The Spark That Sowed Continental Turmoil
After joining in the fun, Hudson was left out. Although he was officially a Magus, his status was far from genuine.
Even though I crammed on a series of magical knowledge, the learning time was ultimately too short, and I didn't have time to fully understand and master it.
No matter how rare it is for a leopard to lay eggs, it's not as important as the letter Hudson has.
The Moxi Duchy was on the verge of a debt crisis, and King George, an old friend, wrote to him, pouring out his grievances.
There wasn't a single word explicitly mentioning money, but the information revealed between the lines was entirely due to a lack of funds.
Writing to Hudson at this moment may seem like a conversation between old friends, but in reality, it's about seeking his advice.
The idea of issuing bonds did indeed come from Hudson, but while making the suggestion, he also deliberately reminded the Moxi people to pay attention to controlling the size of the debt.
Unfortunately, debt is a devilish thing; once you embark on this path of no return, there is no turning back.
After the war, Hudson closely monitored the situation in the Moxi Duchy, waiting for their debts to collapse.
The fact that George was able to postpone the debt crisis until now by robbing Peter to pay Paul is enough to prove that he is a qualified "lake wall builder".
Taking advantage of the fact that the nobles involved were eager to extricate themselves, they took the art of using new money to pay off old debts to the extreme, something even Hudson would have to admire.
Unfortunately, no matter how much the debt crisis is delayed, the crisis will always exist and cannot simply disappear.
Hudson glanced at the newcomer, sighed, and said, "Viscount Racquel, I understand your King's meaning. I don't have a perfect solution, but I do have a bad idea."
No matter how tight the finances are, directly declaring default on debts is definitely not advisable. As long as your country wants to operate on the mainland, these debts cannot be evaded.
Your country is currently unable to pay in cash directly, but that does not mean you are unable to repay your debts in other ways.
For example: knowledge transfer!
Many things that are considered common sense among the nobility are...
What's happening now is perfect for you to do things your way. A large amount of debt has been transferred to the shoulders of the lower and middle nobles, which creates opportunities for you to act.
Rather than waiting for creditors to come knocking on your door after the debt collapses, it's better to take the initiative in advance.
Once we figure out what the small and medium-sized nobles who hold large amounts of foreign debt need most right now, we can prescribe the right medicine.
In any case, even if knowledge is copied a hundred or a thousand times, the knowledge in your possession will remain unchanged.
In theory, as long as you sign confidentiality agreements with your creditors in advance, you can continue to do this kind of business in secret.
However, if this transaction is leaked, you'll be in big trouble; you'll likely offend quite a few people!
The moment the words left her mouth, Lacker was dumbfounded. This was no ordinary bad idea; it was a deadly one.
The solidification of social classes on the Aslant Continent was due to the tacit understanding among the ruling class. A crucial element of this was their concerted effort to block the transmission of knowledge.
If the monopoly on knowledge is broken, once an opportunity arises,
Perhaps the probability of going against the tide is low, but there are many minor nobles! As long as the base is large enough, there will always be lucky ones who stand out.
The influx of a large number of new players will inevitably increase competition among the ruling elite.
The consequences of this will not be a reshuffling of a certain region or country, but a major political reshuffling of the entire society.
As the instigator, he is bound to be hostile to the traditional ruling group.
"Marshal, the consequences of doing this are too great. If word gets out, the Duchy can't afford the consequences!"
Hudson nodded slightly, then shook his head.
"You're right, this is indeed a troublesome matter. But if the consequences are minor, how can it be considered a bad idea?"
Your country's accumulated debts amount to at least tens of millions of gold coins, and could potentially exceed one hundred million.
How can such a huge sum of money be repaid in a short time without paying a price?
You've already tried levying a debt repayment tax. It has proven that relying on taxes to repay massive debts is not a viable strategy.
Post-war reconstruction has consumed a large amount of resources, and given the current situation of the Moxi Duchy, it simply does not have the ability to repay its debts.
Now you only have two choices: either secretly use the knowledge inheritance to pay off your debts, or privately sell some special resources that can be mass-produced and are tacitly blocked by everyone.
Whatever choice is made, it will be a challenge to the existing order.
In my opinion, the best option right now is to first find a way to appease some of the creditors, and then raise money to repay the remaining debts.
Even if you do something outrageous, as long as you keep it confidential, it will be difficult for outsiders to know exactly what you did!
