Chapter 111: Barcelona Industrial Zone
Since obtaining industrial aid and financial aid from the Austro-Hungarian Empire, the next developments could already be anticipated, namely relying on this aid to construct larger-scale industrial zones.
The Seville industrial zone in the Andalusian region was previously planned, but currently, its geographical location does not seem as favorable as imagined.
The main issue is that Seville is located in the southernmost part of Spain, so transporting industrial products from here to Northern Spain requires more time.
In the government’s industrial zone construction plan, it is necessary to construct another industrial zone in the north, achieving the purpose of north-south coordination with Seville.
The reason for choosing Barcelona is that Barcelona was originally an industrial city. Although its industrial scale is not large, its advantage is proximity to the sea, making transportation of industrial materials more convenient.
In addition, selecting the industrial base in Barcelona has another major reason, which is the government’s control over the Catalan region.
After the industrial base is established, it will create a large number of industrial jobs. Some of these industrial jobs will be provided to Catalans, but the requirement is that they must be proficient in Spanish language.
Another portion of jobs will attract some Spaniards to come to the Catalan region, used to reduce the proportion of Catalans in the Catalan region.
Although the population of Catalonia is mostly Catalans, the overall scale of Catalans is not high.
By diluting the proportion of Catalans in Catalonia, it can also achieve the purpose of stabilizing Catalonia.
After all, not all ethnic groups want to seek more autonomy or even independence like Catalonia; there are still many ethnic groups willing to submit to Spain’s rule and support this country.
Moreover, Catalans are not monolithic. Most Catalans, led by Prime Minister Primó, have no idea of independence; they quite recognize the broad concept of Spain and firmly believe themselves to be Spaniards.
Through the two methods of influencing and assimilating Catalans as well as diluting the proportion of Catalans, the Catalan region can be stabilized.
Catalonia is still very important to Spain. Only when this region is stable can the Spanish Government form a defense line through the Pyrenees Mountains to resist attacks from the European Continent.
The industrial zone is located in the suburbs north of Barcelona, and the construction investment for the first phase of the industrial base exceeds 15 million pesetas.
After the construction of the first phase of the industrial base is completed, it is expected to provide at least 20,000 jobs for the Catalan region and increase Spain’s steel output by 10,000 tons and pig iron output by 100,000 tons respectively.
10,000 tons of steel output is naturally very small compared to posterity, and even compared to the World War I period, it is just a drop in the bucket.
But the problem is, this is 1870 when steelmaking technology is not very advanced. Although the steel output of various countries is not very specific, the current most powerful industrial power, the British Empire, has an annual steel output of just over 300,000 tons.
The United States, the industrial power in people’s impressions, had a steel output of only about 60,000 tons last year. The newly unified superpower Germany, the entire German Empire’s steel output has just broken through 250,000 tons.
In this situation, the first phase of industrial construction of a Barcelona Industrial Base can provide at least 10,000 tons of steel output and 100,000 tons of pig iron output, which is already quite a good level.
Just the construction of the first phase requires at least 2 years, and plus the time to start production, it may take three years to achieve this plan.
And this is still under the aid of the Austro-Hungarian Empire. If Spain develops the industrial base independently, the time to complete the industrial base might double.
After all, the most difficult thing now is not the construction of the industrial base, but the steel smelting technology of various countries. Without relatively advanced steelmaking technology, even if a very large industrial base is constructed, production will suffer from small scale and poor quality due to backward technical levels.
Carlo also attaches great importance to the construction of the Barcelona Industrial Base. Although the overall scale of the industrial base is not large, it is a significant improvement for Spain.
When the industrial base is completed three years later, Spain’s industry will have achieved certain strengthening, at least ranking among the top among the great powers.
Even if subsequent construction goes smoothly, Spain’s industrial scale can catch up with Italy and Russia.
Southern Italy is not very suitable for industrial development, while Russia, due to its late start and domestic economic chaos, only gradually elevated its industrial scale by the end of the century.
The Russian Empire’s steel output remained below 100,000 tons before 1878, which is somewhat too low compared to other great powers.
During the same period, the steel outputs of Britain, France, and Germany had all risen to hundreds of thousands of tons, with the lowest, France, maintaining around 300,000 tons.
