Chapter 1446: Chapter 9: The Tis Are Advancing_2
If not for the sudden “Magic Cataclysm,” Hudson wouldn’t have wanted to act so overtly.
No other choice, the “Magic Cataclysm” has caused prices of many goods to change.
The prices of materials related to warfare have soared, while other goods have plumted.
The purchase price offered by the Near East Developnt Bank is low; re drops in prices are not feared, but the problem is that many goods now have no market.
Noble Lords across the Continent have all sensed the crisis, each one storing grain for the winter; who has the mind for art?
Not only have artistic goods suffered severe price damage, but even popular luxury items are hard to sell now.
Unexpected changes have directly led to the devaluation of nurous assets held by the Near East Developnt Bank.
With experience from a past life, Hudson surely does not naively believe that the Near East Developnt Bank will not be affected during a crisis outbreak.
Essentially, the current Near East Developnt Bank has moved too fast, outstripping productivity.
While the businesses at hand are profitable, profitable does not equate to risk-free, especially when there is a lack of ans to transfer risks.
Considering the territory still needs ongoing financing, Hudson has to find ways to lower the risks for the bank.
The primary issue is that societal productivity and production models have not kept up, most free citizens are impoverished, limiting the bank’s clientele.
“Duke, the bank has not only acquired inferior assets, but also many quality assets.
Considering that the territory might need them, the magic equipnt, magical materials, Magic Crystal Stone we have acquired… have not been accounted for.
Why don’t you make a selection first, and for the rest, we can account for them and liquidate!”
Listening to Rudolf’s words, Hudson was slightly taken aback. No wonder the account reports looked so terrible; good assets were kept hidden.
Clearly, Rudolf is well aware of his identity. First as Hudson’s family servant, then as the manager of the bank.
These items were sold by small Nobles from various parts of the Continent.
Either they couldn’t use them themselves or the items were too hot to handle, thus were sold at a discount to the bank.
After the outbreak of “Magic Cataclysm,” the prices of these strategic materials soared, suddenly becoming quality assets.
“Leave all Magic Crystals, Magic Cores; select premium magic crossbows to keep; leave the most precious magical materials.
Selling the remaining materials, except for those needed by the Territory Mage Group, take advantage of strategic material price surge to liquidate them quickly!
Deduct the procurent cost of the retained materials directly from my territory’s public account; ensure no discrepancies remain in the bank’s records.”
Hudson said satisfactorily.
The Near East Developnt Bank has developed to this point, with many shareholders.
It’s one thing not to distribute dividends, but if issues appear on the accounts, that wouldn’t be acceptable.
Just right, use the price increase revenue from these materials to offset so devaluation from other assets.
Having personally experienced international situation changes, Hudson ca to understand why so many banks and financial groups in the past life went bust.
Essentially, these companies were playing a leveraged economy.
When asset prices were continuously rising, they all increased leverage, naturally profiting imnsely.
But once the economy changed face, with asset prices continuously dropping, risks would arrive.
Relatively speaking, Hudson still had so integrity.
Despite taking considerable advantage of the bank, most of the profits made earlier still remained within the bank.
Perceiving the crisis, he further took early action to replenish cash flow for the bank, to mitigate potentially erupting crises.
“Duke, other shareholders have criticized the bank for not distributing dividends tily.
Why not take this opportunity to distribute dividends, strengthening external confidence in the bank?
Apart from distributing cash, we could handle our substantial stock of goods by ans of dividends.
After all, the asset scale of Near East Developnt is too large; continuous expansion might be…”
Rudolf hesitantly suggested.
“Harbouring Treasures Invites Trouble,” applicable everywhere. Appropriate downsizing could instead benefit the bank’s developnt.
anwhile, we can clear inventory, reducing future asset depreciation risks.
In an instant, Hudson thought of more advantages. Owing to business distribution, this kind of dividend naturally benefits him as the major shareholder.
The simplest example is during physical dividends, the choice of goods to be given is his.
Hudson could definitely magnanimously let minor shareholders pick first!
With transportation so scarce now, even if they choose bulk commodities like grain, minor shareholders would still need to consider how to transport them back.
Even knowing that with the advent of chaos, artistic goods prices will keep dropping, there’s no choice for everyone.
Of course, not everyone has such worries. “Magic Cataclysm” won’t last forever, and not everyone is pessimistic about the Continent’s situation.
In the eyes of optimists, chaos is rely temporary; persevere a bit, and the Continent’s situation will restore peace once again.
Acquiring these art pieces at low prices is actually bottom fishing behavior. As long as they endure through the chaos, they’ll certainly profit.
Coincidentally, the shareholders of the Near East Developnt Bank are all capable individuals, with a great likelihood of enduring the chaos.
“Alright, package all unsellable goods, with so bulk commodities such as grain and cloth, into the dividend list, seeking opinions from shareholders.
Given future uncertainties, cash dividends should not exceed two million Gold Coins; specifics you decide yourselves.
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