Editing Napoleon III (section)

====Early construction====
{{Further|History of rail transport in France}}

One of the first priorities of Napoleon III was the modernisation of the French economy, which had fallen far behind that of the United Kingdom and some of the German states. Political economics had long been a passion of the Emperor. While in Britain, he had visited factories and railway yards; in prison, he had studied and written about the sugar industry and policies to reduce poverty. He wanted the government to play an active, not a passive, role in the economy. In 1839, he had written: "Government is not a necessary evil, as some people claim; it is instead the benevolent motor for the whole social organism."{{Sfn|Milza|2006|p=468}} He did not advocate the government getting directly involved in industry. Instead, the government took a very active role in building the infrastructure for economic growth; stimulating the stock market and investment banks to provide credit; building railways, ports, canals and roads; and providing training and education. He also opened up French markets to foreign goods, such as railway tracks from England, forcing French industry to become more efficient and more competitive.{{Sfn|Milza|2006|pp=467–469}}

The period was favorable for industrial expansion. The gold rushes in [[California Gold Rush|California]] and [[Victorian gold rush|Australia]] increased the European money supply. In the early years of the Empire, the economy also benefited from the coming of age of those born during the baby boom of the [[Bourbon Restoration in France|Restoration]] period.{{Sfn|Plessis|1988|pp=60–61}} The steady rise of prices caused by the increase of the money supply encouraged company promotion and investment of capital.

Beginning in 1852, Napoleon encouraged the creation of new banks, such as [[Crédit Mobilier]], which sold shares to the public and provided loans to both private industry and to the government. [[Crédit Lyonnais]] was founded in 1863 and [[Société Générale]] in 1864. These banks provided the funding for Napoleon III's major projects, from railway and canals to the rebuilding of Paris.

In 1851, France had only 3,500 kilometers of railway, compared with 10,000 kilometers in England and 800 kilometers in [[Belgium]], a country one-twentieth the size of France. Within days of the coup d'état of 1851, Napoleon's [[Minister of Public Works (France)|Minister of Public Works]] launched a project to build a [[Chemin de fer de Petite Ceinture|railway line around Paris]], connecting the different independent lines coming into Paris from around the country. The government provided guarantees for loans to build new lines and urged railway companies to consolidate. There were 18 railway companies in 1848 and six at the end of the Empire. By 1870, France had 20,000 kilometers of railway linked to the French ports and to the railway systems of the neighbouring countries that carried over 100&nbsp;million passengers a year and transported the products of France's new steel mills, mines and factories.{{Sfn|Milza|2006|pp=471–474}}