Chapter 251: Conversation Between Master and Servant
What Kent, the butler, said was certainly not wrong. As a ruler of a nation, the level of support from the people is the most important. The inconveniences that come with high support are naturally insignificant.
Moreover, Arthur was never interested in activities like shopping. Instead of wasting time on such things, it would be better to focus on national development issues, right?
Moving past this brief digression, Arthur turned his attention back to Kent and asked with a smile, "Kent, how are things going with the royal consortium?"
The royal consortium constitutes the vast majority of Arthur's personal assets and is the foundation of his military power and prestige.
After all, without money, nothing works. The role of the royal consortium is to provide Arthur with a steady stream of income, which is then used to strengthen military power, reputation, and various other things.
"Your Majesty, overall, the development of the royal consortium has been very smooth. First, the royal bank. Currently, the royal bank's operations have expanded to Europe and the United States, with forty-seven branches opened worldwide," Kent reported.
"At present, the royal bank has a total of 6,334,200 clients, with total deposits amounting to 143.27 million Australian dollars, and an average deposit of over 15 Australian dollars per person. Currently, our loan business has reached 1,234,200 cases, with external loans amounting to 80 million Australian dollars."
The reason the royal bank has so many clients is because most of the wages in Australasia rely on the royal bank. Additionally, the issuance of the Australian dollar is managed by the government's monetary bureau in collaboration with the royal bank. Therefore, the royal bank is the first choice for financial transactions for the people of Australasia, trusted and popular due to Arthur's guarantee and reputation.
Hearing about the loans amounting to millions, Arthur didn't feel alarmed.
After all, the royal bank's loans must pass through a review process to ensure the borrower has sufficient qualifications before the loan is approved.
Moreover, in Australasia, Arthur didn't need to worry about borrowers running away.
Before granting a loan, the bank ensures the borrower has sufficient assets. Even if someone runs off, there are still houses and properties left behind; the bank won't suffer losses.
Furthermore, Australasia is filled with opportunities to make money, with over a hundred foreign enterprises already established there.
Such opportunities are clear to any intelligent person, and that's why many people take out loans.
Although the royal bank was founded primarily to facilitate Arthur's financial operations and control Australasia's finances, it has already become a highly profitable industry. The bank's income reaches millions of Australian dollars annually, thanks to its operations primarily within Australasia.
"In addition to the royal bank, our military factories and shipyards are also developing very smoothly. The number of employees in the military factory has exceeded 8,000, making it the largest military factory in Australasia with the highest weapon production capacity. The shipyard also has over 6,000 employees, making it the largest shipyard in Australasia. These two military enterprises bring in at least 3 million Australian dollars in revenue for the royal consortium each year, and their importance far exceeds the revenue they generate," Kent continued his report, seeing that Arthur had no further questions.
The military factory and shipyard are crucial to Arthur and Australasia's importance.
Currently, most of Australasia's weapons and warships come from these two enterprises, which are essential for Arthur to maintain military power and for Australasia's rise.
For Arthur, the scale of these factories must not only be large but also keep growing to meet his expectations for Australasia.
"Currently, the royal consortium also owns shares in over a thousand small and medium-sized enterprises, private workshops, and factories, with shareholding ratios ranging from 1% to 40%. The total value of these shares exceeds 2 million Australian dollars. Although these enterprises are not yet generating income for the royal consortium, our investment in them is not for profit, but to provide momentum for the development of various industries in Australasia. From what we can see, at least one-tenth of these enterprises will show improvement, and some may become industry giants in over ten years," Kent smiled and said.
The royal consortium's investment strategy seems more like a "nurturing plan," starting from scratch to cultivate Australasia's future industry giants.
Even though investing in over a thousand enterprises won't consume much capital, if some of them eventually become industry leaders, Arthur will profit.
As for other enterprise investments, they can be seen as supplementary, as most of these small and medium-sized investments are relatively insignificant.
"Which of these enterprises have reached a certain scale?" Arthur inquired.
The royal consortium had been established for several years now, which means some of these enterprises had been invested in for quite some time.
After a few years of development, reaching a certain scale shouldn't be too difficult, at least Arthur thought so.
"Your Majesty, most of the enterprises we own shares in are in the food industry and light industry, with a few in other sectors. The enterprises that have reached a certain scale are in Sydney and Victoria's food industry. The largest has reached over 900 employees, and factories with over 100 employees should have at least 100 factories," Kent answered.
