Chapter 335: Chapter 22, Turning Point
The year-long civil war had taken a toll on the Federal government with casualties exceeding 200,000 people—the gruesome toll led to a surge in war-weariness among the soldiers.

This was but a civil war, not an invasion by foreign enemies. The patriotism that had been stirred up had long been consumed in the fires of war.

It wasn’t just the western states that failed to meet their conscription goals; even the core states of the Federal government faced difficulties with recruitment.

As of now, the total military strength of the Federal government had exceeded 1.1 million, but it was still not enough.

The Federal states, be they at war or close to the battlefield, prioritized their own security, making coordination on the battlefield difficult and hindering the effective use of numerical superiority.

These were insurmountable problems, as state officials were all elected; if they could not ensure the safety of their states, voters could easily kick them out.

A broad perspective was merely a slogan shouted by those without a direct stake. When personal interests were involved, whether capitalists, politicians, or the public, all chose the course of action most beneficial to themselves.

Secretary of State Saffar burst into the president’s office in a hurry and said, “Mr. President, this is bad news.

Illinois has just sent another distress telegram; they claim that if the Federal government does not send reinforcements, they will withdraw from the war.”

Withdraw from the war? Make no mistake, the Federal States could be that capricious. To avoid turning their homeland into rubble, even surrender was an option, let alone withdrawing from the war.

After all, this was a civil war; extermination wasn’t on the cards. All Illinois had to do was to declare its withdrawal from the war, and the South would no longer launch an offensive against them.

However, this would spell doom for the Federal government. If one takes the lead, it’s easy to trigger a domino effect.

The capitalists wanted markets and cheap raw materials, yes, but not at the cost of their own ventures. Should their industry be at the front line, with the enemy advancing, making concessions was not out of the question.

After all, no one would wager their whole fortune for the sake of class interests, and the Federal government couldn’t possibly compensate them for their losses.

On hearing this news, Lincoln was so furious that he threw the documents he was holding and cursed, “Those bastards, daring to threaten us!”

He then regretfully realized that he had no choice but to accept this threat.

Maryland and Ohio had almost completely fallen, Indiana was left with but a sliver of territory, Kansas had lost a third; if Illinois were to withdraw from the war, the numerical advantage of the Northern government would cease to exist, and they would fall into a passive strategic position.

After a moment of silence, Lincoln said slowly, “I have decided to immediately implement the ‘Homestead Act’ to appeal to the people who long for land.”

Secretary of State Saffar said with an icy tone, “Are you sure you’ve thought it through and aren’t just acting on impulse? Once you take this step, there’s no going back.”

Lincoln replied with determination, “We’ve come this far; if we can’t win this war, I fear my fate will be even worse!

With that in mind, why not take a gamble? Apart from implementing the ‘Homestead Act,’ I can think of no other way to resolve the issue of insufficient troops.

Just look at the Austrians; in just a year, they’ve managed to lure away more than 200,000 immigrants from us, almost catching up to our annual figure from Europe.

Of course, we can’t go too far and leave them with no way out, lest they become desperate.”

Secretary of State Saffar nodded; he and Lincoln were in this together, and if things went south, neither could escape. Of course, he wasn’t the president, so the hate directed his way might be less.

Under the pressure of war needs, on May 1, 1862, Lincoln signed the ‘Homestead Act,’ which solved the problem of insufficient soldiers for the Northern government.

The ‘Homestead Act’ stipulated, “Any head of a household or a 21-year-old citizen who has never participated in the rebellion may, upon swearing an oath that the land is intended for cultivation and paying a $10 fee, register to claim no more than 160 acres (1 acre = 0.40 hectares) of land.

After residing and cultivating on the land for five years, the registrant can acquire the land patent and become the owner of the property.

The ‘Homestead Act’ also provided a commutation clause, allowing registrants with a wish to purchase the land in advance to apply for priority and buy the land at $1.25 per acre after six months.”

The main content aimed to attract people desiring land, and while not explicitly stated, it was a version of rewarding military service with grants of land.

Loyalty to the Federal government required military service. This also implied the people from the southern states; proving one’s loyalty to the Federation was simple—fight against the Rebel army on the battlefield.

