The next morning, after waking up, Arthur went for a run. Upon returning, he took a quick shower in his room and had a simple breakfast consisting of bread, butter, cheese, ham, and tea. After finishing his meal, he dressed in a suit, then opened his desk drawer and retrieved the list of machinery and equipment from industries subject to export bans that he wished to have lifted, along with reports on the current state of these industries. Knowing that his father also started his day early and that government meetings typically took place later, he decided that the morning would be the best time to meet with him. With that, he left his room and proceeded toward his father's office.
Arriving at the door of the office, Arthur instructed the guard to inform his father that he wished to see him. The guard entered to deliver the message. Inside, King Cedric was busy with a pile of paperwork. When the guard entered and formally saluted, he said, "Your Majesty, Prince Arthur is at the door and wishes to speak with you." The king was surprised that Arthur wanted to see him so early but responded, "Send him in."
The guard exited and informed Arthur that the king had given his approval. Arthur entered the room, and upon seeing his son, King Cedric greeted him, "Good morning, Arthur. What brings you here at such an early hour? Is there a problem?"
Arthur replied, "Father, I wanted to speak with you early in the day since you are less busy at this time."
The king nodded. "Very well, then," he said, gesturing for Arthur to take a seat in the chair across from his desk. Once Arthur was seated, the king added, "I'm listening."
Arthur began, "As you know, after I invented the steam engine and various industrial machines, we imposed strict export bans to prevent neighboring countries from acquiring these technologies."
King Cedric recalled that a few years ago, despite Arthur's opposition to such severe restrictions, the decision had been made to block foreign access to steam engines and heavy industrial machinery, particularly in key sectors. Arthur continued, "But as you are aware, countries like the Kingdom of Frenk and Aragon have spent years sending spies to acquire these secrets. Over time, they have managed to obtain some of them."
The king sighed. "Yes, I am well aware of this. Despite the efforts of our intelligence and security forces to stop them, in the past few years, they have managed to gain access to certain technologies."
Arthur nodded and asked, "Where am I going with this?"
He then explained, "Companies manufacturing these machines have continued to grow steadily as new factories were established domestically. However, in recent months, sales have begun to decline significantly. This is because the pace of new factory construction in Pendralis has slowed. The market has reached a saturation point. In previous years, these companies reinvested their profits into expansion, believing that demand would keep increasing. But now, even though they have started lowering prices, they are unable to sell their products, leading to serious financial difficulties."
King Cedric was already aware of this issue, given that many of the company owners and shareholders were influential aristocrats and businessmen who had seats in the House of Lords. Arthur continued, "If we don't take action now, these companies will start failing. Their collapse will create a domino effect, impacting other businesses and causing a downturn in the stock market, which could trigger a financial crisis. Additionally, mass unemployment in these sectors will lead to severe social and economic instability."
King Cedric considered the gravity of the situation. Arthur then brought up another point. "Even though these foreign nations have managed to steal some of our technology, you must have seen the intelligence reports stating that their production capacity remains extremely limited."
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The king nodded. After the initial thefts, he had ordered intelligence agencies to closely monitor industrial developments in those countries. The reports confirmed that, for example, the total number of steam engines they had produced in the last two years was equivalent to what Pendralis could manufacture in a single month. Seeing how insignificant their output was, he had not given it much further thought.
Arthur pressed on. "These nations cannot mass-produce steam engines and other steel machinery the way we can. Unlike us, they lack the geographic advantage of easily accessible coal and iron deposits, as well as the industrial infrastructure necessary to refine these resources. Moreover, they have been unable to establish political and economic unity."
King Cedric reflected on this. Unlike Pendralis, these nations had internal tariffs, and their aristocrats controlled private armies and independent laws, preventing centralized governance and economic coordination.
