"Why did you order so many spinning machines?"
"I... I sold them."
Faced with Francois's questioning, Peterson hunched his shoulders and confessed.
"If I remember correctly, those spinning machines were only leased, weren't they?"
Francois nearly laughed in exasperation. "Who did you sell them to?"
Peterson admitted that he had found quite a few buyers in the city, promising them cheap Susan Spinning Machines from Free City. He had then sold 98 machines at 15 gold coins apiece...
But what no one had expected was that while Peterson had made a fortune selling the machines cheaply, he somehow hadn't cost Free City a thing.
He really did pay the one gold, 27 silver, and 40 copper required each day to lease all 98 machines.
"How did you manage that?"
"It's like having ten pots... I have nine lids, but I talked them into believing I could cover eleven..."
"Isn't that just a bank?"
Annan said this after hearing Francois's account.
"What's a bank?"
"Well... I get people to deposit their money with me and promise them a return. Say they deposit 100 gold narls for a year, and I give them back 101."
Francois understood part of it. "But what happens when they withdraw their money?"
"They won't all withdraw it at once, will they? Most of the time, their savings stay with me. When someone needs to withdraw, I can just use someone else's deposit to pay them. Meanwhile, I can use the large sum I'm holding to do business and make money..."
"What if they do all withdraw at once?"
"Then it's a bank run." Annan spread his hands. "Unless something damages my reputation or disaster strikes the region, it's unlikely they'll all withdraw their money at the same time."
As he spoke, Annan found himself tempted.