1142: Chapter 177, An Unexpected Opportunity 1142: Chapter 177, An Unexpected Opportunity The Governnt Affairs Departnt was especially sensitive to the “money shortage” not just because the Near East needed a large amount of capital to push developnt, but mainly because the Southeastern Province was the hardest-hit area during each financial crisis the Kingdom had experienced.
The land was fertile, suitable for agricultural production, and far from the battlefield.
A hundred years ago, several provinces in the southeast had surpassed The Central Region and had beco the most economically developed areas in the Kingdom.
Economic prosperity often ant a high demand for currency.
Yet the Kingdom lacked the ability to inject enough currency into the southeastern region, and didn’t even entertain the thought.
In the face of “money shortage,” the only forceful asure the Kingdom took was to allow the local Nobles to pay their taxes in kind during tax collections.
The rest was left to ti to heal the wounds naturally.
After all, as long as the war ended, the Kingdom’s dependence on the outside world would diminish.
The sharp decrease in import trade volu and the continuous outflow of gold and silver would gradually change.
Then, by mining and trading with the Orc Empire, the quantity of currency circulating in the market would slowly increase until the “money shortage” crisis was overco.
As for the economic pain experienced during this process, no one had a good solution to it; they could only endure it.
Rubbing his forehead, Hudson also appeared troubled.
In theory, a “money shortage” could be resolved by simply increasing the currency supply.
Regrettably, this theory had no feasibility on the Continent of Aslante.
Under a gold and silver currency system, it was very difficult to increase the currency supply in a short amount of ti.
“Paper money,” one could only think about it.
Under the current base conditions, if the Alpha Kingdom dared to be the first to issue paper money, the market would imdiately teach it a lesson.
Changing the monetary system was not the sa as the Near East Developnt Bank’s issuance of Gold Tickets; it required a very strong reputation.
Internationally, the value of paper money wouldn’t be recognized, and it’s highly likely that the dostic Nobles would also not accept “paper money” replacing gold and silver.
If really out of money, using rusty iron coins as a substitute was more acceptable to people than “paper money”.
Compared to paper money, the Gold Tickets issued by the Near East Developnt Bank were just small fry activities from Hudson.
They only printed several hundred thousand, and not all had been distributed.
In the eyes of the outside world, these things were nothing more than non-nad deposit certificates and not considered currency at all.
Top-tier trading houses all issued their own trading notes, only differing in nas.
Those linked to gold coins were called Gold Tickets, and those tied to silver coins were called Silver Tickets.
Without exception, the circulation range of these notes was very small.
They could only be used in certain areas and still had significant limitations.
Hudson’s issued Gold Tickets, if not linked to the trade of major commodities in the Domain, even dogs would likely disdain them.
In the eyes of the outside world, these things were just sothing Hudson developed for convenient trading.
They could be used within Lord Ha’s territory, but away from it, they were worthless paper.
To replace gold coins and beco the main currency on the market with these things, Hudson would probably have to overthrow the Orc Empire and establish his own Human Empire.
“The money shortage has beco a foregone conclusion.
And this situation will continue for several years.
How is the Governnt Affairs Departnt preparing to deal with it?”
Hudson asked with concern.
If the currency system revolution was too advanced, then they could only resolve it through primitive thods.
In this area, Hudson may not be able to compete with local officials born and bred in the Domain.
“Duke, the money shortage is at the Kingdom level, you personally are still not short of money.
Including the revenue from Magic Potions, our currency is actually net inflowing.
It’s just that our operation is too large, and there’s a temporary shortage of currency.
The most suitable solutions at present are twofold:
One, reduce purchases from abroad, engage in intra-territorial bartering within, supplented by Gold Tickets as a ans of paynt;
Two, bring in capital from the outside.
The first sche is the most common asure.
As early as half a year ago, many places in the Southeastern Province began bartering.
At that ti, the Snow Moon Territory was just starting, and the Mountain Domain basically achieved self-sufficiency, with the daily trade volu not being large, we were not impacted by the money shortage.
It was not until recently, with the boom in smuggling trade and the surge in trade volu at New Moon Port, that the signs of a money shortage appeared.
As long as we purchase fewer slaves and promote the Gold Ticket settlent system, the crisis of the money shortage can be contained.
However, the sequelae are also severe.
Slaves are an important supplent to the labor force of the Domain, and if stopped suddenly, it will slow down the developnt pace of the Domain.
The second sche, while seeming simple, is actually very difficult to operate.
It’s easy for capital to flow out, but no one has experience in how to bring money in.
The Governnt Affairs Departnt only has one reference asure: You can sell the future Magic Potion quotas in advance, and get a sum of cash back.
However, this cash can only solve the most urgent needs.
The money shortage is a crisis of the entire Kingdom; we cannot stand alone.
To quell this crisis, I’m afraid we will have to inject tens of millions of Gold Coins into the market to possibly solve the problem.
Such a huge funding gap cannot be raised by us alone.”
After listening to Jacob’s explanation, Hudson nodded slightly.
Both thods could solve the problem, yet they were not what he wanted.
If it weren’t for the threat of the Orcs, Hudson would certainly choose the first thod.
Stability was most important, and it’s fine if the developnt pace was slower.
“Selling the Magic Potion in advance is unrealistic; the pre-order bookings have already been queued for several years.”
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