American: Native Empire

Chapter 106: Interest Rate.

Even after that, Delicate Glass continued to explain his ideas and vision for the railroad, and how the empire would change with the steam engine and the steamship.

And when his passionate speech was over.

Most of the researchers who were hesitant before were already immersed in the vision he presented.

I feel that Delicate Glasss plan is very feasible. I think its worth trying at least once, what do you all think?

Thanks to him, Sharp Teeth asked the researchers for their opinions, but there was no opposition like before.

How long did the awkward silence last?

When it seemed that no more opinions would come out, Sharp Teeth declared.

Then lets refine this plan a bit more.

Yes!

Thats how the direction of the research was changed by Delicate Glass.

The era of the railroad was looming.

***

After that day, the researchers stopped their work and started to make a new plan.

And in this process, Delicate Glasss performance was impressive.

He was involved in every part of the project, from refining the design to making models of the railroad and the steam engine.

I can see why the steamship was made so quickly and accurately.

Hes definitely living up to his reputation.

The researchers who secretly envied him had no choice but to admit his skills.

Sigh

But actually, Delicate Glass let out a sigh.

At this, Sharp Teeth patted his back.

Are you regretful?

Of course. I want to stay with my teacher until the end and complete the railroad together.

But you have your own research. You have to start the steamship research again. Dont forget that your teams researchers are looking only at you.

At that, Delicate Glass nodded weakly.

Originally, joining the steam engine research was only until the steamship research started.

And today was the end of that period.

Teacher, I hope you have good results. Ill be rooting for you from afar.

Haha. Youre saying what I should say. Ill take responsibility for this side and produce results, so you dont worry about anything else and just think about the steamship. Got it?

Ill keep that in mind.

With that, Delicate Glass left for the steamship research.

He disappeared like that, but as Sharp Teeth promised, the research continued.

And soon they succeeded in conducting a mock experiment with a model.

But the problem started from then on.

As expected, this is what happens.

Its probably because we used up a lot of the budget given by our previous research.

Do you think we can get that much support again?

They expected it, but it took a huge budget to make a railroad and a steam engine for the experiment.

Besides, theres also the problem of location. We cant lay a railroad in the university, can we?

We dont know what kind of accident will happen during the research. It would be better if its a place where there are few people.

The previous three experiments that were later called the first car research could be done in the imperial university.

But it was impossible here to do an experiment with a railroad that could be used for research and a large steam engine running on it.

After listening to the opinions of the researchers, Sharp Teeth finally opened his mouth.

Of course, this is an experiment now, but if we succeed, we can also use the railroad we used for the experiment. 

So its best to do the research in a place where we can actually run the steam engine from the beginning.

Hmm Then where would be good?

I dont know.

What?

Nana, arent you all researchers? This is something that people who eat the national rice should worry about. For now, report the research results and plans so far and wait. Anyway, you have to get more support because of the budget.

Sharp Fang knew his subject well.

So he wrote a report with the researchers and sent it to Kim Ki-woo.

***

Haha. He really is something else.

Kim Ki-woo laughed out loud as he read the report from Sharp Fang.

He had established the concepts of steamships, railways, and steam locomotives after the steamship.

Of course, he had thought of the steamship after getting a hint from Sharp Fangs words, and he had come up with the railway after seeing the reinforced concrete method.

But Kim Ki-woo knew very well.

How hard it was to derive new concepts from these unfamiliar things.

If it was easy, why couldnt countless scholars think of railways?

By the way, it will cost a fortune to start building railways.

Kim Ki-woo smiled bitterly as he looked at the estimate for railways and steam locomotives at the end of the report.

Of course, he had enough funds to support the experiments.

But what Kim Ki-woo was worried about was what came after.

The steam locomotive would succeed anyway. 

And Kim Ki-woo knew how powerful the impact of the steam locomotive was.

But it also consumed a tremendous amount of steel.

Even though the supply of steel was slowly increasing due to the war, it would be far from enough if they started laying railways in earnest.

In the end, they had to scale up the steel industry to solve this problem.

They had to pour most of the steel they got into laying railways.

As he was thinking about this and that, the Minister of Internal Affairs arrived at his office after receiving Kim Ki-woos call.

Your Majesty, you dont look well. Are you alright?

Haha. Im fine, dont worry.

It was Red Wolf.

He was so observant that he could check his face color slightly worse than usual like a ghost.

What a reliable guy.

The Ministry of Internal Affairs was a branch of Straight Tree.

His shadow was so thick that it seemed impossible to get rid of him.

But Red Wolf had a unique charisma and leadership that he quickly took control of the Ministry of Internal Affairs.

And he cleverly dealt with the subtle conflicts with other departments that started implicitly.

Thanks to that, he had dyed the entire Ministry of Internal Affairs with his own color by now.

