King

I don’t know if he was under too much pressure or if Hudson’s words had an effect. The finance minister who returned to the royal capital stopped immediately and stopped fussing.

At first everyone thought it was okay and thought it was a great political victory, but soon all parties stopped laughing!

The first thing that couldn't bear it was the various government departments. The Ministry of Finance all pressed the pause button on allocating funds for new projects.

The question is - no money!

There's no point in making a fuss, there's really no money now financially. Even the subsidies that should have been distributed to the damaged nobles and lords on the front line could only be distributed at a discount.

As problems continue to pile up, all major factions in the court realize the seriousness of the matter. Financial problems have threatened the kingdom's rule.

"Count Francis, what's going on with the Ministry of Finance recently? Why are government funding blocked one after another?"

Caesar IV asked with anger on his face.

The Ministry of Finance is so disrespectful that even the funding for several key projects that he personally handled has been stuck.

“Your Majesty, we have no money financially!

We have tried our best to raise money, but the outside world is worried that the kingdom will go bankrupt like the Principality of Mossi, and it will not be able to borrow loans and government debts will not be sold.

The monthly financial income is divided completely on the first day of the month. This is a list of projects. If you think any project can be eliminated, please feel free to speak out! "

Count Francis said with a shrug.

The "borrow new and repay old" routine cannot continue, and that is the fault of the Ministry of Finance and the government.

The previous three sets of debt repayment plans made a fuss in the court, and the creditors had no time to collect them. Who dared to continue to fill the bottomless pit?

The less money you have, the harder it is to borrow money. This is human nature!

The Ministry of Finance, which cannot borrow money, will naturally have no choice but to fail. Anyway, the total government revenue is so much that it can only meet the expenses of some projects.

Theoretically speaking, if we continue to tear down the east wall and mend the west wall, we can still maintain it for a while. It was obvious that Count Francis was not prepared to be this villain.

In addition to necessary military expenditures, allocate them as soon as possible. The remaining expenditures approved by the Royal Government will be allocated to whoever comes first.

The accounts are very clear. Every expenditure was signed by Caesar IV and the prime minister. The blame cannot be placed on him, the finance minister.

After briefly glancing at the list of accounts, Caesar IV directly threw the list to the ministers for circulation.

Deep down in his heart, his dissatisfaction with Count Francis accumulated to the extreme. The idea of ​​​​substituting someone came up for a while, but it was quickly abandoned.

Unlike important officials in other government departments, the Kingdom's Finance Minister is the least afraid of being dismissed from his position. Usually, the Minister of Finance is coaxed into taking the position.

The high position and power are true, but the pressure is really great. Not to mention seeking personal gain, those who can fill the holes are capable ministers and officials.

There is actually another way to solve financial problems, but everyone has tacitly ignored it.

As a country that resorts to militarism, the proportion of military expenditures in recent years has never been less than three-quarters. As long as military expenditures are cut downwards, the fiscal hole will shrink in an instant.

For example: reducing the daily expenses of the army, or abolishing several standing corps.

There is no doubt that this plan is as pitiful as issuing banknotes.

The destruction of the Orc Empire is the consensus of the entire kingdom. Anyone who dares to undermine this strategy will become a public enemy of the kingdom.

In the blink of an eye, the ministers who were about to launch an attack to investigate suddenly became silent.

Whether it's cutting projects or cutting spending on approved projects, it's an offending thing.

"Isn't there still some revenue from the Papal State? Why doesn't it appear in the fiscal revenue?"

Prime Minister Marquis Delgado asked doubtfully.

In order to mobilize everyone's enthusiasm for robbery, the private armies of nobles from all over the country are now dispatched, and they are almost digging into the ground in the Papal State.

Desperate search will definitely pay off. After only going out for a few months, everyone has earned back the "fare", and now the blood-earning mode has begun.

At this point, it was time to pay the three hundred gold coins per person for tickets that were owed in advance. Coupled with the proceeds from handling the spoils of war, the royal government should not be short of money in the short term.

"Prime Minister, the money from the Papal State has only been received in theory. In fact, the cash we received is not much. Most noble lords choose to use bulk commodities such as grain as deductions.

There is no need to worry about military rations and cloth for the next two or three years. However, these items are still in transit and cannot be cashed out in a short period of time. "

Count Francis replied without changing his expression.

Compared with other trophies, the biggest problem with bulk commodities such as food is that it is difficult to realize, store and transport them.

Even if there are business travelers following the army, everyone would rather invest their limited transportation capacity in transporting more profitable trophies rather than touching sensitive food.

Of course, this is only a minor factor. If the Ministry of Finance really wants to cash out, there is still a way.

It’s just that Count Francis has his own plan. If it were turned directly into cash, then reducing debt would become a joke.

The best option is to ship back massive amounts of bulk commodities. The Royal Government is having trouble finding a place to store them. When the time comes, it will take advantage of the situation and propose that it be left to the creditors to repay the debts. No one can fault it.

