Persian Empire 1845

Chapter 73 Investment
Nasser al-Din was very satisfied with the exercise, and he also instructed the government to increase funding for construction. Naturally, with increased government revenue, royal revenue would also need to increase.

The government funding is just a drop in the bucket; we need to continue to increase revenue.

Lawrence knocked on the door and came in. "Your Highness, this is the situation of the savings bank. Since its opening, 300 million rials have been deposited."

Naserdin glanced at it, then put it down. "Good, at this rate the economy will improve quickly, dear Lawrence, please have a seat."

Lawrence didn't know what the Crown Prince was thinking, but he tried his best to help him achieve it.

“Tell me…about more industries. Shah needs more money to get things done recently.”

"Oh!" Lawrence knew his time to shine had come. "Your Highness, things like cotton, gold, and coffee are being sold in great quantities right now. They're being transported to various cities and then transformed into exquisite goods, which are sold all over the world."

You see, in my hometown of Louisiana, we sell cotton to Europe and then import goods from other places. That's how money is made.

"So, cotton can generate a lot of money?" Nasser al-Din asked.

“Your Highness, cotton is not the only profitable commodity. Other places have their own ways of making money. For example, Brazil grows coffee, Central America grows bananas, and Qing China produces tea and raw silk. Moreover, it’s not just about growing crops; trade and transportation are also industries that can generate a lot of money.”

“Very good,” Nasser al-Din said. “I’ve been thinking that if… we could set up a company to trade and invest, that should be able to cover the Shah’s expenses, just like the British East India Company.”

The East India Company was indeed very profitable and wielded considerable power, from building an army to issuing currency; no other company in the world was larger than it.

“You are truly courageous, Your Highness. It is not easy to establish such a company because there are many unknown risks.”

"Of course I know, and I'm just doing this to make money. This requires someone with expertise, loyalty, and the ability to handle relationships in different places."

With so many qualities, Lawrence noticed Naserdin looking at him and knew that he was meant to be brought here.

“Your Highness, I have a lot of experience in this matter. If you are not focused on increasing your land holdings, it will severely damage your wealth.”

“It doesn’t matter. We’re just trying to make money anyway. Why don’t you go to East Africa first? I’ve heard they produce gold and ivory there. I know it will be difficult for you to develop at first, but I will support you.”

“Your Highness, you really know your business.” Lawrence smiled.

At this time, Africa had not yet been completely divided up, especially East Africa, which was where Iran could get a share.

He quickly received 24 rials from Nasser al-Din and, together with several royal merchants, began preparing to establish a trading company. The Ministry of Commerce and Industry expedited the process, completing all the formalities within a few days. The Iranian Trading Company was officially established!

Then Lawrence encountered a problem: without ships, maritime trade was impossible. He needed a fleet, and looking at the map, Britain was now the dominant maritime power, so he needed to ensure his interests weren't threatened. Somalia seemed like a viable option, so he decided to investigate. Hearing that the local population was Arab, Lawrence had everyone dress in Arab clothing and learn Arabic to avoid conflict when meeting the local rulers. He also needed to hire an army for protection.

Nasser al-Din established this company primarily to raise funds. He had previously established a Northern Company specifically for investing in Central Asia and Afghanistan. The initial capital was 30 riyals.

Don't blame Naser al-Din for being so impatient; he simply needs a lot of money. The royal harem requires a great deal of funds to maintain, and investments are also underway domestically. These investments are all overseen by Saeed, and are being further consolidated into the royal treasury for financial management.

The treasury's first investment project was opening a silk processing plant in Mazandran. Locally produced raw silk was processed directly in the factory and then sold to Russia via the Caspian Sea, generating substantial profits. Meanwhile, Naser al-Din's carpet weaving factory in Tabriz expanded to 700 workers, earning over 10 riyals a year.

In addition, the royal family holds significant shares and accounts in various banks, and a portion of the banks' revenue is transferred to them. With this income, the royal family's finances began to improve, and they prepared to further increase investment.

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Larijani and Zarqaini surveyed the local conditions in Tehran, which they believed was suitable for establishing textile and food industries.

"This place is very suitable for the textile industry, and quite a few people are already preparing to build factories here."

Zachary explained the current situation: unlike Tabriz, there is slightly more private capital here. Therefore, machine production can be used extensively.

"Now we need to make more people aware of the benefits of the factory; only in this way can we save Iran."

The concept of an industrialized nation has taken root in every member state. Their delegations, after visiting Britain, brought back many valuable items. Furthermore, these merchants are engaged in manufacturing and trade, investing their profits in industry or depositing them in banks. Their savings in the Industrial and Commercial Bank of China are at least 50 riyals.

Most of them work in the textile industry, while others work in food, transportation, and agriculture. Of course, some also work in machinery, which requires a lot of courage.

Using machinery is indeed very good now, but if these machines break down, it is still necessary to purchase spare parts from European countries for repairs.

If you want to buy the machine tools used in the production of machinery, sorry, European countries aren't stupid. Even if you offer a high price, they won't hand over the core machine tools and related machine tool technology to you.

Machine tools are known as the mother machines of industry, and the development of other industries is built upon machine tool production. Therefore, if Iran wants to go further, it must move towards independently mastering the related technologies of machine tool production and manufacturing.

The federation admired their courage and provided them with significant assistance, while banks also offered them low-interest loans. It's important to understand that this path is difficult; only continuous effort and perseverance will lead to success.

"President, trade between our country and Russia has been booming recently. Russians like our carpets and fabrics, but they can't produce them themselves, so they have to come to us."

"Haha, this is the strength of industry. There are very few factories in Russia. You can go 500 kilometers inland from the Russian border and you won't see a single factory. This shows that they are strong on the outside but weak on the inside. Just one attack will completely collapse their facade."

(End of this chapter)