I'm the Dauphin in France

Chapter 464 Three Major Rating Agencies
When Mirabeau saw different types of industrial data for the year appearing on the same chart, showing the changing trends clearly, his eyes suddenly lit up.

"Your Highness, how did you come up with this method? It's amazing!" He flipped through the different statistical charts one by one, and couldn't put them down. "God really favors you! Looking at these charts, it only takes a few minutes to figure out the industry situation last year."

And he just explained for nearly an hour.

These charts can improve your productivity to an astonishing degree.

He immediately thought of more application scenarios and said excitedly: "Perhaps, we can extend this data statistics method to factory production and administrative management."

Bailly added: “And scientific research. This makes the paper clearer and easier to read.”

"Yes, it is definitely a great innovation!" Mirabeau looked at Joseph, "Your Highness, I dare say that if government departments and factory managers use this kind of chart to process documents, the efficiency of the entire country will be greatly improved.

"I suggest that it should be promoted nationwide as soon as possible, and even mandated by government documents."

Joseph was a little confused by what they said. He originally just wanted to make Mirabeau's report more concise and efficient, but he didn't expect it to have such a big impact.

He patted his forehead. He was used to seeing statistical charts, so he subconsciously thought that this thing was nothing. Mirabeau was right. This little trick could greatly improve management efficiency, almost equivalent to Excel in the 18th century.

Joseph nodded to Mirabeau and said, "Well, please organize some scholars to help me compile the chart statistics method into a manual and print it in large quantities. As for how to teach it to managers..."

Mirabeau immediately replied, "Your Highness, we can incorporate this statistical method into the production standardization system, and Mr. Gensonnet's management consulting company will be responsible for teaching it."

Joseph nodded. These things that seem simple in later times really needed professional companies to promote them in the 18th century. Just like in the early 21st century, you had to take a training course to learn how to make an Excel spreadsheet.

Speaking of the standardized production system, Joseph couldn't help but think of another problem. Factories that adopt standardized production models should be rewarded. After all, they have contributed to the improvement of the country's overall productivity.

He first thought of tax cuts, but soon shook his head. In the past, whether it was industrial development zones or the promotion of automatic looms, the tax rate had been reduced quite a lot, and it really couldn't be reduced any further, after all, France still had a debt of more than 20 billion.

Perhaps, setting up a rating agency should be put on the agenda.

With rating agencies, companies that have reached production standards can be given higher ratings. Although ratings themselves cannot generate profits, they are a reflection of a company's strength. Both investors and consumers will definitely choose companies with higher ratings. When applying for bank loans, companies with high ratings can also be approved more easily.

Moreover, they can use rating standards to guide the development direction of the company. Even after the rating agency has a large enough influence, they can learn from the Western way of playing and come up with the business of "sovereign credit rating".

The so-called sovereign credit rating is an assessment of the credit quality of a country or region, including national governance, economic performance, policy level, social structure, government financial strength and many other aspects.

You have to know that the three major rating agencies in later generations are simply omnipotent. They can lower the sovereign rating of any country at will. Scaring away foreign investment is a piece of cake. In serious cases, it can even trigger an economic crisis in the country!
Once the rating agency is established, France will have another economic weapon in its hands. If you dare to go to war with France, you will be shocked by the continuous downgrade of your sovereign rating. Even if you cannot collapse the other party's national debt, at least you can increase its financing costs and increase the pressure on military expenditure. So who is more suitable to set up a rating agency?

Joseph thought to himself that first of all, it must not have any color of the French government, otherwise it would not appear to be objective and independent enough.

Jeanson's consulting company is quite good. In order to promote production standardization, it has more than a thousand employees. It is entirely possible to split off a part of it and establish a rating agency.

Then the French Chamber of Commerce stepped in and joined forces with major banks to establish a rating agency.

Another option is to set up one in a French ally. After all, if all rating agencies are French, some countries will inevitably feel that there is something fishy going on when rating other countries’ sovereigns.

However, no matter who takes the lead in establishing them, and no matter whether they are established in France or abroad, the dominant power behind these evaluation agencies must be firmly in their own hands.

Needless to say, the company that made it possible for Sonet to start was originally established to promote production standardization, and the funds for its establishment were all taken out by himself. The rating agency that was separated from it is naturally controlled by himself.

The Chamber of Commerce simply cannot ignore the royal family's opinions. The funds are also provided by the French Reserve Bank, so it is not difficult to gain control.

As for the foreign rating agency, it requires careful consideration. It would be best to find a local agency to act as a white glove, with France injecting capital to hold a controlling stake.

The location can be chosen in Spain, after all, they are relatives of the Bourbon family.

Joseph roughly thought about the rating agency and continued to talk to Mirabeau about industrial development. His eyes inadvertently swept across the line graph he had just drawn, and suddenly he felt something was wrong.

He picked up the chart and looked at it carefully. Previously, it was difficult to notice the problem because of the dense data. Now he found from the chart that the first nine months of last year were all upward, but starting from October, except for papermaking and brewing, the growth of other industries began to slow down.

He pointed to the lines on the graph and turned to look at the Minister of Industry: "Count Mirabeau, look here, it seems that something has gone wrong with industrial development since October?"

"Yes, Your Highness." Mirabeau nodded hurriedly, "This is also one of the main contents I want to report to you today.

"Industrial development momentum has indeed slowed down, and there are two main factors causing this situation.

"First, there is insufficient investment. After investing in Luxembourg Iron Ore, the Industrial Development Fund has little money on its books. Most of the investors interested in industry have completed their investments in the first half of the year. Some have since entered the Southern Netherlands coal mines. Now there are fewer and fewer new investors."

The Minister of Industry paused and continued, "Second, the rate of return on industrial investment is low, which has also caused new investors to remain on the sidelines and factories to be reluctant to increase production on a large scale."

(End of this chapter)