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Chapter 89 - Multiple Investments

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1917-July-23

''Good, it seems we are ready'' I said, moving while cleaning some of the dirt from my hands and observing some of the machines that were working.

''Can we already use it to begin operating, or do we have to do something else?'' said one of the German workers I had chosen to work here.

''Yes, it should already be working. Wait for your engineer to speak with me and we will begin putting production into motion. In the meantime, prepare the steel and the other raw materials'' I said while continuing to clean my hands and leaving the facility.

The machines had arrived recently and, taking advantage of the fact that the training of the duchy's special forces had officially ended, it was now necessary to focus on economic matters, since at least now we had a force of around 4,000 men who could endure fatigue and hunger. An elite force that only needed to be equipped with the best.

And there was the problem. The duchy did not have those resources, so we would depend on imports, in addition to importing much of the machinery.

For that purpose, this industrial complex had been built on the outskirts of Riga, connected by train, but far enough from the city's residential center, which had recently been receiving a large influx of inhabitants due to the migration of workers and their families.

I wanted to prevent the inevitable pollution generated by the imported machines from affecting the city, so although it was expensive to move workers because of the coal and having to use a train, it was preferable to putting all the pollution that would be emitted inside the residential area.

It was not simple, but using my father's connections, who was ecstatic that one of his sons now held one of the highest ranks of the German nobility, he managed to purchase machines that, in general terms, were necessary to work raw materials and turn them into base elements for machinery.

It took some effort to convince my own father not to ask questions about how I had managed to obtain the Kaiser's favor in such a way that he gave me one of the most coveted titles within the German nobility. After the Baltic Duchy came Finland, which had requested a German king and asked for a head of government from some German house. As far as I knew, a house belonging to a prince of Hesse had won, and the only thing left in the cake of German satellite states was White Ruthenia, although it seemed it would be another Hohenzollern.

So this complex had finally been finished, ideally to work on building all the machines necessary to fill the fiber processing factories and process cloth for the next step in industrializing the duchy.

We needed that machinery to separate the flax fiber from the seeds, then use those seeds to be planted the following year, process those fibers, turn them into thread and then send them to the loom to make cloth.

All those processes required specific machinery for each function, and the German problem was that a machine of that type could come from anywhere, since factory owners ordered things under specific instructions, using measurements they themselves created, so the machines varied a great deal. Only some were common, but after studying and analyzing the local machinery, I got to work developing plans for machinery that would be standard.

Machines that would be easy to work with and repair, and at the same time easy to modify or replace if necessary, since German industry could be very effective, but if the machinery broke down, the time needed to repair it could be longer than getting another machine. In the long run, the German industrial system was chaos that had to be changed, and from which one could profit in the process.

I wanted all the machines necessary for the industrialization of the duchy to be built and assembled here, reducing costs and, at the same time, making repairs easier, since we had many empty factories scattered throughout the duchy's territory waiting for their machinery.

The nobles might be trying to create some kind of plot to make it harder for me to obtain raw materials, but I could always import from Ukraine, as well as buy from the small estates of the peasants and small local landowners to obtain what I needed and finance the local economy.

Thanks to the intervention of a Habsburg diplomat, negotiations were held with both sides of the Russian civil war, where it was agreed with both sides that uniforms would be sold to them.

Since for the moment we had no certainty regarding the Russian currency, not even whether it would be the same one, negotiations were made in gold with the Mensheviks led by Julius Martov, who had temporarily gathered the Mensheviks and Bolsheviks together while they fought in the civil war. It was agreed that we would be paid in gold from the Russian reserves in Saint Petersburg, which were the ones they had secured, and that they would look into the possibility of using the reserves from the banks of Moscow, since it seemed that there was fighting for control of the city.

Meanwhile, the conservatives, who were in the south led by Lavr Kornilov, who had attempted a failed coup d'état and had raised the troops loyal to the Empire in arms, trying to place a living Romanov on the throne, none other than Grand Duke Nicholas Nikolaevich, had united the monarchist forces, in addition to beginning conscription in the cities of the south and east. They did not have large gold reserves.

But they did control Russia's means of gold extraction, so they offered to pay us with gold after processing it in the foundries and sending it in ingots.

Something that was greatly appreciated to begin filling our empty coffers, since the bank we had in Riga, besides being the headquarters of a state bank, was empty. There was nothing of value except some paper rubles.

So it was important to fill our bank with gold, and ideally we had to sell clothes and food to the Russians while they killed each other, since it still had to be defined how much of the duchy would be my personal finances and what belonged to the State. For the moment, while everything remained in total disorder and those accounts were being organized, they were united.

''So tell me, how are we doing? Do you already have the plans ready?'' I said as I approached the group of engineers I had summoned to make the plans.

