The Clash Between Old and New Nobles

The approval of the military budget proposal does not mean the meeting is over. The enormous debt remains the biggest problem plaguing the Alpha Kingdom.

As is customary, after each invasion, the creditors would routinely announce a reduction or forgiveness of part of the kingdom's debts.

Although repaying the remaining money is still difficult, it is ultimately within the kingdom's financial capacity.

However, with the decline of the Orc Empire, this great debt relief naturally came to an end.

More than a year after the war ended, the Foreign Affairs Department communicated and negotiated with the creditors many times, but all of these efforts ultimately came to nothing.

Not to mention reducing the principal of the debt, even the interest on the funds cannot be reduced by a single penny.

"Last year's autumn tax was all in bonds issued by the kingdom. You all here should know better than I do what kind of tax this year's spring tax is worth."

There are only two months left until the next batch of war bond interest payments are due. The national treasury is now empty, and the fiscal deficit is alarming.

The kingdom's fiscal deficit is projected to exceed ten million gold coins this year.

Whether it's increasing revenue and cutting costs, or everyone subscribing to bonds mixed with tax revenue, this problem must be solved today!

The Minister of Finance Marquis Delgado, made such a rogue-like statement that everyone was speechless.

The kingdom was experiencing a huge fiscal deficit, the biggest problem being that everyone was using war bonds to offset taxes. Once this problem was solved, the deficit, while still present, was brought under control.

Let's use all these methods together!

Everyone is aware of the kingdom's financial situation; with our current revenue, we can barely cover the interest on our investments.

If this drags on, how will we repay the bonds when they reach maturity?

When the run on the bank erupts and the kingdom's finances are crushed by debt, everyone knows how serious the consequences will be.

I believe we must develop a reasonable repayment plan to gradually recover the war bonds issued each year, thereby reducing the kingdom's total debt.

"The Marquis Joel said angrily."

As the oldest person present, Marquis Joel disapproved of irresponsible practices that only cared about the present and did not consider the future of the kingdom.

Although the Aram Family had previously used a bunch of war bonds to offset taxes, that was merely a means to secure their own interests and did not mean they intended to bankrupt the kingdom.

If the kingdom were to go bankrupt, all the vested interests present would likely pay a heavy price. The nobles, whose strongholds were located in the border provinces, would be the most vulnerable.

No matter how powerful they are, they are ultimately just a large noble family. Once they are separated from the kingdom's protection, they will most likely be unable to hold onto their existing interests.

"The old Marquis is right, the debt problem must be resolved. I think we should set a repayment target from now on, starting with six million gold coins of principal this year, and then increasing it year by year thereafter."

Funding sources are simple: first, cut expenses as much as possible. For any shortfall, they can simply follow the example of the Moxi Duchy and levy a repayment tax.

...As for the war bonds included in the tax revenue, they can be directly allocated to the respective provinces for handling. Whoever collects the bonds is responsible for processing them.

The lesser nobles are poor and have no choice but to use war bonds to offset taxes. Are we not going to be able to withstand that either?

If everyone holds fewer banquets and fewer fancy events, money will be saved.

If you don't even have this much awareness, then you can leave now. The kingdom has no need for irresponsible nobles!

Count Pierce's domineering words startled Hudson slightly. While the proposals seemed to be for the kingdom's sake, he had a nagging feeling that they were aimed at his own family.

The Coslo Family has been spending money like water lately, from relocating immigrants to undertaking large-scale construction projects.

Since the end of the war, the Mountain Territory has had a total fiscal deficit of two million gold coins.

As local powers, it was only natural for the Dalton Family to have planted a few spies in the Mountain Territory and obtain this almost public intelligence.

Especially after the monster cubs hatched, Hudson sent out more than twenty cubs to offset the compensation for immigrant relocation.

This self-destructive behavior, in the eyes of Count Pierce, was mistakenly interpreted as a sign of financial weakness, which seemed quite reasonable.

After all, in the eyes of the old nobles, the variety of monster cubs as a strategic resource was not a big deal.

Even if they are not suitable for building a monster legion, they can be distributed to clansmen for individual training to enhance the clan's strength.

With so many members in the Coslo Family, there's not enough for even their own family members. If they weren't facing financial difficulties, how could they afford to send money out of the family?

As a competitor, since the other party is short of money, we should take the opportunity to strike again and make them even more short of money!

Now that he had the opportunity to exploit the Coslo Family's wealth under the guise of righteousness, Count Pierce had absolutely no reason to refuse.

After all, the Dalton Family was incredibly wealthy. They not only owned the most fertile land in the Southeast Province, but also monopolized the province's salt trade and maritime trade.

The slight increase in amortization was negligible to them. Even during the war, when they were severely exploited by Hudson, it still didn't cripple this old aristocratic family.

However, this indiscriminate attack of golden eggs affected more than just the Mountain Territory. Well-established noble families with deep pockets were relatively unaffected; they could weather the storm by cutting back on daily expenses.

However, for the newly emerging nobles who lacked financial resources, having to pay an extra amount of debt repayment every year was a very serious matter.

