Persian Empire 1845

Chapter 585 The Night Before
With the lower house elections concluded, members of the upper house have arrived in Baghdad. The cabinet has also been reshuffled, and constitutional reform has finally been smoothly finalized.

The 350 members of the House of Commons and the 120 members of the House of Lords posed for a group photo in front of Parliament House to celebrate this historic moment.

At nine o'clock in the morning, all members of parliament were seated in the parliament hall. Shah, dressed in a black suit, ascended the podium accompanied by the Crown Prince. His gaze swept over the packed assembly, and he slowly began to speak: "Today is a momentous day in our nation's history. This is not a weakening of power, but rather progress in governance. I pledge to strictly abide by the Constitution, respect parliamentary resolutions, and work together with you to build a prosperous and stable nation."

As soon as he finished speaking, enthusiastic applause erupted again in the hall. Speaker of the Lower House, Karim, rose to respond: “Your Excellency Shah, thank you for your respect and support of the Constitution. Parliament will live up to the people’s trust, fulfill its legislative duties, oversee the government’s work, and work hand in hand with the Royal House to promote national development.” Following this, Speaker of the Upper House, Abdul Rahman, presented the Constitutional Declaration, which the Shah accepted and solemnly signed.

According to British practice, a new government needs a vote of confidence in Parliament to function properly. However, Iran also needs the Shah's appointment, and the appointment is more important than parliamentary approval.

In the final parliamentary vote, the Musharraf government received 200 votes in the lower house and the support of all members of the upper house, and the first government cabinet was launched.

Sadiq, who became Minister of Construction, was excited for several days. He had already taken charge of a department, so would he be able to aim for even higher positions in the future?

Of course, one also needs to have some impressive achievements to show for it. The Ministry of Construction, naturally, is responsible for matters related to construction.

Iran has made significant progress in infrastructure development, but it's still not enough. For example, the renovation of urban buildings, the development of water conservancy projects, and the expansion of ports all require substantial construction. Sadiq already has ideas for these areas, but he needs to discuss them with the Ministry of Finance; without money, nothing can be done.

The Ministry of Finance continues to be busy every day. Last year, fiscal revenue reached 1.9 million riyals, but expenditures amounted to 2.1 million, resulting in a deficit of 2000 million, which can only be covered by issuing government bonds.

The international economy is not doing well lately, trade is sluggish, and the stock market is also sluggish. Although there has been no crash, something just doesn't feel right.

The once bustling and vibrant scene at the Tehran Stock Exchange is gone. Traders sit listlessly at their desks, and the few transactions that do occur are mostly small-scale stock sales.

The economic plan previously approved by Shah has begun, but its effects won't be seen in the short term. Furthermore, continuous investment is needed, and new departments will certainly require budgets, especially the Ministry of Construction. Sadiq will likely come up with some grand plan and then ask the Ministry of Finance to fund it.

"Knock! Knock! Knock!"

"Enter!"

There was a knock on the Finance Minister's door. Upon seeing the person, he knew his prediction had come true. The Vice Minister of Construction had arrived in person. "A rare guest," Finance Minister Shahryari smiled, gesturing to the chair opposite him. "You've come about the department's funding, haven't you?" The other man spread a sheet of paper on the table: "Lord Shahryari, as you can see, many houses in the old city districts are adobe houses from a hundred years ago, leaking during the rainy season. The department plans to renovate six thousand houses over three years."
The irrigation canals in Khuzestan province have been silted up for years, resulting in a 30% reduction in wheat production last year. If the canals can be dredged and new sluice gates built, next year's harvest could increase by at least 20%. Furthermore, Bushehr port currently only accommodates small merchant ships. If the wharves can be expanded and the waterway deepened, British and Indian merchant ships could dock directly, increasing trade volume by at least 40%.

"Stop, stop, stop, stop!" Shahryari interrupted the other person. "Just tell me how much you need?"

"According to estimates, a total of 1285 million riyals will be needed, and at least 400 million riyals will be required annually."

Shahryarri pulled a red-covered ledger from the drawer and turned to the page marked "Financial Summary of 1869": "I'm afraid we can't agree to the current demands. The international economy is sluggish this year, cotton textiles are not selling well in Europe, and the quantity of our exported goods has decreased. The national treasury simply can't afford it."

The two were silent for a moment, then the sounds of street vendors selling freshly baked naan bread drifted in from outside the window, and the bells of camel caravans grew louder as they approached. This eased the awkward atmosphere somewhat.

"How about this, let's do it in stages? Let's start with water conservancy projects. Khuzestan is a major grain-producing area. As long as the harvest improves, farmers' taxes will increase, and the national treasury will gradually become fuller. As for house renovations and port expansion, let's make plans first, and start construction next year when the finances improve."

Shahryari nodded. "I'm afraid this is the only way. We can approve 600 million first, and as for the rest... let's see if the bank can help you."

That's all we can do. The current economic situation is indeed not optimistic, and we don't know what policies the government can come up with to boost confidence.

At this time, Iran's economic situation began to deteriorate again. In order to export, many landowners shifted their focus to planting cash crops such as cotton, reducing the planting of grain crops such as wheat. This increased agricultural income in the short term, but grain prices were easily affected by fluctuations in the international market and domestic harvests. The Ministry of Agriculture and Forestry repeatedly raised grain purchase prices, but this still could not stop the landowners' desire to make money.

Although exports of industrial goods continue to grow, in Europe, Iran's main export market, signs of overheating are emerging, and speculative activities are rampant. Any slight disturbance could trigger a contraction in international demand, thereby directly severing Iran's economic lifeline—exports.

Massive infrastructure investments, administrative reforms, and royal spending have far outpaced the growth of fiscal revenue. The increased money supply created to address the fiscal deficit has begun to drive up domestic prices and raise the cost of living for the public. And, as the Chancellor of the Exchequer feared, the sluggish stock market and trade are a dangerous sign.

Austria, Iran's largest trading partner, is facing increasingly severe overproduction in its domestic industries, resulting in large stockpiles of goods and widespread factory shutdowns and layoffs. France and Germany have also been affected, experiencing slowing economic growth and shrinking market demand. This situation quickly spilled over into Iran, with European orders for Iranian goods decreasing dramatically. Previously in-demand carpets and silks are now piling up in warehouses, causing prices to plummet.

To cover the fiscal deficit, the government issued national bonds for the second time, but sales were sluggish due to an uncertain economic outlook and weak investor confidence. Bank lending also faltered, making it more difficult for businesses to obtain loans and straining their cash flow. The shadow of an economic crisis loomed over the situation.

(End of this chapter)