He Opened A Matchmaking Agency In 18Th Century London [EN]: Chapter 61

New Hope

The graph displayed on the situation board was a line graph.

While the use of graphs for comparison began with the bar graph, first introduced by Joseph Priestley, a British chemist and clergyman, about ten years prior, Joseph Priestley’s bar graph, designed for ‘life expectancy comparison,’ garnered much attention at the time, gaining explosive commercial and popular appeal.

However, the line graph that Tae-oh was presenting was a step more advanced than the bar graph, a newer form of graph that wouldn’t appear for another 10 years.

Living in the 18th century and never having seen a line graph, Tae-oh vaguely guessed that this type of graph had not yet been invented.

Nevertheless, he decided to use a line graph for an easy-to-understand explanation.

“What is that line?”

“Does it represent a mountain?”

“I’m not sure. It looks like a line connecting written numbers.”

For people seeing such a graph for the first time, it was bound to look amazing.

In particular, the Chancellor of the Exchequer and Prime Minister, Lord Frederick North, even took out his glasses in a hurry, showing great interest in Tae-oh’s line graph.

Any new technology is always refreshing.

Compared to the modern era, where splendid presentations are created using various programs, this was a very basic level. However, several line graphs, colored and distinguished for easy viewing, were bound to attract the attention of 18th-century people.

‘It seems that working all night with Lucy is paying off after all.’

Tae-oh felt the emotional energy of the gathered people washing over him.

There is nothing like PowerPoint (PPT) for delivering content quickly, easily, and persuasively, but such a method was unimaginable in this era.

So, he painstakingly created graphs and clear summaries.

In short, it was a simple PPT made of paper.

Tae-oh held a thin stick in his hand and pointed to the line graph.

“Your Majesty, this graph tracks the annual labor product of each country based on Professor Adam Smith’s ‘The Wealth of Nations,’ supplemented with my own information. It also includes future predictions.”

Not long ago, King George had summoned Adam Smith, the author of ‘The Wealth of Nations,’ to the palace for an in-depth conversation about the economy.

In fact, the king and his close aides, who were steeped in the existing mercantilist policies [economic nationalism for the purpose of building a wealthy and powerful state], were very skeptical of Adam Smith’s ideas of free trade and his views on national wealth.

However, King George, who was called the ‘Farmer King’ and was known for being common and frugal, seemed to agree with Adam Smith’s thoughts on national wealth to some extent, and watched Tae-oh’s graph with interest.

“This graph compares the labor product of various countries from 1600, about 150 years ago, to 1870, a hundred years from now, so that you can see the trends at a glance. I have tried to schematize it in my own way.”

On the situation board, countries such as the Netherlands, Belgium, Italy, and France were compared alongside England for easy viewing.

This data was created by speculating based on information obtained through club meetings, economic data of the time collected through books in England and foreign publications, and future historical economic knowledge.

He prepared to the best of his ability in a short period, believing that there was nothing better than a graph to quickly persuade King George.

“As you can see from the graph, even in 1700, England’s labor product was only about half the level of the Netherlands.”

“Hmm···.”

In the graph, England’s labor product was slightly more than half that of the Netherlands and was at a similar level to Italy or Belgium.

“Huh, look at that.”

“Our position was only that low?”

“I wonder where they got such data…”

“But, isn’t that unique chart surprisingly eye-catching?”

“Yes. Everything is in one table, and it’s easy to distinguish, so it’s really easy to understand.”

Every time Tae-oh pointed to the line graph and explained, there was a murmur, and King George also showed great interest and listened attentively.

Tae-oh was also excited by the better-than-expected response.

‘This is getting a hotter response than I thought. It seems like Lucy colored the graph well, making it more impactful.’

It was a type of graph they were seeing for the first time in their lives, but the way the entire content was easily grasped intuitively was greatly focusing people’s attention.

Tae-oh continued to explain diligently.

“However, the point we are living in now is right here.”

