Chapter 288: Stock Certificates
[We will also expand the garrison accordingly.]
If we incorporate Nambonan soldiers into a standing army, there will be no soldiers left in Nambonan City.
Even though the war with the Spierzeig family ended and the possibility of a sudden attack has decreased significantly, the Quordenze are not stupid enough t o give the greenlight to go into a fully no-defense state. We will reinforce that area properly instead.
[To make it the core of the defense of the foreign territories.]
And when considering the post-war system, it was decided to upgrade the Quordenze military garrison in Nambonan City. This was the result of my father acc epting a proposal from the military. I was not involved much.
It seems that the military officers thought that the foreign territories needed a base with a permanent headquarters like the Newnelly military base.
Until now, because it was warti, the main base moved from place to place as it was convenient at the ti. This was probably influenced by my grandfathe r's fighting style, who appeared and disappeared unexpectedly and fought against the enemy's Highlord.
Anyway, the existence of the Alia River is significant in many ways. The flow of the water is so majestic that we unconsciously draw a line between "this sid e" and "that side" when thinking about things. I think the spontaneous ergence of terms like "inland" and "outland" in Quordenze is a good example of this. I t was only natural that the military officers thought that they should firmly establish themselves on "that side" when the war ca to an end.
[With Nambonan City as the core? Not Alduke Fortress or Reisleaf Castle?]
The base set up along the river in the westernmost part of the outer land that I visited on a border tour so ti ago was also called Alduke Fortress. With th e Nongaite territory spreading across the opposite bank, it is one of the most important bases along with Reisleaf Castle.
It's not completely wrong to ntion these two nas when it cos to the core of the defense of the outland. However, that's a bit off the mark for this stor y. After all, Ramon is a commoner at heart, so he doesn't seem to have much of an intuition when it cos to military matters.
[That's right. I've exaggerated it, but in essence it's just a matter of setting up a headquarters. You can't settle down with those two.]
It will be a place that handles all secrets related to the security of the foreign lands, so it must not be easily taken away by the enemy. Alduke Fortress is in a p osition where it could be put on the front line of a war imdiately if sothing happens, so it is at high risk. The sa goes for Reisleaf Castle.
In that respect, Nambonan City is located in the rear of the foreign lands, and it is a large city with a large population. It is easy to send reinforcents from th e mainland if necessary. It is the best place to settle down.
[Will it be a large-scale construction?]
[No, not for the ti being.]
The top priority is the defense of the forr Spierzeig territory, such as Weldburg City. Even though they will set up a headquarters in Nambonan City, they do not intend to spend that much money. You could also say that they do not have the luxury of spending.
If anything, the main purpose of this decision may be to officially announce that "Nambonan City is our base in the foreign territories", and show both inside an d outside that Quordenze has firmly established roots in the foreign territories. For the ti being, I think we'll end up expanding the current garrison site in Na mbonan City a little and gradually increasing the number of buildings.
[So, for now, it's fine as long as we can secure the location. There will be more soldiers stationed in Nambonan City than there are now. We need land to acco mmodate the militia and regular army soldiers we've conscripted.]
So I decided to add my own thoughts.
[Also, we need open land on the outskirts for training. I want to try out various things with the standing army.]
I don't intend to take all of my standing army soldiers into Othelloria City. The soldiers will be exhausted if it becos a long-term mission, so I'm thinking of ro tating them around at a certain rate. For example, half of them will enter Othelloria City with , and the other half will wait in Nambonan City.
Of course, since I'm paying them to be employed, I plan to spend their ti training and improving while they're waiting in Nambonan. I want them to acquire t he strengths of a combat-specialized regular soldier. I don't intend to let them rest for free.
[...I think we can arrange the land right away.]
[Is there any problem?]
[Food. More soldiers ans more mouths to eat. Depending on when they enter the city, there could be a food shortage in the city...]
Our military is no fool, so they'll naturally consider the amount of food for the additional soldiers. However, I don't know how well they understand the current situation in Nambonan.
