Persian Empire 1845

Chapter 15 Banks and Railroads

On the main street of Tabriz, a shop opened today, but unlike others, this shop doesn't sell goods; instead, it exchanges currency.

The name Tabriz Bank is prominently displayed. Merchants understand that it's an institution that handles deposits and loans, but unlike loan sharks, it's established by the Governor's Office.

Naser al-Din injected 50 tomans into the bank, and Lawrence began to use his knowledge to run it. He began designing the first paper money in Persia and standardized the coins. He also set loan interest rates, which were much lower than those of usurers, and offered deposit services. These measures attracted many people.

The salespeople, who had received emergency training, served customers with their still-developing skills; these customers were all there to deposit money.

The primary business of a bank is to accept deposits and then lend them to those in need, profiting from the difference between the deposits and the lending rates. Secondly, it involves investing in other industries to generate profits. However, the banking practices of Britain and America were not suitable for the current situation in Persia. Therefore, Naser al-Din proposed a bold idea: a bank account could be opened for just 5 tomans. This amount of money might not seem like much, but little by little, it could accumulate into a substantial sum.

With the governor's office backing it and various preferential policies, over 200 people came to conduct business on its first day of operation. It attracted a total of 25 tomans in deposits and issued loans of 10 tomans at an interest rate of 4.5%. At that time, with usurious loans at rates exceeding 20%, this was practically an angel.

Persia was really poor; even the Ottomans were considered advanced compared to them. And this was just one bank in Tabriz; they could have much more funds in Tehran.

Furthermore, to encourage new factories, banks established business loans, offering preferential loan terms to anyone who invested in building a factory.

"Your Highness, the bank's opening today has attracted a lot of interest; many people have come here to open businesses," Amir reported to Nasser al-Din.

Naser al-Din nodded. "This is the first step for Persia to escape poverty. Don't be fooled by the Ottomans' power; they were just a figurehead. The changes they made were only at the governmental level, with no real change for the people. Everything remained the same."

Amir had already discerned other voices: Persia could not follow the path of the Ottomans; it needed to unite all its people and forge its own path.

To prevent a repeat of the previous situation, Nasser al-Din invited three religious scholars, four advisors, and intellectuals—including himself and Amir—to form a consultative council of nine to discuss reform measures in Azerbaijan.

Seeing the state of the bank, Nasserdin was temporarily relieved. He then looked at the steam locomotive model beside him, a gift from Wallace.

(Let's go back a few months...)
"This is a gift I brought for Your Highness. Please open it and take a look."

Wallace gave Nasserdin a box, and when the governor opened it, he found a model motorcycle inside.

“This is…” Nasserdin was about to ask when Wallace quickly said, “This is called a motorcycle, a new type of transportation that has emerged in Europe in recent years.”

All you need is water and coal, and he'll be able to run, faster than a horse.

"Impossible!" Amir thought it was unbelievable. What kind of transportation in the world could be so fast?

“It is possible, Your Highness. As long as we lay out special tracks and get the locomotive running, it will only take two days to travel from Tabriz to Tehran.”

Two days? This left Amir in disbelief. It was practically the speed of light. Even the fastest journey from Tehran to Tabriz takes at least half a month; to arrive in just two days was hard to believe.

"Your Highness, I can assure you it's true. You may not believe it, but those who go to London to study will certainly praise this history-changing invention." Back to the present, Nasser al-Din naturally knew the importance of railways. However, the cost of construction was too high, so they had to postpone it.

"What the British ambassador said is probably true. After all, it is a tool that can shorten half a month to two days. If it can be used in Iran, it will be a benefit to the whole country."

To be honest, Amir didn't believe Wallace when he mentioned railways and locomotives at first, but after learning more, he realized it was true. Just give him some water and coal, and he could run faster than a horse; of course, this required specially made tracks.

"That's true, but it will definitely provoke opposition from others, and building a railway requires funding. Given the current situation, building a large railway is simply unrealistic..."

"Then let's fix the shorter ones first!"

Naser al-Din stopped Amir from speaking, saying, "Build a road between Tabriz and Ardabil first, that should be fine, right?"

Naser al-Din was determined to build the railway, and the construction of the line from Tabriz to Ardabil would serve other purposes besides boosting the economy. Ardabil was where Ismail launched his rebellion and was only 40 kilometers from the border. Once completed, the railway would not only develop trade but also allow for faster troop movements.

"Your Highness, should we have the Advisory Council discuss this?"

"certainly"

Now everything has to be discussed with parliament. Authoritarianism is good, but we also need other people's suggestions.

At that moment, the attendant announced the arrival of a messenger from Tehran. Nasser al-Din urged the messenger to come in quickly, as he was unaware of what had happened to his father.

"Your Highness," the messenger had barely uttered a word when Naserdin impatiently inquired what had happened.

"This is Shah's order, appointing you as the governor of the three provinces of Gilan, Mazandran, and Bahtaran."

Naser al-Din was somewhat skeptical upon hearing the news. But when he saw the official transfer order, he believed it. It was truly his father! These places were the most fertile regions in Persia, especially Mazandran, which, due to its proximity to the Caspian Sea and its favorable climate, was known as the "Jiangnan of the North."

"How did Shah know I was short of money lately? Could it be that I've run into some trouble?"

The messenger informed Naser al-Din that the Ottoman envoys were demanding a new peace treaty. He knew there were some frictions between the Ottomans and Persia, but he hadn't expected them to be this serious.

"Since the Safavid dynasty, our country has been fighting and stopping with the Ottomans. However, the Ottomans are closest to Europe, and since the time of the former Sultan, they have been strengthening their army. Their current tough stance is also due to their perception of our country's weakness. They want more benefits."

Naserdin snorted and said contemptuously, "Just a figurehead. He was repeatedly beaten by Greece and Egypt and never won a single battle. He's only barely surviving because of Britain. We don't need to negotiate with the Sultan; we just need to go to Britain."

Since my father has given me so many resources, it would be a waste not to make good use of them.

(End of this chapter)