IJSF: Time-Traveled to 1901, Changing History with 21st Century Tech

Agricultural Revolution and Postwar Depression

CHAPTER 29

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Agricultural Revolution

May 1919

"Liliel, I'm going to make bread from the air!"

"Huh? What are you talking about? Not even God could do that!"

The Haber-Bosch process, developed in the early 1900s, is a method for producing fertilizer that can create large quantities of fertilizer from the nitrogen in the air, thus being referred to as a way to make bread from the air. At that time, Germany held the patent for the Haber-Bosch process, but amidst the confusion of World War I, it was seized as enemy property, and preparations for manufacturing in Japan were underway.

"For a hundred years since the early 1900s, fertilizers were produced using the Haber-Bosch process. However, a new catalyst was developed in 2023 that allows production at just a little over 100 degrees instead of the previously required 500 degrees. The plant's design is complete, so now we just need to build it."

Thanks to the Regent's intervention, the cooperation of Oedo Gas Company was secured, and the first plant was constructed on reclaimed land in Tokyo Bay.

March 1920 – Plant Operation Commences

Despite the design being ready, considerable effort was made to significantly shorten the construction period.

"We owe a great deal to Oedo Gas."

The necessary elements for nitrogen fertilizer are hydrogen, nitrogen, and heat. Nitrogen is inexhaustibly available in the air. Hydrogen can be extracted as coal gas by heating coal in a low-oxygen environment. In this way, fertilizer can be produced from air and coal. The construction of the plant progressed smoothly, and operation began in March 1920. Most of the manufacturing process is entrusted to Oedo Gas. Of course, the patent-related issues are secured by the Space Force's affiliated organizations, so there's no concern.

"First, we'll start production at 1.000 tons per month. Construction of similar-scale plants has also begun, so production will soon double. We'll also increase exports steadily."

Coupled with the spread of agricultural machinery being developed at the same time, agricultural production is expected to dramatically improve.

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Postwar Depression

March 1920

The Taishō bubble, which had continued from the wartime boom of the European War, finally burst. This marks the beginning of the so-called postwar depression.

Stock prices continue to fall from their peak during the Taishō bubble, dropping to about one-third by the early 1930s. Many companies that had grown rapidly during the wartime boom collapsed, and the banks that had lent to them also failed one after another.

Going back a little in time, to February 1919...

In February 1919, shortly after assuming the position, the Regent summoned Prime Minister Hara and Finance Minister Takahashi.

"Prime Minister Hara, Minister Takahashi, thank you for coming on short notice. Regarding the recent overheated economy, have any measures been taken? I'd like to hear the details."

"Yes, Your Highness. We have implemented the 'Excessive Profits Control Ordinance' to monitor and address the issue of skyrocketing prices. As for the overheated economy, workers' wages have been rising, and if the wage increases are stabilized, we believe that the economy will balance out."

(This means that rising labor costs will squeeze corporate profits, preventing the economy from overheating.)

"I see. Currently, exports to Europe are thriving, but by this time next year, European industrial production will likely have recovered. If that happens, we might end up with excess production capacity, leading to bankruptcies for some companies. Additionally, won't there be concerns about bank failures as well?"

"It is due to my shortcomings that Your Highness has to worry about these issues. To prevent the economy from overheating, we will consider raising the official discount rate. Additionally, we will urge companies to curb excessive investments in anticipation of the recovery of European production capacity."

However, excessive loans had already been made in anticipation of rising land prices, and the expansion of factories in the highly demanded chemical industry sector from Europe was also progressing. At this point, it was already too late to turn back.

"Takashiro, managing the economy is indeed a challenging task."

"Yes, Your Highness. It is difficult to stop investments and prepare for the next year when profits are currently being made. Even if we prevent the economy from overheating by raising the official discount rate, there is a possibility that we might be criticized for slowing down the economy due to the rate hike."

Anticipating the collapse of the Taishō bubble, the Regent had the Cabinet consider a large-scale public works plan. At that time, Japan's financial situation had improved due to the wartime boom, achieving a fiscal surplus, which made it easier to secure budget approval. If the bubble had burst, it would have been challenging to secure the budget due to concerns about financial instability. It was fortunate that the public works plan was finalized by March 1920.

The plan included:

- Large-scale expansion of hydroelectric power plants on major rivers nationwide.

- Unification of the electric power frequency to 60Hz.

- Promotion of asphalt paving for major highways.

- Large-scale land reclamation projects in Tokyo Bay.

- Promotion of double-tracking major railway lines.

- Construction of subways in Tokyo and Osaka.

- Construction of government-operated steel mills.

These public works projects aimed to absorb the unemployed. The construction of steel mills was to meet future demand increases, as domestic production could not yet fully supply the required amount of steel. Additionally, efforts to resolve the handling of non-performing loans by financial institutions after 1920 helped mitigate the impact of the post-war recession compared to historical events.

However, the world would soon experience the Great Depression, leading to the rise of bloc economies, just as it did historically.