Realizing this, Hudson simply ignored it and became a mere spectator in his seat.

"Your Excellency Count Pierce, the suggestion to repay the debt in advance is indeed good, but we must consider practical matters."

Having just emerged from a war, the kingdom is in a period of recovery, with everything needing to be rebuilt. The Northern Seven Provinces, in particular, which have only recently returned to the kingdom's fold, are unlikely to be able to contribute to this expense!

Count Oran forced himself to speak and retort.

As undeveloped land, there are naturally no taxes. The fact that normal taxes are not borne does not mean that taxes for debt repayment are not required to be shared.

...These temporary special taxes are not clearly defined. However, based on past practice, it's highly likely that you'll still have to pay them.

The fiefdom was in dire need of rebuilding and relied entirely on its old assets. Even the most established and powerful families had to be frugal at times like this.

If they were to follow Count Pierce's proposal, they would have to bear a portion of the amortization costs in the Southeast Province, while still bearing a corresponding share in the northern provinces.

All things considered, the Hollisir Family's share is estimated to be greater than that of the Coslo Family.

What's even more frustrating is that this money has to be paid out every year, and it's likely to increase year by year.

With a large amount of funds being withdrawn, land development and relocation efforts will certainly be affected.

"Count Oran, you're mistaken. The kingdom has long upheld the principle of fairness, emphasizing the equality of rights and obligations."

Now that we're sitting here, we must shoulder the corresponding responsibilities and obligations. If we all complain about being tired and overworked, what about those below us?

Count Pierce's suggestion was good; these debts would have to be repaid sooner or later. By recovering some of the war bonds ahead of schedule, we could save some interest.

If this drags on for a few more years, and the debt repayment period arrives, it might be truly impossible for everyone to raise nearly 100 million yuan all at once!

Count Cales said with a chuckle.

Seeing this, Hudson's lips curled into a cold smile. While he seemed to be constantly spouting righteous rhetoric, it was actually a tactic used by the old aristocracy to suppress the emerging nobility.

Once the proposal is approved, they can use legal means to take the opportunity to deplete the wealth of the emerging nobles and delay everyone's development progress.

If something else were to happen in the meantime, these newly emerging powerful noble families might be reduced to their original state.

Similar occurrences are commonplace on the Aslant Continent. More than half of the newly emerging noble families decline within a few decades.

Faced with the eager gazes of the newly emerging nobles, Hudson knew it was time for him to step forward.

Everyone has their own circle. Faced with the suppression from the old aristocracy, a group of emerging nobles also secretly banded together.

However, this emerging political group is too loosely organized internally to even qualify as an alliance.

Among a group of established nobles, few dared to step forward. The renowned Hudson easily gained influence within the small group.

"Count Cales, you are absolutely right. The greater good of the kingdom is important to all of us here, but practical matters are equally important!"

When formulating a policy, we must first conduct in-depth investigations and understand the actual situation before we can make the most reasonable decision.

You probably have a pretty good idea of what the Northern Seven Provinces that were just recovered are like. Developing them will not be something that can be done overnight.

Making a group of impoverished noble lords bear the kingdom's debts is not a responsibility or obligation, but a death sentence for them!

Since we're raising funds anyway, why not try a different approach?

Instead of rigidly allocating land directly according to fiefdoms, it would be better to distribute it among lucrative industries such as salt, tea, spices, carts and ships, and entertainment through taxes!

... Hudson's words had barely finished when the old aristocracy frowned. Allocating debt repayment funds to industry taxes, while seemingly taking money from merchants, was actually cutting into their flesh.

The bustling commercial districts are all located within the territories of old noble families. The taxes now levied on highly profitable industries are also being drawn from their territories.

If you study it carefully, you will find that behind almost all the highly profitable industries, there are the figures of these old aristocrats.

"Count Hudson, it seems you've overlooked some industries, such as weapons and equipment, iron products, and the trading of monster cubs. These industries are also quite profitable!"

Count Martinez, standing to the side, said with a grin.

You only feel the pain when it's your own flesh being cut. In his opinion, Hudson was simply talking without understanding the situation.

Hudson greeted the amused gazes of the old aristocracy with an indifferent smile.

"Count Martinez's reminder was very necessary, but there are so many highly profitable industries, it would be too much to ask me to list them all at once."

How about this: let's list all the industries that everyone considers highly profitable, and then we can discuss them together.

Of course, outdated information need not be mentioned.

For example: weapons and equipment.

The war had only ended a little over a year ago, and everyone had a huge stockpile of weapons that were no longer in demand in the kingdom.

By the way, it seems the iron products market is also in a slump right now. I reckon most people in the industry are losing money and just trying to stay afloat.

As for the trade of Warcraft cubs, Count Martinez believes there are huge profits involved, so let's list them!

Unfortunately, judging from the current situation, it seems that it is very difficult to find monster cubs for trade in the kingdom even a few times a year.

Even if someone were to sell, it would be at an auction. Instead of searching the world, it would be much more convenient and efficient to simply Tax Increase auction houses.

Surely you're not planning to target the monster breeding base and impose taxes on the various factions in the Northern Continent that are cooperating with it?