It seems that the number of people entering the city has been increasing recently, so if the timing of the deploynt of soldiers is bad, it could cause a food pr oblem. In this world, you can't say that you can be sure that food will be available just because you have money, so it's necessary to move in a planned manne r.
In short, Ramon was saying that if we are going to let people in, the military and the city need to be properly aligned.
[Yes, that's a valid concern.]
If I say this in a contrived way, the civil officers will take action to make the necessary adjustnts. There's nothing good that can co from chaos in Nambo nan City.
[I intend to give the standing army special training and discipline. That's why I want the soldiers to have a good diet. Not only quantity, of course, but quality as well.]
If we're going to train them, we should pay attention to their diet. If they can overco the rigorous training, eat delicious food, and beco muscular, the sol diers will gain confidence. That should also motivate them to take the next step on the battlefield, where the murderous intent of Lords and Highlords leading t hem would be flying everywhere.
The muscle mass of a serf is nothing more than a margin of error in the eyes of nobles and knights, but it's better if the basic abilities are high. I want to create an environnt where the soldiers can eat at fairly frequently, although not every al.
As I was talking about this plan, Ramon had a difficult look on his face.
[It's pretty hard to get a stable supply of a large amount of at...]
[Really? It doesn't have to be the kind of at I usually eat.]
The at served on the nobles' tables is often fresh at that has not been processed for preservation. They have the ans to slaughter livestock every da y, and with cooling magic, they can preserve it for the sa amount of ti as a ho refrigerator on Earth.
Of course, I'm not asking them to provide such generous support for the commoner soldiers. I told him that processed at would be enough, but Ramon's ex pression didn't change.
[It would be easier to get dried or salted at. However, there is a limit to the amount of livestock raised in the neighboring farming villages.]
The main industry of small villages is agriculture. Large livestock such as cows and horses are raised for agricultural purposes, so they are rarely used for a t. And small livestock are raised as a side job, so there aren't that many of them. So people make a living by going into the mountains and forests to hunt an imals, but this is also far from a stable supply.
Ramon explained that in this situation, even if they said they would buy at, the amount they could collect would still be limited.
By the way, it seems that there are so places that raise livestock for the purpose of obtaining at. However, the route from production to sales has alread y been established in such places, so there is not much room for outsiders to get involved. It may be possible to forcefully purchase at using the noble's au thority, but I didn't want to go that far.
[First, we should inform the neighboring farming villages that we will purchase at and encourage them to increase livestock production. Depending on the p lace, we may need so assistance.]
It is difficult to increase livestock without capital. There are many farming villages that do not have the money to make money, but the Quordenze family canno t complain about this. After all, it was the Quordenze army that ravaged foreign lands in their war of aggression. It is karma that they are being forced to pay th e price now that they have been annexed.
Considering that, perhaps buying livestock is sothing the Quordenze family should tackle as a way to support the recovery of rural areas. It feels like a gran diose self-inflicted act, though.
[If I may add, I think it would be better to encourage the raising of small livestock. We must not let it have a negative impact on our main job of farming.]
Large livestock are hard to care for, the cost per animal is high, and the hurdles to increasing their numbers are high. It would be pointless if the farrs were distracted by their side jobs and cause their main job of farming ended in a poor harvest.
[Chickens and rabbits, which are easy for children to handle, would be the safe options.]
[...rabbit?]
[Yes. Thick-haired rabbit's fur can be made into thread and their droppings can be used as fertilizer, so they are often kept in rural areas alongside chickens. The people are also used to handling them.]
...Mass production of thick-haired rabbits.
[In any case, the important thing is do you think that the rural villages will accept this request?]
[I think most villages will be enthusiastic if we just guarantee regular purchases. In small rural villages, monetary inco is precious.]
Ramon added that unless the village is in dire straits, they will act voluntarily. He sounded strangely confident, so I decided to listen to him in more detail.
