Chapter 51: Tractor
The director of Portos Rico had been feeling rather downcast lately. His unease stemmed from the recent romantic entanglements between his beloved daughter, Hestina, and a young man named Sovaril. The situation made him feel as though a cherished possession had been taken from him, and this sentiment only intensified his animosity whenever he encountered Sovaril. Sovaril was well aware of the disdain Hestina's father held for him, but he felt powerless to change his feelings; his affection for Hestina was too strong to ignore.
Despite the personal tensions, life had to go on, and the arrival of the crown prince, Edel, at the machinery factory was a significant event. A cohort of senior managers, led by the somewhat rejuvenated director Portos Rico, gathered to welcome him. Edel himself was not without his own troubles. Recently, the news of his potential marriage to an Austro-Hungarian princess had driven his two maids to compete fiercely for his attention during the evenings, a situation that left him quite exhausted.
Upon stepping out of his vehicle, Edel was greeted with deference. "I have seen your Highness," the group of senior machinery factory officials saluted, led by Portos Rico.
"Okay, you are welcome," Edel responded, prompting the group to straighten up and stand aside. Led by the director, Edel made his way into the factory.
Portos Rico knew exactly what the crown prince was interested to see and led him straight to the newly built tractors. "Your Majesty, please look at this. This is a Volker tractor just made by our factory. It is designed with large and small wheels. The diameter of the two front wheels is 60 cm and the width is 10 cm. The diameter of the rear wheel under the driving position is 120 cm, and 25 cm wide. This can effectively ensure that it runs on fields and dirt roads. It uses a 28-horsepower dual-cylinder inline diesel engine developed by the power laboratory to ensure the efficiency of this tractor. Please see, your Highness, we have also equipped it with a large number of agricultural tools, so that it can be versatile in the countryside."
Edel examined the tractors, noting one equipped with a plow, a rake, a small flour grinder, and a trailer for cargo, showcasing the versatility of the tractor. These were all details he had previously discussed with Portos Rico, now realized before him.
"Director Podos Rico, you did a good job," Edel commended, his gaze still fixed on the tractors.
"Half of this tractor is the credit of your Royal Highness, I just executed the plans," Portos Rico responded, somewhat flatteringly.
Edel, not wishing to dwell on the praise, shifted the conversation to more practical matters. "How about the output of this tractor? How much do you plan to sell it for? How many people are interested in it?"
Portos Rico first addressed the production capacity. "Your Highness, we have only started production now, and the personnel are not yet fully accustomed to these machines. Currently, we can produce 20 tractors a day. I assure you that in half a year, we will increase the output to 45 tractors a day."
Next, he discussed the pricing strategy. "Considering that our tractors are primarily used in the countryside, and taking into account the complex terrain and high durability requirements, we plan to sell them for around 4500 lei."
Edel, comparing the price to that of a Model T, questioned, "Isn't that a bit too expensive?"
"The main reason is the production cost of diesel engines is quite high, and the amount of rubber used for the tires is substantial. We must sell at this price to make a profit," explained Portos Rico.
"And have you considered whether the market can accept this price?" Edel continued.
"We have conducted market research and found that this tractor is quite suitable for people with large fields. In our domestic market alone, there's a potential for almost 3,000 units. Considering our tractor's advanced features and fuel efficiency compared to British Holt's tractor company, I believe there's a demand for almost 50,000 units in Europe, and even more in the United States," the director confidently replied.
Edel, knowing the vast potential of Romanian agriculture, reflected silently. With 6.13 million hectares of major crop arable land and a significant portion of the country's territory being plains, the introduction of efficient tractors could revolutionize farming and facilitate urban migration to bolster Romania's industrial sector. He knew that in the looming shadow of World War I, securing a robust food supply would be essential.
"In light of domestic sales, you can initiate a tractor loan program with ICBC," Edel suggested, introducing a forward-thinking financial model to make the tractors more accessible.
"A tractor loan?" Portos Rico inquired, unfamiliar with the concept.
Edel explained, "It's a system where a buyer pays a portion of the tractor's cost upfront, and the bank loans the remainder, secured against the tractor."
"So, if I sell a tractor for five thousand lei, the buyer pays two thousand five hundred lei, and the bank covers the remaining amount?" Portos Rico sought clarification.
"Yes, exactly," Edel confirmed, satisfied with the director's understanding.
After further touring the factory and discussing production strategies, Edel left feeling optimistic about the tractor's market potential but concerned about meeting the anticipated demand. Portos Rico reassured him, "Your Highness, we have a plan. By adopting a three-shift system and continuously training new workers, we can increase our output significantly."
