The Original Vampire

Facing Colin's sharp question, Bachelor Sonny immediately calmed down from the frenzy.

He has realized that although the guardian of the north in front of him is young, he is not so easy to fool.

So, he slowly sat across from the dining table, nodded solemnly, and said:

"Yes, this new farming and animal husbandry system, which I have high hopes for, does have several fatal flaws."

Vera was startled, and immediately put down the knife and fork in her hand, wiped her mouth with a napkin, and prepared to listen carefully.

Bachelor Sonny seems to be worried that the two important people in front of him will lose confidence in his agricultural reform plan, so he quickly comforted him:

"But don't worry, I've been thinking about these flaws for so long, and there are already some solutions."

Colin nodded noncommittally and said, "You should talk about the defects first."

"Okay." Bachelor Sonny cleared his throat and said frankly, "First of all, it's sweet potatoes. In fact, it has one of the most fatal flaws, which is that it is difficult to store for a long time.

Barley, wheat, and rice can be stored for three to five years as long as the method is correct. But sweet potatoes, even if dried, can only be stored for half a year at most. "

Vera tilted her head and said doubtfully, "It's not a big problem. After the sweet potatoes are eaten, let's eat bread. It's not like we don't plant wheat anymore."

Bachelor Sonny shook his head and said, "Lord Duke, the problem is not here, but the tax!"

"Taxes?" Vera was a little confused.

Colin's eyes narrowed, and he immediately realized what problems this would bring.

The way of taxation in this world is very backward, generally deducting tax in kind.

For example, if the lord of Winterspring Town implements a "tithing" in the territory, that is to say, all the output of the territorial people here must be given to the lord by 1/10.

If you grow wheat, you will pay one-tenth of the barley, and if you raise cattle and sheep, you will pay one-tenth of the cattle and sheep, or the equivalent of cowhide, wool, etc. that can be recognized. Therefore, if Bachelor Sonny’s new farming and animal husbandry system If it is promoted, farmers in this system will hand over one-tenth of sweet potatoes and pork.

But this involves a serious problem - sweet potatoes are difficult to preserve for a long time.

Lords collect these taxes,

Of course it wasn't to eat for himself. No matter how many people in his family were, they couldn't eat so much.

These taxes are either used as strategic reserves, used as military rations, or put on the market in exchange for the goods they want... In short, all of these require that the taxes collected must be preserved for a long time.

The sweet potato, however, has a very fatal flaw in this regard.

It is no wonder that the seemingly beautiful agricultural reform plan of Bachelor Sonny was so severely resisted in Yulong City. The nobles did not want the sweet potatoes they harvested to go bad soon.

After some explanation from Bachelor Sonny, Vera also understood, but then she asked again: "Can the territorial people exchange sweet potatoes for copper coins, and then use copper coins to pay taxes?"

"I'm afraid not." Bachelor Sonny shook his head in denial.

"why?"

"Because, there are not enough copper coins."

"Don't have enough copper coins?" Vera was even more puzzled, and had to look at Colin as if asking for help.

Ke Lin also nodded solemnly, and said: "Indeed, if the lords are required to pay taxes in copper coins, it seems more convenient for the lords, but in fact, this will greatly reduce the copper coins circulating in the market.

On the other hand, those farmers who adopt the new farming and animal husbandry system cannot store sweet potatoes for a long time, so they will inevitably sell some of the sweet potatoes they can’t eat and buy wheat that is easier to store. As a result, the demand for copper coins in the market will increase. Instead, it increased.

The demand for money is increasing, but the supply is decreasing. The more successful this new farming and animal husbandry system is, the greater the blow to the existing monetary system, and even cause deflation. "

Colin is almost certain that deflation will happen.

Because this world was originally dominated by the natural economy, farmers almost didn’t need copper coins every day, because they all farmed the land by themselves.

But the new farming and animal husbandry system is different. Farmers must trade, otherwise the sweet potatoes will not be eaten and spoiled, which will greatly stimulate the activity of the market. If the money supply does not keep up, the consequences will be extremely bad.

But Vera didn't understand these things at all, and she blinked her cute big eyes, which made her even more confused.

Maester Sonny was also curious about Colin's new term: "Deflation? Viscount, what does that mean."

Ke Lin coughed a few times and said lightly: "That is to say, there is not enough currency in circulation, copper coins have become a rare thing, their value has skyrocketed, prices have fallen, and people who hold copper coins are unwilling to exchange them, and finally the entire trade market cannot function normally. down."

Maester Sonny glanced at Colin in astonishment, as if he did not expect the young Viscount to have such a deep understanding of economic operation.

"Then can't we mint more copper coins?" Vera asked again.

Bachelor Sonny nodded and said: "Yes, this is indeed a way, but the coinage of the Radiance Empire is in the hands of the royal family, you must first obtain the consent of the royal family.

And, I must remind you, minting copper coins is actually a thankless job. Because the casting cost of copper coins is even higher than its value. "

People in this world may not have as much understanding of how the economy works as Colin, who is just half-baked, but they also understand the importance of coinage.

Therefore, it is not a simple matter to obtain the coinage right from the royal family.

When the new farming and animal husbandry system of Bachelor Sonny was rejected, it showed that the royal family did not want to change the current monetary system.

In fact, even if he obtained the power to mint copper coins, Colin didn't want to do it, because as Bachelor Sonny said, minting copper coins was a thankless task that would only increase the burden on the Saint Hilde family.

However, to solve the problem of currency shortages, Colin has other ways.