But the one with the most ferocious growth is actually the United States, far from the European Continent. The United States currently has a steel output of only about 70,000 tons, but ten years later, it will rise above one million tons; such a growth rate is simply exaggerated.
And 30 years later, the United States’ steel output broke through 10 million tons, becoming the first among all great power countries to exceed 10 million tons in steel output.
The explosive growth in steel output of various countries has a particularly important reason, which is the growth in steelmaking levels; this is also why Carlo pays great attention to the construction of the industrial base.
Developing industry now is not too late; even some countries’ industrial construction is still in the starting stage. Carlo does not demand that Spain’s industry achieve astonishing results in a short time; as long as it achieves stable growth through steady progress and lays a good foundation, it is fine.
Spain’s colonial history in Latin American countries can bring it closer to these countries’ relationships, opening market doors through economic alliances to dump Spain’s industrial products.
In addition, with Spain’s planned expansion of colonies in Africa, and cooperation with neighboring countries like Portugal, there will be no shortage of markets in the future.
As long as industry is not developed blindly, without pursuing overall industrial scale, under steady progress, no overly severe economic crisis will erupt.
The United States’ economic crisis is precisely due to the blind growth of its industry, going from hundreds of thousands of tons to tens of millions of tons in just twenty or thirty years, which plunged the United States deep into the vortex of economic crisis.
As long as Spain’s industry develops steadily, even if affected by other countries’ economic crises, it will only impact import and export trade.
Accompanying the construction of the industrial base, one matter must be put on the agenda, namely the rectification of the banking industry.
Besides the Royal United Bank established by Carlo, Spain also has other banks.
But these banks are either small private banks established by nobles or capitalists, or semi-official banks established by local governments.
Regardless of the type of bank, the government lacks control over them, which has led to some banks having thoroughly corrupt systems.
The reason Carlo’s Royal United Bank is welcomed by the public is not only the good impression and support established by Carlo before, but also Carlo’s personal promise that the Royal United Bank will never go bankrupt and that all depositors’ savings will be guaranteed.
In this era, a king’s promise is still very useful; unless this king does not want to continue, he still has to fulfill his promise.
The reason for preparing to rectify the banking industry is also to prepare for Spain’s future industrial development. Industrial development certainly cannot rely solely on the royal family’s property; it also needs a large number of civilian enterprises and factories.
Rectifying the banking industry to raise sufficient funds to support the development of civilian enterprises is also Carlo’s plan.
Spain is originally a country with a small area, so it does not need so many banks. Besides the royal family’s Royal United Bank, the Spanish Government will also establish a national bank.
Plus a few large banks after integration, that basically meets Spain’s banking needs. The public can freely choose which bank to deposit their money in, and competition between banks will lead to development.
Through integrating these banks, allowing the royal family and government to invest in Spain’s civilian banks. This way, there is no need to worry that these private capitals will grow large and affect the government; after all, the government and royal family will only earn more.
In addition, with the government and royal family having their own banks, this not only makes Spain’s capital powerful but also controls capital, making capital serve oneself rather than the government being enslaved by capital.
Rectifying the banks has another benefit: when the country needs funds, these integrated large banks alone can provide a portion of the funds.
Banks in this era are absolutely profitable, which is beyond doubt. Accompanying Spain’s industrial and economic development, Spain’s banks will have a golden period of development in the future.
Spain’s banks can also infiltrate neighboring country Portugal and African colonies, including some countries in Latin America, exerting their own influence.
Industry and finance are not only the most profitable industries in this era but also industries that a country must develop. By vigorously developing the finance industry, Spain can also achieve economic control over Portugal and exert more economic influence on Latin American countries.
Although restoring the territory of the Spanish Empire era is already impossible, Spain still has hope of becoming a great power-level country and launching an impact on the top five seats in Europe.
Since it is a plan to rectify the banks, it is naturally better for the government to initiate it proactively.
If the royal family initiates it, firstly it is not entirely legitimate, and secondly it will create a bad impression in the public’s eyes of targeting other banks for the Royal United Bank.
If the government initiates it, the dissatisfaction of those private banks will fall on the government, naturally having nothing to do with Carlo.
Third thousand words second update, seeking support!
