistics pressure would be greatly reduced.
This method could also be extended. Laszlo planned to build post stations in the main areas under the jurisdiction of each state, and based on this, construct roads. The extent to which these roads should be built would be determined by geographical conditions and actual usage, thus avoiding wasted funds.
At this moment, Fugger suddenly put forward his suggestion, pulling Laszlo's scattered thoughts back.
"Both your excellencies' proposals are merely about consuming wealth. I believe what the Emperor truly needs is to use this money to create more wealth.
Invest this money, for example, the booming Bohemian glass industry urgently needs more investment, and it is almost certain to yield rich returns.
Many territories on the eastern coast of the Adriatic Sea are facing a temporary salt supply shortage. Investing in the construction of salt mines in Salzburg and Austria also promises good returns.
Recently, the expansion of farmland in the Austrian heartland has driven the development of animal husbandry, and wool production has gradually increased. Vienna's textile industry also has good investment prospects.
Alternatively, these funds could be placed in the Imperial Bank and used for loans to achieve certain political goals while generating economic benefits.
For instance, Brandenburg and Pomerania, who are still engaged in ongoing warfare, have now started fighting intermittently. If all goes as expected, both sides' finances have reached their limits.
If, at this time, the Emperor could provide a loan to one of them, they would agree, provided the interest is reasonable. Then we could influence the outcome of this war.
Haven't you always been dissatisfied with the Brandenburg Elector who disregards orders? Perhaps we could…"
"You are the most astute businessman I have ever met, Fugger," Laszlo said with a smile, "Fortunately, you are now working for me, otherwise I would be the one with a headache."
"It wasn't Fugger who chose Habsburg, but you who chose me, Emperor."
Fugger eagerly expressed his loyalty to the Emperor. He was extremely satisfied with the Emperor and Austria now, as several of the Fugger Family's cash cows were acquired from the Habsburg Family.
Regarding the investment proposals, Laszlo was indeed quite tempted. As long as the war with Venice had not ended, he would have enough time to seize vacant markets and further improve the internal economic circulation of the Habsburg Monarchy.
"Emperor, shouldn't there be increased investment in the expansion of the New City Palace in Vienna, the reconstruction of Habsburg Castle, and a series of projects that can showcase the Emperor's majesty?
Moreover, you haven't held a large banquet in a long time, which is very detrimental to maintaining friendly relations with the imperial princes and territorial nobles."
Eyczing cautiously offered his suggestion, noting that the Emperor's spending on establishing prestige and maintaining diplomatic relations seemed too low compared to previous Emperors, which created considerable pressure for him, as he was in charge of foreign affairs.
Laszlo's attitude towards these suggestions was quite contradictory.
For example, regarding the reconstruction of Habsburg, the Governor of Outer Austria, Matthias, had actually already repaired part of the old castle by conscripting labor, but construction progress was very slow because Laszlo's investment in this project was not substantial.
He didn't dare to squander money as freely as Maximilian I did in history.
For example, during Maximilian's reign, he built the luxurious Golden Roof in Innsbruck to celebrate his second marriage.
It should be noted that he had suffered a major defeat at the hands of the Swiss just the year before.
He built a magnificent tomb for himself in Innsbruck during his lifetime, but unfortunately, he was ultimately buried in Vienna Neustadt.
After conquering the Kufstein Fortress in Bavaria, he expanded the famous Caesar Tower on the fortress to demonstrate his power.
Even the hunting lodge where he once resided was later expanded into a castle, where he stored armaments and supplies.
All these expenses were passed on to the people of Austria, causing them to deeply resent Maximilian.
This Emperor lived in poverty and was plagued by illness in his later years. When he arrived at the gates of Innsbruck to avoid his creditors, the citizens refused their lord, archduke, and Emperor's request to enter the city for rest.
Ultimately, Maximilian and his retinue came to a hunting lodge near Innsbruck, which had been expanded into a castle—he often hunted and skied there before—and it was there that the Emperor passed away, effectively dying of poverty.
Laszlo certainly didn't want to meet such an end. He wasn't as keen on grand spectacles, but showcasing royal majesty was necessary.
As for banquets, they were indeed a good way to foster relationships with the princes, but his army could produce a similar effect.
As long as he could maintain such a powerful military presence, wouldn't all those princes be polite, submissive, and green with envy towards him?
"Listening to you all, there are indeed many places where money needs to be spent. However, in my opinion, the most important construction priority at present is the development of transportation.
Previously, we have successively invested in some road construction, but for the whole of Austria, this is far from enough.
Road construction serves not only military purposes but also commerce and politics. Good road conditions and security can significantly promote commercial prosperity and facilitate our control over local areas, while the construction of military roads allows us to move troops and supplies more quickly.
Accompanying road construction is a system of post stations. Building post stations at key locations will facilitate the transmission of government decrees and maintain regional security.
On some important routes, supply stations combined with post stations can be built to store military supplies and allocate more personnel for stationed."
"Emperor, this is a huge project," Fugger, quite surprised by the Emperor's decision, advised with some difficulty, "Austria is mountainous, so road construction is inherently difficult, and investing in roads yields results too slowly…"
"Even so, this investment is necessary.
Of course, not all roads are required to be built to the same specifications.
For main roads connecting state capitals, important trade checkpoints, and ports, we should endeavor to pave with stone slabs, compact the roadbed, and widen the roads.
Ideally, they should be wide enough for two carriages to pass side-by-side.
For local roads connecting cities, towns, and markets within a region, they should at least be kept level and allow for carriage passage.
The investment and construction of these two types of roads need to be funded by the government. If investment from cities and churches along the route can be secured, that would, of course, be even better.
As for the remaining country lanes, no requirements will be made; village communities and monasteries will be encouraged to repair them spontaneously."
Although he said this, Laszlo still felt a bit uneasy. The money needed for road construction would not be small, and there were also the Supporting facilities post stations.
"Emperor, I fear a considerable portion of the post stations you propose will occupy the lands of nobles and the Church, which might cause discontent."
Archbishop Georg expressed his concerns.
"I can provide them with some compensation, but no one can stop the construction of post stations! Georg, the site selection for the post stations and negotiations with local powers are entrusted to you."
"Yes, Emperor."
"Adolf, you need to collect information on supply stations and important military routes; these will be prioritized for construction."
Construction driven by military needs is a truth that has persisted for centuries, and Laszlo also recognized this point.
The old marshal accepted the task with satisfaction.
"Regarding commercial investments and the construction of important buildings, some money can be allocated for them, but it must not affect road construction."
Laszlo gave his final instructions.
After the meeting, the ministers immediately began to prepare for the construction of roads and the post station network.