[Actually, so trading companies in the city have started sothing similar. They are encouraging rural villages they have connections with to raise livestoc k, and hoping to make a profit from it. So of them may have heard rumors and thought that if they had the opportunity, they might do it too.]
Humans want to eat delicious food when they are at peace and prosperous. That's why it seems that the demand for at in Nambonan has been rising steadi ly since the annexation of Quordenze last year. Now that the war with the Spierzeig family has co to an end, it will only get more exciting in the future.
And when there is demand, rchants will find business opportunities there. They set their sights on rural villages that are suitable for grazing, and apparently encourage breeding by lending out cows and pigs and providing financial support. They are really a business-minded bunch.
[...I see, so it has a future worth investing in by Nambonan rchants.]
This might be a good thing. I looked at Ramon there.
[I think it's a good idea to encourage livestock farming in neighboring farming villages. But it will take ti to get on track, won't it?]
Since it's largely up to each farming village's autonomy, it won't increase all at once. It will start out as a small wait-and-see approach, and the supply will grad ually increase.
Ramon must have thought the sa thing, and didn't react negatively to this idea.
[So, how about starting a new business on the outskirts of Nambonan at the sa ti?]
[Does that an recruiting new pioneer villages?]
[No, we'll hire people to take care of the livestock. It's more efficient if it's close by, since it won't take much effort to transport them.]
The image is like a broiler farm on Earth.
To ensure a stable supply of at, it will be necessary to make it a main business and run a planned business. It should also be possible to increase efficiency by raising a large amount of at.
[That's certainly true, but...]
From the way he spoke, with sothing seemingly stuck on the tip of his tongue, I could tell he wasn't very enthusiastic.
First of all, Ramon seed to think that it would be much more efficient for the Quordenze family and Nambonan city to outsource the livestock industry rather than starting one. He thought it would be easier to just buy what's brought in, rather than securing space, gathering personnel, and worrying about inventory ri sks.
But, that wouldn't allow to achieve what I want to do.
[One option would be to approach a trading company that has a firm grasp in livestock. Companies like Paran and Rieull have knowledge and technology that we don't have.]
[If anyone is willing to take it, I don't mind leaving it to them.]
I just wanted to move things forward quickly. I want to build several breeding sheds on a large piece of land, and expand the business to 1,000, 2,000, 3,000 c hickens. But, Ramon flinched as I talked about my ideals.
[...I think that if it's that big, any trading company will be hesitant...]
[Is that so? With a big custor like the Quordenze army, they should be able to make a stable profit.]
[...I know this is rude, but I'm sure many people don't think so.]
From a rchant's point of view, doing business with nobles is risky. You never know when or what kind of unreasonable orders you'll receive.
According to Ramon, the farm that I'm thinking of can't be realized without a significant investnt. It would be an investnt on a level that a trading compan y would bet its future on. Despite that, their big client is the noble family, the Quordenze. If we were to say, "Sell the at cheaper," everything would fall apar t.
From the company's perspective, they probably want to keep their investnt to a level that won't be fatal to the main company even if the business goes und er.
[That's going to be a hassle.]
[I think it would be more stable to leave the managent of a small farm to a capable company and wait for the livestock in the farming villages to increase.]
[No, that's a bit...]
I hadn't said it yet, but the real reason I want to set up a farm is for the bones of thick-haired rabbits. These are the raw materials for the whiteware from Quor denze, which was very popular in the Royal Capital.
A large amount of thick-haired rabbit bones is needed to mass-produce whiteware. However, if soone from Quordenze were traveling around the farms to collect bones, that would be very suspicious. Soone with good intuition might be able to discover the secret of whiteware production from there.
With that in mind, I would like to have a huge farm that we have a connection with. It would be easier to collect bones and it would be easier to keep the secret s.
[...It might be a good idea to try to raise funds.]
Ramon must have realized that I wanted to make this happen no matter what, because he made another suggestion.
[You an when you say investnt the other day?]
