Empire Rise: Spain-Chapter 23: Agricultural Tax Reduction Act

“Your Majesty, forgive my bluntness, but our people no longer have funds to purchase our national debt.” Hearing Carlo’s proposal, Primó smiled bitterly and reminded Carlo.
“No, Prime Minister, our national debt issuance targets are not ordinary commoners.” Carlo shook his head and explained with a smile: “
We can issue bonds similar to educational national debt, using interest higher than banks to attract capitalists and factory owners to purchase them.
Our issuance scale doesn’t need to be set too high; perhaps 10 million peseta would suffice for our initial educational needs.
This batch of national debt will be 100% used for educational reform, which not only reduces the number of illiterates in our country but is also beneficial for factories that need some knowledge reserve.
Once our first batch of national debt is repaid on time, issuing such national debt afterward will become much easier. At least for us now, this is a more reliable means than borrowing debt and allows the government to bear less interest.”
Capitalists are all profit-driven; national debt with higher interest than banks will definitely attract some capitalists to purchase national debt.
If specific special national debt is issued specifically for reforms such as education, this will also reassure those capitalists purchasing the national debt.
After all, what capitalists worry about is what the government will do with these funds. Investing in sectors like education is certainly much better than the government’s and nobles’ squandering; at least capitalists won’t worry that the government won’t have sufficient funds to repay the national debt in the future.
“We can try it.” After thinking for a long time, Primó finally nodded and decided to give it a try.
The first batch of national debt doesn’t need to be issued too much; it can be used to test whether this method can raise funds for the government.
Raising funds is certainly good; even if funds cannot be raised, the government won’t suffer too great a loss.
After discussion in the cabinet, it was unanimously decided to set the issuance amount of the first batch of educational national debt at 8 million peseta, or 307,000 pound sterling.
Although this amount of funds is not much, it can build a batch of literacy classes specifically for eliminating illiteracy. Literacy classes don’t even need complete school institutions; just find a house, set up some tables and stools, prepare some books, and teach Spaniards basic primary school knowledge.
The news that the government is issuing educational national debt immediately caused a sensation in Spain once spread.
Many Spaniards are still willing to see the government’s efforts in education; this at least proves that the current kingdom government values commoners more than during Queen Isabella’s time.
Even farmers are willing to see the country’s investment in education. Even if they cannot enjoy the welfare brought by educational reform, it doesn’t mean their children cannot enjoy it.
However, while there is support, very few people are willing to purchase educational national debt.
Although the issuance amount of the first batch of national debt is only 8 million peseta, after two days of issuance, only 200,000 was sold, not even reaching 10,000 pound sterling.
Carlo, realizing this is a good opportunity, naturally wouldn’t miss it. On the third day of national debt issuance, Carlo publicly announced subscribing to 3 million peseta of educational national debt.
3 million peseta of national debt is actually not much, only over 100,000 pound sterling, less than half of this national debt issuance amount.
But Carlo, as king, proactively subscribing to national debt holds different significance for Spaniards.
Although it’s impossible to support Carlo just because of such a small matter, many Spaniards have a better impression of Carlo and are willing to give Carlo enough time to show his excellent monarch side.
At least Carlo has already shown a side vastly different from Queen Isabella, and Spaniards have patience for Carlo.
After Carlo took the lead, the capitalists’ actions finally became frequent.
It took almost another week, and the 8 million peseta national debt was finally sold more than half; the government also had initial funds to promote educational reform.
In mid-September 1869, many literacy classes sprang up in Madrid like bamboo shoots after rain, adopting voluntary registration and free learning methods.
As long as they are citizens of Spain, they can register for literacy classes to participate in learning. Book fees and tuition fees are all free, but they must attend at least one literacy class session per week.
Literacy classes still consider the actual situation of a large number of ordinary people. In 1869 Spain, there was no specific working hours.
In other words, encountering black-hearted capitalists and factory owners, Spaniards’ working time never went below 12 hours, even up to thirteen or fourteen hours.
Not to mention weekend leave; even wanting to request leave when sick is not easy, because capitalists are unwilling to let factory output decrease due to employees requesting leave, ultimately affecting their own speed of making money.
As for work injuries, they have nothing to do with this era. Not to mention getting injured at the workstation; even dying at the workstation would not result in a single penny of compensation.
The myriad welfare benefits policies of posterity were all fought for by workers and laborers worldwide in the long process of being oppressed and resisting.
The literacy movement in educational reform is being carried out vigorously, having a great impact on Spain.
After all, it’s a free literacy movement; Spaniards’ willingness to participate in literacy classes is still very strong. Moreover, Carlo also used a little trick in the literacy classes: Spain’s literacy classes only use Spanish language and not various regional languages like Catalan language.
The purpose of doing so is also to reduce the sense of division between various regions of Spain and Spain. Assimilating ethnic groups should start from language; in Spain, Spanish language must be spoken—this is very important.
The good news is that today’s Spain has been integrated together for hundreds of years; most of the public do not reject a complete Spain.
The separatists and nationalists in various places now are still a minority, which cannot have too great an impact on Spain’s unification.
While the literacy movement was ongoing, Primó also launched reforms for agriculture.
Although the Spanish Government’s fiscal revenue is not high, this cannot stop Primó from reducing the agricultural tax.
On September 27, 1869, while the literacy movement was still being talked about by Spaniards, the Spanish Cabinet Government had already submitted a brand new 《agricultural tax reduction legislation》 at the latest House of Representatives meeting.
This legislation caused a greater sensation in Spain than the literacy movement, because the vast majority of Spain’s population is agricultural population; tax reduction is a real benefit to them.
As expected, the House of Representatives passed this legislation unanimously with over 70% proportion, and the Cabinet Government also announced that tax reduction would start in 1870 to substantially increase the income of agricultural population.
Second update, seeking support!