Chapter 112: Barcelona Industrial Zone

Since industrial and financial aid had been obtained from the Austro-Hungarian Empire, the next step was predictable: relying on this aid to build a larger-scale industrial zone.

The Seville Industrial Zone in the Andalusia region had been planned previously, but its geographical location did not seem as favorable as once imagined.

The main issue was that Seville is located in the southernmost part of Spain, and it would take a longer time to transport industrial goods from there to the northern regions of Spain.

In the government's industrial zone construction plan, another industrial zone needed to be built in the north to achieve a north-south synergy with Seville.

The reason Barcelona was chosen is that it was already an industrial city. Although the scale of its industry was not large, its advantage was its proximity to the sea, which would make the transport of industrial materials more convenient.

Besides this, there was another major reason for choosing Barcelona as the industrial base: the government's control over Catalonia.

Once the industrial base is established, it will create a large number of industrial jobs. A portion of these jobs will be provided to Catalans, but with the requirement that they must be proficient in Spanish.

Another portion of the jobs will attract Spaniards to come to Catalonia, which will be used to reduce the proportion of Catalans in the Catalonia region.

Although the population of Catalonia is mostly Catalan, the total scale of the Catalan population is not high.

By diluting the proportion of Catalans in Catalonia, the goal of stabilizing Catalonia can also be achieved.

After all, not all ethnic groups want to seek more autonomy or even independence like the Catalans; there are still many ethnic groups willing to submit to Spanish rule and support this country.

Furthermore, the Catalans are not a monolith. Most Catalans, led by Prime Minister Primo, do not have thoughts of independence; they recognize the grand concept of Spain and firmly believe that they are Spanish.

Through the two methods of influencing and assimilating Catalans and diluting the proportion of Catalans, the Catalonia region can be made to trend toward stability.

Catalonia is still very important to Spain; only when this region is stable can the Spanish government form a defensive line through the Pyrenees Mountains to resist attacks from the European continent.

The industrial zone is located in the suburbs north of Barcelona, and the construction investment for the first phase of the industrial base exceeded 15 million pesetas.

After the completion of the first phase of the industrial base, it is expected to provide at least 20, 00 jobs for the Catalonia region and increase Spain's steel and iron production by 10, 00 tons and 100, 00 tons, respectively.

A steel production of 10, 00 tons is naturally very little compared to later generations, and it is merely a drop in the bucket even compared to the World War I era.

But the problem is that it is currently 1870, a time when steelmaking technology is not very advanced. Although specific data on the steel production of various countries is not entirely clear, the annual steel production of the British Empire, which currently has the most powerful industry, is only just over 300, 00 tons.

The United States, an industrial power in people's minds, had a steel production of only about 60, 00 tons last year. The newly unified super-power Germany, with the entire German Empire combined, only just broke through 250, 00 tons of steel production.

Under these circumstances, the first phase of industrial construction for a single Barcelona industrial base being able to provide at least 10, 00 tons of steel production and 100, 00 tons of pig iron production is already a quite decent level.

The first phase of construction alone requires at least two years, and adding in the time to reach production, this plan might only be realized after three years.

And this is still with the aid of the Austro-Hungarian Empire. If Spain were to develop the industrial base on its own, the time for the industrial base to be built might have to be doubled.

After all, the most difficult part now is not the construction of the industrial base, but the technology for smelting steel in various countries. Without relatively advanced steelmaking technology, even if a larger industrial base were built, the steel produced would not only be small in scale but also of poor quality due to the backward technical level.

Gao Da also attaches great importance to the construction of the Barcelona industrial base. Although the overall scale of the industrial base is not large, it is a significant improvement for Spain.

Once the industrial base is completed in three years, Spain's industry can be considered to have had a certain strengthening, at least ranking among the best below the great powers.

Even if subsequent construction goes relatively smoothly, Spain's industrial scale could catch up to Italy and Russia.

Southern Italy is not very suitable for industrial development, while Russia, due to its late start and chaotic domestic economy, did not gradually increase its industrial scale until the end of the century.

Tsarist Russia's steel production remained below 100, 00 tons until before 1878; this data is somewhat too low compared to other great powers.

During the same period, the steel production of Britain, France, and Germany had already increased to hundreds of thousands of tons, with France, the lowest among them, maintaining around 300, 00 tons.

