I Became The Crown Prince Of The Mexican Empire - Chapter 76



Only Noblemtl

Central Bank and Navy (3)

“At this rate, I will become the most traveled person in the world, Your Majesty.”

“Haha, wouldn’t that be nice since it would leave a mark on history?”

“It wouldn’t have been so great if I had to ride a horse like I used to. Every time I ride the train, my respect for it grows.”

Diego said jokingly.

‘That makes sense.’

Diego has been with me on my long journeys. He went with me to my first California colony, came back with me, went to England, and traveled to California for the second time, Texas, New Mexico, and many other places.

By today’s standards, few people would travel such long distances frequently.

After stopping at the newly completed port of Veracruz, he crossed the Mexican Empire by rail.

This is ‘Puerto Pacífico’

In my previous life in Mexico, it was a port city called ‘Lazaro Cardenas’. In this world, a port is under construction, so I guess it’s destined to become a port city.

“It’s only been six months since construction began? That’s a lot faster than before.”

I asked Alberto, the chief architect who had come out to greet me, about the port under construction.

“As expected, you figured it out right away. It seems to be fast because it’s similar to what was just built in Veracruz. Unlike the port of Veracruz, it’s a small fishing village, so there are almost no obstacles in the way.”

“I see. Let’s take a look around.”

The largest port on the Mexican Pacific coast at this time was Acapulco. Acapulco was the main maritime trade route between Mexico and the Philippines during the colonial period.

Acapulco was the annual arrival point for ships departing from Manila in the Philippines, and was also an important international trade hub for the exchange of goods between Europe, Asia, and the Americas.

There are several reasons why I chose this port, which I named ‘Lazaro Cárdenas’ in my previous life and ‘Puerto Pacífico’ in this world.

The main reason is that it is a coastal area right below Las Truchas, an industrial city that is home to Mexico’s largest iron ore mine and the headquarters and factories of Estrada Steel and Roque Precision Machinery.

I could have connected the railway to Acapulco and traded with it, but the existing infrastructure wasn’t that great by my standards, so there was no reason to take that distance.

“If this is what it will be like in 6 months, can we expect it to take about 2 years?”

I looked around the scene and asked Alberto questions.

“Yes, as you have pre-ordered, some of the ports will be ready for use within six months.”

“I see.”

I looked around the site, but I didn’t see anything that needed to be pointed out or improved.

“There’s nothing to say. You’re doing a great job, so just leave it like this.”

“Thank you, Your Majesty.”

Alberto, who was guiding me around the site, seemed to relax a little after hearing what I said.

Although it was a short distance, the railroad from Las Truchas to Puerto Pacifico was still under construction, so this section had to be traveled by horseback.

As it was not a long distance, we rode slowly on horseback, and Diego said:

“Your Majesty, it is good that you have invested in the port and the shipyard, but will you be able to fill all of that shipyard as well?”

“It depends on how many Navy bonds are sold, but if they don’t sell, I plan to buy them all, so I can fill it up. My investment return will be low, though.”

The government budget is tight due to various projects and debts. I can’t force the government to spend according to my plan.

The method I chose to use to raise the money to build a port and shipyard on the Pacific coast was to issue corporate bonds for the Mexican Shipbuilding Corporation, a public enterprise, and buy them all myself.

Although it wasn’t a large sum, it was a good choice because I would receive interest and later on, the income would be distributed or reinvested according to my share.

Although it is a public enterprise, it is possible because it is a company that has income. The port can receive fees and can also make profits from real estate.

Shipyards can build small and medium-sized docks for civilian sales, but the problem is the large docks. These docks are actually built for warships, and the government has to place orders for them.

“You are thinking of using gold.”

“If it doesn’t work out, I guess I’ll have to do it that way.”

“I don’t think that will happen. Eventually, a central bank will be established, and bonds will sell well. I plan to buy as much as I can.”

“Hahaha, thanks for that.”

If I put my mind to it, I could really raise the money needed to build a navy.

My companies don’t have a lot of cash because they reinvest all the money they earn without paying dividends, but there was something else that was generating a huge amount of income: a gold mine.

The gold mine is managed by one of my companies, Mora Mines, but the mine itself is my personal property.

Now that the California Gold Rush is well and truly over, the gold I have acquired from the major mines so far is being made into bullion and stored in the palace vaults.

‘It was said that during the California Gold Rush, about 340,000 kilograms of gold were mined.’

I’ve done a lot of research on the California Gold Rush in my past life, so I’m pretty sure that’s right. The original Gold Rush was a hot event lasting only seven years, from 1848 to 1855. In this world, I monopolized the major profitable mines, and it was less hot than the US, so it took ten years.

It was reported that in the early days of the gold rush, profitability was so low that half of the gold mined had to be paid as daily wages, but with the introduction of various machines, profitability gradually increased, and ultimately 30% was paid, including commissions and wages.

‘There are 143,000 kilograms of gold currently stored in the palace vault, so if we calculate this backwards, it means that I monopolized 60% of the gold rush.’