In Nambonan City, there is a system for soliciting investors when starting a big project. For example, those who invest in the construction of a bridge can recei ve a portion of the tolls on the bridge as dividends after it is completed.
When I heard about this, I found it interesting, so I invested a small amount in the construction of the port in Nambonan City. Apparently the investnt certific ate has arrived at the Nambonan City mayor's residence. Is it sothing like a stock certificate for a corporation?
...Stock certificate?
[Yes. It’s the sa as building a port or a bridge in that the initial investnt is large. It's a bit variable, but for example, you could solicit investnts for the Pa ran Company's business... that might be a good thod. I don't have high hopes for it, though...]
[I thought it was a good idea, but you can't have high hopes for it?]
[I made the suggestion, but I can't have high hopes for it. This will end up supporting the Paran Company's growth.]
In Nambonan City's investnt system, you only need to pay dividends for a few years to a dozen years, and that's it. Investors may get so return, but the f act that the rapidly growing Paran Company is the only one left is not a very happy situation. It would be like sending salt to an enemy. In particular, the people of the Rieull Company, which also has strengths in livestock farming, would definitely not want to invest in them.
[In that case, why don't you pay dividends as long as the business continues?]
[That would be unpopular with Paran Company, which is in charge of the business. It would an that the business will never beco theirs...]
Paran Company, which is in charge of running the farm, would want to end the dividend paynt period as soon as possible. The more they work, the more th eir money is sucked away by investors, which is never a pleasant story.
In the end, it's a complicated situation because the investors and the operating company are in a tug of war for profits. Both sides are acting with their own gai ns and losses in mind, so the talks aren't moving forward.
[I don't know if it's the Paran Company or the Rieull Company, but it's going to be complicated because we're investing in an existing company. In that case, w e should use the investnt to start a new company.]
That's fine, I confird, and Ramon went into silence, deep in thought.
I waited for a while, but there was no response. I pressed him again, saying that this was fine, and he spoke with an apologetic look on his face.
[...Could you tell the purpose of starting a new company?]
[To separate ownership and managent.]
It seed like what I was saying was quite unclear. Not only Ramon, but the n standing around him, who seed to be Nambonan city officials, were also s cratching their heads.
It seed that the system of a corporation has not existed yet on the Eruo continent. I had suspected this for a while, but since the business-savvy people in Nambonan didn't know about it, I thought it was confird.
[... In your opinion, Mayor, who will be the manager of the new company?]
[Well, if you think about it logically, it will be soone who is knowledgeable about managent and livestock farming. For example, the Paran Company can be listed as an investor by providing a capable manager, not by money.]
[... In that case, won't the new company beco a subordinate organization of the Paran Company?]
Probably, in their common sense, the owner and manager of a company are inseparable. That's why the new company and the Paran Company would be so m ixed up in their mind.
I decided to start by explaining the basics.
[Those who invest in the new company will be given investnt certificates called stock certificates. The more you invest, the more stock certificates you will receive. This investnt amount is not just money, but also includes the provision of personnel, tools, and facilities.]
This is not much different from the previous Nambonan investnt system, so I understood it quickly. When soliciting investnt for bridge construction, ther e are cases where people are treated as investors by providing labor instead of money.
[The owners of these stocks, the shareholders, will be the owners of the new company. If there are 10 shareholders, then all 10 will beco the heads of the n ew company. ...Do you understand so far?]
[Yes.... But then, how will the profits made by this new company be treated?]
[Since the new company belongs to the shareholders, the profits naturally belong to the shareholders too. This will be returned in the form of dividends.]
[Will this new company be dissolved once a certain amount of profit is made, and the assets distributed to the shareholders? ...No, as the Mayor said earlier, w e can adopt a system of paying dividends as long as the business continues to exist.... I see, if that's how it works...]
Ramon was a little excited and snorted. He seed to be very interested in the system of a corporation.
[I have one question. If the owner and the manager are different, there is a concern that fraud will run rampant. How do you plan to deal with this?]