You're afraid of being exposed, but the lesser nobles involved in the transactions are even more afraid of the news leaking. At least until they rise to power, they will maintain strict secrecy.
Based on just a few rumors and gossip, and the minor disturbances caused, I think your country can still weather the storm.
Even if it gets exposed eventually, it will be many years from now. By then, you'll have recovered your strength, and with the kingdom's support, you won't have to worry about anyone interfering.
Hudson's patient explanation was clearly not for charity. As a newly emerging aristocratic family, the only way to achieve greater development was to break the current distribution of benefits.
Looking at the development history of the Mountain Territory, you can see that it was all about farming and land reclamation, and life was incredibly tough.
It's not that Hudson doesn't want to develop rapidly; it's just that the benefits have already been divided up by everyone. No matter where it reaches out, it will be resisted by the vested interests.
If this continues, once the swamps are fully developed, the Mountain Territory will have reached its peak of development, with no hope of further progress.
Subconsciously, Hudson was not one to settle for mediocrity. From the moment he instigated the Moxi Duchy to issue bonds, he knew something bad was bound to happen.
Whether the Moxi people choose to default on their debts or repay them by breaking the unspoken rules, it will ultimately disrupt the existing order.
"Marshal, you have successfully persuaded me. Unfortunately, the final decision-making power is not in my hands, and it is still unknown what the Duchy will do next."
However, we will forever remember your contributions to the duchy. If there is anything we can do for you, please do not hesitate to ask!
Rackel said with a grateful expression.
This is not just a polite remark; it means a real return will be given. As for the specific amount of the return, it depends entirely on the choices made by the Moxi Duchy.
If Hudson's plan is adopted, compensation will definitely be involved. In other words, it could be called—hush money!
With no time to concern himself with such trivial matters, Hudson was busy taking stock of the accounts in his territory after seeing Rackel off.
As the year draws to a close, it's time to do a work summary. The summary, which should have been done at the end of the year, was delayed until April of the following year, combined with the first quarter's summary, mainly because we were just too busy.
Over the past year, many significant events have occurred in the Mountain Territory: a massive migration, the lord's wedding, the establishment of a monster breeding base...
"Earl, without taking into account immigration expenses, the fiscal deficit last year was as high as 320,000 gold coins."
This year, the territory's financial situation has not only failed to improve, but has worsened further. In the first quarter alone, our fiscal deficit reached a staggering 130,000 gold coins.
If we include the expenses for territory exchange compensation and immigrant relocation and resettlement, the total deficit for last year plus the first quarter of this year will reach as high as two million gold coins.
Fortunately, the compensation for the land exchange is paid in a lump sum, and the resettlement of immigrants has been completed in stages. The subsequent expenses are mainly for infrastructure construction.
These expenses are not urgent and can be carried out gradually in batches according to the actual situation.
The fiscal deficit worsened in the first quarter of this year, mainly due to a sharp drop in profits in the steel industry, resulting in a monthly loss of 20,000 gold coins compared to the same period last year.
Secondly, there's the formation of the Warcraft Legion. According to the agreement reached with all parties, we have already been allocated thirty-six Warcraft Eggs.
Due to a lack of incubation facilities in our territory, we paid the Mage Association an incubation fee of 1,500 gold coins.
According to the cultivation package provided by the Mage Association, the estimated maintenance costs will be at least 200 gold coins per month (excluding labor and ripening agents).
Considering that a large number of female beasts are currently pregnant, we will receive varying amounts of monster eggs or cubs every month in the coming months, which will further increase our future expenses.
Even with the most optimistic estimates, we expect to harvest 300 monster cubs this year, with an estimated additional expenditure of 30,000 to 50,000 gold coins.
It depends on the research and development and use of the drug.
According to the information we have, the Kingdom Mage Association has only approved four types of monster-specific ripening potions and one general-purpose ripening potion.
These research and development accounts mostly involve improving existing ripening agents in an effort to minimize costs and side effects.
The kingdom's nobles have invested heavily in this area, and various resources are being directed towards it. It is believed that results will be achieved soon.
The thirty-six monster eggs we've obtained already belong to eight different monster types, and the number of monster types added later will only increase. To build a monster army, we'll inevitably have to make choices.
Considering our agreements with major noble families in the country, allowing us to share the research results of the ripening potion free of charge, our best option is to keep the monster cubs that the Mage Association has approved and sell the rest.
