Chapter 113 Industrial Chain and Market

Mirabeau tasted the words of the Crown Prince carefully, and at the same time contacted the actual situation in France, his expression gradually became serious: "Your Highness, the most advanced steam engine technology is now in the hands of the British, and we can only imitate their products more than ten years ago.

"By the way, I heard that the latest steam engine built in England not long ago has the power of more than ten horses."

"You are right." Joseph nodded, "That's why I want to establish an industrial development zone as soon as possible to attract funds and talents to invest in the research and development of new technologies."

Mirabeau was a little disappointed and said: "I don't know if we can still catch up..."

A confident smile appeared on Joseph's face: "You have to have confidence. We are only temporarily lagging behind.

"As long as a basic industrial chain is built and a positive industrial cycle is formed, technological breakthroughs will be the inevitable result."

Mirabeau began to be confused again: "Your Highness, what do you mean by 'industrial chain' and 'forward circulation'?"

"I spoke too hastily." Joseph waved his hand apologetically, "The so-called industrial chain is a series of industries involved in the development of a certain industry, combined together to form a chain."

Mirabeau was an important figure who could help Joseph promote the development of French industry, so he was also very patient and told Mirabeau relevant knowledge and ideas.

“For example, we used to spend a lot of money to recruit British textile machine technicians to help us develop the textile industry, but when they came, they found that they couldn’t even find the simplest gadgets and couldn’t start work at all.

"The gadgets here are actually a link in the textile industry chain. Similar to them, such as the cleaning and storage of cotton and wool as raw materials, the manufacturing and maintenance of looms, the construction of workshops, and the transportation and storage of products. Sales, even waste recycling, etc.

“Together, these constitute the industrial chain of the textile industry.

"Only when the entire chain develops healthily can we have a strong textile industry. At the beginning, we ignored the industrial chain and thought that with a few looms, we could catch up with the British textile industry."

Mirabeau only felt that the clouds were clearing, and he nodded immediately: "So we spent a lot of money, but the textile industry has always been suppressed by the British. It turns out that these trivial things behind the loom are what we lack even more!"

Joseph Xinshuo is indeed a talented person from the era of great destiny.

He continued: “So if we want to develop the steam engine industry, we must pay attention to the industrial chain from the beginning.

“Starting from the most basic coal and iron ore mining and transportation, to the workshop that manufactures basic measurement tools, to the workshop that prints drawings and documents, and then to the workshop that builds test benches.

“It gradually transitioned to the establishment of workshops for producing small parts, workshops for casting rough machine blanks, and finally workshops for assembling entire steam engines.

“Finally, there are a series of supporting industries such as steam engine sales, maintenance, and on-site assembly.

"With these, we truly have the ability to manufacture steam engines. Otherwise, even if we can copy the latest models of British products, sooner or later we will be far behind again by the British."

While he was talking, Mirabeau had already asked his servant to bring a pen and paper, and began to record it seriously and quickly - these concepts were things he had never heard of and never thought of before, which made him feel like he had opened a new path to a new world. The door to the world.

That is the world called "industrialization".

Joseph waited for him to stop writing, and then continued: "The industrial chain is the foundation of the industry, but if you want the industry to flourish, you also need an 'industrial cycle'.

“To put it simply, it is the process of ‘funds-production-market-return of funds’.

"Actually, it's not accurate enough to say that. The real starting point of the industry should be the market, which generates the driving force for production and then attracts capital investment..."

What he said is almost universally known to later generations, but it has only been more than ten years since Adam Smith wrote "The Wealth of Nations", and he only put forward the most basic concepts of capital operation, which is far from the refinement and practicality of later generations. concept.

Joseph talked about these issues in detail and finally said:

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

Mirabeau frowned and said, "Your Highness, there are not many mines in France that require water pumping, and there are no automatic looms... The market for this steam engine seems to be very small."

Joseph shook his head and said: "There are many markets that we need to explore.

“For example, everyone is now using water-powered mills and water-powered press mills. If these are driven by steam engines, the efficiency will be greatly improved.

"Although we don't have many mines, we do have a lot of farmland that needs irrigation. If each village has one or two steam pumps, it can increase the cultivated land by several percent. It can also reduce crop losses during the dry season.

"And the stamping machine I mentioned before can be used in almost all metal manufacturing industries."

He paused and changed his tone to a lower tone: "Actually, the biggest shortcoming of our market is purchasing power."

"Purchasing power?" Mirabeau just copied it down first. He was already numb from hearing new terms today.

"It's just how much money people have to spend on products."

Mirabeau hesitated and said: "Your Highness, the nobles are still very rich..."

Joseph was a little helpless. This man had directly filtered out the vast majority of poor people.

"That's not enough. If everyone, I mean whether they are craftsmen or tenant farmers, have money to buy industrial products, that's what industrial development really needs - a market!"

He thought to himself: To achieve all this, a very difficult reform is needed, because this will definitely touch the interests of the old nobles.

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

The two chatted until five o'clock in the afternoon. Joseph felt that the basic industrial concepts had been roughly discussed, so he was about to stand up and leave: "But industrial development must be put on hold for the time being. Right now, I have to work on potatoes first. The only way is to let everyone Only when you have a full stomach can you engage in industry.”

Mirabeau immediately said: "Your Highness, are you talking about purchasing potatoes? I have a friend who deals in grains and has a lot of business in the northeastern provinces. I can ask him to help.

"I think if I guarantee it, he should be able to buy it for you on credit first, or even transport it directly to the place you specify."

Joseph was overjoyed: "That's great! Thank you very much, Count Mirabeau."

"This is nothing, Your Highness." Mirabeau bowed and gestured, "I hope I can contribute to the great cause you have planned."

…

Noon the next day.

In the luxurious villa of Paris socialite Madame Abel, a salon actually initiated by Mirabeau is being held.