May 1919
"Liliel, we're going to make bread out of thin air!"
"Huh? What are you talking about? Even God can't do that!"
The "Haber-Bosch process," developed in the early 1900s, allows for the mass production of fertilizer from nitrogen in the air, earning it the nickname "making bread out of thin air."
At the time, Germany held the patent for the Haber-Bosch process, but during the chaos of World War I, it was seized as "enemy property," and preparations for its production in Japan were underway.
"From the early 1900s to 2023, the Haber-Bosch process was used to produce fertilizer. Back then, it required temperatures above 500 degrees Celsius, but by 2023, a new catalyst was developed that allowed production at just over 100 degrees. The plant design is complete, so all that's left is to build it."
With the Regent's influence, cooperation was secured from the Oedo Gas Company, and Plant No. 1 was constructed on reclaimed land in Tokyo Bay.
March 1920: Plant Operation Begins
Although the design was ready, the construction timeline was drastically shortened, pushing the limits of feasibility.
"I'm deeply indebted to the Oedo Gas Company."
The ingredients needed for nitrogen fertilizer are hydrogen, nitrogen, and heat. Nitrogen is abundant in the air, while hydrogen can be extracted by heating coal in a low-oxygen environment to produce coal gas.
In this way, fertilizer could be produced from air and coal.
Construction of the plant proceeded smoothly, and operations began in March 1920. Most of the manufacturing process was outsourced to Oedo Gas. Of course, patent-related matters were handled by an external organization under the Space Force, so there was no need to worry.
"We'll start with a monthly production of 1,000 tons. Construction of another plant of the same scale has already begun, so production will double soon. We'll also ramp up exports."
Coupled with the simultaneous development and dissemination of agricultural machinery, agricultural productivity improved dramatically.
March 1920
The Taisho Bubble, fueled by the economic boom of World War I, finally burst. This marked the beginning of the so-called post-war panic.
Stock prices, which had peaked during the Taisho Bubble, continued to decline until the early 1930s, falling to about one-third of their peak value. Many companies that had grown rapidly during the war went bankrupt, and the banks that had lent to them followed suit.
A Step Back in Time: February 1919
Shortly after assuming the role of Regent in February 1919, the Regent summoned Prime Minister Hara and Finance Minister Takahashi Korekiyo.
"Prime Minister Hara, Minister Takahashi, thank you for coming on such short notice. I'd like to hear in detail about the measures being taken to address the overheated economy."
"Yes, Your Highness. To combat soaring prices, we've implemented the 'Anti-Profiteering Ordinance' and are constantly monitoring the situation. As for the overheated economy, workers' wages are rising, and once wage increases stabilize, the economy should balance out."
The idea was that rising labor costs would curb corporate profits and prevent the economy from overheating.
"I see. However, while exports to Europe are strong now, European industrial production is expected to recover by this time next year. When that happens, excess production capacity could lead to bankruptcies. And with that, bank failures could also become a concern, couldn't they?"
"Yes, Your Highness. It's my fault for causing you such concern. To prevent the economy from overheating, we're considering raising the official discount rate. We'll also urge companies to curb excessive investment in anticipation of Europe's production recovery."
However, excessive loans had already been made in anticipation of rising land prices, and factory expansions in the chemical industry, driven by high demand from Europe, were already underway. By this point, there was no turning back.
"Takashiro, steering the economy is no easy task."
"Yes, Your Highness. It's difficult to stop investing when profits are high and prepare for the next year. Even if raising the official discount rate prevents the economy from overheating, it could also slow growth and invite criticism."
Anticipating the collapse of the Taisho Bubble, the Regent had the cabinet draft a large-scale public works plan. Thanks to the improved financial situation from the war boom, Japan had achieved a budget surplus, making it easier to secure funding. If the bubble had burst first, budget approval might have been harder due to fiscal concerns. Fortunately, the public works plan was finalized by March 1920.
*Massive expansion of hydroelectric power plants along major rivers
*Unification of power frequency to 60Hz
*Promotion of asphalt paving for major roads
*Large-scale land reclamation in Tokyo Bay
*Promotion of double-tracking for major railway lines
*Construction of subways in Tokyo and Osaka
*Establishment of state-owned steel mills
These public works projects aimed to absorb unemployment. The construction of steel mills addressed the inability to meet domestic demand for steel and prepared for future growth. Additionally, efforts to resolve bad debts in financial institutions after 1920 helped mitigate the impact of the post-war panic compared to historical outcomes.
However, the world would soon face the Great Depression as in history, leading to the formation of economic blocs.
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A/N: Thank you for reading Chapter 29!
Agriculture is the foundation of a nation! And the chronic recession following the Taisho Bubble's collapse bears a striking resemblance to the post-bubble stagnation of the Heisei and Reiwa eras.
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