Chapter 387: Bargaining Chips and Investments
Joseph waved his hand dramatically and said, "It all begins with guiding the farmers to farm more efficiently. You will provide them with livestock, seeds, tools, and fertilizers. Just imagine how many farmers there are across the country—this will be a massive business opportunity.
"Moreover, your company can organize craftsmen to build irrigation systems for the farmers and rent out irrigation machinery. You don't need to worry about the money; the Agricultural Bank will consolidate many farmers and sign collective loan agreements with them.
"When the crops are harvested, your company will purchase the surplus from the farmers and transport it to more profitable markets. The huge volume of transportation will greatly reduce costs. Many large cities now have wooden railroads, making transportation even cheaper.
"I call this an 'Agricultural Services and Consulting Company.'
"Compared to the paltry annual dues that farmers reluctantly paid in the past, such a company would generate much greater profits!"
The nobles present were initially taken aback by this idea, but soon began to discuss it among themselves. The capitalist nobles, already planted among them by Mirabeau, immediately took on the role of explaining the concept, causing the old nobles to nod in agreement.
However, someone quickly raised a concern: "Your Highness, while this kind of company certainly has great potential, the investment required would be enormous. This is far beyond what we can afford."
"You're absolutely right," Joseph responded loudly. "That's why His Majesty the King has established a 'Royal Fund' in collaboration with the French Agricultural Bank, specifically to invest in Agricultural Services and Consulting Companies."
He opened his arms wide to the assembled nobles. "All you need to do is invest a bit of money into the fund, and you'll receive continuous dividends. Of course, you could also gather your own funds and start your own companies.
"As for farming techniques and farmer outreach, the Church will provide support to the companies."
Archbishop Beaumont, standing nearby, immediately placed his hand over his heart and bowed, saying, "The Church will fully cooperate."
Joseph continued, "As for irrigation, the Royal Fund has signed a large-scale purchase agreement with the steam engine company to secure water pumps and mill engines at the lowest prices.
"For sales, the strategic grain reserves will sign supply contracts with the Royal Fund and may even advance part of the transportation costs.
"I can assure you that the profits will be many times greater than the annual dues you've been collecting!"
The nobles gathered in front of the Petit Trianon suddenly lit up with excitement. This was a fantastic business opportunity! In the past, they only collected dues from tenant farmers, but this Agricultural Services and Consulting Company could make money from all farmers.
And with the Royal Fund and the Church managing the companies, they could continue living in Versailles as they always had, collecting dividends without lifting a finger.
Right on cue, servants appeared, distributing stacks of fund subscription forms to the nobles.
Joseph added, "In addition to receiving substantial dividends, you'll no longer have to endure the scorn of farmers or be labeled as 'parasites' by the radicals. Your income will come from legitimate business ventures, and you can spend every penny with pride!"
This sentiment resonated with even more nobles. Although they clung to their feudal privileges for the sake of profit, they couldn't escape the Enlightenment ideas sweeping across Europe. Deep down, many felt that they were "parasites" and "mistakes of history." Now, given the chance to maintain their lavish lifestyles through legitimate business, they were eager to participate.
As they glanced down at the Royal Fund subscription forms in their hands, they noticed that the minimum investment was only 200 livres, which relieved them. Many nobles, while maintaining appearances, were not particularly wealthy and worried that the buy-in might be in the thousands of livres, which they couldn't afford.
After carefully reviewing the "Agricultural Services and Consulting Company Operational Guide" distributed with the subscription forms, many nobles immediately wrote down their investment amounts and stamped the forms with their personal seals.
Joseph watched as more and more people gathered around the fund staff, a smile playing on his lips. Who said you had to offer concessions to get the nobles to accept the land redemption plan? Not only would he avoid making concessions, but he would also collect seed money for the agricultural reform from the nobles themselves!
As for the concern that these agricultural service companies might harm the farmers' interests if they became too large? That was unlikely. Most of the old nobles would simply wait for their dividends and wouldn't be involved in the companies' operations. Essentially, all agricultural service companies would be controlled by the royal family. Even if some nobles managed to gather enough funds to start their own companies, they would still have to operate within the framework of the Royal Fund.
If a private company became uncooperative, the Church could delay their composting or breeding operations by a few weeks, or the strategic grain reserves could refuse to purchase their grain. These actions would quickly bring any unruly company back in line.
And if things took a turn for the worse, Joseph could always use legislation to set maximum and minimum purchase prices, ensuring that farmers' basic livelihoods were protected.
Of course, the small investments from the old nobles wouldn't be enough to fund nationwide agricultural reform. Joseph cast a discreet glance towards Mirabeau and his group, and several of the most influential capitalist nobles respectfully nodded in return.
The bulk of the Royal Fund's capital came from nearly a hundred capitalist nobles, supplemented by additional funds from the Agricultural Bank. Even without the old nobles' investments, there was no shortfall in funding.
A noble standing next to Mirabeau, grinning, leaned in and whispered, "Honoré, how large is the estate you're planning to build this time? A thousand hectares?"
"Heh, not quite that large," Mirabeau replied with a wave of his hand. "What about you, my dear Francis?"
"About a thousand hectares as well. That's all the money I have right now. I heard that Viscount Delasco is planning to buy five thousand hectares and has mortgaged his tannery to do so."
"That's quite a bold move," Mirabeau nodded. "But investing in estates is wise at the moment. The Prince's agricultural reform is about to begin, and there's a lot of potential in this area."
This was precisely why the capitalist nobles were willing to make large investments in the Royal Fund. In Joseph's land redemption plan, the rule that required high fees and a large upfront payment for land purchases exceeding 100 acres per person was designed to benefit the capitalist nobles the most.
The high costs effectively discouraged ordinary people from borrowing money to purchase large tracts of land. The old nobles, having lost their feudal rents, were also hesitant to make large investments. The only group left capable of acquiring vast estates were the capitalist nobles.
Joseph understood that, in the late 18th century, large-scale land consolidation was beneficial for industrial development. This served as the bargaining chip to fuel the capitalist nobles' enthusiasm for investment.
(End of Chapter)
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