Life of Being a Crown Prince in France

When Mirabeau saw the industrial data of different types gathered on a single chart for the past year, clearly showing the trend of changes, he was instantly enlightened.

“Your Highness, how did you think of using this method? It’s truly magical!” He flipped through the various statistical charts, unable to tear himself away. “Looking at these charts, it only takes a few minutes to understand the industrial situation of the last year.”

And yet he had just explained it for nearly an hour.

These charts had significantly improved work efficiency to an amazing degree.

He immediately thought of more applications, excitedly saying, “Perhaps, we can promote this method of data statistics to factory production and administrative management.”

Bailly added from the side, “And scientific research. It would make papers clearer and easier to read.”

“Yes, it is truly a great innovation!” Mirabeau looked at Joseph, “Your Highness, I dare say, if government departments and factory managers all use these charts to handle documents, it could greatly enhance the efficiency of the entire nation.

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“I suggest that this should be promoted nationwide as soon as possible, even mandated in government documents.”

Joseph was somewhat baffled by their enthusiasm. He had initially just wanted Mirabeau’s report to be more concise and efficient, not anticipating such a significant impact.

He patted his forehead, realizing that he had seen statistical charts so frequently before, he subconsciously thought nothing special of them. Mirabeau was right, such a minor technique could greatly enhance management efficiency, almost equivalent to the 18th century’s Excel.

Joseph immediately nodded to Mirabeau, “Please organize some scholars to help compile the chart statistics into a manual, and print it in large quantities. As for how to teach the managers…”

Mirabeau instantly interrupted, “Your Highness, we could incorporate this statistical method into the standardized production system, and have it taught by Monsieur Laisonne’s management consulting firm.”

Joseph nodded. These things, which seem so simple in future generations, indeed required a professional company to promote in the 18th century. Just like in the early 21st century, one would need to take a class to learn how to create Excel charts.

Speaking of standardized production systems, Joseph thought of another issue; factories adopting standardized production models should be rewarded, after all, they were contributing to the nation’s overall productivity increase.

His first thought was tax reductions, but he quickly shook his head slightly. Whether it was industrial development zones or the promotion of automatic looms, taxes had already been significantly reduced, and they could not be reduced further, especially since France was still shouldering a debt of over two billion.

Perhaps, establishing a rating agency should be put on the agenda.

With a rating agency, companies that met the production standards could be given a higher rating. Although the ratings themselves would not generate profit, they exemplified the company’s strength. Whether investors or consumers, they would definitely choose companies with higher ratings more often. High-rated companies would also find it easier to pass bank loan approvals.

Moreover, he could use the rating standards to guide the development direction of companies. Even once the rating agency’s influence was substantial, they could follow the Western practice of later generations and launch a “sovereign credit rating” service.

The so-called sovereign credit rating was an assessment of the credit quality of a nation or region, including aspects like national governance, economic performance, policy level, social structure, and government financial strength, among others.

It was well known that in later generations, those three major rating agencies had tremendous influence; merely giving a country a lower sovereign rating could frighten away foreign investments, and in severe cases, even trigger an economic crisis in that country!

Once the rating agency was established, it would be like adding an economic weapon to France’s arsenal. If anyone dared to go to war with France, they would first face a series of sovereign rating downgrades. Even if it couldn’t collapse the opponent’s national debt, it would at least raise their financing costs and greatly increase their military spending pressure.

So, who would be the best candidate to handle establishing the rating agency?

Joseph pondered, concluding that it definitely should not bear the color of the French Government to appear objective and independent.

Laisonne’s consulting firm was quite suitable; for the promotion of standardized production, its staff had already exceeded a thousand people, surely capable of splitting off some to establish a rating agency.

Then, the French Chamber of Commerce would come forward to collaborate with major banks to establish a rating agency.

Additionally, one should be established in France’s allies. After all, to carry out sovereign ratings of other countries, if all rating agencies were French, it would inevitably make some countries perceive manipulation.

However, no matter who led their establishment, whether they were located in France or abroad, he must firmly hold the control of these rating agencies in his own hands.

For Laisonne’s company, there was no need to say, as it was initially created to promote standardized production, and the founding capital was his own. Naturally, he would hold controlling stakes in the split-off rating agency.

For the Chamber of Commerce, it couldn’t ignore the opinions of the Royal Family, and funding was also provided by the Bank of France Reserve, so gaining control wouldn’t be difficult.

As for the rating agency abroad, it would need careful consideration, and it would be best to find a local organization to act as a front, controlled by French investment.

The location could be chosen in Spain, considering it was related to the House of Bourbon.

Joseph roughly sketched out the matters related to the rating agency, then continued discussing industrial development with Mirabeau. His gaze unintentionally swept across the line chart he had drawn earlier and suddenly felt something was amiss.

He picked up the chart and scrutinized it. Previously, the dense data made it difficult to notice anything, but now, it was obvious from the chart—last year, the first nine months were on an upward trend, but starting from October, except for papermaking and brewing, the growth of other industries began to slow down.

He pointed to the lines on the chart, turning to the Minister of Industry, “Count Mirabeau, look here, it seems that from October, there was some issue with industrial development?”

“Yes, Your Highness,” Mirabeau hurriedly nodded, “This is also one of the main topics I intended to report to you today.

“The momentum of industrial development indeed shows a slowing trend, mainly due to two factors.

“First is the lack of investment. After investing in the Luxembourg iron mines, there wasn’t much money left in the accounts of the Industrial Development Fund. As for investors interested in industry, most had completed their investments in the first half of the year, and some later entered the coal mines in the Southern Netherlands, with new investors becoming increasingly scarce.”

The Minister of Industry paused for a moment, then continued, “Second is the insufficient rate of return on industrial investments, which has also resulted in new investors remaining in a wait-and-see state.”