Life of Being a Crown Prince in France - Chapter 1557 - 1463: Prussia's Industrial Development Plan

“That is simply a nightmare!” Louise snorted, “You must compensate me for the torment I suffered. For example, by increasing the delivery of some reasonably priced coal.”

Baron Trudeun reached out and wrapped his arm around her slender waist, laughing: “Are your eyes only set on the black coal?”

The Prussian Queen forcefully twisted, trying to shake off his piggish hands.

But Trudeun held her tighter, pulling her into his embrace:

“Darling, let us set our sights further ahead.”

The woman stopped struggling: “What do you mean by further ahead?”

“I sent people to investigate my assets. I mean, the steel plants I hold shares in.” Governor Aisen began moving his hands all over, “I must admit, they have a very bright prospect for development. They will certainly bring me, oh, us a wealth of fortune in the future.”

Louise immediately replied: “Then make sure they get enough coal.”

“Coal, yes, coal.” Baron Trudeun nodded, “Rest assured, there will be plenty of coal. And I guarantee it will be priced lower than the market rate.

“In fact, the first batch of 10,000 tons of coal has already left Dortmund. More will follow, and no department will be able to discover any issues. You see, my experience is not something that little prince can compare to.”

“Oh darling, you are truly considerate.”

“I told you, we will have a future full of brightness.” The man said as he began unbuttoning his shirt, “Firstly, given Prussia’s current scale of steel refining, it won’t even use up a seventh of the coal I can provide.”

Louise cooperatively leaned closer to him: “I have asked Mr. Beirons to draft a large-scale government procurement plan to ensure all these factories are profitable. They will swiftly expand their production capacity.”

Baron Trudeun shook his head: “How much money can your Ministry of Finance allocate? 2 million talers, or 3 million? Too little.

“To develop quickly, we must rely on the market. And not only Prussia’s market, but also the entire Germany, Ottoman, and even Russian markets.

“This means we have to compete with Saxony, Austria, Cologne, and certainly confront French goods in the future.

“But you know, our steel costs simply cannot compare with these rivals.

“Why is that? Because our production capacity is too low, leading to equipment, management, and transportation costs that cannot be diluted.

“Even in the current situation, even in another 30 years, we may still be unable to compete with Austria, let alone France.

“Are you prepared to continuously support the steel plants with government funds?”

Even someone like Louise, with a rudimentary understanding of industrial development, would be bewildered by Joseph’s deceptive theories, let alone Beirons, Prussia’s newly appointed industrial reform commissioner.

The Prussian Queen thought hard, nodding her head.

Baron Stein and other reformists planned that at most, with fiscal support for a decade, Prussia’s steel industry could begin self-sufficiency and even generate profit.

But according to the words of her lover, solely relying on government procurement will make it very hard for Prussia’s industry to develop.

Actually, Joseph was deliberately altering concepts here.

Prussia’s government support model was highly effective; historically, it took them indeed only a decade to lay the groundwork for the steel industry.

Because government procurement funds have a leverage effect. As long as steel plants have guaranteed orders, they will naturally expand into civilian markets such as pots, ladles, and hoes, and private capital will flow in continuously.

Even without foreign markets, it could be enough for Prussia to develop two or three large-scale steel plants.

Louise immediately asked nervously: “Then what do you think should be done?”

“Simple, expand the scale.” Baron Trudeun presented a look of expertise, “With larger scale, costs will naturally lower.”

Louise anxiously said: “But this requires a huge amount of money. You know, I simply don’t have enough funds.”

The “expert” immediately responded: “See how the French people do it. Industrial Development Fund.

“Aggregate the nobles’ money together and invest it all into industry. In a short time, extremely competitive companies can be fostered.

“You can also establish a similar fund, encouraging Prussian nobles to invest.”

“But what if they’re unwilling to spend money?”

“There are many ways, such as linking the amount invested in the fund directly to the Royal Family’s favor towards them. Officials’ promotions are influenced by the fund amount. Also, raising the fund’s minimum interest rate ensures profitable returns.”

Louise excitedly rubbed against him: “You are truly a genius! If you were a Prussian, I would surely make you the Prime Minister.”

But Baron Trudeun, still unsatisfied, continued: “This is just the least efficient means.”

“Is there an even better way? Tell me quickly!”

“Simple, just continue imitating France.” The man smiled, “Let the Prussian Royal Bank issue banknotes. Your Ministry of Finance will immediately have large amounts of funds.”

Louise hesitated: “This could be problematic. Just like the treasury notes during the Seven Years’ War…”

Prussia, during Frederick’s era, had issued paper currency for a time due to military expenses pressure, resulting in rapid devaluation and nobody caring for it. Post-war, Prussia took nearly 20 years to gradually reclaim these “waste papers,” stabilizing the financial market.

Baron Trudeun casually said: “Restraint and regulation. As long as these two gentlemen assist, banknotes will have no issues.

“You can issue a decree from the beginning, stating that the banknote scale must not surpass taler silver coins. And establish a financial regulatory committee to limit banknote issuance.

“In fact, even printing an additional ten million or twenty million talers in banknotes would have no impact on financial health.

“Just think about it, investing all this money into the steel industry will foster incredibly powerful factories.”

Yes, Joseph knew very well that any self-regulating policy would eventually turn into a joke in history. Any decree or regulatory agency would ultimately be easily bypassed with excuses.

Without a complete modern financial system, issuing banknotes without causing inflation can only exist in fantasy.

Moreover, even if Prussia wrought a miracle and didn’t recklessly print banknotes, his intentions would still be accomplished.

All he wanted was for Prussia to recklessly expand in the steel industry and eventually suffer the repercussions of industrial development laws.

Of course, in this process, France would lend a small push.

Louise was nodding repeatedly, pressing Baron Trudeun onto the chair, moving closer alluringly: “Darling, you are simply, ah, my angel, ah, meeting you is truly my fortune…”