The Crown Prince of France - Chapter 113

Chapter 113: Industrial Chain and Market

Count Mirabeau carefully pondered the Crown Prince's words, while also considering the current situation in France. His expression gradually became serious.

"Your Highness, but the most advanced steam engine technology is currently in the hands of the British. We can only replicate products from over a decade ago."

"By the way, I heard that the British recently developed a new steam engine, which already has the power of more than ten horses."

"You are correct," Joseph nodded. "That is why I am eager to establish industrial development zones, to attract investment and talent, and to invest in the research and development of new technologies."

Count Mirabeau looked somewhat dejected. "I wonder if we can catch up..."

Joseph’s face revealed a confident smile. "You must have faith. We are only temporarily behind."

"As long as we establish a basic industrial chain and form a positive industrial cycle, technological breakthroughs will be inevitable."

Count Mirabeau was still confused. "Your Highness, what do you mean by 'industrial chain' and 'positive cycle'?"

"It was my fault for being too hasty," Joseph apologized, waving his hand. "What I mean by 'industrial chain' is a series of industries involved in the development of a particular industry. These industries, when combined, form a chain."

Since Count Mirabeau was a key figure who could help Joseph push forward the industrial development of France, Joseph was patient and took the time to explain these concepts to him.

"For example, in the past, we spent a great deal of money to invite British textile machine technicians to help us develop the textile industry. But when they arrived, they found that even the simplest tools were unavailable, and they couldn’t start working."

"These small tools are actually part of the textile industry chain. Similarly, the cleaning and storage of raw materials such as cotton and wool, the manufacturing and maintenance of looms, the construction of workshops, the transportation and sale of products, and even the recycling of waste materials—all of these things are linked together."

"Altogether, these constitute the textile industry chain."

"Only when the entire chain develops healthily can we have a strong textile industry. Back then, we overlooked the industrial chain and thought that simply bringing in a few looms would allow us to catch up to the British textile industry."

Count Mirabeau immediately understood and nodded repeatedly. "So, we spent a lot of money, but the textile industry was still firmly controlled by the British. It turns out that the minor details behind the looms were what we lacked most!"

Joseph silently praised Count Mirabeau for his quick understanding.

He continued, "Therefore, if we want to develop the steam engine industry, we must pay attention to the industrial chain from the very beginning."

"Starting with the most basic coal and iron ore mining and transportation, followed by workshops that manufacture basic measurement tools, then workshops for printing blueprints and documents, and workshops to build testing platforms."

"Gradually, we would set up workshops to produce small parts, workshops to cast rough machine parts, and then workshops for assembling the entire steam engine."

"Finally, there would also be supporting industries such as the sales, maintenance, and on-site assembly of the steam engines."

"Only with all of these in place can we truly have the ability to manufacture steam engines. Otherwise, even if we can copy the latest British models, the British will soon leave us far behind again."

Count Mirabeau, who had already asked his servant to bring paper and pens, began to quickly jot down notes. These were concepts he had never heard of or even thought about, and they felt like a gateway to a new world.

That world was called "industrialization."

Joseph waited for him to finish writing, then continued: "The industrial chain is the foundation of an industry, but to allow the industry to flourish, we also need an 'industrial cycle.'"

"In simple terms, it's the process of 'capital - production - market - return of capital.'"

"Actually, that's not entirely accurate. The true starting point of an industry should be the market, as the market generates the motivation for production, which in turn attracts investment..."

What he was describing was something that would be widely known in the future, but at this time, only a little over a decade had passed since Adam Smith wrote The Wealth of Nations, which had only introduced the most basic concepts of capital operation. The more refined and practical ideas of later generations were still far off.

Joseph elaborated on these issues in more detail and finally said:

"So, for industrial industries, the market is always the most important. As long as the market is large enough and the profits high enough, no matter how great the obstacles, the corresponding industries will definitely develop."

Count Mirabeau furrowed his brow. "Your Highness, but France doesn't have many mines that require pumping, and we don't have automatic looms... The market for steam engines seems rather small."

Joseph shook his head. "There are many markets we need to explore."

"For example, people are currently using water mills and hydraulic presses. If we replace these with steam engines, the efficiency will increase dramatically."

"Although we don't have many mines, we have many farmlands that need irrigation. If each village had one or two steam-powered water pumps, we could significantly increase the amount of arable land and reduce crop loss during droughts."

"Also, the stamping machines I mentioned earlier could be used in almost all metal manufacturing industries."

He paused and changed to a more somber tone. "In fact, our biggest market deficiency is purchasing power."

"Purchasing power?" Count Mirabeau, still distracted, continued to write down the terms. He had become numb to hearing new terms by now.

"Yes, it refers to how much money people have to spend on products."

Count Mirabeau hesitated. "Your Highness, the nobility is still very wealthy..."

Joseph felt a bit helpless. The Count was focusing only on the upper classes and filtering out the vast majority of the poor.

"That is still not enough. If everyone—whether artisans or tenant farmers—had the money to purchase industrial products, then that would be the true foundation of industrial development—the market!"

He thought to himself: And to achieve this, a very difficult reform would be needed, as it would inevitably touch the interests of the old nobility.

Count Mirabeau was stunned, and after a long while, he slowly and firmly nodded. "You... you are absolutely right!"

The two of them continued their conversation until 5:00 in the afternoon. Joseph felt that he had covered the basic industrial concepts and was about to rise to take his leave.

"However, industrial development still needs to be set aside for now. I must first focus on the potato issue. Only when everyone is well-fed can we think about industry."

Count Mirabeau immediately said, "Your Highness, are you referring to the acquisition of potatoes? I have a friend who runs a grain business and has many dealings in the northeastern provinces. I can ask him to help."

"I believe that if I personally vouch for it, he could even provide the potatoes on credit and deliver them to your designated locations."

Joseph was overjoyed. "That's wonderful! Thank you so much, Count Mirabeau."

"It's nothing, Your Highness," Count Mirabeau replied with a bow. "I hope I can contribute to the great undertaking you have planned."

...

The next day, at noon.

In the luxurious villa of the Parisian socialite Madame Abel, a salon was being held, one that was in fact initiated by Count Mirabeau.

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