Empire Rising: Spain - Chapter 121 - 109: Barcelona Industrial Zone

Chapter 121: Chapter 109: Barcelona Industrial Zone

Since industrial aid and financial assistance have been obtained from Austria-Hungary, the next step is predictable: relying on these aids to build larger-scale industrial zones.

The Seville Industrial Zone in the Andalusia Region was previously planned, but its geographical location does not seem as favorable as imagined.

The main issue is that Seville is located at the southernmost part of Spain, and transporting industrial goods to the northern regions of Spain requires more time.

According to the government’s industrial zone construction plan, another industrial zone needs to be built in the north to achieve the goal of complementing Seville from the south to the north.

The reason for choosing Barcelona is because it is already an industrial city. Although the scale of the industry is not large, the advantage is its proximity to the coast, making industrial material transportation more convenient.

Additionally, there’s another major reason for selecting Barcelona as the industrial base: the government’s control over Catalonia.

After the establishment of the industrial base, it will create a large number of industrial jobs. Some of these jobs will be offered to Catalans, but on the condition that they must be proficient in Spanish.

Another portion of the jobs will attract some Spaniards to Catalonia, in order to reduce the percentage of Catalans in the Catalonia Region.

Although the population of Catalonia mostly consists of Catalans, their overall scale is not high.

By diluting the proportion of Catalans in Catalonia, the goal of stabilizing Catalonia can be achieved.

After all, not every ethnic group wishes to seek more autonomy or even independence like Catalonia; many are willing to comply with Spanish rule and support the country.

Moreover, not all Catalans have the same mindset. Led by Prime Minister Prim, most Catalans do not have independence thoughts. They recognize the concept of Spain and firmly believe they are Spaniards.

Through the influence and assimilation of Catalans, combined with diluting their proportion, the Catalonia region can be stabilized.

Catalonia is still very important to Spain. Only when this region is stable can the Spanish Government build a defense line via the Pyrenees Mountains to ward off attacks from the European Continent.

The industrial zone is located in the northern suburbs of Barcelona, with an investment exceeding 15 million Pesseta for the first phase of the industrial base construction.

After the completion of the first phase, it is expected to provide at least 20,000 jobs in the Catalonia region and increase Spain’s steel output by 10,000 tons and 100,000 tons respectively.

The steel output of 10,000 tons is certainly small compared to the future, and even compared to the WWI period, it’s just a fraction.

But the issue is that now it’s 1870, a year when steelmaking technology was not very advanced. Although the specifics of steel outputs in various countries are unclear, the industrially strongest British Empire currently produces over just 300,000 tons annually.

The industrial giant impression of the United States had an annual steel output of only about 60,000 tons last year. The newly unified superpower Germany, the entire German Empire combined, had only reached 250,000 tons of steel output.

Under these circumstances, the first phase of industrial base construction in Barcelona can already provide at least 10,000 tons of steel output and 100,000 tons of pig iron output, which is quite a commendable level.

The first phase of construction alone requires at least two years, and coupled with production, it may take three years to achieve these plans.

This is all under the aid from Austria-Hungary. If Spain were to develop the industrial base independently, the construction time might double.

After all, the toughest challenge now is not the construction of the industrial base, but the steel-refining technology in various countries. Without advanced steelmaking technology, even building a larger industrial base would result in small-scale and poor-quality steel production due to backward technical levels.

Carlo is also highly focused on the construction of the Barcelona Industrial Base. Although the scale of the industrial base is generally not large, it is still a considerable enhancement for Spain.

Once the industrial base is completed in three years, Spain’s industry would have strengthened to a certain extent, ranking among the forefront under the great powers.

If subsequent construction goes smoothly, the scale of Spain’s industry could catch up with Italy and Russia.

Southern Italy is not conducive to industrial development, while Russia started late and its domestic economy was chaotic, only gradually expanding industrial scale by the end of the century.

Tsarist Russia’s steel output was below 100,000 tons before 1878, which was quite low compared to other powers.

