1124: Chapter 171: Preparing the Bank 1124: Chapter 171: Preparing the Bank The massive influx of outsiders not only resolved the shortage of workforce in Snow Moon Harbor but also promoted the economic developnt of New Moon Port.
Master Hudson’s workers, who were provided with food and accommodation, indeed did not possess much purchasing power, but they brought liveliness to the area.
People ca and went daily, and the streets too started bustling.
Even false prosperity is still prosperity, at least it made many of the shops in the city easier to lease.
Seizing the opportunity, the Departnt of Comrce ended most of the loss-making deals, retaining only a few highly profitable industries to continue operations.
Including bulk commodities like grain and fabrics, the Departnt of Comrce provided only wholesale, leaving the retail end facing direct custors to private rchants.
With the increase and decrease, the financial data of the territory looked much better.
Although the deficit remained high, the inco column continued to increase.
Putting down the docunts he was working on, Hudson asked with concern, “How are the discussions going with inviting the major rchant guilds to set up here?”
In the closed world of Aslante Continent, relying solely on small and dium rchants can’t drive economic developnt, it also requires major guilds with monopoly resources to join in.
As a Major Noble, Hudson could engage in many industries, but there were even more that he couldn’t get involved in.
For example, tea, spices, Magical Beast at, high-end weapon manufacturing, financial exchange, and the magic industry…
Where others monopolized resources and high technical barriers existed, it was difficult to get involved.
Rather than blindly spending money for an education, it was better to find direct cooperation.
Fortunately, Hudson had the right connections in this area, as he had dealings with most of the major comrce guilds on the continent, providing a foundation for collaboration.
“Duke, the discussions about cooperation are almost complete, most guilds are willing to set up branches in Snow Moon Territory.
However, there are difficulties with financial cooperation.
The guild representatives are skeptical about the safety of the Near Eastern Nobles’ territory, worrying about issuing loans that might beco significant bad debts,” explained Rudolf.
Hudson frowned at this explanation.
Developing the Near East required a trendous investnt of human, material, and financial resources, the first two could sohow be managed, but the financial aspect was what most lesser nobles found most problematic.
Relying on their own efforts to accumulate slowly, it might take fifty years for them to develop their territories.
In such tis, financial financing becos very necessary.
The banking industry in Aslante Continent was not developed, and the lucrative business of financial loans were handled incidentally by the major guilds.
Generally, Noble Lords were the best clients.
With revenue from their territories as collateral, there was virtually no risk of default.
Regrettably, these clients generally did not lack funds.
Even if they were temporarily strapped for cash, they would find ways to raise money from within their circles, rarely resorting to borrowing from guilds.
“If financial cooperation can’t be agreed upon, then let’s set the matter aside for now.
Seeking profit and avoiding harm is human nature.
The situation in the Near East is not yet clear, their reluctance to commit heavily is understandable!”
As he spoke, Hudson sighed silently.
Capital in Aslante Continent was still at a nascent stage, under the control of the major nobles behind the scenes, beings who detested all uncontrollable risks.
Counting on them to take the risk of total loss to support the developnt of the Near East was not very probable.
Engaging with these individuals was a necessity for Hudson, as the Kingdom of Alpha was too impoverished, not just the governnt but also the dostic nobility.
Wars had consud much of their wealth, and even the Major Nobles of the kingdom did not have much reserves.
Hudson’s role model was the Royal Family.
After acquiring large tracts of land, the usual choice was to concentrate efforts for comprehensive developnt.
However, the Royal Family’s progress in developing new territories was far behind Hudson’s estimation.
One must know, to develop new territories, Caesar IV spent most of his ti inspecting various places, with countless royal progeny fighting on the frontlines of developnt—the extent of their seriousness was evident.
With sufficient reserves of talent and the control of a kingdom, and still falling behind in developnt progress, there could be no better explanation than a lack of financial resources.
With even the deeply rooted Royal Family facing economic hardships, the plight of other nobility in the kingdom could only be imagined.
Even if they had so savings in the past, how wealthy could a nation, constantly exhausting its resources on war, be?
Being able to take care of their own new territories was already comndable, let alone having excess funds to lend to the small and middle nobility of the Near East!
If internal solutions for the financial issues were possible, Hudson would have proposed them to the kingdom long ago, rather than having to bring in these uncontrollable major guilds.
Now that the attempt had failed, Hudson need not fret anymore.
Since the plan of using others’ ans to produce outcos had failed and quick developnt of the Near East was hopeful, it was ti to change strategies.
Expecting to single-handedly create a bank to solve the financial issues faced during the developnt of the Near East was impossible.
The core problem was still—lack of funds!
When considering deposits, Hudson didn’t even know whom to approach.
Within the kingdom, apart from a few slightly wealthier nobles, the only potential clients were a small number of affluent rchants.
Serfs, ordinary citizens, artisans, or even so small traders, none were qualified to be clients.
It wasn’t that Hudson discriminated by status, it was simply that the cost of engaging in finance under current technology was excessively high.
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