This is also thanks to the fact that in his previous life he was used to seeing the various behaviors of businessmen under the developed market economy.

So he smiled and said, "We don't need to mint copper coins."

Bachelor Sonny's eyes narrowed, and he quickly asked, "Lord Viscount, do you have a better way?"

Colin smiled and nodded and said, "Yes, we can borrow money from merchants!"

"Loan?" Bachelor Sonny suddenly looked confused. He didn't understand what the loan had to do with increasing the money supply.

Colin smiled confidently and explained leisurely: "We can use the name of the Saint Hilde family to borrow money from major merchants in the north, and what we borrow is food!

Taking advantage of the famine in the north before, I know that many businessmen secretly hoarded a large amount of food, preparing to make a fortune when the price of food rises. I originally wanted to wait until I returned to the North this time, to take care of these guys who were bent on making a fortune in the country.

But now it seems that a more moderate method may be adopted, and a large amount of grain can be obtained from these merchants by borrowing. "

Vera couldn't help but wonder: "Colin, but does this have anything to do with what we're talking about now?"

"Of course, listen to me slowly." Colin reassured with a smile, "When these merchants lend us the food, the Saint Hilde family will issue a batch of bills with family crests, well, it's called bonds. All right.

In addition, you will also publicly declare as the Duke of the North that anyone who holds these bonds can come to the Roar Castle to exchange for the equivalent food after the maturity date of the debt. "

Vera was still at a loss, and her lovely big eyes blinked at Colin, as if she didn't know how to ask a question.

However, Bachelor Sonny seemed to realize something, and his eyes became brighter.

Colin continued to explain with a smile: "In this way, these bonds are equated with grain, and they are guaranteed by the credit of the Saint Hilde family, so they have the characteristics of general equivalents. In short, It can be used as currency.

After that, we announced that from now on, taxes in the north must be turned over to currency, or equivalent bonds. Once there is a shortage of copper coins, believe me, people will definitely use such bonds as a medium of exchange.

In this way, although we have not minted new coins, we have actually increased the money supply in circulation in the market. "

Bachelor Sonny stood up excitedly, his face flushed red, and he said loudly: "Lord Viscount, you are truly a genius!"

After speaking, he paced back and forth in the restaurant, and should be thinking carefully about the feasibility of this method.

Vera wrapped the ends of her hair between her fingers and seemed to understand what Colin meant.

But after walking back and forth for a while, Bachelor Sonny suddenly stopped and asked in a concentrated voice, "Lord Viscount, I think there may be a problem with your method."

"you say."

"The loans that the St Hilde family borrowed from the merchants always have to be repaid, and once they are repaid, aren't these bonds out of the market?"

"Who said that the loan must be repaid?" Ke Lin said in a low voice, "We can borrow new debts, repay old debts, and maintain this debt forever."

Maester Sonny was stunned.

Vera was also a little hesitant, because in this world, borrowing money is not a glorious thing, especially for nobles, it can be said that it is a shame to make them owe money to those lowly merchants.

Now that the situation in the north is special, it is reasonable to ask the Saint Hilde family to borrow some money to save the emergency, but if the debt continues, the prestige of the Saint Hilde family may be a great blow.

Colin smiled secretly as he watched the changes in the expressions of the two of them.

He knew that a certain number one rogue country on earth had also borrowed a lot of debt, but would anyone dare to underestimate it?

"Believe me, reasonable debt is not only a burden, but a blessing!"

Colin uttered the famous words of Hamilton, America's first Secretary of the Treasury.

In fact, Colin bypassed the royal family's coinage by issuing bonds in this way, which is actually equivalent to issuing currency in circulation privately.

And if you can hold the right to issue the currency in your hands, Colin certainly knows how much profit and influence it will have.

Why does the Fed like to buy US Treasuries every time there is a financial crisis?

Isn't it just to inject a large amount of liquid dollars into the market in this way, increase the money supply, and thus cause inflation, so as to harvest the world.

Also known as quantitative easing.

In fact, they are printing money like crazy.

But there is no way, you can't directly accuse the other party, after all, the Fed is indeed repaying debts in this way...

Colin's inspiration actually came from this. He borrowed food from the merchants to issue equivalent bonds, and then endorsed the credit of the Saint Hilde family, plus it could be used as a tax credit, these bonds also have. function of money.

In this way, the Saint Hilde family is using this method to dilute and harvest the wealth of merchants in the north, and even the entire imperial aristocracy.

However, with the superficial understanding of finance by the nobles of this world, they should not yet understand the true power of this method.

Of course, the world is still dominated by a natural economy, not a market economy, so the power of manipulating the power of currency issuance cannot be fully exerted.

But as long as this method can be implemented smoothly, Colin is confident that the northern border can quickly recover from famine and war, and even quickly widen the gap with the other three borders.

Vera looked at Colin with a confident face. Although she didn't fully understand the true meaning of this plan, it did not prevent her from fully supporting her husband as always.

As for Bachelor Sonny, this guy can't wait to implement his new farming and animal husbandry system in the North, and even if he still has some doubts about Colin's solution, he won't say it at this time.

Seeing that neither of them had any more opinions, Colin immediately sent a formal invitation to Bachelor Sonny with satisfaction:

"Bachelor Sonny, I wonder if you would like to go to the North to serve as the agricultural advisor to the Saint Hilde family?"

Bachelor Sonny's expression became solemn, and he finally brought a heartfelt respect and respect in his eyes when he looked at Ke Lin, and said solemnly:

"I do!"

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