Currently, all sides' monster armies are in their initial stages, which is precisely when monsters are most scarce. Selling cubs now will surely fetch a good price!
As the territory's treasurer, Rudolf was also extremely concerned about the territory's affairs. The Warcraft Legion was just getting started, and he was already trying to sell off Warcraft to reduce expenses and recoup funds.
It wasn't that he was making a mountain out of a molehill; the number of monster cubs was indeed on the rise. This situation would continue until Maxim's estrus cycle ended, at which point it would gradually decrease and eventually stabilize at a fixed number.
This year's increase in military spending by 30,000 to 50,000 gold coins could see that figure multiply several times over next year. After all, the use of growth-enhancing agents is unavoidable in order to quickly deploy equipment into service.
The best approach is to control the types of monsters from the outset, standardize logistical supplies, and reduce costs through large-scale breeding.
"Don't worry, Sir Rudolf. Your lord still owes two hundred and fifty-six monster cubs, and most of the monster cubs this year will have to be given away to pay off the debt."
There's no need to worry about ripening agents either; your master is a genius Magus. Developing one on his own might be difficult, but surely he can make one by copying the formula?
Hudson said calmly.
The expenses of the Mountain Territory are high, and the amounts on paper are also enormous. The compensation for territory exchange is as high as 1.2 million gold coins, which sounds very frightening, but in reality, the amount of cash paid out is not much.
Even among the newly rising noble families, Hudson possesses many resources that lesser nobles covet, such as: monster cubs, Life Essence...
Hudson now owes a bunch of monster cubs, as well as a lot of Life Essence, and he even promised to give them the ripening potion in advance.
The announced compensation was in gold coins, but when it came to the actual implementation, most people opted for resources.
Aside from producing dozens of doses of Life Essence on the spot, the remaining resources were all external debts. Since the creditors could wait patiently, Hudson had even less to worry about.
His frequent visits to the lab weren't entirely fruitless. By copying the processes recorded in the formulas, Hudson managed to create quite a few magical potions, such as the Life Essence.
Even if the promised Life Essence were fully delivered, it wouldn't be a major problem. However, to minimize the impact, Hudson deliberately used the excuse of collecting raw materials to delay the delivery time.
After all, according to the kingdom's unspoken rules, in order to maintain social order, all major powers are limiting the outflow of Life Essence.
As a prudent nobleman, it's fine for Hudson to incite others to break the rules, but it's out of the question for him to be the one to take the lead.
Since not everyone is in a rush to use it right away, we can postpone the delivery and make it privately to each individual.
After a series of maneuvers, the fiscal deficit of over two million gold coins was actually reduced to over one million.
In comparison, the money Hudson amassed in the last war only amounted to a quarter of the total. With his current cash reserves, he could easily continue to support the territory's high deficit.
"Your Excellency, if military spending can be controlled, our finance department is confident that we can achieve a balance between income and expenditure in the territory within two years!"
Over the past year, the Department of Political Affairs has also taken many measures to optimize the current management model and standardize the construction of grassroots teams.
In this reorganization, we dismissed seven incompetent officials, arrested three corrupt officials, and promoted thirteen officials.
Three new management agencies have been added: the Family Planning Department, the Warcraft Management Department, and the Pharmacist Management Department.
Currently, all three companies are in the initial preparation stage. Apart from appointing the person in charge, the rest still needs to be finalized and is expected to be gradually improved in the next two to three years.
These are the relevant personnel appointment and dismissal documents, as well as the planning outline for the newly added organizational structure. Please take a look!
As they spoke, Jacob handed over a document. It was only two pages long, clearly embodying Hudson's minimalist style.
In fact, all the announcements and documents on the Aslant Continent contain very little information.
Perhaps because parchment was too expensive, anything that could be said in one sentence would never be supplemented with a second sentence.
After a cursory glance, Hudson had absolutely no confidence in the Department of Political Affairs's goal of achieving a balance between revenue and expenditure within two years.
The reason is very simple: according to the reported progress, the artificial canal is expected to be completed by the end of the year and will be open to navigation in February next year.
With the Grand Canal and a sea outlet, how could we not have our own shipyard?
Once that step was taken, the money would truly flow like water. Last year's fiscal deficit was 320,000 gold coins, which also included the expenses for his lord's wedding.
By next year, when the navigation plan is finalized, the shipyard project alone will likely be enough to squander this amount.
Not only are the ships expensive, but the Magic Array engraved on them are even more expensive.