Kim Ki-woo put his thoughts aside and handed him Sharp Fangs report.

Read this first. Well talk later.

Yes, Your Majesty.

Red Wolf carefully took the pile of documents from Kim Ki-woo and read them slowly.

Ho.

A deep interest rose on his face as he read the report.

He had rarely been to industrial sites, but he knew the situation to some extent as he managed the government budget.

And he was smart enough to understand the concepts and possibilities of railways and steam locomotives in an instant.

Squirm!

Of course, when he looked at the additional budget amount at the end of the report, he frowned slightly as if he was displeased.

Ive read it.

So, what do you think?

It seemed reasonable to me. Its obvious that if logistics move more smoothly, we can develop faster.

Youre right.

Red Wolf was an expert on imperial economy.

So he knew better than anyone else how important logistics were.

Kim Ki-woo also agreed with him.

Surely, when steamships are commercialized, logistics will move much faster. But this is limited to water transport. We cant neglect land transport either if we want to fully develop deep inland.

You think this steam locomotive will be the answer.

Thats right. It can transport an amount that cant be compared to a cart pulled by livestock. And thats not all. In the future, when the technology advances and the steam engine train becomes faster, it will be easier to go to distant regions.

It will also make the trade more free and the projection of administrative power more smooth.

You really know what Im talking about.

Kim Kiwoo smiled brightly as he looked at the Minister of Internal Affairs.

He had grasped the core of what he was saying in an instant.

But it will take a tremendous amount of money to do this. Much more than what is written in the report.

Kim Kiwoo then explained in detail what he had in mind.

The Minister of Internal Affairs, who had been listening quietly, spoke his thoughts slowly after the story was over.

I understand your Majestys intention, but it is quite difficult with the current budget. And we havent even succeeded in the research of the steam engine train yet, have we?

Im confident that Sharp Fangs will succeed. And before that, we have to quickly grow the steel industry and complete the mass production process of steel. Otherwise, there will be problems with the railroad construction.

If your Majesty thinks so, there seems to be only one way.

Haha. It seems you have the same idea as me. Raising the interest rate, right?

Yes, your Majesty.

Finally, the interest rate issue came up.

Kim Kiwoo recalled the current financial system.

There is only one bank so far.

After banning private banks, the Financial Agency quickly took root in the empires economy.

And until now, the interest rate of private banks was zero.

There was no need to raise the interest rate even if the money of the imperial citizens flowed into the Financial Agency.

Of course, these days there are many cases of investing through various channels.

The empires economy was always booming, so it was more profitable to invest in businesses than to just keep money.

But not everyone succeeds in investing.

If they fail in the competition and their businesses go bankrupt, they lose all their money.

Those who didnt want to take such risks entrusted their money to the Financial Agency, even if they didnt make any profit.

There was no need to raise the interest rate until now.

The money entrusted by the imperial citizens could be used for useful purposes, and thanks to many public enterprises, the imperial government had a lot of money.

But the situation changed.

I need more money.

If the interest rate is raised, of course, a lot of money circulating in the market will flow into the Financial Agency.

Of course, he could have laid down the railroad slowly without doing this, but Kim Kiwoo wanted to lay down the railroad as fast as possible with his full capacity.

Anyway, once you lay down the railroad, you can get a lot of profit.

In the previous imperialist era, there was a reason why the great powers were bloodthirsty to get railroad construction and operation rights in many countries.

It was much more profitable to lay down the railroad quickly even if he raised the interest rate now than to think about later.

Consult with the head of the Financial Agency and raise the interest rate enough to meet the necessary funds. Then find out how much budget you need from the Ministry of Internal Affairs and arrange it accordingly.

I will do as you say, your Majesty.

Thank you.

***

Kim Kiwoo immediately consulted with the head of the Financial Agency and raised its interest rate. 

He also announced this widely through The Empire Newspaper.

And the reaction of the imperial citizens was immediate.

Wow! Now they give us money just for entrusting our money to the Financial Agency!

Really? I was worried about what to do if my business went bankrupt anyway, so Id rather entrust my money to the safe and reliable Financial Agency.

Me too. Im going to entrust my money that I didnt entrust to them before.

Thanks to this, for a long time, there was a huge crowd at The Financial Agency.

And a lot of money circulating in the market flowed into The Financial Agency.

What do you mean youre taking out your money?

You said we can take it out anytime we want, right? The Financial Agency is safer than investing in your business, so Im just going to entrust my money there.

But dont you know that there is a difference in profit?

I dont care about that. Just give me my money back!

Sigh!

Of course, as a result, many businesses suffered damage.

There were many imperial citizens who wanted to get their money back by saying they entrusted it to The Financial Agency.

As a result, some ambitious projects were shaken and some places went bankrupt while trying to expand too much.

Anyway, through this process, enough budget for Kim Kiwoos plan began to pile up at The Financial Agency.

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