Persian Empire 1845

Chapter 591 Harvest
Iran is struggling to save itself, while Western countries are still in freefall. At this time, classical economics, represented by Adam Smith, still dominates, and governments adhere to laissez-faire policies, believing that the market will regulate itself. The result is a continued economic downturn in Europe and America.

In London, the conference room at 10 Downing Street was filled with the smoke of cigars. Gladstone tapped the table, the economic reports spread out before him showing an industrial output curve plunging downwards like a cliff. "Gentlemen," he cleared his throat, his tone lacking its usual certainty, "unemployment in Manchester has reached 30%, and Birmingham's steel mills are piled high with unwanted rails, but we can't intervene—Adam Smith said that the less government intervenes, the faster the market runs."

The words had barely left his lips when the conference room door was flung open, and an official from the Home Office rushed in, breathless: "It's terrible! The workers in Manchester have rioted! They've smashed textile mill machines and burned down capitalists' villas, and the police can't stop them!" Gladstone's face turned deathly pale. He stood up abruptly, but still managed to say, "Send in the troops! We must maintain order! The market will recover on its own; we can't set a precedent for intervention."

Meanwhile, in Berlin, Iron Chancellor Bismarck stood at the window of the Reichstag building, watching the workers marching in the streets. His secretary handed him a report stating that German industrial output had fallen for six consecutive months, and coal miners in the Ruhr region had begun a strike. "The British approach won't work in Germany," Bismarck said in a deep, firm voice. "The market needs guidance, not abandonment." He turned to his secretary and said, "Pass on my orders: allocate funds to build the Berlin-Hamburg railway, and send the unemployed workers to work on it; at the same time, lower tariffs on agricultural products so that farmers can sell their grain at a good price."

Even these countries are considered to have taken some action; France, Russia, Austria, Italy, and Spain are truly practicing "laissez-faire." They did nothing in response to the economic crisis and could only watch their wealth evaporate.

Ghahraman was initially scrambling, selling off all his stocks as soon as the French economic crisis hit. However, some were still tied up, totaling 3.3 million riyals. 1.5 million was what remained after a loan from France; the rest was from the proceeds of the stock sales.

Even so, this is still 7000 million riyals less than before the crisis. Now he needs safer investment channels to secure Shah's funds.

“We must seize upon the panic of the Europeans,” he said to himself in the mirror, then summoned a messenger and ordered him to send telegrams to all parts of Europe immediately.

Iran's banks in Europe include the Vienna Credit Bank (a joint venture with Austria), the Ottoman-owned Eurasian Union Bank, and stakes in Banco Barcelona and Crédit Lyonnais. Additionally, Crédit Agricole and Leo Baron have branches in Europe. By coordinating with them, one could control over a massive sum exceeding 500 million euros; whatever Iran desires, Europe would likely provide.

Telegrams continued to be transmitted over Europe, and cities such as Paris, Madrid, Berlin, Vienna, and Constantinople sent messages to Brussels, discussing the plans.

The telegram from Baghdad expedited their coordination, and the Shah ordered the introduction of a large number of new technologies during this period. He also requested the Golden Lion Bank to allocate some funds from the American Treasury.

Over the years, the Americas' treasury has not been used much, coupled with the continuous influx of new immigrants and trade development. This year, the Americas reported to the Shah that available funds reached 10.8 billion rials. This represents Iran's investments and gains over the past two decades.

This is just the available capital; if you include fixed assets, it's quite substantial. This includes British Columbia's railways, forestry facilities, banks, and retail businesses—all of which involve Iranian capital. For example, much of British Columbia's railway construction relied on Iranian capital. And where is the British capital? They're busy integrating Canada.

Bolivia and Paraguay are also among the countries with the largest Iranian investments. Thanks to their abundant mineral and forestry resources, their export revenues have been substantial in recent years. Through investments in a range of mines and railways, Iran's income has steadily increased. Now, the economic crisis has also affected these regions, but not only are they suffering losses, but the entire nation is also losing money. They will undoubtedly rely on Iranian funds, which will likely lead to more open opportunities for them.

"Krupp steel plant stock in Berlin has fallen by 60%, and Schneider Electric in Paris is struggling to pay wages, but Bismarck just allocated funds for the railway, so these factories will have to expand production sooner or later."

“Greston sent troops to quell the riots. Thirty textile factories in Corlancashire were on the verge of bankruptcy. The workers’ unrest made the capitalists just want to get rid of them as soon as possible. We took over in the name of the Golden Lion Bank, which would not arouse suspicion and would also allow us to get tax breaks from the government. They are now eager for someone to ‘maintain order’.”

Ghahraman has clearly defined his goals for various regions: traditional industries such as shipbuilding, textiles, and machinery manufacturing need to be introduced, as well as emerging technologies like chemicals, electricity, and internal combustion engines. According to reports, these factories have already lowered their prices by 30% to 60%, presenting a good opportunity.

Starting with Belgium, Liège is a famous military industrial center in Europe, with numerous small and medium-sized family-run weapons workshops; Ghent has first-class textile machinery and locomotive manufacturing technology; in addition, Antwerp has world-class diamond cutting technology. These are all worth considering.

Meanwhile, neighboring Netherlands excels at building flat-bottomed vessels and medium-sized cargo ships suitable for shallow water and inland waterway shipping. This makes them the perfect choice for shipping in the Caspian Sea and the Persian Gulf.

The Dutch are considered the pioneers of hydraulic engineering worldwide. The Khuzestan Plain and the Caspian Sea coast of Iran have similar terrain to the Netherlands, requiring solutions to salinity, drainage, and irrigation issues. Therefore, this region is also a worthwhile area for bargain hunting.

Without hesitation, Gahraman began traveling between Belgium and the Netherlands. He'd be discussing business in Antwerp in the morning, and by the afternoon he'd be in Ghent acquiring workshops.

The economic crisis hit these two countries, which rely heavily on commerce and trade, even harder to find buyers, and they had to offer them discounts.

A large number of patents were acquired at prices 50% lower than the same period last year. Meanwhile, unemployed skilled workers were also attracted by the high-paying jobs in Iran. In just one week, 82 diamond craftsmen, 356 shipbuilders, and 1636 mechanical manufacturing workers were willing to go to Iran to work.

These were all shipped to Iran at top speed, and Iranian merchant ships were so conspicuous in Antwerp and Rotterdam. In the midst of a sharp decline in trade, they were the only ones making a name for themselves in Europe.

(End of this chapter)