Chapter 200: The Development of Industry and Finance
Soon after, Eman presented the report sent by the official from Marseilles.
Joseph unfolded the report and, after reading only a few lines, raised an eyebrow.
The report stated that the Spanish King had sent a generous 1.8 million livres of grain, and the quality was quite good.
Even though the drought had less impact on Spain, it still affected them. Charles III went to great lengths to provide such a large quantity of grain as a gift, showing immense sincerity!
Two days later, Charles III's special envoy arrived in Paris. After an audience with Louis XVI and the Queen, he eagerly sought out Joseph.
After customary courtesies, the envoy requested Joseph to dismiss the others before respectfully presenting Charles III's personal letter.
"Your Royal Highness, the Crown Prince, His Majesty the King bids me convey his sincere gratitude," the envoy said with a hint of embarrassment. "You helped the royal family maintain the purity of its bloodline, and... ah, kept Prince Antonio's secret.
"His Majesty the King learned of France's recent hailstorm disaster, and thus sent some grain as a small token of his regard."
Joseph nodded inwardly. 'Charles III truly lives up to his reputation as one of Spain's rare enlightened rulers; he handles social graces perfectly. It's a pity the old king is a candle flickering in the wind and won't last much longer, otherwise, Spain could offer France even greater support.'
As Joseph had largely anticipated, Charles III, upon learning that Luisa had taken a lover in front of his son and the French Crown Prince, flew into a rage. He immediately ordered the Crown Princess to not leave the palace for a single step and assigned a lady-in-waiting to monitor her 24 hours a day.
If Spain weren't such a devout Catholic nation, making divorce difficult, the old king would certainly have had his son divorce her.
Although the Spanish nobles were unaware of the specifics of Luisa's transgression, it was clear the King disapproved of her. Consequently, many high-ranking officials swiftly distanced themselves from her.
Previously, due to Charles III's declining health, many state affairs had been transferred to Antonio. However, Antonio, engrossed in machinery and hunting, had in turn passed these responsibilities to Luisa.
Now, Spanish officials preferred to take documents to Antonio's workshop and compel him to deal with them, rather than let Luisa handle them.
Of course, given Antonio's henpecked nature, the restrictions on Luisa would gradually weaken after Charles III passed away. However, this incident had severely diminished her political standing, and it was highly unlikely she would ever again wield sole power in Spain.
...
A new-style "gem-shaped" carriage sped past Mirabeau, kicking up dust that powdered his face.
Mirabeau frowned, taking the handkerchief his servant offered him and wiping his face and clothes repeatedly. He shook his head inwardly. There were already numerous rail carriages in Paris, with five intersecting lines reaching all parts of the city. Yet, many nobles still chose to travel by private carriage, considering it beneath their dignity to ride with commoners.
In reality, these rail carriages, even with over twenty passengers, were faster than ordinary horse-drawn carriages.
However, "Capitalist Nobility"—a term proposed by the Crown Prince that was now widely accepted—scoffed at such attitudes.
He grumbled inwardly: 'A noble's distinction stems from their wealth, capability, and effort, not from who they share a carriage with. All citizens should be equal; an incompetent or low-minded noble is far inferior to intelligent and diligent commoners. Why do they believe they are inherently superior?'
'Although many of Rousseau's ideas were nonsensical, he was quite right about equality. Those people really ought to read his books...'
Mirabeau shook his head at this thought. 'No, better not. Rousseau's ideas are too dangerous, and most nobles lack my discerning judgment. Who knows what negative influences they might absorb?'
A crisp bell rang, and Mirabeau collected his thoughts, adjusted his collar, and stepped onto the rail carriage, shaped like a thick cigar.
The commoners inside, noticing his attire, instinctively rose to offer him a seat and kept a respectful distance.
Mirabeau made no pretense of politeness, settling into the most satisfactory seat before accepting today's Paris Business Journal from his servant.
The carriage had barely started moving when Mirabeau caught a foul odor from the window.
He frowned and looked out, seeing several dark, highly decomposed bodies hanging from a lamppost by the roadside—the suffocating stench emanated from them.
