For a time, the factory owners present grew even more excited.
With the market in place, the raw materials secured, plus the latest technology and the backing of insurance companies for investments, this business was bound to succeed!
Of course, Joseph was well aware that, excited as these people were, when it came time to actually invest their livres, the vast majority would still hold back until someone who took the risk made money. Only then would they follow suit into the market.
Therefore, Joseph proceeded to throw out an incentive scheme, “To encourage everyone to use new technology, factories that invest in automatic looms within three months will enjoy a 50% tax reduction policy for three years. Those who invest within five months will enjoy a 35% tax discount.”
“In addition, for investors short on funds, the Precision Machinery Factory can also provide rental services. With just two thousand livres, one can lease an automatic loom for a year.”
The France Precision Machinery Factory was a new factory spun off from the Royal Armory since the armory needed to focus on the production of weaponry—it wasn’t really appropriate to have them tangled up in loom production as well.
Conveniently, the armory had recently recruited a group of craftsmen for the production of the automatic looms. So Joseph simply invested some money to spin this group off into an independent company.
In the future, this place could also produce precision products like lathes and boring machines, which could play a very important role in promoting industrial productivity.
As for the lease of the automatic looms, Joseph directly had the Minister of Industry apply for financial subsidies; for every loom rented out, the France treasury would subsidize the Precision Machinery Factory 4000 livres—a full automatic loom sold for 5800 livres. That is to say, the Precision Machinery Factory bore no risk in leasing out the looms.
This move immediately increased the number of textile owners truly determined to try the automatic looms.
Investing in three automatic looms only required 36,000 livres, of which 30,000 were for purchasing steam engines. Steam engines held their value very well—many villages were looking everywhere for second-hand steam engines for irrigation, and they could be easily sold.
Given the 50% tax deduction, there was truly no need to hesitate any longer. Keep in mind, after five months, the tax benefits would be gone.
Some astute factory owners were already grouping together, discussing a partnership to invest in automatic looms—the larger the capital scale, the more effectively costs could be reduced. Although there wasn’t a complete set of commercial operating theories at this time, these people had practical experience running factories, they were all seasoned capitalists.
After the “policy briefing” had concluded, Joseph immediately proceeded with the Lyon city commissioner and chairman of the chamber of commerce to inspect the established textile factories in Lyon without a moment’s rest.
For several of the best-run factories, he not only provided loan support—well, the Bank of France Reserve was very quick to lend when seeing the notes approved by the Crown Prince—but even personally imparted advanced concepts such as brand building, promotion, and the cultivation of sales networks to the operators of those factories. Stay connected with My Virtual Library Empire
For the sake of France’s textile industry, he virtually took care of everything for the factory owners, short of chewing and feeding the information directly into their mouths.
Compared to their British counterparts who relied on their own talents and struggled, Lyon’s textile owners could practically fly with happiness.
If they still couldn’t catch up with the British, it would be utterly unreasonable!
Four days later, Joseph looked at the more than thirty applications for new automatic loom factories on his desk with satisfaction and couldn’t help but take a deep breath, feeling that his trip to Lyon could now come to an end.
The specific implementation work would naturally be taken over by people dispatched by Mirabeau; he had already set the broad framework and basically, nothing would go wrong.
However, on the morning Joseph was preparing to set out for Verdun, he heard a faint noise coming from outside his window.
He opened the window in surprise, to see the villa’s surrounding walls crowded with people, his own personal guard and Lyon police loudly scolding, trying to disperse the crowd.
Before he could ask, Eman hurried over and bowed, “Your Highness, those are Lyon’s textile workers. They seem to have heard that the automatic loom could reduce the need for labor by 90%, so they have come to petition you.”
Joseph couldn’t help but facepalm; the workers were worried about losing their jobs. He blamed himself for boasting a bit too much…
In this era, workers mostly lived paycheck to paycheck and would starve immediately if they lost their jobs.
He felt a headache coming on. Though the workers’ concerns were unfounded, firstly, the effect of the automatic loom on reducing labor wasn’t as exaggerated; secondly, automatic looms could increase the sales volume of Lyon’s textiles, effectively enlarging the market share. By then, factories would definitely expand on a large scale, and the need for labor would only increase, not decrease.
However, it was difficult to make this clear to the workers.
After a moment of thought, Joseph instructed Eman, “Please tell Major Kesode there’s no need to disperse the crowd.”
Eman hesitated for a moment, but still pressed his chest and said, “Yes, Your Highness.”
Soon, Joseph appeared in front of the villa’s gates. Someone shouted, “It’s the Crown Prince!”
The hundreds of Lyon workers, who had been kept outside the walls by the police, went silent.
Joseph looked around, climbed atop a carriage parked in front of the gate and proclaimed loudly to the ragged and anxious textile workers, “I understand your concerns. But I assure you, you will not lose your jobs because of the automatic looms!”
A bold worker pushed through the crowd, nervously saying, “Your Highness, but my boss said, once the automatic loom arrives, he will lay off more than half of the workers…”