Chapter 566: What You Scheme for Might Be Something I've Grown Tired Of
Joseph was slightly surprised and asked, "It seems you need to mobilize a significant amount of funds. Could you explain in more detail?"
"Of course, Your Highness," Mirabeau responded promptly.
"Recently, the Development Fund has entered an exceptional period of rapid growth.
"This is undoubtedly thanks to the favorable tax policies and market reforms you've implemented. Factories in Lyon, Nancy, Saint-Étienne, and even the Southern Netherlands have seen substantial increases in revenue.
"Did you know? March and April's order volumes doubled consecutively. Every factory is scrambling to hire more workers.
"But as a result, factories are experiencing tight cash flows due to the massive amounts needed for raw material procurement alone.
"These days, the Development Fund's headquarters is busier than a ball at Versailles. Every day, factory managers crowd in, all looking for additional investments from the fund."
Mirabeau offered a helpless smile.
"However, the fund's account currently holds only 4.2 million francs, and that's reserved for the next dividend payout."
Joseph looked at him and asked, "So you're proposing to invest those funds, including the budget for the second phase of the Palace of Scholars?"
"That's my idea," Mirabeau nodded enthusiastically.
"Injecting funds into the factories now could yield substantial returns. We could assure fund subscribers of significantly increased dividends next period while delaying the current payout. I'm confident many would accept this.
"As for the Palace of Scholars, the current completed portion has only a 12% occupancy rate, even with the special allowances you granted to Academy members.
"My team's evaluation suggests that as long as we finish the rest of the project by April next year, it won't impact the talent recruitment program. By delaying the construction, we could free up 1.7 million francs.
"Combining this with funds raised privately, we'd have 10 million francs to invest in expanding factory production. This could increase our industrial capacity by at least 20% within the year!"
Joseph observed Mirabeau's excited expression calmly. Given the reforms and new technologies he'd introduced, France's industrial boom didn't surprise him.
He nodded. "Please draft a formal proposal on this and submit it to me promptly."
"Yes, Your Highness."
The next morning, the plan was delivered to the Tuileries Palace. As Joseph reviewed it, a smile tugged at his lips.
Factories in Lyon alone had received more than 3 million francs worth of new orders in April. Steam engines from Nancy had achieved large-scale exports for the first time. Products like iron goods, paper, wine, furniture, carriages, and even Paris Cola were experiencing explosive demand.
When Joseph turned to the order trends graph, he saw a near 90-degree upward spike starting mid-March.
But something made him pause. He quickly flipped to the section detailing the sources of these orders.
The pie chart showed that German and Italian regions accounted for enormous portions, dwarfing domestic French orders.
A suspicion crossed Joseph's mind. He asked Mirabeau, "Do you know the domestic sales growth rates in regions like Austria or Bavaria over the past six months?"
Mirabeau thought for a moment before replying, "If I recall correctly, it's around 2% for Austria and 1.6% for Bavaria."
"And for Sardinia and Tuscany?"
"3.5% and 3%, Your Highness."
Joseph immediately frowned. "Their domestic sales growth is so modest, yet they're placing large orders. Who are they planning to sell to?"
Mirabeau hurried to explain.
"Your Highness, there could be many reasons. For instance, our intelligence data might have significant margins of error."
In this era, governments didn't routinely publish economic statistics. In fact, such data was often treated as classified information. Intelligence agencies had to gather data themselves, and their efforts were often met with intentional misinformation from rival nations.
Mirabeau continued, "Another possibility is that our goods are taking over markets that previously belonged to other countries. For example, in iron goods, Austria and Bavaria used to dominate the German region. Now, our products have seized over a third of that market."
Joseph maintained a neutral expression as he continued reading. He soon noticed another anomaly: over the past two months, most new orders were going to medium and large companies. Small factories had barely received a share.
A growing unease stirred within him. It was odd that even Italians, who historically prioritized low costs, were favoring French goods over cheaper alternatives.
Closing the proposal, Joseph turned to Mirabeau and said sternly,
"For now, hold off on injecting large sums into the factories. In fact, it might be better to slow production rates. Something about this doesn't feel right.
"I'll conduct a thorough investigation before making any further decisions."
Mirabeau's face clouded with worry. "Your Highness, this could be a God-given opportunity for growth! Without sufficient funds, many factories might fail to complete their orders on time."
"No. We cannot afford to take risks. Please proceed as I've instructed."
Joseph's thoughts turned to a tactic often used by certain financial empires in later centuries:
First, flood a target economy with capital to create an economic boom.Then, abruptly tighten liquidity by raising interest rates, triggering a financial crisis.As businesses collapse en masse, the financial empire would swoop in and buy them out for pennies on the dollar.
France's current situation bore an unsettling resemblance to this strategy.
In the volatile geopolitics of Europe, Joseph couldn't afford for France's economy to suffer a blow. Such a crisis would render the nation incapable of waging war.
At the same time, Mirabeau's concerns were valid. If Joseph's instincts were wrong, delaying investments could cost France a historic opportunity for industrial growth.
Joseph motioned to Émond at the door.
"Please summon Director Fouché."
"Right away, Your Highness."
Two hours later, Fouché listened intently as Mirabeau explained the situation. Joseph then gave his orders:
"Director Fouché, I need you to verify these transactions as quickly as possible. If there's any irregularity, I must know immediately."
"This is my duty, Your Highness," Fouché replied, bowing. But he added,
"If the investigation takes too long, it could seriously impact many factories."
Joseph nodded slightly.
"So, what do you suggest?"
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