He knew without asking that these were the Barbary Pirates who had been hanged recently, and Boileau d'Andar, who had murdered Necker.
Mirabeau motioned for his servant to close the window, shaking his head and muttering softly, "Though he deserved his fate, hanging a former banker alongside pirates is still somewhat improper..."
He then buried his head in his newspaper, the headline on the front page making his eyelids twitch—"Marquis Ludot, Second President of the Banking Guild, Assassinated, Severely Wounded, Assailant Captured On The Spot."
He quickly scrutinized the news. It reported that a man named Aironke had sneaked into Marquis Ludot's villa late at night and shot the Marquis in the thigh.
Aironke? As a capitalist, Mirabeau naturally had dealings with banks and knew that this man was Necker's butler, and Necker's death was likely connected to Marquis Ludot.
Mirabeau sighed lightly, lamenting in his heart, 'This butler is indeed a loyal servant, full of devotion...'
Before long, the carriage stopped outside the University of Paris.
Mirabeau, his servants, and guards disembarked, greeted by a large group of high-ranking school officials who courteously bowed and offered salutations.
As the current Minister of Industry, a crucial official with influence before the King, the school authorities naturally dared not be remiss.
The crowd clustered around Mirabeau like stars around the moon, escorting him to the main university building, where "Sorbonne" was carved. Ribbons adorned the surroundings, a band played in unison, and a gilded sign at the entrance read: "French Standards Committee Metrology Standard Release Conference."
Reporters lingering outside recognized Mirabeau. Dozens swarmed him, loudly barraging him with questions.
Mirabeau, escorted by his guards, pushed through the crowd of reporters and arrived with the school officials in the ground-floor hall, where he saw even more familiar faces.
It was a gathering of luminaries; almost all of France's renowned scholars who could attend were present, alongside a significant number of foreign scholars.
With Mirabeau at the forefront, all government officials related to industrial sectors had also come, and together with personnel from the Paris City Hall, the vast hall was packed to the brim.
It took Mirabeau over ten minutes to exchange greetings with everyone, finally allowing him to settle into a front-row seat, at which point he let out a sigh of relief.
He checked his watch; there was still a short while before the meeting began, so he started chatting with the slender-faced, thick-browed, long-nosed middle-aged man beside him: "My dear Bailly, how are things progressing in Nancy?"
The middle-aged man offered a weary smile: "You see, entrusting me with such a high position all at once has truly tested me. I've been busy for two months, and only a third of the rail line connecting Nancy to the mining area is complete; I'm utterly exhausted."
"The good news is that a very large coal mine has been discovered west of the main mine, and the coal seams are quite shallow. Daily coal output already reaches tens of thousands of pounds and continues to expand."
"You've done an excellent job," Mirabeau said. "That area is relatively remote, and funding isn't overly generous, so laying tracks isn't easy."
This scholar named Jean Sylvain Bailly was currently the Assistant to the French Minister of Industry. When Mirabeau first recommended him, he feared resistance, but to his surprise, the Crown Prince seemed to greatly appreciate him and immediately agreed.
Joseph, of course, remembered Bailly, a prominent figure of the Feuillants. With his solid administrative capabilities and scientific background, he was an ideal candidate for an industrial official.
Bailly continued, "I'll try to speed things up. Perhaps you could allocate more British technicians to me. I must admit, their track-laying speed is indeed faster."
"Once this track is laid, the production of the United Steam Engine Company can significantly increase. That British technician always complains to me about the lack of refined iron. And there are iron ore deposits all over the mountains."
Mirabeau nodded. With France facing a severe drought, water pumps—steam engines—were crucial for ensuring agricultural output. The Crown Prince had repeatedly urged him to increase production as quickly as possible.
He pondered, "Russian merchant ships have recently brought in a good amount of pig iron. I'll arrange to get some for the steam engine factory."
Russian iron ore was considerably better quality than French ore, but transportation costs were also higher. To solve the iron shortage, France needed to accelerate the exploration of its own iron mines and improve smelting technology.
Mirabeau added, "Once the rail construction in Nancy is complete, you'll be heading to Saint-Étienne."
Bailly asked with some surprise, "Are you referring to the new industrial development zone there?"
