Chapter 76
Central Bank and Navy (3)
"I'm going to become the most traveled person in the world, Your Highness."
"Haha, isn't that a good thing, to leave your name in history?"
"It wouldn't have been so good if I had to ride a horse like before. My respect for the railroad grows with every ride."
Diego said jokingly.
'It's understandable.'
Diego has been with me on my long journeys. We went to California to pioneer together, came back together, went to England together, and then on various trips, including the second trip to California, Texas, and New Mexico.
Few people in this era would have traveled such long distances so often.
After visiting the completed Veracruz harbor, I crossed the Mexican Empire by train.
This place is 'Puerto Pacífico'.
It's the port city that was called 'Lázaro Cárdenas' in my previous life. In this world, the port is under construction, so I should say it's going to be a port city.
"It's only been six months since construction began, hasn't it? It's much faster than before."
I asked Alberto, the chief architect, who came to greet me, as I looked at the port under construction.
"You're right, Your Highness. It seems like it's faster because it's similar to the one we built in Veracruz just before this. It's also a big help that it was a small fishing village, unlike Veracruz harbor, so there are almost no obstacles in the way."
"I see. Let's take a look around."
The largest port on the Pacific side of Mexico in this era is 'Acapulco'. Acapulco was a major maritime trade route between Mexico and the Philippines during the colonial period.
Acapulco was where ships from Manila in the Philippines arrived every year, and it was also an important international trade hub where goods from Europe, Asia, and the Americas were exchanged.
There are several reasons why I chose this place, which I named 'Puerto Pacífico' in this world, instead of 'Lázaro Cárdenas' in my previous life, over that port.
The biggest reason is that it's right below the coast of 'Las Truchas', Mexico's largest iron ore mining area and the industrial city where Estrada Steel and Locke Precision Machinery are headquartered and have their factories.
We could connect the railroad to Acapulco and trade, but there's no reason to endure that distance, as the existing infrastructure isn't that good by my standards.
"If it's this much in six months, will it take about two years?"
I asked Alberto, looking around the site.
"Yes, as you ordered, part of the port will be ready for use within six months."
"I see."
I looked around the site, but I couldn't find anything to point out or improve.
"There's nothing to say. You're doing a great job. Keep it up."
"Thank you, Your Highness."
Alberto, who had been guiding me around the site, seemed to relax a little at my words.
It's not a long distance, but the railroad between Las Truchas and Puerto Pacífico is also under construction, so I had to ride a horse to get there.
As we were riding slowly, not a long distance, Diego said.
"Your Highness, it's good that you're investing in the port and shipyard, but will you be able to fill it all?"
"It depends on how many navy bonds are sold, but if they don't sell, I'm going to buy them all. My investment return will be low, but…"
The government budget is tight due to various projects and debts. I can't force the government to spend according to my plan.
The method I chose to secure the budget to build the Pacific port and shipyard was to issue corporate bonds for the state-owned Mexican Shipyards and buy them all myself.
It's not a large amount, but I'll also receive interest, and when I make a profit later, I'll receive dividends or reinvest according to my share, so it's a good choice.
It's a state-owned company, but it's a company that makes a profit, so it's possible. The port can charge fees, and we can also make a profit from the real estate.
The shipyard can also build ships for private sale in the small and medium-sized docks, but the problem is the large dock. This dock is practically built for warships, so the government needs to order them.
"You're going to use gold."
"If it comes down to it, we'll have to do that."
"I don't think so. The central bank will eventually be established, and the bonds will sell well. I'm going to buy as many as I can."
"Hahaha, I appreciate that."
If I really wanted to, I could actually pay for the money needed for naval construction.
I don't have a lot of cash because all the profits my companies make are being reinvested without dividends, but I have a huge source of income, the gold mine.
The gold mine is managed by one of my companies, 'Mora Mines', but the mine itself is my personal property.
The California Gold Rush is now completely over, and the gold from the major mines I had secured early on has been made into gold bars and stored in the palace vault.
'They say that the amount of gold mined during the California Gold Rush in the original history was about 340,000 kilograms.'
I researched the California Gold Rush in detail in my previous life, so it must be about right. The Gold Rush in the original history was a fiery event that lasted only seven years, from 1848 to 1855. In this world, it took 10 years because I monopolized the major profitable veins and it wasn't as hot as in the United States.
In the early days of the Gold Rush, the profitability was so low that they had to pay half of the gold they mined as wages, but the profitability gradually increased as they introduced various machines, and I was told that they eventually paid 30%, including commissions and wages.
'There are 143,000 kilograms of gold stored in the palace vault now, so if we calculate it in reverse, I've monopolized 60% of the Gold Rush.'
The remaining 40% would have gone to the tens of thousands of people who came to California looking for gold.
