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Chapter 1144 - 1144 177 Unexpected Opportunity_3

1144: Chapter 177: Unexpected Opportunity_3 1144: Chapter 177: Unexpected Opportunity_3 Marquis Delgado hastily retorted.

As a seriously troubled Minister of Finance, being thrifty was an essential skill.

Given the Kingdom’s current financial situation, a precedent for reducing taxes due to a “currency shortage” simply could not be set.

Otherwise, the crisis of “currency shortages” throughout the lands would instantly magnify tenfold.

It’s very difficult for people to remain rational in the face of interests.

Under normal circumstances, a “currency shortage” crisis could be gradually remedied by the market self-regulating.

But if compounded by human disasters, everything changes.

No one knows what folly the Nobles could commit when they’re acting foolish.

“The issue of the autumn tax must not be neglected, however, the problem of the currency shortage has also reached a point where it needs to be resolved.

Is it possible to quell the crisis by having a group of Major Nobles collectively inject a batch of currency into the market?” Caesar IV asked with concern.

Fortunately, the Alpha Kingdom was a traditional agricultural country, and its industry and commerce were not very developed; otherwise, the destructive power of the “currency shortage” would have been even greater.

In this regard, Caesar IV was quite pragmatic.

Discovering problems meant solving them.

“Your Majesty, there is no successful precedent.

Theoretically, as long as enough currency is injected, the crisis could be overcome.

But the problem is no one knows how large the currency shortfall is.

Among the Kingdom’s Major Nobles, except for a few who invested heavily in the development of the Northern Border and Near East and needed to purchase materials, even if others were willing to inject currency, they wouldn’t know what to buy.

If there were funds in the treasury, the government could release currency into the market by stockpiling strategic materials.

Sadly, the Kingdom’s financial resources are limited and it cannot afford to buy materials on a large scale.

Now we can only wait for the currency shortage crisis to expand further, dragging down the Kingdom’s prices.

When the prices fall to a certain level, the big trading companies will act, sweeping goods off the market.

In this process, as incremental currency enters the market, we can slowly get past the currency shortage crisis.” Prime Minister Duke Newfoundland replied helplessly.

In any world, crises are generally a signal for a new round of reaping.

They seem like an economic law, but in fact, they are more often caused by human error.

International capital sharpens its knives while domes Major Nobles are equally restless.

Each one wants to make a big gain from the “currency shortage” crisis.

If the Kingdom Government took strong measures to intervene, it would be cutting off these people’s money-making opportunities, including their own.

Essentially, everyone present is part of the vested interest group.

Having received a definite answer, Caesar IV sighed.

Clearly, relying on Major Nobles to collectively ease the currency shortage crisis was impossible.

Instituting more measures would be futile; after all, decrees require execution.

Any decree that touches the interests of the vested interest group would not leave the Jade Palace.

On this issue, Caesar IV found no collaborators.

Even within The Royal Family, there were many eager to partake in this grand feast.

In the short term, the currency shortage affected the development of Royal territory.

But with deflation and falling prices, the cost of developing their lands would also decrease.

Why should they care about the contraction of the market and the depression in trade and commerce?

The true victims are just the harvested middle and small Nobles as well as the nascent industrial and manufacturing sectors, along with craftsmen.

…

As days passed by, with the onset of the autumn harvest, the market crisis of currency shortage became increasingly severe.

Southeastern Province.

By the blessing of the Lord of the Dawn, a series of sunny days continued, and the fall harvest had been successfully completed.

Looking at the grain field full of harvested crops, Baron Ezekiel, the owner of the grain, though, could not find joy at this moment.

The grain was abundant, but it was also unsold.

In previous years, grain merchants would have rushed to make purchases at this time.

Unfortunately, this year was different; Baron Ezekiel had contacted several familiar grain merchants, but none of them had the desire to buy.

It’s not that grain was unwanted, but those who wanted it lacked sufficient cash in their pockets.

Selling the grain was possible, but one must accept barter.

This was a predicament for Baron Ezekiel, whose domain was largely self-sufficient.

Bartering so much grain, what could he possibly exchange for?

Moreover, even if one had desirable items in mind for exchange, it would only work if the other party happened to be in need of grain.

The biggest downside of barter is that it only works if the needs of both parties complement each other.

“Instruct the Steward to build five more large granaries.

If no one comes to buy, then store it all!” Baron Ezekiel said resolutely.

“My lord, building granaries is easy.

But if all this grain is stored, its value might diminish significantly,” the old Steward reminded.

The same grain, stored grain, is not as valuable as fresh grain.

Even if it’s just stocked in a warehouse for a few months, when selling to the grain merchants later, it would be sold at a discount of ten to twenty percent.

Even if the grain were sold later, this year’s income from the estate would shrink considerably.

Some unnecessary expenses would have to be cut back in the following days.

After gritting his teeth and stomping his foot, Baron Ezekiel added, “Just prepare for that for now!

I’m going to visit some nearby cities to see if I can find new buyers.

Even if I have to sell at a lower price, I need to sell it.

Judging by the current market conditions, the price of grain may continue to fall!”

…

Similar scenes were unfolding in different regions of the Alpha Kingdom.

Countless Noble Lords were succumbing to “depression” during this bountiful season.

Emotions, when transmitted, tend to amplify.

Affected by the “currency shortage” crisis, many people with cash in hand were becoming increasingly cautious.

Especially the market-sensitive merchants, who had the most intense reactions.

They all tacitly chose to hold onto their money and watch, regardless of the fact that the prices of many goods had already begun to fall.

The Mountain Territory Branch bank suddenly became busy.

With the market lacking cash flow, the bank’s loan business improved dramatically.

Facing the surge in business, Hudson returned directly from the Snow Moon Territory to take charge personally.