"Peace brings prosperity for all!"
Ferdinand II does not miss any chance – either public or private – to recall everyone this phrase, a sort of personal motto that he delivered the first time during the inauguration of a lumber mill in September 1841. These years, which evidence strong popular recognition for the monarchy, social peace and economic development, can be split into three different periods, each one characterised by different items in the political agenda of the government (which, from a pure ideological point of view is still bound to Reactionary principles). In order to simplify the concepts, we can call them the "Spending", "Saving" and "Take-off" periods. Industrial take-off would deserve an exhaustive description in parallel with the development of railways, thus today I can spend few words on the first two stages.
Spending period (1836-39)
Opera House "Teatro San Carlo", Naples
Amid unproductive court expenses and short-lived macroeconomic measures, a group of theorists begins to apply to government and administration those principles of rationality and efficiency still confined to academic books. If not able to stimulate economic growth and industrial development through appropriate policies, the State should
at least avoid distracting resources for futile or unproductive aims. Such belief is still minoritarian, as demonstrated by certain public events staged in these years.
For example, these are the most successful years of the Neapolitan opera, with Teatro San Carlo representing the temple of European music. The great composer Gaetano Donizetti (Lucia di Lammermoor, Roberto Devereux, Poliuto his main operas staged in these last years) has been the San Carlo's artistic director from 1822 to 1838, a responsibility inherited by a certain … Gioacchino Rossini
[RH].
The staging of these operas represents a source of immense prestige for Naples and the Kingdom, but also a unquestionable drain of money. In 1839, the foundation managing the theatre has been left with a "hole" of 2.000 pound-equivalent that the government has to deal with. The deficit, cumulated with other expenditures later described, will knock down the state balance for some years requiring the leaning cure of the subsequent "saving period" to be paid back at year end 1842.
Similarly expensive – and unproductive – events have been the celebrations held also in 1838 for 100th anniversary of the Bourbon ruling over Two Sicilies and the birth of Lodovico, eldest son of King Ferdinand and his second wife of Maria Teresa.
Other expenditures, even if not directly practical from an industrial standpoint, have been in any case favourable to Naples' wrecked security, like the establishment in 1839 of a gas lighting system deployed by the "Compagnia per la Illuminazione", first Italian (and apparently third European after London and Paris) city to do so
[RH].
Saving period (1840-42)
State budget in 1838 is the last physiologically in balance, excluding extraordinary costs described before. The necessity of a reshuffling and rationalisation of the Council of Ministers emerges clearly by mid-1840, when the spending spree starts to calm down. Public debt has reached 2.600 pounds (an interesting 23% of annual Gross Domestic Product), bankers like Rothschild are available to lend the government at an onerous 20% interest rate and government coffers are empty.
With the appointment of Giuseppe Pisanelli as President of the Council of Ministers and Fulco Ruffo di Calabria as Minister Secretary of Foreign Affairs, the government team is complete. Santangelo and Del Carretto are still there, as well as General Filangieri – the only one with some Liberal sympathies. Constrained by balance difficulties, the government implements a sharp policy of cost curtailing at every level: from Court endowments and diplomatic gifts to education costs, where it is possible the mandate is clear: expenditures must be limited. Only productive investments survive, like the 1.000 pounds for the construction of the lumber mill inaugurated by the King in 1841.
The appointment of a responsible for Foreign Affairs limits for example the useless practice previously followed of sending diplomatic gifts to doubtful partners. During the rebellions of the Beys of Tunis (1836-37) and Muhammad Ali, Wadi of Egypt (1838-40), against the Ottoman Empire, Two Sicilies fancifully tried to attract those insurgents in its own sphere of influence with gifts and diplomatic recognition. Even a new ambassador was appointed and sent to Al Qahira in June 1838 when Muhammad Ali pretended to create an independent Egyptian state under his dynasty. After two years of skirmishes and tentative peace talks imposed by the Great Powers, scared by the British military support to the Ottomans, Muhammad Ali accepts the terms of the Treaty of London in October 1840, gives up Syria, Palestine, Cyprus and Crete and submits again to Sultan Mahmud II. In few weeks, all the diplomatic efforts spent in years result in no benefits for the Two Sicilies...
The final outcome of the Ottoman/Egyptian wars
Anyway, with the strict financial rigor enforced by the government, in December 1842 public debt is paid back. By now, yearly education budget has been reduced by circa 1/6 versus previous years and interest on public debt represents 3% of GDP. Lack of money for sanitation works produces a terrible epidemic of cholera in Catanzaro and unrestrained corruption in the island provinces reaches its maximum. But the State balance is now financially sound and can start to supporting the industrial development This picture summarise the Kingdom ranking among the countries in this period, just before the beginning of the take-off. Please look at total population: the renowned passion of Italians has produced a +20% in inhabitants, just in 6 years!
Actually, having decided to stick to real history, years until Liberal and Italian Revolutions are passing by with extreme calm. I've been investing my resources in catching up with industrialisation structures. More details on next post. Enjoy!