**Chapter 18**
**Joint-Stock Company (1)**
"Alright, let's do a final test."
"Yes, Your Majesty."
I completed the mechanical reaper right after graduation. It took almost as long as the rifling machine.
"I thought it was simple, but it wasn't easy to make gears and levers that wouldn't break with the technology of this era."
This machine is basically designed to be pulled by a horse.
As the horse moves, the kinetic energy generates wheel rotation, and that energy is transmitted through gears and levers to blades arranged at regular intervals, causing the blades to move rhythmically.
The corn in the path of the machine is cut by the blades, and the cut corn stalks are lifted onto the platform through the machine's inclined section.
The farmers following behind the machine simply bundle the corn stalks stacked neatly on the platform and take them away.
I will eventually make it so that the bundling process is also automated, but I haven't been able to do that yet.
"It's incomparably faster than cutting each corn stalk with a sickle."
I know this from testing it myself during harvest season. Once it starts being distributed, there's no way to avoid reducing farm labor.
"In a way, it's creating unemployment, so I need to guide them to participate in my business or settlement."
"Everyone, thank you for your hard work. As I mentioned before, you're all going to be employed by Estrada Aceros. Please prepare for mass production of this reaper there."
I haven't told him yet, but I named Emilio Estrada's company Estrada Aceros.
"Thank you. You've all worked hard, Your Majesty."
The technicians who had worked hard with me for the past two years were now part of Estrada Aceros.
"Once Estrada Aceros gets bigger, I need to separate the company that makes agricultural and mining equipment, and it's better for the steel company to focus on steel."
After all the technicians left, I stroked the completed reaper.
"This marks the beginning of the first stage of agricultural efficiency."
Industrialization and modernization are essential for becoming a great power. But I want to avoid radical methods that cause great pain as much as possible.
"The reason I'm developing the Mexican Empire is to make the people of Central and South America live well, like the people of the advanced countries of the original world, or even better. It's not just about beating America and becoming the world's strongest nation. I can't lose sight of the main goal."
That's not what the Mexican grandfather who sent me here wants either.
I'm going to gradually wean the landowners onto the sweetness of agricultural efficiency, take away their manpower, and then use that manpower to gradually carry out settlement, industrialization, and territorial development.
"To do that, I need to sell this well."
***
I plan to vigorously promote the industrialization and territorial development of the Mexican Empire using the tool of business, but I am the Crown Prince of this Empire.
Business is just one of many tools.
Even though I graduated from the military academy, I don't have time to run a business directly. My direct involvement will only be in certain parts as needed. My agents will continue to run the businesses for me.
"Except for things like city planning, water and sewage systems, railroad system construction, or building giant dams, I won't be directly involved much. After all, I'm not an expert in those fields, so there's not much meaning in my direct involvement."
I need to just tell them the overall business direction and let my agents continue to run the businesses.
The reason I can do this is because my agents have done a good job over the four years I've been at the military academy.
"I always reward those who show patriotism, loyalty, and faith."
I will reward them similarly to what I promised Eduardo, with high wages, 10% equity, and official company names after their surname or name.
It's true that I provided the capital and shared strategies that were highly likely to succeed based on my historical knowledge. But they also deserve credit for carrying them out well, and most importantly, they are the ones who will lead the businesses for a long time to come.
"There's a reason why many modern companies give their employees stock options. Working for a salary and working with equity are bound to have different mindsets."
Right now, they probably don't even expect things like company shares, even though they're doing all the actual work from start to finish.
That's how it was in this era.
The pseudo-medieval Mexican Empire is different from countries like the United States and Britain, where even commoners boldly venture into business.
It's still a common practice for nobles or landowners who have assets to entrust entire farms or businesses to their agents.
The only reward they get is slightly higher wages than ordinary workers.
"This structure won't last long in the Mexican Empire anyway, and it's not a good structure in terms of the manager's sense of ownership or motivation. But because of this era, my reward will feel even more special."
I wanted to register these companies as joint-stock companies and formally distribute shares, but there was a problem.
"Oh no, there's no such thing as a joint-stock company system in Mexico yet."
As far as I remember, in the late 1820s, joint-stock companies were not only registered in Britain, France, and the United States, but various company stocks were actively traded on stock exchanges.
"So, it's still a long way off."
I guess I need to start by creating a joint-stock company system.
"Stocks are more than just a means of investment."
Joint-stock companies and stock exchanges are revolutionary inventions. Companies can raise capital for business expansion, research and development, and other investments through stock issuance. Ordinary investors have the opportunity to diversify their assets by investing in various companies.
