Chapter 1121: Trade Surplus and Expanding Markets
After lunch, the cabinet meeting entered a more tedious phase as the ministers began discussing the challenges facing their respective departments.
The Ministry of Agriculture’s greatest hurdle was the Crown Prince's directive to limit the scale of sugar beet cultivation.
Previously, farmers had reaped significant profits due to high sugar prices; now that further planting was restricted, resentment was brewing. There were even reports of farmers clandestinely planting sugar beets in wheat fields.
Vergniaud had already proposed implementing a sugar beet seed tax to curb the practice.
Furthermore, the vast territories of North Africa were desperately short of manpower. Tunisia and Algiers possessed thousands of miles of fertile land that required little more than a light tilling and a handful of seeds to produce a bountiful harvest.
Yet, only the most destitute French citizens were willing to settle in North Africa.
Saint-Louisiane fared even worse. Despite the French government offering free passage, nearly five hectares of land, a log cabin, and substantial subsidies—120 francs for men and 160 for women—only about seven thousand people had immigrated to North America over the past year.
As France continued to grow, even Joseph found himself plagued by these persistent headaches.
After a moment's reflection, he instructed Vergniaud, "Focus on strengthening our propaganda. Commission artists to paint the beautiful landscapes of North America and the like.
'Trying to have a French architect direct a crew of workers who only speak Algonquian would be enough to drive him to an early grave,' Joseph thought.
The Ministry of Civil Affairs’ primary concern was a lack of funding—a perennial issue that could only be addressed once the treasury had a sufficient surplus to warrant an increased allocation.
When it came to the Ministry of Industry, Mirabeau spoke with a grave expression, stating that French industrial growth would likely begin to decelerate starting next year.
Joseph’s brow furrowed. "What is the basis for your assessment?"
"The market, Your Highness," the Minister of Industry replied. "Our sales markets are nearing saturation. In fact, several factories went bankrupt last year due to an accumulation of unsold inventory.
"While the Industrial Development Fund has begun limiting production increases in sectors like steel and papermaking, many companies without government stakes continue to expand recklessly."
Joseph was surprised. "What about the Italian market? Is it saturated as well?"
It had only been three and a half years since the Italian regions joined the Iberian-Apennine Common Market. How could they have reached their limit so quickly?
Mirabeau explained helplessly, "Your Highness, the wealthy regions of Northern Italy, such as Genoa and Venice, have relatively small populations. The more populous areas like Piedmont and Emilia are actually not that affluent; at most, they can only afford some of our textiles."
Bailly added from the side, "Furthermore, there is a growing trend of boycotting our goods in Northern Italy, which is further impacting the market."
Joseph’s expression darkened. "Boycotting? Why?"
Bailly said cautiously, "Well, there are claims that France is treating Italy as a dumping ground, or that they are fast becoming a French colony. You know how it is—there are always malicious individuals fond of fabricating such narratives."
Joseph fell silent, a troubled expression crossing his face.
While such claims were biased, France’s industrial capacity and sheer scale dwarfed those of the Italian states. With both sides maintaining low tariffs, France’s exports did indeed resemble dumping.
A few years ago, even Austria had been unable to withstand French "dumping," leading to a continuous deterioration of their finances. It was said that the abolition of the Seine-Rhine Trade Agreement was a primary reason they joined the Anti-French Coalition.
Continuing down this path would be like draining the pond to catch the fish; eventually, it would incite anti-French sentiment among the Italian populace.
But what was the alternative?
One couldn't simply allow the Italian states to raise their tariffs again; that would render the common market pointless.
Joseph recalled the small European nations of the future, such as Switzerland and Finland. Despite their small size, they managed to thrive alongside industrial giants.
Why? It was simple: they possessed niche, high-advantage industries.
Because of their small scale and population, even a specialized industry, provided it was high-quality and competitive, could easily sustain their entire economy.
Joseph nodded inwardly at the thought.
While the Italian states currently had some specialized trades, they were far from being high-advantage industries.
The key to breaking this deadlock was to help them establish their own unique industrial pillars.
Regions like Florence had a strong foundation in leatherworking, while Murano in Venice was famous for glass. By helping them strengthen these sectors and build solid industrial chains, their revenues could increase significantly.
For instance, Florence’s leather industry primarily produced boots. While they sold well in France, the income was nowhere near enough to offset the trade deficit.
However, the industry could be expanded to include higher-value products.
Handbags, gloves, hats, or even whips could be developed. A single handbag, if marketed and branded correctly, would have women clamoring to spend their money. One only had to look at how coveted limited-edition Chanel bags were in the future to understand the potential.
Joseph imagined that if the Queen were to carry a particular handbag around Versailles a few times, it would become a bestseller across Europe in no time.
Similarly, the glass industry in Murano currently focused on window panes and tumblers. If they shifted toward developing optical lenses, laboratory beakers, and condensers, their sales would easily quadruple.
This was merely broadening product lines. If they established full industrial chains, their competitive advantage would be even greater.
There were many other niche industries France didn't prioritize—instrument making, fine arts, candle production—that could be distributed among the Italian states.
Even less critical industries like papermaking could be relocated to Italy, specifically to allied states like Modena, while still collecting patent fees.
Once Italy’s industries flourished, it would not only increase their purchasing power—effectively expanding the market for France—but also foster the belief that France was helping them prosper, thereby strengthening their loyalty to the empire.
Joseph turned to Brienne. "Archbishop Brienne, please notify the member states of the Iberian-Apennine Common Market. We will hold a summit in Paris in one month. I wish to discuss trade and industrial matters with them."
"As you wish, Your Highness."
...
Poland.
Warsaw.
Inside the assembly hall of the Royal Castle, a stout deputy was speaking with heated passion. "Saint Petersburg has shown its sincerity! This is a golden opportunity to improve our diplomatic relations with our neighbor!"
Beside him, someone retorted coldly, "And why should we seek to improve relations with barbaric invaders?"
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