By using land to entice people to fight, the Federal government’s move certainly harmed the interests of those who benefited from manipulating land prices.

The commutation clause left a backdoor for them. Yet, due to time restrictions and limits on the amount of land registrants could claim, it increased the difficulty of manipulation.

The ‘Homestead Act,’ heralded historically as a turning point, naturally had significant effects. The recruitment offices, which everyone used to avoid, were once again lined up with long queues.

…

Compared to the Army’s shortfalls, the Federal government had achieved much more in the Navy. Of course, with the Confederate Government now controlling over a hundred ports, it was impossible for the Federal government’s Navy to enforce a complete blockade.

Still, they performed admirably; in 1861, about ten percent of ships heading to the Confederate Government were intercepted.

Don’t think this number is small; for the American Navy to achieve this was no mean feat given their strength.

The biased Royal Navy was frequently present, often monitoring the Federal Navy closely as the latter attempted to stop cotton shipments, with British fleets nearby.

The issue was not about whether they could win but that they simply could not engage in combat. England, France, Austria, and Spain had reached an agreement on intervening in the American Civil War; to enter into conflict would mean facing four opponents.

All these countries lacked was a convincing domestic excuse for war. Given these circumstances, the achievements of the Federal Navy were already commendable.

To break the blockade, the Southern Government also formed a navy. Due to the stark disparity in ship numbers, the South secretly built ironclad ships, at which point the Northern government was also constructing ironclad ships.

In March 1862, the naval forces of the North and South engaged in a fierce battle at Hampton, marking the beginning of the era of ironclad ship warfare.

Unfortunately, American naval artillery technology was subpar. The Southern “Merrimack” and the Northern “Monitor” engaged in an exchange of fire, but neither side achieved any results.

Against this backdrop, in late May 1862, the Austrian Ocean-going Fleet visited the Southern Confederation Government.

Count Hummel and President Jefferson-Davis had a friendly exchange, agreeing on strengthening bilateral trade cooperation, mainly in the service of labor export.

On June 7, 1862, the two signed the “Labor Introduction Treaty,” which stipulated: over the next ten years, the Southern Government would introduce three million laborers from Austrian colonies, and the Southern Government would bear all immigration expenses and pay Austria a fee of 60 Divine Shield per person.

There was no doubt that this was a big deal. The premise was that the Southern Government had to win the war to fulfill the treaty.

To win over Austria, the Southern Government really bled itself.

This was decided by the fist, not to mention the Austrian Ocean-going Fleet only had over seventy warships, among them were five ironclad ships, the most powerful fleet on the East Coast.

Count Hummel proposed, “Mr. President, I think you need a powerful navy to suppress the Northern government’s fleet and ensure the continuity of overseas trade.”

Selling warships wasn’t new—major European naval powers had all offered warships to the Southern Government, which had ordered quite a few. Unfortunately, remote solutions did not quench immediate thirst.

President Jefferson-Davis replied with lackluster interest, “Yes, Count, we have indeed ordered quite a number of warships from Europe, but they cannot be delivered in a short time.”

Count Hummel smiled slightly and said, “Mr. President, what you need is ready stock; ordering warships is just too slow. The battlefield is ever-changing; time is life.

If it were your navy in the ascendancy now, this war might already have ended. If you could blockade the overseas trade of the New England states, the Northern government would have no choice but to compromise.”

President Jefferson-Davis’s eyes lit up, he heard the insinuation in Count Hummel’s words, and incredulously asked, “Does your country intend to sell this fleet?”

Count Hummel affirmed, “Under normal circumstances, we would not sell active-duty equipment, but exceptions can be made for friends.”

After some thought, President Jefferson-Davis said cautiously, “Count, name your price; we will not let our friends suffer a loss!”

There was no choice, even if they knew they were going to be fleeced, he still had to make the inquiry. Even if the price was steep, it was not as much as the losses from ships intercepted by the Northern government.

On the surface, these ship losses were borne by capitalists, but in reality, all these losses were borne by the Southern Government. The Northern government’s blockade raised the prices in Southern states and limited the export of goods.