You might think it's a little less than you'd expect, considering that I monopolized the major gold mining areas, but it's still a huge amount of gold for an individual to own.
It was the result of the seeds I planted when I first came to this world, something I had been thinking about since my previous life.
"It's a bit of a shame to invest the gold in navy bonds. The 4% return is ridiculously low compared to the businesses you're running."
That's right, Diego.
It's true that I have money, and as the crown prince, it's not that I mind spending it for the country, but this money needs to be used for industrialization and land development.
We need to keep investing in various industries and land development projects, making profits, and reinvesting. This cycle will continue forever. The industrialization and land development I'm leading will eventually end, but not now.
If there's no other way, I'll use gold, but there are people who will buy bonds besides me. There's no reason to spend my seed money on that, is there?
"I have to buy some too. That way, the people will trust and buy them, right?"
"I see."
I returned to Mexico City, talking to Diego like that.
There was a familiar face waiting for me in Mexico City.
It was Hernando Mora, of 'Mora Mines'.
"Hernando, I didn't expect to see you here. It's been a long time. Your complexion has darkened."
I had assigned him to handle the import and export of resources from South America. His face was tanned because he was on a ship.
"Haha, the sun is definitely strong in South America. But I've definitely taken care of the tasks you assigned me."
"Everything? I thought a few of them might not work."
"Hey, Your Highness. I've signed agreements for coal development in Colombia, guano in Peru, and saltpeter mines in Chile. The production volume was ridiculously small for us to buy all of it. At first, they were reluctant to jointly develop resources, but they all agreed when we offered them a generous amount of pesos and old weapons."
Selling weapons to the regimes of politically unstable South American countries would have been a pretty attractive offer.
"As expected. You've worked hard. How's the immigration going?"
I also gave him one more task when I sent him to South America. I asked him to find someone in South America who could take over the immigration company, like Reginald in Europe.
The population of South American countries at this time is incomparable to Europe, but they either speak Spanish or Portuguese, which is very close to Spanish. And they're already people who have decided to immigrate, unlike the Americans. It's hard the first time, but the second time is easier, so I was hoping for South American immigration.
"Yes, Your Highness. I've taken care of that too. I haven't met this Reginald from Europe, but the person I found seems to be just as good as him in terms of connections and charisma."
Hernando Mora started talking about the things he had experienced traveling between various South American countries, and I felt comfortable, as if I had met an old friend, and talked to him.
***
When news of the establishment of the central bank and the navy bonds spread nationwide, the newspapers under the influence of the landowners and the republicans also counterattacked.
They published articles opposing the establishment of the central bank.
To summarize the content, it was as follows:
——
1. The establishment of a central bank will strengthen the government's power, weakening local autonomy and authority.
2. If the central bank controls the country's financial system, the independence of individual banks and financial institutions will decrease.
3. The central bank's ability to increase the money supply will cause inflation.
4. The central bank can be politically biased.
5. Because of these side effects, President Andrew Jackson in the United States has refused to renew the charter of the 'Second Bank of the United States'.
——
Except for number 5, they were all just speculations, but it was enough to stir up local people and federalists who supported local autonomy. But it didn't have much effect on most citizens, because most of them were paying attention to the fact that the central bank would issue navy bonds if it was established, rather than the functions of the central bank.
The royalist media, as if they had been waiting for this, published counter-articles, saying that the claims of those who opposed the establishment of the central bank were all just assumptions, and that the United States' abolition of the central bank was just a reflection of President Andrew Jackson's personal preference for supporting local autonomy.
"Isn't this just a political struggle?"
"I was a little worried because I heard it was being abolished in the United States, but after reading the counter-article, it says that England also has a central bank established by the royal family."
In fact, the Bank of England was more like a joint-stock company run by private capital, but it was true that it was established by King William III.
The opposing public opinion was suppressed instantly, and public opinion was still overwhelmingly in favor of establishing a central bank.
The election is now two months away, and the landowners and the republicans, having been defeated in the public opinion battle, are in a situation where they can't do anything.
It's not a central bank with private shares like in England, but a kind of government agency, so it has to be controlled by the Ministry of Finance. If that's the case, it's like giving the royal family another weapon.
The landowners and the republicans have to stop it somehow, but if they continue to oppose the establishment of the central bank, they will be defeated in the election by the public opinion of citizens who support the navy bonds.
As Robert, a member of the legislature, was thinking that, someone came in.
"Sir, Speaker Rafael Manhino is here."
"Hmm? The landowners are quick. That's unexpected. Tell him to come in."
Robert, the head of the royalists, prepared to meet his political rival with a relaxed expression.
Obrigado pelo capítulo
ReplyDeleteThanks for this chapter
ReplyDelete