After all, many of the debts of the Royal Government are owed by him. If he does not find a way to deal with them, his life will not be easy after he leaves office in the future!

"There are so many commercial banks in the country. Let's mortgage it to them first and get a sum of cash for emergency use!"

The Minister of State, Marquis Alfred, said angrily.

The word "no money" broke all the plans of the Ministry of Government Affairs. According to the current situation, there is a high probability that officials' salaries will not be paid this month.

Although it is normal for the kingdom to delay salary arrears, it is very embarrassing for him, the Minister of State, to keep going through such troubles.

“Marquis Alfred, due to difficulties in transportation and storage, there are still many uncertain risks in transporting grain and other bulk commodities back to the country.

Banks are profit-seeking and do not engage in loss-making transactions, so they simply do not accept these high-risk commodities as collateral.

Even if it is sold to them at a discount, only a few banks can afford it, and the price is only 20 to 30% of the domestic market price.

Among them, the only one that can be said to be strong is the Near East Development Bank.

In fact, the Near East Development Bank already has a large backlog of grain and cloth. In addition to the domestic nobles, the nobles of the Five Nations Alliance also sold these materials to them. "

Earl Francis explained calmly.

When dealing with the sale of spoils of war, capital from all walks of life gathered crazily, but there were not many buyers who had the strength to pay.

Faced with mountains of loot, whether it is banks or chambers of commerce in various places, cash flow is very tight.

The Near East Development Bank dares to accept goods on a large scale. In addition to being large enough, establishing market credibility in advance, and absorbing many new deposits in the Papal States, the most critical factor is the golden ticket.

For a group of noble lords, going out with a large amount of cash is inherently risky, and they might even get hacked.

The best option is to accept the golden ticket transaction. If you are more cautious, you can also require a real-name system, so that no one else can withdraw except the person and the designated beneficiary.

In the financial market where the strong are always strong, the Near East Development Bank, which has the first-mover advantage, has become the biggest winner.

Not only the nobles from the northern continent became customers, but also many nobles from the central and southern continents became customers of the bank.

The decline of the Holy See led to the bankruptcy of the Holy Chamber of Commerce. Among the capital currently active in the Papal States, the three major chambers of commerce and the Near East Development Bank are the most powerful.

Because of its industrial nature, the Near East Development Bank, which has the weakest comprehensive strength, can mobilize the most cash flow.

Commodities with thin profits basically fall into the hands of the Near East Development Bank. Even if the price was lowered and the price could only be paid in gold, how could it be that there was such a powerful buyer?

Nobles and lords don't matter, they were all robbed anyway. No matter how much you sell, you will make a pure profit. The first thing is to realize it as soon as possible so that you can continue to rob.

The Royal Government is different, they are poor! How can the trophy that was finally obtained be easily sold at a broken price?

Everyone's attention is focused on Caesar IV. Apart from the Near East Development Bank, the most powerful financial capital in the kingdom is the Royal Bank and the Royal Chamber of Commerce.

At this critical moment, the royal family needs to take the lead so that everyone can lobby Hudson and other domestic nobles.

"The Chancellor of Finance is right. There is indeed a lot of trouble in realizing the cash of commodities. What we can do now is to transport things back as soon as possible.

Just because it is not valuable in the Papal States does not mean that it is not valuable in the Kingdom. Even if it is used for strategic reserves, it will save a large amount of financial budget in the future.

With this food, half of the problem of building a new line of defense is solved.

Let the army attack later and capture some slaves from the Orc Empire, and the most difficult problem will be solved.

…”

A lot of words were said, but the issue of the royal family's contribution was not raised. It's not that Caesar IV lacked a sense of the overall situation. It was only after he became a master that he realized that food, rice, oil and salt were expensive.

After years of fighting, the whole country is impoverished, how can the royal family get rich!

Although the appearance is still bright, the internal shortage of money is also severe. If there was no other way, they would not set up their own bank.

With the reputation of the royal family, it has indeed gained a lot of advantages in the competition. However, the best customers have been absorbed by the Near East Development Bank in advance.

A society of acquaintances is not only about interests, but also about feelings. Under normal circumstances, we will not change partners easily.

What's more, the services that post-development platforms can provide are much fewer, and their competitiveness is inherently lower.

Coupled with the lack of relevant experience and imperfect systems, management is still in a chaotic and fumbling state, and troubles often occur.

In addition to its famous name, the Royal Bank does not absorb many deposits, and its bad debt rate is also alarmingly high.

After finally encountering an opportunity to make a fortune, Caesar IV was very worried that his own industry would be destroyed if he took over the government's bulk commodities for the sake of the overall situation.

As for the Royal Chamber of Commerce and the bank itself, they are bound together. Currently, half of the business of the Royal Bank is brought in by its own chamber of commerce.

If a thunderstorm hits one family, the other family can only be buried with it. At present, the biggest potential thunder risk of the Royal Bank is government debt.