A typical example was merchant vessels, in order to ensure sufficient speed to escape the pursuit of the Northern navy, had to leave a lot of empty space. Encountering the Northern navy, they often had to throw goods overboard to lighten the ship and increase speed.

Count Hummel quoted, “46 million Divine Shield for the fleet as a whole, with ammunition for three major battles included, and we will provide free training services.”

This was utterly an exorbitant price. 46 million Divine Shield approximated 23 million British Pounds, which could build a Royal Navy if only considering the cost of construction.

Of course, 23 million British Pounds definitely could not buy a Royal Navy; even if it were double, it would not be enough. To create a Royal Navy from nothing, 100 million Pounds would not suffice.

The Royal Navy’s dominance of the world relied not just on its warships, but also on a series of supporting facilities, a huge industrial chain, and well-trained soldiers.

These were not things that the Southern Government possessed, nor did the Northern government. Before the outbreak of the Civil War, the number of the American Navy was just over ten thousand, and the Southern Government’s navy was merely composed of retired personnel and merchant sailors.

“`

It can be said that the quality of the naval officers and sailors on both sides in the American Civil War ranked among the top in the world, though from the bottom up.

After some thought, Jefferson-Davis said, “Count, your price is too steep. How about this, we hire your ocean-going fleet for combat. As long as we can keep the Northern Navy bottled up in their ports, we will pay a commission of 46 million Divine Shield.”

Count Hummel shook his head; he dared not take such a business deal. One should not be fooled by the short-term ease of suppressing the Northern Navy; the fact was that the Northern government’s shipyards were producing ships as if they were churning out dumplings. The longer the war lasted, the larger the Northern fleet would become.

If the Southern Government couldn’t win the war within a year, there would be a shift in the balance of power. Even by sheer numbers, the Northern government would gain an advantage.

Hoping to annihilate the enemy in a naval battle was simply wishful thinking. If they couldn’t win, couldn’t they at least escape? Once they retreated into their ports, they would have coastal artillery cover and become untouchable.

Unless the Southern Government was willing to hand over the command of their army to Austria, then there might be a sliver of hope. In the worst case, they could land from Canada and stab at the Great Lakes region.

The British probably wouldn’t mind turning a blind eye for once, after all, John Bull has thick skin and can play the rogue.

“I’m sorry, but we are a neutral country and cannot participate in the war,” Count Hummel stated.

Jefferson-Davis was close to rolling his eyes. What kind of neutral country deals in arms so openly? Apart from not personally entering the battlefield, you’ve done everything else, both what can be done and what shouldn’t.

These sarcastic thoughts were fine kept to himself as voicing them would be too hurtful. Regardless, the Austrians were still supporting them and could be considered half-allies.

“25 million Divine Shield, for that price you can at least double your profit,” offered Jefferson-Davis.

This was Jefferson-Davis’s estimate based on the production cost from the Southern shipyards, assuming the capitalist’s profit margin plus the cost of long-distance shipping.

After some calculations, Count Hummel replied, “Mr. President, business is business. Under normal circumstances, this price could be negotiable, but these are extraordinary times. Without more than double the profit, it would be a losing trade.”

…

On July 1, 1862, Austria signed an arms purchase agreement with Nicaragua, in which the Vienna Government sold its ocean-going fleet to the Nicaraguan government for 38 million Divine Shield.

The news caused an uproar in America, with many people surprised that Nicaragua could afford to buy such a fleet.

Before they could regain their senses, on July 5, 1862, the Nicaraguan government resold this behemoth of a fleet to the Southern Government for the same price.

Of course, achieving such an astronomical price was the result of Count Hummel agreeing to accept half the payment in bonds. The Southern Government went to great lengths to bind Austria to their cause.

The news had not yet reached Vienna, but Austria’s shipyards were already bustling.

Out with the old and in with the new, since the military ships were to be sold, Franz could not possibly leave the Austrian Navy without ships; therefore, new ones had to be built.

If they wanted to interfere in the American Civil War in the future, they couldn’t do without a navy. Overseas colonies were equally dependent on a navy. By the time the news of the trade reached Europe, the new warships were likely to be almost ready for service.