Inflation Hedge
Watching the Governor's Mansion relentlessly impose punishments, Hudson gained a deeper understanding of Count Pierce. Everything was as he had predicted; anyone who could hold onto the position of a regional lord was no ordinary person.
Count Pierce's performance in suppressing the Skull Society rebellion was far from sufficient. Since there was a weakness in military affairs, it was necessary to compensate in other areas.
On the surface, it may seem like just using this as an excuse, but the deeper meaning is not as simple as it appears.
Fines alone are hardly a threat to nobles. But that only applies to established lords with stable sources of income who can withstand economic penalties.
But for the newly appointed lords, it was a completely different story. The territories in Wright and Hutton Prefectures were almost entirely in a state of financial deficit.
More than 90% of the territories are now experiencing only expenditures and no income.
They were already living off their savings, and everyone was so frugal that they wanted to spend every single gold coin in half. To then face a huge fine was like adding insult to injury.
Although all the lords are from noble families, this does not mean that family resources will be infinitely tilted towards them.
For a family to survive and thrive in the long term, the most important thing is to establish rules. While outstanding members may receive more resources, other family members are not dead and should also get their share.
While prioritizing ensuring that the family's strength is not affected, the support that everyone can obtain is not unlimited.
Hudson understood this all too well. His father's territory was quite good, with an annual income of tens of thousands of gold coins. He hadn't made any large-scale military buildup, so he should have been living a very comfortable life.
But the reality was quite the opposite; because there were too many siblings and resources were scattered, their lives were actually quite ordinary.
There's no other way; all expenses are laid out in the open, easily calculated with a few fingers. The total income is indeed substantial; even without dreams, the family could maintain a life of extravagance.
But once you have aspirations, your expenses will skyrocket.
The territory's daily expenses account for 60% of its income, including production inputs, infrastructure investment, the operation of the baron's manor, taxes, the guard...
Of the remaining 40% of income, nearly 10% is spent on social obligations and entertainment. The other 30% is the actual disposable income.
Half of this money must be set aside as reserves to cope with unforeseen events such as war and famine. Support for entrepreneurs like Hudson, whose children start businesses, is also covered by this reserve.
Their savings came from when the brothers were young. As they grew older, the expenses increased dramatically.
The eldest son inherits the family business, but that doesn't mean the second son doesn't need to help. At the very least, he needs financial assistance when the second son first leaves home, and he'll have to cover expenses when the second son gets married.
If you rely solely on your own efforts, there will probably be single men and women everywhere.
When a daughter gets married, a dowry must also be given.
From the time the first child gets married until the youngest child gets married, it's basically impossible to accumulate any savings during this period.
The reason why the Northern Aristocrats had such strong military power was that they cut most of their expenses on interpersonal relationships and kept weddings and funerals simple.
Even reserves are something only families with some financial strength possess. For small families, achieving a break-even point is considered a good year.
To make up for the deficit, in addition to actively participating in smuggling activities, they also had to frequently participate in slave-hunting operations, venturing deep into the Orc Empire to plunder.
Don't be fooled by the fact that all the Northern Aristocrats who went south seem to be quite wealthy. In reality, a large part of their wealth was earned through their personal talents and abilities within their families.
They might develop a smuggling business, or they might directly lead a team to rob and plunder.
The ability to make money is also an important criterion for the Northern Nobles to evaluate the potential of their descendants.
Those Northern Aristocrats who were able to travel south were among the best of the best. They had led at least five slave-hunting operations and escaped unscathed each time.
Failure doesn't exist, because the losers are all dead. People only remember the winners; nobody cares about the lives of the losers.
Even the official statistics on the noble casualty rate only counted those whose bodies could be found; those who went deep into the Orc Empire and never returned were all classified as missing.
Whether they died or became slaves in the Orc Empire, no one knows, but the end result was tragic for both.
While both groups were fined, the local nobles fared much better. This was partly due to their different methods of acquiring wealth, and partly because, having lost the fight, their fines were mostly symbolic.
Even Lord Hudson, who was punished the most severely, paid his fine without batting an eye. There was no need for the others, whose fines were in the single or double digits, to be upset.
The experience of the Northern Aristocrats was different. In addition to family support, much of their wealth came from the blood and sweat they had earned at the cost of their lives.
It's all money, and when it's handed out, it's definitely hard-earned money—at least that's what they believe deep down.
The financial pain is secondary; the key issue is that the weakened financial resources have severely impacted the development of the territory.
In order to reduce fines and in exchange for the lifting of the blockade by local nobles, many nobles were forced to return most of the people they had captured.
We're almost starving; we really can't afford to feed so many people. We have no choice but to compromise.
After all that commotion, those who had the energy to cause trouble are now penniless. Without a few years of rest and recuperation, these people will have no resources left to cause trouble.
"Hudson, you've been making a lot of money lately, haven't you?"
Knight Adrian said enviously.
Both were strivers, but it took the efforts of two generations of fathers and sons to obtain a fiefdom by sheer luck, while Hudson reached the heights that Hudson could only look up to from the moment he entered the scene.
