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Chapter 1303: Trade Boom

Mirabeau responded, "Actually, last night quite a few people were dancing and celebrating outside the Ministry of Military Affairs. Now, there should be even more soldiers gathered in the square."

Joseph glanced out the window and nodded.

As per his directives, the severance pay for ordinary demobilized soldiers had been increased to 160 francs, and the Ministry of Military Affairs would assist them in finding employment. These were benefits previously unimaginable.

As for the soldiers who secured positions within departments like the police or tax services, they had essentially gained a stable, long-term livelihood, so their excitement was entirely understandable.

Mirabeau waited for the Crown Prince to look away, then flipped through the documents in his hand and continued his report: "Since the start of September, factory orders nationwide have shown a substantial increase."

"Specifically, for items like steel products, machinery, chemicals, medicine, and furniture, the projected delivery volume next month is expected to increase by approximately 25% compared to pre-war levels."

Joseph was taken aback. A one-quarter increase in orders was no small matter; it wouldn't be an exaggeration to call this a major trade boom!

However, he quickly realized the reason. 'Is this because other nations' production has been crippled by the war?'

This recent war, excluding mainland France and a handful of states in Northern Italy, had impacted nearly all of Central and Western Europe. Prussia, Austria, and the North German states were particularly devastated.

With their domestic production of goods severely curtailed, merchants across Europe quickly observed that only France had swiftly resumed its manufacturing. Consequently, they immediately shifted their imports to French goods.

"Indeed, Your Highness," Mirabeau added. "The Stuttgart Trade Agreement also played a crucial role, as low tariffs have given us a significant price advantage."

"Currently, among British goods sold in the German region, only textiles, porcelain, tea, and ship supplies are marginally cheaper than ours. In all other sectors, they are now at a disadvantage when competing with our nation."

Joseph couldn't help but smile. All his years of tireless effort to promote French industrial development and refine the financial and tax systems were finally yielding gratifying results.

Of course, this success was also a direct result of the war's victory; otherwise, French goods would likely have needed a considerable amount of time to penetrate the German market.

He then turned to Mirabeau. 'How much lower are the production costs for British textiles compared to ours?'

The markets for porcelain and ship supplies were relatively small, so he paid them little mind. Tea, constrained by maritime routes, was beyond France's immediate reach. But textiles were the cash cow of this era, and they absolutely had to find a way to secure that market.

Mirabeau replied without hesitation, "Between 10% and 13%, Your Highness. This is primarily because the British can source cheaper cotton from North America and India, and their transportation expenses are lower."

"In terms of actual production, our nation's costs have already matched Britain's."

Joseph frowned. 'How much higher are the transportation costs?'

"British cotton yarn, once loaded onto ships on the River Thames, can be transported directly to Rotterdam, and from there, sold throughout the various regions of Germany along the Rhine River."

"However, goods from Lyon must first be transported via the Rhône River route to the vicinity of Champagne, then by cart to the Moselle River, from which they can finally access the Rhine," Mirabeau explained with a helpless expression. "This causes our transportation cost per thousand meters of cotton yarn to be 50 to 70 francs higher than the British. And this is even with the use of steam paddleboats."

River transport costs were inherently higher than sea transport, and the route from Lyon to the Rhine involved several winding river sections, making the distance considerably longer than for British merchant ships crossing the English Channel. The intermediate transfer by cart further caused costs to soar—hiring the cart and the two rounds of loading and unloading collectively accounted for nearly half of the total transportation cost.

Mirabeau cautiously glanced at the Crown Prince and suggested, "Your Highness, we could actually demand that the German states increase import tariffs on British goods, which would effectively block British products from the European continent. As you know, many North German states still grant Britain most-favored-nation treatment."

Joseph shook his head. 'That's not a complete solution to the problem.'

Mirabeau's strategy was remarkably similar to Napoleon's historical "Continental Blockade Policy." However, experience had shown that trade oppression tactics only provoked strong backlash from the German states and could even be exploited by the British to incite anti-French sentiment.

The ultimate success or failure of trade, in the end, had to be decided by the market.

Joseph exhaled. 'We must expedite the construction of the railway between Lyon and Paris. This way, textiles from Lyon can be transported by train directly to Cologne port, and from there, loaded onto vessels on the Rhine River. By eliminating the intermediate transfer by cart, the transportation cost difference between us and Britain will significantly narrow.'

'Furthermore, in the future, once a railway bridge is built across the Rhine at Cologne, goods could even be transported directly from Lyon to their final sales destinations. Of course, this would also necessitate the construction of railways throughout the North German region. At that point, transportation costs would become a tremendous advantage for us.'

As Mirabeau envisioned the future described by the Crown Prince, a spark of excitement flickered in his eyes.

It was clear that if railways were to connect France to the North German states, the benefits would extend far beyond textiles. All French goods along the route could be loaded onto trains and efficiently transported throughout the German regions, with the added flexibility of being unloaded and sold in cities along the way.

The overall trade efficiency could increase by at least tenfold!

This, in turn, implied a substantial acceleration in the circulation of wealth.

He struggled to compose himself, then raised a serious concern: "Your Highness, the distance from Lyon to Paris is nearly 400 kilometers—about 250 miles. Constructing this railway would require an investment of at least 70 million francs."

"The Ministry of Transport has only just finalized plans for the railway from Lyon to Moulins, and the Ministry of Finance is already complaining endlessly..."

The route from Lyon to Moulins was merely the first third of the total distance to Paris.

Joseph, too, knitted his brows.

'This is just one railway within France,' he mused. 'When it eventually extends to North Germany and the various Italian states, who knows how much more money will need to be poured into it.'

'Money is truly a wonderful thing, but it always seems to elude me...'

He mused, 'We must find a way to raise funds from all over Europe.'

Mirabeau immediately nodded. "People will soon realize the immense value of trains. I believe that within merely one or two years, the French Railway Company will be able to secure enough investment to lay the Paris-Lyon line."

'That's too slow,' Joseph declared, clearly dissatisfied. 'Ideally, construction should begin within three months, and the entire line should be operational by the end of next year.'

'Therefore, we need to devise a strategy for financing and promotion. But where should we begin...'

Mirabeau, however, was completely at his wits' end.

Just then, Eman knocked and entered, bowing respectfully. "Your Highness, in 40 minutes, you are scheduled to preside over the World Cup draw ceremony."

'The World Cup?' Joseph's eyes suddenly lit up. 'Isn't this the perfect opportunity for promotion?'

This year's World Cup football tournament was no longer merely France "entertaining itself." Currently, every European nation, with the exceptions of Britain, Russia, and Austria, had registered to participate.

Furthermore, six American nations were also competing.

It was, unequivocally, a genuine world-class event.