Arthur then presented a strategic proposal. "Even if we sell them our machines, they won't be able to match our industrial capacity without undergoing significant social and political transformations—changes that would take decades. Meanwhile, we have already secured critical raw material sources for our industry, particularly around the White Sea. Instead of waiting for them to develop their own industries, we should move in now and dominate their markets. If we delay, their domestic companies will eventually grow large enough to influence government policy, forcing their governments to impose tariffs that will make competition impossible for our firms. We must secure a foothold in these markets before that happens. It is time to lift certain export bans."
King Cedric pondered Arthur's proposal. Arthur then placed the document listing the sectors and products that should be exempt from export restrictions on the king's desk, and they spent some time discussing the specifics. After half an hour, the king made his decision.
"Very well," he said. "Let the Ministry of Finance conduct a detailed review, and we will proceed with lifting these export bans."
Arthur smiled, satisfied that he had convinced his father. "In that case, I won't take up any more of your time," he said as he began gathering his things to leave.
King Cedric then checked his pocket watch and remarked, "Actually, I have a meeting with Lord Russell about the new year's budget shortly. I want you to join me."
Arthur was surprised. "Is there a particular reason you want me to attend?" he asked.
The king explained, "Lord Russell owns vast coal and iron mines in the north and holds shares in steam engine and steel production companies. Naturally, he wants more of the budget allocated to railway expansion and naval shipbuilding. To achieve this, he is advocating for cuts in other areas—particularly in education funding, which he sees as unnecessary."
Arthur was taken aback by how quickly the capitalist class had begun lobbying for influence over government policies. While he had anticipated that a capitalist society would form, he had not expected them to exert this level of political power so soon. "Very well," he replied.
A few minutes later, a guard announced Lord Russell's arrival. King Cedric instructed him to let Russell in. The nobleman entered, offering a formal bow. "Your Majesty, thank you for seeing me."
The king led Arthur and Lord Russell to a sitting area near the fireplace, where they took their seats. Lord Russell began, "Your Majesty, I have come to discuss the new year's budget. Many members of the House of Lords share my view that education spending takes up too large a portion. We believe these funds would be better used to accelerate railway construction and warship production. I hope to gain your support on this matter."
King Cedric responded, "Actually, the education policy was Arthur's proposal. I would like to hear his thoughts before making a decision."
Arthur turned to Lord Russell. "I understand your argument. You believe education funding is unnecessary and that the money could be better spent elsewhere. However, in reality, you stand to benefit the most from this policy."
Lord Russell was surprised by Arthur's words. Arthur elaborated, "I am sure you have faced difficulties with undisciplined workers who migrated from rural villages to your mines and factories. You must have also struggled to find engineers with the necessary education. Basic education will ensure that workers are literate, numerate, and disciplined from an early age. Moreover, scholarships for the brightest students will produce the skilled professionals you need. While education requires significant investment, its long-term benefits will be invaluable."
Lord Russell considered Arthur's reasoning. Then Arthur added, "There's another matter I wanted to discuss. My father has decided to lift export bans on certain industrial sectors. This will increase demand for steam engines, iron, and coal."
Lord Russell, upon hearing Arthur's argument about lifting the export bans and its effect on industrial growth, began to reconsider his stance on education funding. He realized that an educated workforce would be critical to sustaining and expanding these industries. If companies were to thrive and expand into foreign markets, they would require disciplined, literate workers and skilled engineers who could handle the complexities of industrial production. The realization that investing in education would ultimately benefit his own business ventures made him rethink his opposition to the budget allocation.
After a long pause, Lord Russell finally spoke. "I see your point, Prince Arthur. Perhaps I was too hasty in my opposition to the education policy. I will speak with my fellow Lords and reconsider our stance on the matter." With that, he stood up, offering a formal bow to King Cedric and Arthur. "Your Majesty, Prince Arthur, I appreciate your time and this discussion. If you will permit me, I shall take my leave and begin discussions with my peers." King Cedric gave him a nod of approval, and Lord Russell exited the chamber, his mind clearly occupied with new considerations. As he left, King Cedric turned to Arthur, a satisfied smile playing on his lips, pleased with his son's handling of the matter.