Persian Empire 1845

Chapter 320 Hoarding
Abdullah mobilized the princes to take action against India, but all they really needed to do was provide the money. The government would handle the actual implementation.

That's right. Shah asked Abdullah to have his uncles pay for it. The government can't pay for everything; that would put too much pressure on them.

And what has the Shah been doing lately? He's stockpiling cotton. Yes, he's hoarding cotton.

As a raw material for the textile industry, cotton accounts for a large share of global trade. The textile industry relies entirely on cotton for production. Manchester, England, is a renowned textile center. Among the members of the local chamber of commerce, 68 are cotton traders and product manufacturers. Over the past few decades, these individuals have integrated the surplus labor and housing facilities of the surrounding rural areas into a global supply chain encompassing agriculture, commerce, and industry—a feat unprecedented at the time. Ultimately, Britain holds the world's largest share of the textile industry.

The cotton textile industry is a labor-intensive industry, so labor is a very important resource. After the Industrial Revolution began, the production efficiency of new factories increased exponentially, but the production of raw cotton could not keep up with demand. This made merchants who had a lot of money but could not put it into their pockets very anxious.

Merchants began persuading sugarcane plantation owners in the Caribbean region of Central America to expand cotton cultivation. Stimulated by the huge profits, cotton cultivation in the Caribbean region exploded, centered on Santo Domingo, and a steady stream of African slaves were transported to this largest deep-water port in the Americas.

At this time, there were three main cotton-producing regions in the world: the first was the southern United States, which accounted for 85% of the world's cotton exports; the second was India, accounting for 11%; and the third was Egypt, accounting for 4%. Meanwhile, the proportion of cotton produced in the United States that landed in Liverpool, England, rose from 25% to 59%, and by 1850, 72% of the cotton consumed by Britain came from North America.

In 1859, the South exported cotton, sugar, and rice worth a total of $1.994 million, with cotton accounting for $1.5 million, or more than 80% of the total exports. This prompted outcry from Southern legislators.

"What would happen if we didn't supply cotton? ... Britain would be thrown into chaos, and the entire civilized world, except for our southern regions, would collapse. No, you dare not declare war on cotton. No one in the world dares to declare war on it. Cotton is king."

The South, controlled by plantation owners, was thus known as the "Cotton Kingdom." No one wanted to challenge this position, as the American South was naturally suited for cotton cultivation. This also solidified the already slated abolition of slavery. Ultimately, this led to the division between the North and the South.

Iran followed closely behind in cotton exports, accounting for 2% of the world's total. Most of this was consumed by its domestic textile industry. However, starting in 1858, Iran's cotton exports declined significantly, and it even imported a considerable amount of cotton from the United States.

“Shah, we have already stored 6000 million riyals of cotton. Do you think we still need to buy more?” Said asked from the side.

"We must continue to buy, and take out all the gold coins we have in Africa and the Far East. There will definitely be a war in the United States, and the price of cotton will definitely rise then."

Nasser al-Din went to great lengths to make money, spending a large portion of his savings on this cotton purchase. He invested money from the Far East and East Africa, and also sold a significant amount of stock in the United States to raise funds.

The conflict between the North and South in the United States was escalating, and civil war seemed imminent. The industrial states of the North and the agricultural states of the South were deeply divided on issues such as tariffs and slavery, and the shadow of war loomed over the entire country. Nasserdin closely monitored the situation in the United States. He believed that once civil war broke out, Southern cotton exports would be severely affected, and global cotton prices would inevitably skyrocket. He could then profit by selling off his cotton.

Since government revenue growth is slow, the royal family's finances will have to make up for it. In the end, no one loses out.

News of the border conflict between Iran and Russia has reached Tehran. Iran, naturally, is not afraid; at worst, it can move north to the Caucasus and circle around Moscow. As for Russia, it remains to be seen whether it is still willing to station 50 troops on the border.
Now that Iran has annexed Kokand, increasing its land and population, the assimilation and integration of the local population must be taken seriously. Promoting education and culture is crucial, and more spending is needed. Rakovsky personally traveled to Tehran to discuss the matter with the Shah; prior to this, he had met with Abdullah.

"Your Excellency Rakovsky, the conflict between our country and yours in the river is purely due to your country's insatiable greed. Your desire to further encroach on our territory is unacceptable."

Abdullah started by saying that Russia was trying to annex Iranian territory, which is true, but he didn't come to Iran to hear that.

"Your Excellency, I am not here today to hear accusations, but to resolve this issue. Your soldiers disregarded our territory and crossed the border without authorization, forcing our soldiers to retaliate. If you had properly restrained yourselves, none of this would have happened."

Upon hearing this, Abdullah immediately said, "So, your country wants our country to surrender directly?"

"How can this be called surrender?"

“Isn’t that so?” Abdullah’s voice rose. “For the past fifty years, your country has been using such tactics to seize land. You have occupied Siberia, Crimea, and the Far East. Now you even want to covet our Transoxiana. No country would stand by and watch its land be given away to others.”

Rakovsky was also afraid; for the first time, he felt worried. If another war broke out, Russia might not be able to withstand it. Iran was truly prepared to fight them to the death. At this time, rumors were circulating in the Russian army that they shouldn't go to the Caucasus. Because the Iranians genuinely wanted to kill the Russians, and they had quite a few ways to do so.

Some Russian soldiers were killed outright, while others were sent to work in prisoner-of-war camps. Many more were disposed of on the spot. Iranians harbor immense anger towards the Russians, and it remains to be seen whether Russia can withstand a direct confrontation.

"Our country has always recognized Transoxiana as your territory, but the Syr Darya River is the border between the two countries, as confirmed by treaty. Your soldiers have crossed the Syr Darya River and repeatedly provoked our country, which is the root of the conflict."

"What is your country's intention?"

"It's very simple. The two countries share the Syr Darya River as their border and its waters. Furthermore, opening up the border would be good for both countries."

Rakovsky intends to definitively define the border between the two countries, but the current situation is not in Iran's favor. Therefore, lengthy negotiations are necessary, reflecting Russia's predicament, while Iran's determination demonstrates its significant power in Central Asia. Rakovsky also recognizes that Russia must undergo internal reforms and strategic diplomatic maneuvering to remain invincible in this great power rivalry.

(End of this chapter)