''Yes. We have already reviewed many plans of other machines we found inside the Reich's patent archives to know which parts are the most common, and we have already finished what will be the prototype for many machines so flax can be processed'' said one of the engineers.

''Indeed, as our colleague says. Besides reviewing the machines that are the main ones for making the parts, everything is prepared. All that remains is for us to receive those shipments of Ukrainian materials and we will be ready to begin producing machinery for the factories'' said another engineer.

I nodded at his words while watching the workers continue moving things and another train arrive, where the workers waited to unload the cargo it had brought.

''It seems our shipment has arrived. For the moment, focus on making several machines to separate the seeds from the flax fiber. That is the most important thing, since the harvest will soon arrive and we need to have the processing systems ready. We want to be selling winter uniforms to the Russians and have income at once, in addition to the cement'' I said with a smile.

''At your orders, Herzog'' replied the group of engineers, who began putting away their plans and entered the factory.

The factory did not take long to start running once everything was ready. As the raw materials entered the machines, they began emitting noise, as well as steam and smoke that came out through the exhaust areas, beginning the conventional workday for these factories.

There was not much more to do here other than go supervise the dam when possible, since for the moment the dam was advancing, although it still had a year or two before it was ready. I liked to review it, since the dam architects gave good expectations that the work was advancing quickly, and also because, with so many workers helping, the estimated time was being considerably reduced.

That was good, since for the near future I could continue financing all those people to keep working like this. I had arranged with Ukraine and Ruthenia for several squads of workers to be sent to help raise houses, make repairs or build factories, so there was a constant flow of money. In addition, cement helped quite a lot, although since Ukraine sold to me as a friend, I had to sell to Ukraine as a friend.

So we were covering costs while continuing to prepare the economy among our States, which was becoming much more integrated than one would expect, considering that the Habsburg king was beginning several projects for his people.

By midday, when many were preparing to rest and eat, I went to inspect my latest investment, where I hoped to get ahead later on. I had access to the doctors of the Eighth Army, so I took most of them, leaving only a few who remained at their posts scattered among the multiple camps in the occupation zones.

And I had put them to work on something that was necessary, although moderately dangerous: isolating the penicillin fungus, since ideally selling medicines and antibiotics could be another source of income. I planned, as soon as I had more funds, to start an arms factory here in the Baltic Duchy and begin manufacturing some kind of assault rifle, since I had no extra funds left for more projects.

I had also had the idea of creating a joint air program between the three States, and having Ukraine and Ruthenia absorb most of the costs, in addition to asking them to send us the Red Baron. But recently he had been wounded by a bullet to the head, so they had agreed to send him east for a training program once he recovered, since supposedly the bullet had ricocheted off his skull.

When I arrived at the building where I had gathered a large number of doctors, I entered while hearing the doctors speaking among themselves.

''The culture truly has antibacterial properties'' someone said on the second floor.

''Unheard of'' said another doctor.

''But how the hell did he know that exactly a strain of blue fungus had this capacity?'' said another doctor, speaking over the others.

''Because a man in the Masurian swamps taught me those things. Some kind of herb gatherer said he always used it for his wounds and that it worked'' I said, opening the door and looking at a group of fifteen doctors who were all gathered together, observing a culture plate.

''It is feasible. The wet area is ideal for the fungal proliferation of this growth'' said one of the doctors, removing the glasses from his face while he began to think.

''But how did he know… well, it must have been luck'' said another of the doctors, scratching his head while also wondering how they had never known that.

''Then, was there luck or not?'' I said, looking at the doctors.

''Yes. There are some cultures that truly, after isolating the strain, have those capabilities, although we must remain attentive to everything, since there are strains that have that antibacterial property, but it is barely visible, while others are much more aggressive against bacteria. I think we would still need to continue trying until we find the strongest strain'' said the doctor who seemed to be the oldest of the group, since he had some grey hairs.

''Good. When you do, your next job is to think about how to use it medically, since I have no idea what must be done or how to use it, so I entrust you with making that the most important thing for the moment. We require this to be a priority, since you will understand that this can save many lives… and that it will be necessary in all German armies'' I said seriously.

''Of course'' said a doctor.

''We will study the feasibility of how to produce the fungal secretion that contains its antibacterial capabilities'' said the veteran doctor.

''Good, work. Ah, by the way, if you are going to carry out tests, make sure the subject who receives it undergoes an extensive treatment. None of giving him a single dose'' I said, crossing my arms.

''Why?'' several doctors said together.

''Because I say so, and if you do not want problems with military discipline, you had better obey'' I said, turning around and leaving the room before they asked me questions I would not know how to answer.

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