During the same period, the steel output of England and France and Germany had increased to several hundred thousand tons, with the smallest, France, maintaining around 300,000 tons.

But the most rapid growth was actually in the United States, far from the European Continent. The US had only about 70,000 tons of steel output now, but ten years later, it will increase to over one million tons; such a growth rate is simply astounding.

Thirty years later, the US steel output had surpassed ten million tons, becoming the first among all great powers to exceed ten million tons.

The explosive growth in steel output across countries has a particularly important reason: the advancement of steelmaking technology, which is also why Carlo pays close attention to the industrial base construction.

Developing industry now is not too late, as the industrial construction in some countries is still in the early stages. Carlo does not demand Spain’s industry to achieve astonishing results in a short time, but rather achieve stable growth and lay a solid foundation.

Spain’s colonial history in the Latin American Countries can strengthen relations with these countries, opening up their markets to Spanish industrial products through economic alliances.

Alongside Spain’s plan to expand in African Colonies, and cooperate with nearby countries like Portugal, there will not be a lack of markets in the future.

As long as industrial development is not blind, and does not pursue overall industrial scale, significant economic crises will not erupt under steady progress.

The economic crisis in the United States was due to its blind growth in industry, fluctuating from several hundred thousand tons to several million tons in just twenty to thirty years, leading to the country being trapped in an economic crisis vortex.

As long as Spain’s industry develops steadily, any influence from other countries’ economic crises will merely affect import and export trade.

Along with the construction of the industrial base, one matter must be placed on the agenda: the restructuring of the banking industry.

Besides the Royal United Bank established by Carlo, Spain also has other banks.

However, these banks are either small private banks established by nobles or capitalists, or semi-official banks established by local governments.

No matter what bank they are, the government lacks control over them, leading to some banks having decayed institutions.

The reason Carlo’s Royal United Bank is welcomed by the public, besides the goodwill and support he established before, is his personal promise that the Royal United Bank would never go bankrupt and all depositors’ savings would be guaranteed.

A King’s promise in this era is still very valuable, unless this King doesn’t wish to carry out his duties, he must execute his promise.

Preparing for bank restructuring is also to prepare for the future industrial development of Spain. Industrial development certainly can’t rely solely on the Royal Family’s assets; it also needs a large number of civilian enterprises and factories.

Restructuring the banking industry and raising enough funds to support civilian enterprise development is part of Carlo’s plan.

Spain, being a relatively small country, certainly doesn’t need so many banks. Besides the Royal Family’s Royal United Bank, the Spanish Government will also establish a National Bank.

Together with several integrated large banks, it essentially meets Spain’s banking needs. The public can freely choose which bank to store their money, and competition among banks will lead to development.

By reorganizing these banks, the Royal Family and government can invest in civilian banks. There’s no need to worry that these civil capitals would reverse influence the government, as the government and Royal Family would profit even more.

In addition, the government and Royal Family will have their own banks, thus strengthening Spain’s capital while controlling it, ensuring the capital serves them rather than the government being enslaved by capital.

Restructuring banks has another benefit: when the nation needs funds, the consolidated large banks alone can provide a portion of the needs.

Banks in this era are absolutely profitable, without a doubt. Along with Spain’s industrial and economic development, Spanish banks will experience a golden era of development in the future.

Spanish banks can also extend their influence to neighboring countries like Portugal and African Colonies, including some countries in Latin America.

Industry and finance are not only the most profitable sectors in this era but are also vital for a nation’s development. By vigorously developing the financial sector, Spain can achieve economic control over Portugal and exert more economic influence over Latin American countries.

Although restoring the territories of the Sun Never Sets Empire is already impossible, Spain still hopes to become a major power-level country and challenge for a top five place in Europe.

Since it is a banking restructuring plan, it is naturally best initiated by the government.

If the Royal Family initiates it, first, it would not be very legitimate, and second, it would create a negative impression among the public, as if targeting other banks for the Royal United Bank.

If initiated by the government, any discontent from civilian banks would fall on the government and naturally have nothing to do with Carlo.