Date: October 10th, 1905 – Belgrade, Kingdom of Serbia
The late summer heat finally relented, giving way to the golden hues and crisp mornings of Balkan autumn. For Petar, the changing seasons mirrored a subtle shift in his focus. The immediate, urgent push for military modernization had seen its first tangible successes with the arrival of the Maxim guns and the establishment of the Ćuprija training school. While that crucial work continued under General Putnik's diligent oversight, Petar's attention was increasingly drawn towards the longer-term, arguably more fundamental, challenge of energizing Serbia's dormant economy. Though still a source of quiet complaint, the austerity measures were understood as a harsh necessity. Now, he hoped to offer his people a vision beyond mere sacrifice – a vision of growth and opportunity.
The three-month deadline he had given Milan Stojadinović and the nascent Royal Commission for National Resource Development was approaching. Peter had received brief, formal updates from Stojadinović via Colonel Mišić, indicating that the commission was hard at work, navigating the predictable labyrinth of inter-ministerial data gathering and occasional passive resistance from departments unaccustomed to such focused, high-level scrutiny of their domains. Peter had made it clear, through Mišić, that he expected Stojadinović to have the necessary access and cooperation, a royal backing that had smoothed several ruffled feathers.
On the morning of October 10th, Milan Stojadinović was ushered into Petar's private study, looking older and more seasoned than he had just three months prior. He carried a substantial report, its bulk suggesting the depth of the commission's initial labors. This meeting was still private, without other ministers present, as Petar wanted Stojadinović's unvarnished findings before considering how to present them to the broader government.
"Gospodin Stojadinović," Petar greeted him, a note of keen anticipation in his voice. "Your three months are up. I trust the commission has made progress on the tasks I set for it."
"Your Majesty," Stojadinović replied, his voice steady and confident. We have endeavored to meet your expectations. The initial phase of our work has been both challenging and, I believe, fruitful." He placed the report on Petar's desk. This document contains our preliminary findings and proposals."
Peter motioned for him to elaborate, and for the next hour, Stojadinović presented a summary of the commission's work. His presentation was clear, concise, and backed by a surprising wealth of newly compiled data.
On the geological surveys, the commission had identified three priority regions for intensive exploration: the coalfields of eastern Serbia, the iron and copper deposits around Majdanpek, and a lesser-known but potentially significant iron ore seam in the Kopaonik mountain range. Stojadinović reported that they had already entered into preliminary discussions with two reputable foreign geological survey firms—one French and one British—regarding contracts for detailed mapping and reserve estimation and had drafted a framework for how Serbian apprentices could be attached to these teams to gain practical experience.
Regarding mine modernization, the commission had focused its initial detailed feasibility study on the Vrška Čuka coal mine. "This mine, Your Majesty," Stojadinović explained, displaying a newly drawn map of the area, "while operating inefficiently with outdated equipment, possesses significant reserves of good quality coal. Its proximity to the Timok River and the planned railway extension towards the Danube makes it strategically vital for supplying future industry and potentially reducing our reliance on expensive imported coal for the railways. Our study outlines a phased modernization plan involving investment in new cutting machinery, improved mine safety protocols, and the construction of a dedicated rail spur. We project a threefold increase in output within two years of full implementation, with a significant reduction in production costs."
He then turned to the institutional proposals. The commission had drafted a detailed charter for a "Royal Serbian School of Mines and Metallurgy," proposing its location in Belgrade for proximity to the University and government departments, but with field campuses near key mining regions. The curriculum was ambitious, drawing on best practices from German and Austro-Hungarian technical schools, emphasizing theoretical knowledge and practical engineering skills. For the National Industrial Development Fund, Stojadinović presented a robust framework. It would be capitalized initially through a dedicated percentage of profits from modernized state-owned enterprises (like the Vrška Čuka mine, once profitable), supplemented by the Resource Development Bonds Petar had found intriguing. The Fund would operate with a degree of autonomy, governed by a board of experts, providing loans and equity investments to private and state-backed industrial projects deemed strategically significant.