When Tae-oh pointed to the vicinity of 1780, everyone’s eyes were focused on the graph at the end of the stick.

“As you can see, England is growing rapidly compared to other countries. There is almost no change in other countries.”

“That’s right. It’s a clear comparison. Isn’t that right, Lord North?”

Frederick North, the Prime Minister and Chancellor of the Exchequer next to King George, nodded his head greatly and exclaimed.

“That is correct, Your Majesty.”

In the line graph, the amount of labor product in England still had a gap with the line of the Netherlands, which was at the highest point, but it was catching up considerably.

In comparison, other countries showed little growth.

King George, who was watching the line graph, which allowed him to grasp the changing situation at a glance, asked.

“Okay. So, does that 1820 predict the situation after 40 years?”

“Yes, that is correct, Your Majesty.”

In the 1820 graph, England had almost caught up with the Netherlands, but other countries were declining or had little change.

“And 50 years from this point.”

The stick Tae-oh was holding pointed to the end of the graph, which soared endlessly into the sky.

“That line that goes up into the sky without knowing how high it will reach. I am sure that this will be the amount of labor product in England 50 years from now.”

“Wow!”

“Compare it to 1750 on that chart. How many times greater is it?”

Cheers erupted from here and there, and King George’s excited voice was heard.

“Lord North, you, as an expert, should calmly evaluate it. How credible do you think the economic figures Sanderson is presenting are?”

King George asked Frederick North, the British Prime Minister next to him.

Lord North, who put his glasses on the bridge of his nose and carefully examined Tae-oh’s data once again, shook his head.

“Amazing. Honestly, I don’t know the situation beyond this point, but at least the situation up to this year that Mr. Sanderson mentioned seems to be a fairly accurate analysis. What is particularly surprising is the analysis of production volume over the past 10 years in the Netherlands, Italy, Belgium, etc.······”

Lord North, who also held the position of Minister of Finance, had quite a lot of economic figures in his head.

However, the information in his head and Tae-oh’s data showed a considerable match.

King George could not hide his joy at Lord North’s praise.

“Oh… So you, an expert, think so too.”

“Yes, that is correct. But···.”

Lord North, who was carefully examining the line graph, stroked his chin and asked Tae-oh.

“Mr. Sanderson? The comparison so far is excellent. But anyone can make this kind of performance comparison if they have the data. Of course, it would be difficult to reach Mr. Sanderson’s level.

Anyway, what I’m curious about is why England’s economic production suddenly skyrockets at this point, and why you are so sure that it will grow rapidly after 1820? What is the basis?”

Tae-oh had been waiting for this question. He lifted the paper on the situation board and revealed the next page.

Sighs flowed out again from here and there.

On the next page of paper, the line graph that he had just shown was reduced in size and placed in the lower right corner. In the middle, data organized in various mind map forms was neatly divided by year.

It was a kind of primitive morphing effect, and people were very amazed because of the feeling that the graph they had been focusing on in the previous chapter had been reduced and moved.

Tae-oh pointed to one place on the mind map.

“As you can see here, an event similar to an industrial revolution is happening in England at this time.”

“Industrially… a revolution has occurred?”

“Yes, that is correct. It has already been happening for over ten years, and from now on, that revolution will accelerate even more.”

Prime Minister North asked again.

“I still don’t understand. What is the basis for saying that England’s industry will accelerate? What is the basis for our England, whose finances have been depleted by the war, to be able to recover so greatly industrially? Where is the clear basis for securing resources?”

Tae-oh pointed to two words on the mind map.

Lord North adjusted his glasses, which had slipped down his nose, and tilted his head.

“Credit and system? What does that have to do with industrial revival or securing resources?”

“It is very closely related.”

“···?”

*Whirr-*

Tae-oh flipped the paper over to the next page and continued with a detailed explanation.

“As you mentioned earlier, Prime Minister, resources are currently the most important factor in developing British industry. We need money to pay workers’ wages, build factories, and operate machines.