In order to gain resources for development, he even abandoned the dignity that nobles valued most. As a result, when he looked at his distant cousin, the gap between them had widened even further.
"Ha ha..."
"It's just a small business, I'm only making a little money through hard work. Even here, things aren't safe, and I'm worried about being targeted by someone."
Adrian, you've had quite a haul this time, haven't you?
Those seven thousand-plus people, this time it's all official, they're all yours. The funniest thing is that those idiots still have to apologize to you and pay you compensation.
Although it's not much money, Knight Adrian's name resounds throughout both counties. Now, who doesn't know you're the most troublesome knight in both counties!
It really is hard-earned money; collecting it is hard work.
All the goods that were delivered, whether weapons and equipment, pots and pans, or various farm tools, were snapped up.
They've received so many deposits they're overwhelmed, and all the orders combined are enough to keep the territory busy for half a year.
The profit is hard to calculate, but the payment received was as high as 8,000 gold coins, plus a deposit of 13,000 gold coins.
If all subsequent items are sold, you will receive an additional 35,000 gold coins.
I estimate that once this deal is completed, the initial investment in developing the territory will be fully recouped. If costs are well controlled, there should even be a profit.
The main problem was that the customers weren't well-off. If Count Pierce hadn't ripped them off first, weakening their purchasing power, the total order amount might have increased by tens of thousands.
It was precisely because they had earned so much that this small family gathering was necessary. In order to prevent some of the guys from taking risks, Hudson also had to rely on the power of the family.
The main reason was that they hadn't anticipated receiving such a large deposit. Hudson's army wasn't large, and the 20,000 gold coins were enough to tempt some habitual criminals to take the risk. Especially since Hudson had offended someone this time.
Since they were transporting gold coins, and they didn't feel comfortable asking outsiders to escort them, they simply invited their own family members to accompany them for a while.
"What's the use of having more people? You know what my family's wealth is like. It's only slightly better than Berrio and Guarente's, and it can't compare to you, a nouveau riche."
It was fine when the samples were kept with the tribe, but now that they've been sent back to my territory, I don't even know how to solve the problem of food.
"We can't keep borrowing grain forever, can we? Since acquiring this territory, I've accumulated a lot of favors. It would be too embarrassing to ask for more now!"
Upon hearing the conversation between the two in Versailles, Baron Berrio and Knight Guarente, who were watching from the sidelines, felt that they had been subtly insulted and glared at each other angrily.
One is troubled by money, and the other is troubled by people. They don't mind these troubles; in fact, the more the merrier.
Unfortunately, such things are only something to be envied and jealous of. If you really want to ask for help, even if you're family, you still have to be clear about the details.
As for Hudson's hiring of them as guards, he promised to pay each of them fifty to one hundred spears, with the price depending directly on their respective strength.
"That's enough for you two!"
Even such a good thing is considered too much trouble.
We don't mind and are willing to help you share the burden.
Would you be willing to share these worries?
Baron Berrio couldn't help but say.
The Knight Guarente beside him nodded in agreement.
This is absolutely outrageous! They completely disregarded the feelings of those two penniless wretches. You have to understand, ever since they inherited the territory, they've been surviving by owing favors and owing debts.
They had heard that Hudson was going to hire them as guards and thought they could earn some pocket money to supplement their family income. They never expected that when they arrived, they would be greeted by a large-scale Versailles scene.
"No problem, I can give you two hundred broadswords, a thousand spears, eighty iron hammers, fifty giant axes, and three hundred large cauldrons on credit..."
You are allowed to settle the debt with goods, and all transactions will be conducted at market value. The debt will be settled within three years, and we will not charge you a single copper coin in interest. Isn't that giving you face?"
Hudson didn't hold back and used the tactic of changing the subject.
Money cannot be divided, but weapons and equipment can still be provided. We are all members of the Coslo Family, and the strengthening of the military power of any branch means an increase in the family's influence in the local area, which benefits everyone.
As for farm tools and other daily necessities, those were merely incidental. They were mixed in to mask his utilitarian motives and showcase his magnanimity as Baron Hudson.
Anyway, the current market price is not low, so even if you pay in installments over three years, you can still make a profit on this deal.
"Hudson, you can't discriminate. I want to buy on credit too."
"You know, I've offended quite a few people this time. If I don't strengthen my forces, I'll suffer a great loss later!"
Before the two could answer, Adrian, unable to sit still, jumped out first. The reason he'd been playing the victim earlier was to get a discount when buying weapons.
It would be even better if we could buy on credit and even pay in kind.
This time, the evil leaders have been seriously offended. Temporary peace does not mean permanent tranquility; sooner or later, they will clash again.
Adrian couldn't lie low forever; his territory still needed to be developed. To avoid suffering heavy losses later, he had to improve his military strength first.
I don't expect to be able to completely dominate all the neighbors, but at the very least, I should be able to deter them and make them wary.
"Buying on credit is no problem! But Adrian, with such a large population, can one Knight's Territory them all?"
Hudson asked tentatively.
Despite having a population of over ten thousand, his desire for more people did not diminish; on the contrary, it intensified as his purse bulged.