[We will deal with this by disclosing information. We will require the manager to report the business situation to the shareholders. ...This may sound a bit hars h, but it ans showing us the books.]
Ramon opened his eyes wide.
Basically, the company's books are to be kept within the organization. There is no gain from showing them to anyone, and they can be said to be the compan y's most confidential information. A rchant would never even think of making them public.
[I see... I see...! So even if the manager is a person who is provided by one of the shareholders, he is rely one of the employees.]
[I'm glad you understand that quickly. So even if the company goes bankrupt, the manager is basically not responsible. The stock certificates will beco just trash, but that will be the shareholder's own fault for hiring such an incompetent manager.]
Ramon was not the only one to show a remarkable reaction. Apparently, so of the people that he brought from Nambonan City this ti were also knowled geable about business, and one old man looked at us as if we were monsters.
[On the other hand, as long as the new company continues to make profits, shareholders will receive dividends indefinitely. That's why shareholders need to h ire excellent managers and constantly monitor the accounting for irregularities.]
[This is... a very interesting system.]
That said, it's the full extent of what I know about corporations.
But, it was enough to shock Ramon. His voice was sowhat high-pitched.
[I'll ask my father if we can invest in the new company. If the Quordenze family becos one of the shareholders, that should ease so of your worries.]
If the Quordenze army were to buy livestock at a low price, the Quordenze family, who are shareholders, would end up losing out. We are nobles, so we can d o whatever we want if necessary, but this might be a source of reassurance.
[By the way, will the buying and selling of stock certificates be allowed? I think that not only in Nambonan City, but also rchants and wealthy people from ot her territories will be very interested in this new system...]
I was honestly impressed that he had co up with the idea of buying and selling stocks after hearing only that story, but it seems that the concept of buying and selling rights itself has existed for a long ti.
[I intend to allow it, but do you have any concerns?]
[I'm not concerned, but I have a suggestion. ...We should consider setting up an exchange exclusively for stock certificates.]
[Why?]
[To prevent counterfeit stock certificates. By institutionalizing the invalidation of stock certificates whose trading history cannot be confird, we will protect shareholders.]
It's true that if stock certificates lose their credibility, it'll be all for nothing. I thought that was a reasonable argunt, but it seems that the story doesn't end he re.
[...Under the pretense that we will completely manage the location of the stock certificates. This will give us influence over other territories.]
Ramon asserted that if a corporate boom hits Nambonan City, wealthy people from all over the continent will co to purchase stock certificates.
Wealthy commoners and rchants live with the constant risk of having their assets taken away by the lord of their territory. With that in mind, having assets s uch as stocks helps to diversify that risk. Stocks can only be exchanged for gold or silver coins at the exchange office located in the Quordenze territory, so th e chances of them being taken away by the lord are lower. I hate to say it, but it's clear that commoners have no trust in nobles at all.
Anyway, what will happen next if wealthy people from all over the continent get their hands on stocks? They will inevitably begin to wish for stability, peace, a nd developnt for the Quordenze family. This is because if the Quordenze family falls, the exchange will fall with it, which will an the disappearance of so of their assets.
It's not a bad thing for ordinary commoners, but it's certainly not a bad thing for wealthy people and rchants from all over the continent to be pro-Quordenz e. If there is a noble who is secretly planning to attack Quordenze, they might secretly leak the information for us.
[If you don't mind, I would like you to consider setting up an exchange in Nambonan City. I'm used to dealing with such things.]
He's a good salesman.
If we set up an exchange in Nambonan City, influential commoners will gather there from all over, and we'll receive more money, goods, and information than ever before. It's unclear whether we can make good use of an exchange in another city, such as Newnelly City.
As Ramon said, it seems best to leave it to the people of Nambonan City. I feel like I've been tricked, but this will probably be the best choice for both Nambon an City and the Quordenze family.
[...Interesting. Start considering the exchange as soon as possible.]
[Understood.]
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