Chapter 1463: Prussian Industrial Development Plan
"That was nothing short of a nightmare!" Louise huffed. "You must compensate me for the torment I endured. For instance, increase the delivery of low-cost coal."
Baron Trudaine wrapped his arm around her slender waist and chuckled. "Is your mind filled with nothing but that filthy black coal?"
The Queen of Prussia twisted sharply, trying to shake off his wandering hand.
Trudaine tightened his grip, pulling her into his embrace.
"My dear, let us look further ahead."
The woman stopped struggling. "What do you mean by 'further ahead'?"
"I had my assets investigated. Specifically, the steel mills where I hold shares," the Governor of Essen said, his hands beginning to roam freely. "I must admit, they have excellent prospects. They will certainly bring me—or rather, us—a fortune in the future." Louise interjected immediately, "Then you must ensure they receive enough coal."
"Coal, yes, coal," Baron Trudaine nodded. "Rest easy, there will be plenty. And I guarantee it will be well below market price. In fact, the first ten thousand tons have already departed from Dortmund. There will be much more to come, and I've ensured no department will find any irregularities. You see, my experience far surpasses that of a young prince."
"Oh, darling, you really are too thoughtful."
Louise leaned into him cooperatively. "I have Monsieur Behrens drafting a massive government procurement plan to ensure those factories remain profitable. Their production capacity will expand rapidly."
Baron Trudaine shook his head. "How much can your Ministry of Finance provide? Two million Thalers? Three million? It's a pittance. To grow quickly, you must rely on the market. Not just the Prussian market, but all of Germany, the Ottoman Empire, and even Russia.
"This means we have to compete with Saxony, Austria, and Cologne. Eventually, we'll even have to face French goods.
"But you know as well as I do that our steel costs can't compete with theirs.
"Why? Because our production scale is too small. We can't spread out the costs of equipment, management, and transport.
"As things stand, even in thirty years, we won't be able to outcompete Austria, let alone France.
"Do you really intend to sustain the steel mills with government funds forever?"
Even someone with Louise's limited understanding of industrial development—or even the new Industrial Reform Commissioner, Behrens—would have been left dazed and confused by these theories borrowed from Joseph.
The Queen of Prussia thought it over and nodded.
Baron vom Stein and other reformists planned to provide financial support for a decade or so, believing that the Prussian steel industry could then become self-sufficient and even profitable.
But according to her lover, relying solely on government procurement would make it difficult for Prussia's industry to truly develop.
In truth, Joseph was manipulating concepts here.
Prussia's government support model was actually quite effective. Historically, they had laid the foundation of their steel industry in just over a decade. Government procurement funds could create a leverage effect; once the mills had guaranteed orders, they would naturally expand into civilian markets like pots, shovels, and hoes, while private capital would pour in steadily.
Even without foreign markets, it would be enough for Prussia to develop two or three major steel plants.
Louise asked nervously, "Then what do you think we should do?"
"It's simple: expand the scale," Baron Trudaine said with the air of an expert. "With scale, costs naturally drop." Louise replied anxiously, "But that requires an immense amount of capital. I don't have that kind of money."
The "expert" immediately countered, "Look at what the French do—the Industrial Development Fund.
"By pooling the nobles' wealth and investing it all into industry, you can create highly competitive companies in a short time.
"You can establish a similar fund and call upon the Prussian nobility to invest."
"But what if they refuse to part with their money?"
"There are many ways. For instance, the amount they invest could directly influence their standing with the Royal Family. Promotions for officials could be tied to their investment levels. You could also offer a high minimum guaranteed return to ensure they see a profit."
Louise rubbed against him, delighted. "You're a genius! If you were Prussian, I'd certainly have you appointed Prime Minister." Baron Trudaine, not yet finished, continued, "That's only the most basic method."
"There's something even better? Tell me, quickly!"
"Simple. Just keep copying France," the man said with a smile. "Have the Royal Bank of Prussia issue banknotes. Your Ministry of Finance will have access to massive funds immediately."
Louise hesitated. "That... might be a problem. Like the treasury notes during the Seven Years' War..."
During the Frederician Era, Prussia had issued paper money due to the pressure of military spending, resulting in rapid devaluation and public rejection. After the war, it had taken Prussia nearly twenty years to slowly withdraw those "scraps of paper" and stabilize the financial market.
Baron Trudaine dismissed her concerns. "Restraint and oversight. With those two 'gentlemen' assisting, paper money poses no issue.
"You can issue a decree from the start stating that the volume of banknotes cannot exceed the value of Thaler silver coins. Establish a Financial Oversight Committee to limit the issuance.
"In reality, even printing ten or twenty million Thalers in banknotes wouldn't hurt the treasury at all.
"Think about it. Investing all that money into the steel industry would give rise to incredibly powerful factories."
Joseph knew full well that in history, any policy where the government oversaw itself eventually became a joke. Any decree or oversight body would be easily bypassed with various excuses.
Without a modern financial system, the idea of issuing paper money without causing inflation was pure fantasy.
And even if Prussia performed a miracle and avoided reckless printing, his goal would still be achieved.
He wanted Prussia to expand its steel industry chaotically, only to be punished by the laws of industrial development in the end.
Of course, France would give them a little push along the way.
Louise nodded repeatedly as she listened. She pushed Baron Trudaine into a chair and leaned in with a seductive gaze. "My dear, you are... an angel. I am so lucky to have met you..."
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