It's no exaggeration to say that the greatest invention in the history of capitalism is not a specific object, but the joint-stock company system.
Even if it wasn't about rewarding my agents, I need to introduce stocks and stock exchanges.
"This can't be done by executive order. It needs to be formally legislated."
The joint-stock company system isn't something that both the republicans and conservatives would strongly oppose, but if you really want to split hairs, the republicans would prefer it, and the conservatives would likely try to pick at it.
"If it comes from the conservatives, it's highly likely to pass without much opposition."
I could ask my father to have a conservative member of Congress create the law easily, but I decided to contact a conservative member of Congress myself.
"Even if it's family, you can't keep asking for favors without giving anything back."
I realized this when I was forced to go to the military academy. If I ask Agustin I, he'll grant my request without a word, but in return, I need to grant his requests as well.
It's better to take action myself and exert influence.
With the title of Crown Prince, it was easy to meet whoever I wanted.
"Your Majesty, you've become so handsome."
Benito Camacho, member of Congress.
He's one of the influential figures among the conservative members of Congress. I saw him before when I refuted all the republicans' objections to the confiscation of Peninsula property in Congress.
"It's been a while. It's already been six years."
He's grown quite tall, so our eye level is different from before. He also has muscles from exercising regularly, so he looks quite different.
"Yes, I was impressed by Your Majesty's cold logic and eloquent speech that silenced the republicans in Congress. It was an amazing sight that was hard to believe for a 15-year-old boy."
"It was a great help that Mr. Camacho provided timely support at that time. I'm only now expressing my gratitude. Thank you."
"Hahaha, you're welcome."
"I came to see you today because I have a favor to ask."
When I got to the point, Camacho looked surprised.
"I heard that there's nothing you can't ask of the Emperor, so I'm surprised you're asking me. May I hear what your request is?"
"You've heard of the joint-stock company system that's being implemented in Britain, the United States, and France, right? I want to create a law for that and stock exchanges."
"Yes, I know. Hmm... I think I can get that passed easily if I exert my influence... "
"What are you going to do for me, then?"
If I use Agustin I's name to pressure him, he'll have to grant my request, but I wouldn't have come here if that was the case. Camacho knows that, so I need to pay him.
"I've invented something. It's a machine that can harvest grain very easily and quickly. I heard that Mr. Camacho owns several excellent farms. If you help me with this, I'll give you 25 of these machines as a gift. By the way, I plan to sell each machine for 200 Pesos soon."
I offered him goods worth 5,000 Pesos.
I could give him cash, but I need to give him reapers to get the advertising effect.
"Oh, that's amazing. I heard from my agent that the tenant farmers keep running away to dig for gold, which is causing problems... I'm sorry, but could you show me the machine?"
"Hmm, he's not going to just take my word for it and buy it at 200 Pesos, is he?"
"Of course, I'll show you. I'll even show you how it works during harvest season. But can I invite other people?"
"I'll show you for sure, so let me do some sales."
"That's something I can concede. Then, I'll bring other landowners."
"Thank you. I'll see you in a few months."
"Yes, thank you, Your Majesty."
***
Late in the evening, I visited Agustin I's office.
His expression was a little more relaxed than before, when he was wrestling with a pile of documents with a tired face.
"···So, Spain is going to attack soon?"
"Yes, I heard that Spain is recovering from its chaos. They wouldn't just leave the colonies that have become independent. Especially since we confiscated the property of the royal family and the nobility."
"That's right. So, I've been strengthening our forces in preparation for an attack by the Spanish. That's why I ordered 5,000 new rifles from your company over the past two years."
After founding the defense company, we modified 20,000 existing flintlock muskets over two years and delivered 5,000 Eduardo rifles.
"Thank you for that. The problem is the timing and location of the attack. Our Mexican Empire doesn't have a navy. It's practically impossible to intercept them at sea."
"···We do have a navy. We just don't have ships."
"Ahem... Then, we have to fight and defeat them on land. It would be much easier if we knew the landing point beforehand. If we send informants to Cuba, we can almost certainly know the timing of the attack, and with a high probability, we can also know the location."
"If it's the Spanish, they'll dock in Cuba to resupply before attacking, so let's use that."
"Yes. We'll send two informants to Havana. One will assess the size of the Spanish fleet as soon as they are sighted and relay the information. The other will determine the attack location and relay the information."
"That's a good idea. Alright, I'll take care of that, so don't worry."
"Thank you, Father."
This will allow us to anticipate the Spanish army's movements.
Conflict is inevitable, and the one who prepares more will win.
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