Steel, Guns, and the Industrial Party in Another World-Chapter 467: The Royal Dilemma 7

After thoroughly introducing what she termed as the “secondary industry,” Eileen began to seriously suggest ideas to her father and sister.

“For the first type of limitation, which is technological, I suggest that the kingdom enact laws to protect technology patents. When an advanced technology is invented, its creator can apply for patent protection from the royal government. Others can use this technology but should pay a certain fee to the patent holder. Moreover, this fee should be set by the royal government based on the value of the technology, ensuring it is not so low as to harm the interests of the patent holder, nor so high as to deter its widespread use.”

She paused for a moment, then added, “Regarding this law, I suggest directly adopting or referencing the patent protection laws currently used by the Northwest Bay Customs Union. Their laws are quite mature and this would also facilitate our adoption of the relatively advanced production technologies from the Northwest Bay.”

“As for the second type of limitation, which pertains to production methods, I propose that the kingdom build large-scale workshops. We should gather all people engaged in the same production activities in these workshops, managing artisans like an army, allowing them to exchange and refine their skills. On a larger scale, centralizing production can greatly reduce the costs of storage and transportation of goods and avoid wasting raw materials. For more complex production activities, we could designate a group of people to specialize in a particular stage of production. Their part would then be passed to another group for the next stage, making the product flow through different hands before completion. If a person is responsible for only a small part for a long time, it can help them become more skilled in that aspect, making them more dependent on the collective.”

“Additionally, I suggest establishing schools specialized in teaching artisan skills, to train qualified artisans in a ‘batch process.’ We could also award artisans different levels of titles based on their skills, similar to the ranking system of nobility.”

Having said so much, Eileen was a bit thirsty.

A royal servant in the council chamber timely brought honey water to quench the princess’s thirst.

While her sister took a brief rest, Catherine pondered over what Eileen had just said.

She caught a strange term – the Customs Union.

“Eileen, what did you mean by ‘Customs Union’ in your earlier statement? It sounds like an organization.”

Eileen nodded at her sister, “It is an organization. And its establishment is closely related to the third type of limitation I mentioned – demand.”

“A few years ago, the Northwest Bay, like other territories of the kingdom, was full of checkpoints. Later, under the proposal of Count Paul Grayman, the lords abolished tariffs among themselves to promote the circulation of domestic goods. That was the birth of the Customs Union.”

“With no tariffs, the cost for merchants to trade goods was greatly reduced, significantly enhancing their desire to buy and sell goods. This rapidly developed the commerce of the Northwest Bay.”

Catherine interjected, “Wouldn’t the elimination of tariffs reduce the revenue of the territories?”

Eileen explained, “There are no tariffs within the Union, but taxes are still levied on goods from outside the Union. The tax revenue is distributed based on the population of each territory. Initially, despite some technological advantages, the manufacturing industry of the Northwest Bay was relatively weak compared to other regions. Therefore, they had to use tariffs to protect their local industries.”

“Moreover, wealth accumulation is a dynamic process. Take Count Grayman’s Alda territory, for instance. Although there was an initial drop in revenue, the elimination of internal tariffs significantly lowered the prices of goods in the territory, stimulating public consumption. The market became active, leading to a demand that exceeded supply. New workshops were built, and new shops opened. Alda still retained taxes on commerce, and even though tariffs were gone, the revenue from commercial taxes multiplied several times within a few years.”

“To increase public demand and desire to purchase, another method is to reduce excessive taxes for the royal government and set a cap on the rent landlords can charge tenants, leaving peasants with some savings.”

“Of course, the increase in Alda’s income is also related to overseas trade. Once our own industries develop, we can emulate the Northwest Bay and establish a large ocean-going trade fleet…”

The king listened with great interest to his youngest daughter’s description.

Finally, he laughed and said, “Eileen, although I’m annoyed by your elopement, I must admit your journey to the Northwest has indeed broadened your horizons.”

He turned to Catherine and said, “Perhaps we can try a few of these ideas, like building some workshops and skill schools, oh, and patent protection too.”

Hearing this, Eileen pouted, “Father, why not go all the way? I have seen it, these measures are all effective.”

The king shook his head, “The king’s domain is far larger than the Northwest Bay in both area and population. The complexity of our problems far exceeds those of the Northwest Bay. At least for now, the kingdom cannot afford a reduction in fiscal revenue, even for a few years. And even Count Grayman didn’t come up with the so-called Customs Union on a whim, right?”

“Er… that’s true.”

Eileen recalled her visits to the Administration Council meetings in the Northwest Bay, where Paul always sighed about the numerous obstacles he faced with his reforms.

She anticipated similar challenges within the royal territories.

With this in mind, she suggested to her father, “In that case, please send someone to the Northwest Bay to discuss with Count Grayman. There are many new technologies there that, if introduced to the royal territories, could yield results quickly. The royal family could lead the initiative, forming joint-stock companies in partnership with the southern nobility.”

“Joint-stock companies?”

“Yes, it’s essentially partnering in business, with profits distributed according to the share of ownership.”

“I see.”

“The profits can be distributed to those southern nobles, using money to ease their sense of loss from relinquishing their territories. Oh, and…”

Eileen eagerly requested, “Please, father, prioritize bringing in the paper mill. My school, and the entire royal domain, need a lot of paper.” frёewebηovel.cѳm

The king understood, “I get your point.”

He picked up the conference record lying on the desk, continuously feeling the paper used for recording.

“So this fine paper comes from the Northwest Bay, an Ordo invention. Very well!”

He made a decision, “I’ll send…”

“Father!” Eileen suddenly interjected, “Let me share your burdens. I’m familiar with the Northwest Bay, and I’ve also forged a friendship with Count Grayman. I even bought a house in Lakeheart Town.”

“Hmph! You will stay put in Crystal Shine.”

The king unequivocally rejected Eileen’s proposal.

“I’ll send your cousin to speak with Count Grayman.”

“Your Majesty!”

Eileen’s call was laden with dissatisfaction.

…

It seemed that the catalyst for the series of changes in the Northwest Bay was indeed Count Paul Grayman.

Catherine, quietly observing, thought to herself.

What kind of man was he?

The interest of the Princess was piqued by this distant royal vassal, even contemplating the idea of meeting him.

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