It was useless to have a mortgage. Panic triggered a run crisis, and the Royal Bank simply could not withstand it.

In fact, it was not just the royal family that was kidnapped. The big aristocrats who followed suit and established banks were all victims.

I didn’t make much money, but I was held hostage by the debt of the Royal Government. In addition to the more than 40 million direct loans, we also underwrote a large number of bonds.

If you include the IOUs issued by the royal government, the country's great nobles are actually the government's largest creditors, accounting for more than 60% of the total debt.

If one's own pockets were not involved, the resistance to the government's financial bankruptcy would not be so great.

In times of war, there was no way to fully support the royal government. In times of peace, the king Caesar IV did not dare to raise his stakes.

The cash flow from the family is insufficient. If something goes wrong during the transportation of the purchased commodities, the royal family will suffer huge losses.

"Everyone, more and more problems are gathering in the Royal Government. If we keep dragging on like this, something big will happen sooner or later.

Maybe it’s time to consider changes!

As a powerful country on the mainland, the kingdom's economy has never been able to develop.

In terms of territorial area, we are almost the same as the Kingdom of Iberia. The real population gap between the two countries will not exceed 20% at most.

But our comprehensive fiscal revenue is only a quarter of theirs!

If compared with the Frank Empire, the gap would be even greater.

Even for those declining kingdoms, the total fiscal revenue is not much worse than ours. The core problem is the system.

Serfdom ensures the efficient operation of the kingdom, but it also restricts our economic development.

Of course, raising this issue here is not to abolish serfdom, but to increase the proportion of free people while retaining the current system to increase the government's fiscal revenue.

For example: increase the area of ​​government-controlled areas, introduce some policies, encourage free people to open up wasteland, and increase the tax revenue of the royal government.

…”

Prime Minister Marquis Delgado said with a cautious expression.

He has been holding these reform measures in his mind for a long time.

Initially, I just wanted to reform the fiscal and taxation model, but later I found that the resistance was too great. After thinking hard, I finally chose a compromise entry point.

For the sake of the stability of the kingdom, the existing political system must not be changed for the time being.

If you cannot touch the existing market, you can only develop incremental ones.

Free people can create more wealth, so find ways to increase the proportion of free people. It happened that the king had previously intended to expand the government's jurisdiction to absorb a large number of free people.

"Prime Minister, please refer to the experience of developing the Near East. Orcs often appear in the border areas, and some noble territories have been directly destroyed by the regiment. How can the free people protect themselves?

If all relies on garrisoning, military expenditures will increase greatly.

Don’t you want to place the direct territories in the rear and the frontline areas bordering the orcs, and all of them be conferred on noble lords? "

Caesar IV asked uncertainly.

The government gets the benefits, but all the risks are borne by the nobles and lords. How can such a good thing happen?

If everyone refuses to cooperate, or if they use some tricks secretly, the free people who opened up wasteland in the past will be wiped out in a short time.

"Yes, Your Majesty!

Any change will involve the distribution of interests, and someone's interests must be harmed.

This is the best choice at the moment and the reform most acceptable to everyone. It is better to try on new territories than to attack the local ones directly.

Anyway, most of the nobles did not have enough military merit in this war. The kingdom granted them fiefs in advance, so it was reasonable to make some demands.

As long as the big nobles in the country can be persuaded, this reform will have successfully taken the first step. After initial results are achieved, we will formulate follow-up reform measures based on the actual situation.

On this issue, I have communicated with more than a dozen noble nobles, including the Duke of Hudson, the Marquis of Zuel, Earl Albert, and Earl Doug, and they have not raised any objections. "

Marquis Delgado replied seriously.

If you don’t oppose it, you support it!

Such reform may affect one's own interests. As a person with vested interests, being able not to oppose is in itself a political statement.

But everyone's expressions did not relax. Referring to the cases of various countries in mainland China, at the beginning of the reform, everyone supported it, but halfway through the reform, they became opposition.

Unless we can ensure that the interests of all parties are not touched, conservatives who obstruct reform will appear sooner or later.

After hesitating for a while, Caesar IV slowly said: "In that case, let's start reforming!

From now on, a reform committee will be formed, with the prime minister as the head, and the ministers and provincial governors as members. "

A seemingly simple personnel appointment is actually full of helplessness.

In a joint-stock country, if the kingdom's decrees are to be implemented, they cannot do without the support of the great nobles in various places.

At present, most of the provincial governors are in the Papal States. It is actually the time when there is the least resistance to initiate reforms at this moment.

Unless these guys can give up the huge profits of the Papal State and return home, the conservatives will have no leader in the local area for the time being.

On the premise of not harming the core interests of all parties, most people will hold their noses and accept reforms that create established facts.

…

In Xueyue Territory, news came that the royal government had launched reforms, and Hudson was once again pushed to the forefront.

As the head of the military and the leader of the emerging aristocratic camp, Hudson became the focus of contention between reformers and conservatives.

No matter which camp you join, it will affect the balance of kingdom politics.