The government of Australasia provides generous subsidies to these enterprises, and the economy has been stable for years. The industrial areas also have plenty of indigenous labor, so the expansion of these factories isn't too difficult.
Especially in the food industry, these companies made a lot of money during the East Asia famine and naturally expanded significantly.
"The reason the number and scale of factories have expanded so rapidly is partly due to leading enterprises like the Benz Automobile Factory," Kent explained.
"Your Majesty, as you know, the Benz Automobile Factory is currently the largest automobile manufacturer in the world. Our local factory is also quite large. The manufacturing of automobiles involves various equipment and parts, which has created a lot of space for smaller factories downstream. Three of the enterprises we invested in have reached agreements with the Benz Automobile Factory to provide high-quality rubber tires."
In any industrial area, the scale of industry often follows a complete assembly line, where each factory meets its needs.
For example, in Sydney's industrial area, the leading enterprises are Arthur's military factory and the Benz Automobile Factory.
Leaving aside the military factory, the Benz Automobile Factory has greatly facilitated the development of the industrial area.
The Benz factory's scale isn't enough to produce all the parts and equipment needed for its cars, and there's no need to do so.
This has led to the emergence of many small factories and workshops that rely on the parts market of the Benz Automobile Factory.
In Sydney's industrial area, at least dozens of enterprises have partnered with the Benz factory to provide parts such as tires, steering wheels, windshields, seat belts, dashboards, and seats.
The Benz factory's annual production is in the hundreds of thousands, and these orders can sustain many small factories, which is why Sydney's industrial area now hosts hundreds of factories of various sizes.
The Benz factory needs steel and parts produced by other factories, and smaller factories rely on the parts orders from Benz.
Currently, Sydney's industrial area has an annual output value exceeding 30 million Australian dollars, and Benz Automobile Factory plays a crucial role.
Arthur nodded, not surprised by this situation.
This phenomenon is very common in industry; after all, no factory can guarantee it is all-encompassing and capable of producing every part and material required for its products.
Building production lines for parts and materials that are rarely needed would require a lot of time, effort, and funds, and the cost often doesn't justify the investment.
This is where small factories prove useful. Because they are small, they can focus on producing specific parts and materials. The occasional orders from the Benz factory are enough to sustain their businesses for a year and provide Benz with the necessary supplies.
Even Arthur's military factory has many small factories it works with.
However, because military factories involve national and royal interests, these small factories are generally controlled by the royal family, even those producing simple wooden gun stocks.
"In addition to these numerous factories, we also control thirty-one mines, four oil fields, three hospitals, two universities, and one technical school, along with a newspaper. The royal consortium's influence is present in almost every industry in Australasia," Kent said proudly.
The scale of the royal consortium today is largely due to Arthur's significant initial investment, but Kent's efforts were also key to its success.
As the former butler of the late Duke Arthur, Kent's economic ability and foresight are beyond doubt. Otherwise, he wouldn't have been entrusted with managing the Duke's private assets.
With the help of numerous economic experts from both Europe and Australasia, the rapid expansion of the royal consortium now seems normal.
Hearing Kent's proud words, Arthur smiled and sincerely said, "The royal consortium's current scale is largely thanks to your efforts, Kent. Both I and the royal family will remember the contributions you and Minister Kent have made. The relationship between the Loren family and the royal family is strong and enduring!"
Kent and his eldest son, Minister Kent, come from the Loren family. The name was granted to Kent by the late Duke Arthur, illustrating the close relationship between the Loren family and the royal family.
In Europe, the relationship between nobles and their butlers has a long history. If nothing changes, Kent's son will likely become Arthur's future butler, and this tradition will continue through the generations. This is the relationship between master and servant—inseparable.
Because of this relationship, Kent is one of Arthur's most trusted and loyal subordinates. Minister Kent also holds a key position in the Ministry of Defense.
The majority of Arthur's military power is controlled through Minister Kent's role in the Ministry of Defense.
Arthur grew up under Kent's care, and Kent's loyalty to him is almost absolute.
Upon hearing such sincere words from Arthur, Kent was nearly brought to tears, saying with emotion, "Your Majesty, rest assured, the Loren family will always stand firmly by your side. The Loren family will forever be the royal family's servants!"
Yes, servants—not subordinates. Although this might seem like a lower status, the closeness of this relationship is far deeper than that of mere subordinates. For Arthur, Kent is undoubtedly one of the people he trusts most.
(End of Chapter)
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 30 Chapters In Advance: patreon.com/Kira1997