"Indeed, His Royal Highness the Crown Prince has already tasked me with preparing the planning proposal."
"But that will require a substantial investment, won't it?"
Mirabeau smiled faintly: "Are you aware of the French Reserve Bank issuing banknotes?"
"Of course, I know. Half of my salary last month was in banknotes." Bailly's tone carried a clear hint of complaint. The entire Lorraine province currently had only one French Reserve Bank branch, quite far from Nancy, and he had wasted considerable carriage fare to convert his banknotes into silver coins.
And that was for him, an official in the provinces. Parisian officials, on the other hand, received their entire salary in banknotes.
Mirabeau lowered his voice: "To my knowledge, the Cabinet will soon pass the 'Banking Management Act'."
"What is that?"
"Broadly, it aims to place all banks under government supervision. For instance, banks will be subject to government financial audits, they must accept French Reserve Bank banknotes, and they will be required to deposit 10% of their reserves."
Bailly's expression brightened at the mention of being able to exchange banknotes at any bank, then he asked, "What is this 'deposit reserve' you speak of?"
"It's said to prevent banks from unexpectedly going bankrupt and being unable to pay depositors. So, 10% of deposits must be entrusted to the government for safekeeping. If a bank experiences an unforeseen event, the government can return this money to depositors. I hear this 10% is just the beginning, and the proportion will increase later."
Deposit reserves were a common financial regulatory tool in later eras, though they first appeared in the mid-19th century. This was also one of the key powers of central banks in various countries.
After these past few months, the French Reserve Bank had completed the absorption and consolidation of the merged banks. The implementation of the "Banking Management Act" and the transformation of the French Reserve Bank into a central bank were now immediately put on the agenda.
What Mirabeau didn't know was that the "Banking Management Act" would also stipulate that banknotes issued by the French Reserve Bank would become the sole legal tender of France, with their value directly pegged to gold and silver. Paying officials in paper currency now was to help everyone get accustomed to it in advance.
With a central bank established and the banking law implemented, any bank attempting to collude with officials for profit or threaten the French government with loans would have to seriously reconsider.
As for whether the banks would object?
Absolutely not.
Nearly half of the Banking Guild's prominent figures had compromising information held by Joseph. Most influential banks in Paris had signed agreements with the French Reserve Bank to accept paper currency, and given the government's emphasis on fiscal issues and the current influence of the French Reserve Bank, banks that refused to comply were destined to be disciplined.
Mirabeau's voice grew even softer: "His Royal Highness the Crown Prince hinted to me that the deposit reserves collected by the French Reserve Bank will flow into the Industrial Development Fund."
Bailly immediately smiled knowingly. The Industrial Development Fund was established to support French industry, so once the fund had money, it would naturally be invested in the development zones.
As the two spoke, Vergniaud from the back row approached, bowing to them before asking Mirabeau, "Count Mirabeau, forgive my intrusion, but I heard that the Cabinet is about to issue the 'Guild Reorganization Act.' Is this true?"
He was currently serving as the Commissioner for Industrial Technology Management, a subordinate to the Minister of Industry, so Mirabeau did not keep it from him: "Indeed, such an act exists, and it will be implemented very soon.
"According to the Crown Prince's wishes, all existing guilds will be abolished. The government will uniformly organize personnel to assess the technical abilities of artisans and issue certificates."
Vergniaud was immediately overjoyed. His job was to promote the transformation of old workshops into factories, and the existing guild system had severely hampered him. In some areas, guilds even gathered crowds to threaten workshops, forbidding management improvements.
Mirabeau continued, "However, as you know, guilds wield enormous influence, so their abolition must proceed gradually. The first step will likely involve integrating the heads of existing guilds into government employment and then abolishing the apprenticeship system. As for completely preventing guilds from influencing factory production, that will take at least one or two years, or even longer."
Just then, academic luminaries such as Lavoisier, Lagrange, Monge, and Condorcet all came to the front of the hall.
The President of the University of Paris personally presided over the conference. After some customary pleasantries and greetings, he loudly announced, "The French System of Weights and Measures will be officially announced today!"
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