However, given our situation where resources have been depleted due to the long war, we have no choice but to procure vast resources through financial transactions with foreign countries, and the core of these financial transactions is ‘credit.’

If this ‘credit’ is not properly supported, financial transactions will become passive, ultimately making it difficult to secure resources.

To put it simply, if someone borrows money but doesn’t repay it well and has no credit, who will lend them money next time? That’s why this ‘credit’ is absolutely crucial in finance. And because of this credit, England and France will show a significant difference in the future.”

Tae-oh’s fingertip pointed to a table comparing England and France.

“Let’s compare ourselves with France through this table.”

King George, who always had a sense of competition with France, as well as the surrounding nobles and officials, showed great interest in Tae-oh’s explanation.

“In fact, England and France have been at war around the same time, and both share the commonality of being in a state of severe financial shortage due to the enormous amount of money spent on war expenses.

However, in the same difficult financial situation, you can see that England and France are heading in completely different directions, as shown here.”

The paper on the situation board compared the results of France’s debt repayment with those of England when various incidents occurred.

In England, efforts for repayment were clearly visible at a glance, whereas in France, failure to fulfill debt obligations was noticeable in many places.

King George asked.

“Why is the French number in that table 0?”

“Because they haven’t repaid any of their debt.”

“What? Have you ever seen such heinous thieves!”

“Haha, that’s right. They are thieves. The problem is that in the international capital market, these thieves do not gain ‘credit,’ making it difficult for them to borrow money through international financial transactions. Look at this.”

The graph below compared the interest rates attached to government bonds, bonds, and various bank notes held by England and France.

Because of its good ‘credit,’ the British government was able to borrow money at very low interest rates, but France had to borrow money at very high interest rates, and even that didn’t seem easy.

“As you can see here, in France, where the monarch decides everything, they borrow money arbitrarily and do not repay it properly, resulting in a very low international credit rating.

On the other hand, England has been responsibly handling repayment issues, and as such, it is in a much smoother state in terms of raising funds in the capital market. Therefore, England will be able to easily secure the necessary resources through government bonds in the future.”

In the 17th and 18th centuries, France defaulted on all or part of its national debt as many as nine times, causing its national credit to plummet.

Lord North, after looking at the table, clapped his knees and said.

“I see. The efforts that His Majesty the King and our Parliament have been making to repay the debt have been paying off like this. That’s why when the Bank of England issues government bonds, people from overseas rush to buy them.

On the other hand, France can’t do that, so they have no choice but to squeeze taxes out of the people, and they can’t help but get more and more difficult, can they?”

In modern times, it was a very common-sense economic logic, but at that time, many countries treated international financial transactions as private transactions by monarchs rather than as a concept of credit between countries.

“That’s right! That’s exactly it. Unlike us, France’s international financial transactions are not smooth, so in the end, all they can do is squeeze taxes, the lifeblood of the people.”

King George laughed loudly as if he felt relieved and asked.

“Hahaha- Then, Sanderson. If the French squeeze taxes like that and there’s nothing more to get from the people, what do you think will happen next?”

“······.”

At that moment, Tae-oh hesitated.

France, which had low ‘credit’ in the international financial market, tried to solve its financial problems by mobilizing all means, such as taxes and selling official positions [selling government positions to raise revenue].

However, when there was no sign of the financial problems being resolved, what they eventually did was convene the Estates-General [a general assembly representing the French estates of the realm: the clergy, nobility, and commoners] for the first time in 150 years.

And this created the decisive excuse for the French Revolution, and because of this, an unimaginable event occurred in which the monarch’s head was flown off by the people.

However, it was impossible to tell all of this huge event that would happen in 10 years in this place.

“Yes, Your Majesty. The French monarchy will face a major crisis and will only have to watch England’s industrial development with envious eyes.”

“Ehehehehe- Ehehehehe-”

As King George’s laughter burst out, laughter was heard from all over the place.

Tae-oh continued with the rest of the explanation.

