Chapter 1316: A Bold Gamble
Chapter 1316: A Bold Gamble
Walsh remained noncommittal about lending money, instead countering with a question: "Do you intend to use this money to maintain your port business in Rotterdam?"
"Yes," Brode replied, a flash of pride crossing his eyes. "You see, the Brode family has operated there for over a century, possessing..."
Walsh waved a hand, cutting him off. "If that's the case, I'm afraid I cannot lend you money."
Brode's expression instantly darkened, but he struggled on, "For heaven's sake, at least lend me three thousand pounds sterling. Have you forgotten that a few years ago, when you were at your lowest, I didn't refuse you?"
His liquid assets were almost completely depleted. If he couldn't secure funding within a month, he would be forced to sell off his valuable warehouses.
Walsh nodded. "I've never forgotten. However, I don't want to throw money into the sea."
Brode urged, "No, it won't be like that. The war is over, and trade will soon return to its previous levels, perhaps even flourish further. I'll be able to repay you, principal and interest, in two and a half years at most."
Walsh lowered his gaze and said, "With all due respect, you're overly optimistic.
"But the French government has already tacitly approved trade between the German states and Britain."
"Precisely. Which brings me to my second point," Walsh said. "You must be aware of the Stuttgart Trade Agreement, yes? France secured most-favored-nation treatment for the majority of goods in the German region. From now on, whether it's iron products, machinery, glass, or chemicals, British goods will find fewer and fewer buyers."
Brode felt a surge of despondency. He sighed, "That's true, but at least British textiles still hold an advantage."
"But with only textiles arriving at port, you'll barely break even," Walsh continued, dampening his cousin's spirits. "Moreover, Lyon's textiles are becoming increasingly competitive. Who knows, they might even surpass British goods someday.
"And most importantly, as Britain continues to interfere with French maritime trade, no one can be sure that the French government won't one day, despite strong opposition from the German states, suddenly prohibit British goods from entering the Rhine River. That would be your utter ruin."
Brode knew all this himself, but he was unwilling to easily abandon the family business. "Please, I want to try again..."
Walsh still shook his head.
Brode's eyes were filled with despair. "Very well, then watch me go bankrupt."
"Oh, how can you think so little of me?" Walsh's tone was earnest. "I merely said I wouldn't lend you money, but I would never stand by and watch you go bankrupt."
Brode looked at him. "What do you mean?"
"Believe me, trade with Britain is absolutely not worth clinging to right now," Walsh declared, adopting the demeanor of a business elite. "I suggest you immediately sell off your assets in Rotterdam. After that, I have two ways to help you."
"That sounds very risky. Please tell me what I should do next."
"First, relocate your business to the Port of Marseille," Walsh explained. "With the rapid development of North Africa and the constantly expanding trade between France, Italy, and the Ottoman Empire, that region is brimming with opportunities.
"You know, over the years, to facilitate transporting goods to Lyon, I've forged many connections in Marseille. If you're willing, you could acquire warehouses there, and I could even help you purchase a dedicated berth. With your skill in port management, you'd certainly achieve satisfying returns."
Brode nodded thoughtfully. He had read in newspapers about the flourishing Mediterranean trade in recent years. If he could leverage his cousin's connections to establish a foothold there, it would indeed be a better option than staying confined to the Netherlands.
He then asked with a hint of anticipation, "And what's the other method you mentioned?"
"Are you familiar with trains?"
"I've heard a bit about them," Brode replied. "Oh, I suppose they're somewhat similar to the steam railcars I've ridden these past two days."
Walsh smiled and shook his head. "Actually, there's a very significant difference. While both are propelled by steam engines, trains are much larger. They can transport five or six hundred people at once, or hundreds of tons of cargo—roughly 45 metric tons, that is.
"Even more impressively, trains can travel 300 kilometers a day, about 180 miles... Imperial units are truly troublesome to use.
"Do you understand what this means?"
Brode's eyes widened, and he didn't answer. It wasn't that he couldn't speak, but rather that too many thoughts crowded his mind, and he didn't know where to begin.
Walsh answered for him: "It means that in autumn, farmers in Reims can load their wheat onto trains and transport it to Nancy for sale, with transportation costs of only 100 to 150 francs, about 15% of the selling price.
"The price of water pumps transported from Nancy to Reims will decrease by a quarter due to reduced shipping costs, and even the usual maintenance expenses will be greatly diminished.
"Oysters from Marseille will still be fresh when they arrive in Paris, ready to be enjoyed directly. And the price will be less than a third of what it once was.
"And apples from Brittany, pears from Burgundy, will no longer all need to be made into preserves, but can be transported immediately after harvesting to be sold across the country.
"Nobles from Bordeaux, Artois, and even Italy can come to Paris every week to relax, and buy clothes and jewelry to take back with them.
"Even people from the Gascony mountains can travel by train to the vineyards there when the Bordeaux grapes ripen, earning money by helping pick grapes."
Walsh spread his arms wide. "You can imagine, the entire world will be completely different from what it is now. It will truly be a paradise where you can have anything you desire!"
Brode swallowed, then tentatively asked, "Are you suggesting I sell trains?"
Walsh was momentarily stunned, then chuckled and waved a hand. "That would certainly be a good business, but unfortunately, the Royal Steam Locomotive Manufacturing Company is already doing it."
He leaned forward slightly. "You see, trains must run on railway tracks, and laying tracks is extremely expensive. It costs nearly 200,000 francs per kilometer."
"So?"
"So, laying tracks requires a huge capital injection. Believe me, this is currently the most profitable investment project."
Walsh's eyes lit up. "To be frank with you, I plan to mortgage all my pastures and sheep in Britain. I'll use that money to join forces with a few friends and open a railway company.
"We are currently preparing to bid for the right to construct the railway from Lille to Mons. Although this route is only over 60 kilometers, or 37 miles, it will become the essential route for transporting coal and iron from Wallonia to the west.
"If we win the bid, we'll secure operating rights for this railway for 50 years. The profits will be unimaginably high!"
Brode mentally calculated the mileage and construction costs, and his jaw dropped in astonishment. "This, this would require an investment of over ten million francs?!"
"Yes, approximately 10.5 million francs. We've already secured 7.2 million. The remaining portion can be raised by selling shares, or by taking out a loan from a bank. Of course, I hope you'll also participate in this venture."
A conflicted expression immediately appeared on Brode's face. Building a railway did sound promising, but to sell off his family's traditional business for such a bold gamble was ultimately a bit too risky.
He looked at Walsh. "What if things don't turn out as well as expected..."
Walsh smiled. "You needn't worry. The government has set a 'minimum guaranteed rate of return' for railway investments, at 4.5%. This means that if the profits fall below this figure, the government will provide us with subsidies."
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