"The guiding principle, Your Majesty," Stojadinović concluded, "is to create a virtuous cycle: state-led investment in resource development and education creates opportunities and revenue, which then fuels further industrial growth and diversification, ultimately strengthening the entire national economy and our capacity for self-reliance."
Peter listened with intense focus, interjecting with specific questions. Alex Volkov's mind processed the engineering aspects of the mine modernization, the Fund's financial projections, and the proposed surveys' logistical challenges. He queried Stojadinović on risk mitigation for foreign contracts, how to ensure the School of Mines attracted high-caliber students and faculty, and the mechanisms for ensuring the Industrial Development Fund made sound investment decisions free from political interference.
Stojadinović responded to each query with well-reasoned answers, demonstrating a grasp of detail that went far beyond theoretical economics. He acknowledged the difficulties—the lack of domestic expertise in some areas, the considerable upfront investment required, and the potential for resistance from those benefiting from the current, inefficient systems—but his proposals were consistently solution-oriented.
When Stojadinović had finished, Petar leaned back in his chair, a rare smile touching his lips. "Gospodin Stojadinović, this is exceptional work. You and your small commission have achieved more in three months than I hoped. This report is not just a collection of ideas but a practical blueprint."
He picked up the report, feeling its weight. "The Vrška Čuka coal mine modernization… this seems like an excellent starting point for a tangible project. A visible success there could build considerable momentum. And the School of Mines and Metallurgy is fundamental for our long-term self-sufficiency."
He made his decision. "The Royal Commission for National Resource Development will continue its work with an expanded mandate. I want you to proceed with finalizing contracts for the geological surveys in the three priority regions immediately. Regarding Vrška Čuka, I want a detailed engineering plan and a precise budget for the first phase of its modernization prepared within two months. We will find the initial capital for that, even if it means another difficult conversation with Minister Paču." A steely glint entered his eyes.
"For the School of Mines and the National Industrial Development Fund," Petar continued, "I want you to refine these charters into formal legislative proposals. I will then decide the best way to shepherd them through the government and the Skupština. It is time, Gospodin Stojadinović, to transform these blueprints into reality."
Stojadinović's face shone with pride and determination. "Your Majesty, I will be honored to carry out your commands. With your continued support, I am confident we can achieve these goals."
"You will have it," Petar assured him. "But be prepared for resistance. Entrenched interests do not yield easily. And the treasury, as Minister Paču constantly reminds us, is not a bottomless pit. Your plans must continue to be characterized by ambition and rigorous financial discipline."
After Stojadinović left, Petar felt a surge of energy. The path to economic strength was becoming clearer. This was kingdom building in its most fundamental sense: unearthing the land's wealth, cultivating its people's talent, and creating the institutions that would support sustained progress.
He knew funding these ambitious new economic initiatives would precipitate another round of intense financial discussions. Minister Paču would undoubtedly raise objections to new, large-scale expenditures, especially with the austerity measures already in place. Petar mentally steeled himself for that encounter. He would have to argue that these were not mere expenses but strategic investments that would, in time, alleviate the kingdom's financial burdens by generating new revenue streams and reducing reliance on imports.
He thought also of the other, darker undercurrents in his kingdom. The discreet reports from Colonel Mišić about the activities of Major Dimitrijević and his nationalist cohorts continued to be a source of unease. Petar hoped that he could begin to marginalize such extremist elements by fostering genuine national progress and by providing tangible improvements to people's lives and a sense of forward momentum under his strong leadership. A prosperous and confident Serbia, its people united in building a brighter future, would be less susceptible to the allure of clandestine conspiracies and reckless adventures.
The commission's promise was bright. But Petar, even in his relative youth and with the foreknowledge of Alex Volkov, understood that promises required relentless effort, unwavering will, and a considerable measure of political cunning to be fulfilled. He was ready for the challenge. The forging continued on multiple fronts as the Serbian autumn deepened.