“In addition to credit, England has made a decision to guarantee private property and recognize patent rights, and the reorganization of this ‘system’ will be a driving force for the remarkable growth of industry.”

In fact, the recognition of patent rights, which did not exist before, was greatly contributing to the development of inventions and new technologies by protecting the rights of inventors.

“And along with the reorganization of this credit and system, industries centered on steam engines, coal, and cotton will grow rapidly, leading our industry solidly.

Above all, England’s coal is buried lower on the surface than in any other country in the world, making it easy to mine, and it is close to urban areas, which is a great advantage in transportation. This is a special industrial environment that only our country has, which other countries can never follow. First of all, as shown in the table below, Birmingham and…”

After that, Tae-oh continued to explain in detail the reasons for concrete and accurate economic development through the situation board.

The graphs and letters on the situation board were not simply conveying information, but were singing about the new hope of England that would unfold in the future.

Of course, the Industrial Revolution in England had as many dark sides as it did bright sides.

Unlike the capitalist class, which achieved great growth through mass production using steam engines, the lives of the extremely poor workers became more miserable than before, and the gap between the rich and the poor widened significantly.

Workers who came up from the countryside to the city had to solve their food and lodging in places like livestock pens, and they could only earn enough money to barely avoid starvation even if they worked all day.

In addition, air pollution was severe due to large-scale factories using coal, and diseases caused by this were constant.

However, it was impossible to talk about all those negative things in front of the King.

King George needed hope now, and Tae-oh had no choice but to tell him only the bright side of the history that would unfold in the future.

King George’s dark and heavy heart gradually became brighter and lighter as the conversation with Tae-oh progressed.

“Sanderson, so no matter what conclusion the North American colonies issue comes to, are you saying that we will be better off than France in the future?”

“That is correct, Your Majesty. France will be pushed back by England and will have no choice but to remain in second place forever.”

“Really? Second place? Ehehehehe-”

King George, who was in a very good mood, looked at Lord North and said.

“Lord North, how is it? Do you understand why I mentioned Sanderson so much back then? Sanderson is a person who boldly said in front of me that he would declare independence in North America.

He is truly a stubborn genius who doesn’t know the slightest bit of flattery. Such a person is talking about the bright future of England, so how can I not believe it? Hahaha.”

Lord North nodded.

“I think I understand Your Majesty’s feelings. Of course, there are some questionable contents, but with this level, I can’t help but admit that he has very excellent economic insight and foresight for the future.”

King George turned his head and asked Charles James Fox, the leader of the Whig Party.

“Lord Fox, what do you think?”

Lord Fox, who was engrossed in the situation board, raised his head sharply and replied.

“Ah… Yes. Well, the future economic predictions seem to be too exaggerated and deliberately highlight only the good aspects, but, um, the research content and the graphs that I see for the first time are certainly amazing.”

Despite Lord Fox’s criticism, King George seemed even more pleased.

“It’s really strange. Whether Sanderson’s predictions are right or wrong, let’s put that aside… Sanderson is giving such a wonderful explanation and speaking positively with data, so the stuffiness and headache that I felt until just now have disappeared, and I feel so much lighter and all my worries have disappeared. Aren’t you guys like that?”

As King George looked around and spoke, voices responding echoed from all over the place.

– That’s right, Your Majesty.

– Your Majesty, my heart is also very proud and peaceful.

King George, with a bright expression, suddenly asked Lord North.

“With this level, wouldn’t it be sufficient for the requirements I suggested last time? How many people have this level of insight and affection for my health and the future of England?”

Prime Minister North also smiled and nodded at King George’s question.

“Yes. It seems to fit well with the requirements Your Majesty mentioned. It seems that there has been a very in-depth reflection and research on our country’s economy and problems. Hehe.”

“Yes, yes. Good. Then proceed as I said!”

“Yes, Your Majesty!”

‘···?’

Tae-oh was wondering what the King and Prime Minister were talking about proceeding with.