A month later, the Volker tractors hit the market. The initial batch sold out rapidly due to their high quality, cost-effective operation, and versatility. The overwhelming demand confirmed Edel's vision, prompting an urgent expansion of the factory supported by substantial investment and bank loans.
As the tractors began to transform Romanian agriculture, Edel, back in his office, listened to reports on the country's progress over the past five years, contemplating the future and the role his policies and innovations would play in shaping it.
The head of the bodyguard, Carust, stood before Edel, presenting the Romanian economic census report compiled from recent surveys to the crown prince, who sat poised behind his desk.
"Thank you, Carust," Edel responded, accepting the report with a nod.
"It is my duty and honor to serve Your Highness," Carust replied with a deep, respectful voice.
As Edel began to peruse the report, the initial demographic statistics revealed that by the end of 1910, Romania's population had reached 7.78 million, marking an increase of 790,000 since 1905. This total included 110,000 foreigners, predominantly composed of Romanians from regions such as Transylvania, which made up 67%, Bessarabia at 21%, and other areas accounting for the remaining 12%. This distribution underscored Transylvania's significant affiliation with Romania.
The report detailed that of the native population of 7.67 million, there was a nearly equal gender split with 3.82 million males and 3.85 million females. The birth rate stood at 42.3 per 1,000 people, and the death rate at 24.4 per 1,000, resulting in an annual population growth rate of 1.79%—a noticeable increase from the 1.51% recorded in 1905.
Ethnically, Romanians constituted a dominant 94% of the population. The remainder included Germans, who were primarily positioned in the middle and upper echelons of society—a nod to the legacy of Edel's father, Carol I. Bulgarians were mostly found near the Bulgarian border in Constanta, while the number of Jews had declined following the anti-Semitic movements led by Edel in 1906, which had prompted over 30,000 Jews to emigrate from Romania. Ukrainians predominantly resided near Bessarabia.
In the agricultural sector, Romania boasted 6.13 million hectares of arable land. The breakdown of crop cultivation included 2.443 million hectares for wheat, 127,000 hectares for rye, 650,000 hectares for barley, 454,000 hectares for oats, 2.37 million hectares for corn, and 14,000 hectares for sugar beet. The report highlighted a significant recovery in agriculture since the peasant uprising of 1907, which had initially caused a 21% reduction in cultivated land.
The 1910 yields were substantial, with 3.206 million tons of wheat, 256,000 tons of rye, 601,000 tons of barley, 511,000 tons of oats, 3.214 million tons of corn, 184,000 tons of potatoes, and 292,000 tons of sugar beets harvested. Despite these figures, when compared internationally, Romania's agricultural productivity was still lagging, particularly evident in wheat yield comparisons with Germany.
Turning to industry, the report indicated that Romania employed 1.38 million workers, with significant sectors including 760,000 in mining and manufacturing and smaller proportions in commerce, transportation, and services. The industrial landscape was notably influenced by state and royal family initiatives, with major industries including oil and potash mining, metallurgy, internal combustion engines, and automobile manufacturing. A steel plant with a 400,000-ton annual output and a chemical plant producing potash fertilizer were among the key industrial establishments.
Foreign trade dynamics were shifting, with a decrease in agricultural exports due to robust domestic demand. However, Romania remained a significant food exporter in Europe, second only in volume. The export of vehicles and vehicle parts topped the list at 267 million lei, followed by refined oil products at 213 million lei, reflecting the burgeoning automobile industry's impact on the economy.
Imports had doubled over the past five years, totaling 891 million lei in 1910, with machinery and equipment forming the bulk of these imports, alongside consumer goods like textiles and leather products.
Edel reflected on the role of the monarchy and the state in fostering industrial growth, recognizing the necessity of supporting heavy industry to bolster national strength. His approach diverged from mainstream practices of the era, focusing on integrating societal funds into large-scale industrial projects to optimize resource utilization and cost-effectiveness.
The report also covered financial aspects such as household savings and currency circulation, noting an increase in commercial deposits and a significant rise in banknote circulation since 1905, indicative of economic growth and stability.
The crown prince concluded his review with the current Gross Domestic Product (GDP) figures, which stood at 5.13 billion lei, marking substantial economic progress. Edel felt a surge of pride, acknowledging his efforts in leading Romania to become the top economy in the Balkans.
As he contemplated the military capabilities enhanced by a strengthened version of the German division model, Edel felt confident in Romania's regional dominance, barring Austria-Hungary.
With the economic and military foundations firmly in place, Edel was determined to continue driving forward the prosperity and security of Romania, ensuring its position as a formidable force in the Balkans.
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