If Count Martinez can persuade everyone to agree, I have absolutely no objection. However, if trouble arises, it's best not to involve the kingdom!

Since Hudson dared to propose imposing taxes on highly profitable industries, he had naturally prepared a contingency plan. While the Mountain Territory wasn't completely impoverished, it certainly lacked any truly highly profitable industries.

With the arms trade off the table, the Warcraft cub breeding industry has become entangled with multiple powerful factions.

Even at its peak, the Alpha Kingdom didn't have the capacity to collect taxes from so many powerful forces, let alone now.

If taxes cannot be levied equally on all, then don't expect Lord Hudson to pay taxes alone. At worst, every now and then a monster cub will die suddenly, and some lucky nobleman will happen to find a monster cub on the road.

"Count Hudson, there's no need to be so tense. It was just a small suggestion. If we really decide to levy a tax on monster cubs, then you'll be the one to take charge of it!"

However, for the sake of the kingdom, I think you should consider giving it a try. If the negotiations succeed, the kingdom might be able to increase its annual income by hundreds of thousands of gold coins."

While he spoke eloquently, Count Martinez was secretly thinking to himself: Hudson is a troublesome opponent!

...What seems like a simple conversation is actually full of pitfalls. If you're not careful and step into one, it will be difficult to climb out.

If he hadn't been alert enough and hadn't refuted Hudson's claims, he might have ended up in a sorry state.

Out of a desire for revenge, he also took the opportunity to plant a time bomb for Hudson.

Judging from the current situation, if Hudson really wanted to be greedy and take over the Warcraft baby tax, there would definitely be no problem.

As long as the tax amount isn't too high, major powers are happy to pay a sum of money to buy out the favors they owe each other.

For nobles, favors and obligations are far more valuable than gold coins. They may not be useful in ordinary times, but they can be life-saving when needed!

"Count Martinez's proposal is excellent, but unfortunately I am not capable enough to undertake this important task."

If anyone is capable of completing this task, please step forward and take on this important responsibility. I will absolutely cooperate fully!

After he finished speaking, Hudson looked at everyone expectantly, as if he wanted to find an idiot to take the blame.

Unfortunately, everyone remained rational and showed no interest in this attempt to snatch food from a tiger's mouth.

"Count Hudson, the proposed industry tax seems like a good idea, but there are a lot of problems in its implementation."

In most parts of the kingdom, a tax farming system was implemented. Blindly raising the tax collection targets meant that no one could guarantee that they would be achieved.

Moreover, high taxes will also hinder the development of the industry. It might not only fail to increase the kingdom's fiscal revenue, but could actually reduce our income!

Considering the difficulty of implementation, the simplest and quickest way to collect taxes is to directly allocate the task to each province.

On this issue, we could actually consider giving appropriate consideration to economically disadvantaged provinces, while having other wealthy provinces take on the responsibility.

For example, the Northern Seven Provinces that have just been recovered are still in the development stage and cannot bear too heavy obligations in a short period of time, so we will not assign them any this year.

Count Pierce said with a look of concern for the country and its people.

If it weren't for the previous confrontation with Hudson, people might have actually believed it. Unfortunately, people aren't fools; this blatant targeting was immediately obvious.

In order to achieve his strategic objectives, Count Pierce was willing to impose a heavier debt burden on the Southeast Province in order to reduce the financial resources of the Coslo Family.

From the perspective of direct economic losses alone, this is a typical "killing eight hundred enemies while losing a thousand of your own" tactic.

After all, as the eldest Dalton Family possessed the most fiefdoms and naturally bore the heaviest debt obligations.

It's no use figuring it out; it's an open conspiracy.

Having abandoned the plan for a full-scale attack, the newly formed aristocratic group, which had temporarily banded together for the sake of interests, is now in a state of disintegration.

Although the old nobles were unwilling to accept the failure to carry out a full crackdown, they were able to accept it because the Southeast Province was willing to assume heavier obligations and could also put pressure on Hudson, the leader of the emerging nobles.

From the curious gazes of the crowd, Hudson sensed a sense of vengeful pleasure in the eyes of many.

All I can say is, "Debts from June need to be paid off quickly."

Having just disrupted someone else's disarmament plan, it's time to pay the price.

If the facts hadn't been right in front of him, Hudson wouldn't have believed that Count Pierce would be so decisive.

He glanced at the group of newly emerging nobles with their heads bowed, and it was clear that this fragile group did not yet have the confidence to confront the established nobles.

Perhaps out of shame for backing down at the last minute, she now doesn't dare to look him in the eye.

"Why are you all looking at me? Since Count Pierce has such high moral character, how could I possibly hold everyone back at this crucial moment!"

Hudson said through gritted teeth.

After speaking, he sat down without saying a word. It was as if he had made this difficult decision under duress, in order to uphold the pitiful dignity of the nobility.

Several middle-class nobles in the Southeast Province also wore equally miserable expressions. It was a typical case of the eldest and second eldest sons fighting, accidentally injuring the third, fourth, fifth, and sixth sons...