The remaining 40 percent would have gone to the tens of thousands of people who came to California in search of gold.

You might think that’s a small amount of gold for someone who monopolizes major gold mining areas, but it’s still too much gold for an individual to own.

It was the result of the seed I had been thinking about since my previous life and the first seed I sowed when I came to this world.

“It would be a bit of a waste to invest gold in naval bonds. A 4% return is a pittance compared to the businesses Your Majesty is engaged in.”

As Diego said.

It is true that I have money, and as the crown prince, I do not mind spending it for the country, but this money should be used for industrialization and national development.

We must continue the cycle of investing in various industries and land development projects, making profits, and investing again. Someday, the industrialization and land development that I lead will end, but not now.

If there is no other way, I will use gold, but there are other people who will buy bonds besides me, so why would I spend my seed money on that?

“I should buy some too. Then the people will be able to live with confidence.”

“okay.”

So I returned to Mexico City, talking with Diego.

In Mexico City, a face I hadn’t seen in a long time was waiting for me.

It was Hernando Mora of ‘The Mora Mines’.

“Hernando, I didn’t expect to see you here. It’s been a long time. Your face has gotten a little pale.”

He was in charge of importing and exporting resources from South America, and his face was completely tanned, perhaps because he had been on a ship.

“Haha, South America certainly has strong sunlight. Still, I have definitely completed the mission Your Majesty gave me.”

“All of them? I thought some of them might not be possible.”

“Your Majesty, we have signed an agreement to develop coal in Colombia, guano in Peru, and saltpeter in Chile. The production is too small for our use if we just buy it. At first, they were reluctant to jointly develop the resources, but when I told them I would sell them old weapons along with a generous amount of pesos, they all agreed.”

For the politically turbulent regimes of South American countries, selling weapons might have been a very lucrative proposition.

“I see. You’ve worked hard. How’s the immigration situation?”

I sent him to South America and asked him to do one more thing: find someone who could take charge of an immigration company in South America like Reginald in Europe.

At this time, the population of South American countries was incomparably small compared to Europe, but they either spoke the same Spanish or Portuguese, which is very close to Spanish. In addition, like Americans, they were people who had already decided to immigrate once. It was difficult once, but easy twice, so I was looking forward to immigrating to South America.

“Yes, Your Majesty. I have taken care of that part as well. I have not met anyone called Reginald in Europe, but I think the person I found would be just as good in terms of connections and friendliness.”

Hernando Mora began to tell me about his experiences traveling to various countries in South America, and I felt comfortable talking to him as if I was meeting an old friend.

***

As news of the establishment of a central bank and naval bonds spread across the country, the press under the influence of the landlords and the Republicans also fought back.

This is an article expressing opposition to the establishment of a central bank.

To summarize, the contents were as follows.

——

1. The establishment of a central bank will strengthen the power of the government and, accordingly, weaken the autonomy and authority of local governments.

2. If the central bank takes control of the country’s financial system, the independence of individual banks and financial institutions will be reduced.

3. The central bank will have the power to increase the money supply, which will cause inflation.

4. Central banks can be politically biased.

5. Due to these side effects, President Andrew Jackson in the United States refused to renew the charter of the Second Bank of the United States.

——

Except for number 5, these were just speculative words, but they were enough to stimulate local people and federalists who supported local autonomy. However, they had little effect on the majority of citizens, because most citizens were initially focused on the fact that the central bank would issue naval bonds when it was established, rather than on the functions of the central bank.

Then, as if they had been waiting, the pro-imperialist press published a rebuttal article, claiming that the arguments of those opposed to the establishment of a central bank were all mere conjecture and that the abolition of the central bank in the United States was merely a result of President Andrew Jackson’s personal tendency to advocate local autonomy.

“Isn’t this just a political fight in the end?”

“I was a little worried when I heard that the process of abolishing it was underway in the US, but when I read the rebuttal article, it said that there is also a central bank established by the royal family in the UK.”

In fact, the central bank of England was closer to a joint-stock company run by private capital, but it was established by King William III.

The opposition was quickly suppressed, and public opinion was still overwhelmingly in favor of establishing a central bank.

With only two months left until the election, the landlords and the Republicans, who lost the battle of public opinion, are in a situation where they can do neither this nor that.

It is not a central bank with private ownership like the UK, and as a government agency, it cannot help but be controlled by the Treasury. In that case, it would be like putting another weapon in the hands of the royal family.

The landlords and the Republicans had to stop it at all costs, but if they continued to oppose the establishment of the central bank, they would be defeated in the elections by public opinion in favor of naval bonds.

In this situation, what choice would they make? That was what Congressman Robert was thinking.

“Sir, President Rafael Manjino has come to visit.”

“Hmm? The landlords are faster? That’s unexpected. Tell them to come in.”

The leader of the Imperial faction, Senator Robert, prepared to meet his political opponent with a relaxed expression.