Rise of Empires: Spain.

Chapter 70: The Steel Plant That Guarantees Profitability
Although Gram was brought in, electrification cannot be achieved by Gram alone.

Spain must have sufficient mid-level talent reserves in electrification and internal combustion engines to promote the development of the second industrial revolution in Spain.

Currently, Spain’s most serious problem is that there are too few low- and middle-level talents, and illiterate people account for the majority of the population.

Before Spain develops its own talents, the best way is to continuously poach talents from various European countries.

But before that, the most important thing is to make sure that you have enough funds in your wallet.

The time came to August 1870, four months after the establishment of the Royal United Bank.

Carlo finally paid attention to his own wallet and asked Butler Lauren about the development of the bank.

Butler Loren was well aware of the development of the bank. After hearing Carlo's question, he quickly replied: "Your Majesty, our bank has experienced four months of development and has become one of the largest banks in Spain.

We already have branches in Toledo and Valladolid, and the bank in Madrid has expanded to two.

Currently, our total number of depositors has exceeded 5.7, with total savings of approximately 4612 million pesetas and an average deposit of 809 pesetas per person.

The bank's next expansion plan is to build at least one branch in regional capitals such as Seville and Barcelona, ​​becoming the largest bank in Spain."

Carlo nodded.

With the help of the nobles, the Royal United Bank developed rapidly.

There are currently 5.7 depositors. Who would have thought that this is a bank that was only established four months ago?

When the Royal Bank has branches in every regional capital, the number of depositors in the bank will expand significantly.

However, per capita deposits will definitely decrease, after all, most people in Spain still have relatively low incomes.

The reason why the per capita deposit is still above 800 pesetas is that there are too many nobles and middle-class people who deposit money, which has raised the per capita deposit figure.

After a large number of civilians start depositing money in the Royal Bank, the income level of ordinary people will become clear.

What made the Royal United Bank more attractive to the Spaniards than other banks was the word "royal" and the union of the entire aristocratic class.

As it concerns Carlo's own credibility, this is more convincing than those private banks.

Carlo himself also joined several great nobles in making a promise to redeem the money at any time, and stated that as long as the royal family was there, the Royal United Bank would not go bankrupt.

Bank bankruptcy has always been a topic that makes people shudder. People are worried that banks will go bankrupt, so they rush to exchange their deposits from banks.

However, such a run on the bank will instead cause a bank that originally had no problems to suffer a run crisis and may even go bankrupt.

After all, the way banks operate is to collect large amounts of deposits from depositors to form large amounts of funds, which are then invested in exchange for income.

These revenues will be used to pay depositors' interest and the bank's operating costs, and the rest will be the bank's income.

This means that it is impossible for the bank to pay the deposits of all depositors at the same time. When the deposits that need to be exchanged exceed the bank’s existing funds, the bank will experience a crisis.

How did the capitalists solve this problem?

Declare bankruptcy. This era did not have as much protection as later generations. After the capitalists declared the bank bankrupt, most depositors basically could not get their deposits back.

Only a small number of powerful nobles and politicians can get their funds back, or even get a bigger share. This is the privilege of the upper class.

This is also the reason why the lives of European civilians at this time were very miserable, because they could not escape the exploitation of capitalists at all, and had to work like slaves all their lives, and finally ended up dying early in their thirties or forties.

"How is our steel mill doing now?" Carlo continued to ask.

Currently, Carlo’s two most profitable enterprises are the Royal United Bank and the integrated steel plant.

Finance and industry are definitely the most profitable businesses in this era, and Carlo certainly would not ignore the income brought by industry.

"After the integration, we have become the largest steel plant in Madrid. We currently have 1453 workers and the average weekly salary is about 3 pesetas," Lauren continued to answer.

Spain has never been strong in industry, so it is not surprising that several small and medium-sized steel mills were integrated to become the largest steel mill in Madrid.

After all, the area where Spain focuses on developing industry is not Madrid, the real industrial base is in Seville.

"The average weekly salary is about 3 pesetas?" Carlo calculated silently in his mind.

The weekly salary is 3 pesetas, the monthly income is about 12 pesetas, and the annual income is more than 144 pesetas.

Although it is still some distance away from the wages of workers in other European countries, it is at least much higher than the annual per capita income of 87 pesetas in Spain.

Moreover, there is no need to worry about salary deductions in Carlo's factory. The working hours are only 12 hours a day, and there is one day off a month. The treatment is much better than in other countries.

"How is the agricultural tax reduction policy being implemented? When can we see the results?" The per capita income is the lowest in Europe, which is a headache for Carlo and he is looking forward to changes.

"It is expected that the per capita income will be able to increase to around 100 pesetas next year." Butler Loren quickly replied: "Your Majesty, please rest assured that agricultural tax reduction and abolition of tithe are effective, and farmers' income will definitely increase.

This is the long-term oppression of Spain by the Bourbon family, and has nothing to do with you, Your Majesty. Your Majesty is the destiny of Spain, and Spain will regain its former glory under your leadership. "

Carlo smiled and didn't care much about Butler Lauren's flattery.

The term "chosen one" is a bit exaggerated, but Carlo is at least not one of those foolish monarchs. He knows how to treat the people as human beings, and only then will the people support him.

"As the per capita annual income increases, we must also increase the income of our employees." Carlo instructed: "The royal family's enterprises are the benchmark for all Spanish enterprises. There must be no problems in this regard."

"I understand, Your Majesty." Butler Loren nodded, indicating that he understood.

"How is the profitability of our steel plant? How is the construction of the steel plant in Seville going?" Carlo asked.

“Your Majesty, our steel mill is expected to earn about 200 million pesetas this year, and it will be no problem to break even.

At present, we have invested about 150 million pesetas in the construction of a new steel plant in the industrial base in Seville, and it is expected to be put into production in the second half of next year. By then, the number of our workers will exceed 300, and the annual income will increase to more than million pesetas. "Butler Loren replied.

After all, Carlo underestimated the potential of making money in industry in this era.

In addition, the income of Spanish workers was not high to begin with, and Spain's infrastructure required a large amount of steel, so steel mills in Spain at that time were completely profitable.

First update, please support!


(End of this chapter)