Although the Salam Mountain Range are a hilly region, their area is quite large given the name "mountain range." While the nominal Mountain Territory is only about 170 square kilometers, the actual developable land area is ten times that.
Of course, this development is not limited to farming. If we only focus on farming, we'd be lucky if we could develop about a third of the land.
In terms of farmland utilization, hilly areas lag far behind plains.
After all, with current productivity, it is only suitable for extensive planting and low-yield farming; intensive farming would starve people to death.
"Ha ha..."
"Hudson, you don't need to worry about that. Although I only have one Knight's Territory, don't forget that those responsible for dividing the territory are all my colleagues."
"How can we not move the border line seven or eight miles outwards? It would be a disservice to our years of working together. If managed well, it would be no less valuable than a regular baronial territory."
Adrian said with a smug look on his face.
The border was moved outward by seven or eight miles, and the area of Knight's Territory increased several times over, possibly even catching up with that of the Baron's Territory.
When others encountered such a good thing, they all kept it a secret, fearing that it would cause trouble if it got out. Even Hudson, who had benefited from the land division, was on tenterhooks for quite some time.
Adrian, however, was able to say it so casually, without any fear of provoking hatred.
This is the biggest advantage of having a powerful backer; even if the territory far exceeds the permitted size, it can still be contained. Reporting it is useless; even if it goes to the Governor's Mansion, Count Pierce will suppress it.
We can't take a case to the King just because of a territorial dispute over a Knight's Territory, can we?
In feudal times, powerful figures weren't afraid of such things being exposed. If word got out, it would actually serve as publicity for them, enhancing their attractiveness to talent.
"Hudson, if you really need more people, go beg for alms from the various branches of the family!"
I dare not say how many, but one family could easily gather dozens of serf households for you. Especially those big households, they could come up with three or five hundred households without batting an eye.
If that's not enough, you can visit some relatives. Anyway, we don't have much else, but we have a lot of relatives and friends.
If you're shameless enough, you can get connections with one-tenth of the kingdom's nobles; you can gather as many people as you want.
Anyway, you're rich, so just settle the accounts with them at the market price for slaves.
Hudson rolled his eyes at Adrian's suggestion. What did it matter how many relatives they were? They were just going to charge slave prices on the market anyway; he might as well just buy slaves directly.
The problem is that slave prices have skyrocketed, even Hudson is feeling the pinch. And now everyone knows he's doing well, so negotiating prices is impossible. Otherwise, the transaction would turn into a debt of gratitude.
Hudson didn't want to get into fights every now and then. If he incurred someone's favor, he would have to bring his own food and go to their aid whenever they called.
If it's just these things, it's not unacceptable; fighting to settle a debt of gratitude isn't a bad deal. The worst thing is when the opponent in the fight is also one of our own; that would be awkward.
Given the complex network of relationships within the Coslo Family, this kind of thing was highly probable. In Hudson's memory, Baron Redman was invited to mediate no fewer than five such conflicts every year.
The outcome of the mediation is unknown, but Baron Redman always came back exhausted and often became withdrawn.
"Adrian, you have a wide network of connections. Help me spread the word in the circle that I am willing to exchange Ironware for serfs."
Whether it's weapons and equipment or everyday iron necessities, they can choose whatever they want as long as it can be produced within the territory.
All exchanges will be conducted at market prices, and I'll cover the shipping costs.
"I can't help it, "Hudson said helplessly.
Although the price of iron products is also high, it is still far less than the price of slaves that fly in the sky.
The production of slaves is extremely unstable. Generally speaking, every time a war breaks out between human nations, the price of slaves will drop significantly. If there are a few years of peace, the price will rise again.
The Alpha Kingdom rarely engages in wars with human nations, but frequently clashes with Beastfolk. As a result, the slave market is dominated by Beastfolk, and human slaves are entirely imported from abroad.
After the Skull Society rebellion, human slaves on the market were quickly snapped up, while Beastfolk slaves were mainly from certain special races.
These races share common characteristics: they are generally good-looking but weak in combat, and are mainly for the amusement of nobles.
Catwoman, foxwoman, Bunny Girls... not only are they expensive, but they're also unsuitable for farming or blacksmithing.
It is said that there are hundreds of other types of Beastfolk slaves in the North, such as Minotaur, leopard people, Goblins, Pigmen, Ratmen, etc. However, these guys are either short-tempered, cunning, or have low intelligence. In any case, they are not cost-effective and are not popular in the market.
Those with strong combat abilities were mostly sold into the arena, while those with weak combat abilities either became magical materials in the hands of magicians or sacrifices to Evil God.
In short, Beastfolk slaves are not a viable option for the time being. If they were to become available, the northern lords would be the first to use them.
Just follow the trend; there's no need to be Little White.
Unable to lower the price of slaves, Hudson could only hedge with the high-value-added products he produced himself.
In a sense, this can be considered as opening up new markets; it just depends on whether people are willing to accept it.
"I'll help you with this, but you should also forge some high-quality weapons and armor! All you're producing is a bunch of low-quality junk; it's embarrassing to show it off."