But the one with the most explosive growth is actually the United States, far from the European continent. The U. . steel production is currently only about 70, 00 tons, but ten years later, it will increase to over one million tons; such a growth rate is simply exaggerated.

And 30 years later, U. . steel production has already broken through ten million tons, making it the first among all great powers to break through ten million tons.

There is one particularly important reason for the explosive growth of steel production in various countries, and that is the growth in steelmaking levels, which is also the reason why Gao Da is very concerned about the construction of the industrial base.

It is not too late to develop industry now; in fact, the industrial construction of some countries is only at the starting stage. Gao Da does not demand that Spain's industry have amazing achievements in a short time, as long as it achieves stable growth through steady progress and lays a good foundation.

Spain's colonial history in Latin American countries can bring it closer to these countries, and through economic alliances, it can open the market doors of these countries to dump Spanish industrial products.

Coupled with the colonies Spain plans to expand in Africa and cooperation with surrounding countries like Portugal, there will not be a lack of markets in the future.

As long as industry is not developed blindly and the total scale of industry is not pursued, a serious economic crisis will not erupt under steady progress.

The economic crisis in the United States was precisely because of the blind growth of U. . industry, with only twenty or thirty years between hundreds of thousands of tons and tens of millions of tons, which is what plunged the United States into the vortex of an economic crisis.

As long as Spain's industry is developed steadily, even if it is affected by the economic crises of other countries, the impact will only be on import and export trade.

Along with the construction of the industrial base, one matter must be put on the agenda, and that is the rectification of the banking industry.

Besides the Royal United Bank established by Gao Da, Spain also has other banks.

But these banks are either small private banks established by nobles or capitalists, or semi-official banks established by local governments.

But regardless of what kind of bank they are, the government lacks control over these banks, which also makes the system of some banks rotten to the core.

The reason why Gao Da's Royal United Bank is welcomed by the public, besides the good impression and support Gao Da previously established, is that Gao Da personally promised that he would never let the Royal United Bank go bankrupt and would guarantee the savings of all depositors in the bank.

In this era, a king's promise is still very useful; unless this king does not want to be king anymore, he must execute his promise.

The reason for preparing to rectify the banking industry is also to prepare for Spain's future industrial development. Industrial development certainly cannot rely solely on the royal family's property; it also requires a large number of private enterprises and factories.

Rectifying the banking industry and raising sufficient funds to support the development of private enterprises is also Gao Da's plan.

Spain is originally a country with a small area, so of course, it does not need so many banks. In addition to the royal family's Royal United Bank, the Spanish government will also establish a national bank.

Coupled with a few large banks after integration, it will basically meet Spain's banking needs. The public can freely choose which bank to deposit their money in, and only with competition between banks will there be development.

By integrating these banks, the royal family and the government can invest in Spain's private banks. This way, there is no need to worry that these private capitals will turn around and influence the government after they grow large, as the government and the royal family will only earn more.

Coupled with the fact that the government and the royal family will have their own banks, doing so will not only make Spain's capital powerful but also control capital, making capital serve them instead of the government being enslaved by capital.

Rectifying banks has another benefit, which is that when the country needs funds, these integrated large banks alone can provide a portion of the funds.

Banks in this era are definitely money-makers; this is beyond doubt. Along with Spain's industrial and economic development, Spain's banks will have a golden period of development in the future.

Spain's banks can also penetrate into the neighboring country of Portugal and African colonies, including some countries in Latin America, and can exert their own influence.

Industry and finance are not only the most profitable industries in this era but also industries that a country must develop. By vigorously developing the financial industry, Spain can also realize economic control over Portugal and exert more economic influence on Latin American countries.

Although it is no longer possible to restore the territory of the era of the Empire on which the Sun Never Sets, Spain still has hope of becoming a country at the level of a great power and launching an assault on the throne of the top five in Europe.

Since it is a plan to rectify banks, it is naturally better for the government to initiate it.

If the royal family initiated it, firstly, it would not be very legitimate, and secondly, it would create a bad impression in the eyes of the public that it was targeting other banks for the sake of the Royal United Bank.

If the government initiates it, the dissatisfaction of those private banks will be directed at the government, which naturally has nothing to do with Gao Da.

The second update of three thousand words, seeking support!

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(End of this chapter)