King
Chapter 714 - 714 21 Too Many Smart People_1

714: Chapter 21, Too Many Smart People_1 714: Chapter 21, Too Many Smart People_1 Just like everyone else, the Mountain Domain wasn’t exempt from this crisis.

Hudson was helpless against the plummeting prices, all they could do was reduce production.

They had to continue trading, even at a loss.

If they were to leave the market, it would be difficult to reclaim their position later.

This crisis was so harsh not only because of industry overcapacity, but also due to industry giants taking advantage of the situation to shake up the industries and strangle their competitors.

Perhaps the default on orders which sparked this crisis wasn’t just driven by major trading companies; it might also be orchestrated by some mining tycoons behind the scenes.

It was not uncommon to see a major noble who was both a shareholder of the trading company and a steel magnate.

Unfortunately, Hudson’s rise was too short-lived; their relations with the various major trading companies on the continent were limited to cooperation during the war.

Everyone was involved in fair trades based on their needs, owing nothing to each other.

Naturally, these companies wouldn’t go out of their way to share insider information.

Envy was all they could do.

Setting up a trading company was not feasible for the Koslow family given their current connections.

Interests were at stake, and business relationships alone weren’t enough.

All the trading companies spread across the continent had a large number of partners.

Even an immigrant group armed strictly for protection had been attacked.

If they were to found a trading company, wouldn’t they be robbed every day?

In fact, the crisis was not just limited to the steel industry.

After the war, all industries revolving around it experienced shocks of varying degrees.

The current plummeting prices of steel products have also affected other industries, such as the coal mining industry, and related industry chains like cart manufacturing, which are feeling the chill of this winter.

Luckily, the trade and industry in the Alpha Kingdom were undeveloped and didn’t weigh much in the Kingdom’s economy.

Most of the practitioners were still serfs attached to the nobles, so even if an economic crisis were to break out, layoffs or wage reductions would not occur.

The crisis has virtually zero impact on the living standards of the lower class.

However, the economic chill is spreading, and the first to feel it was Caesar III.

Nobles who suffered heavily from the crisis began to use the war bonds issued by the kingdom to offset their tax obligations.

Originally, it was only the loss of noble lords.

“There are war bonds worth 4.5 million gold coins just for autumn taxes.

Have they gone mad?”

Caesar III roared behind the scenes.

He had not been feeling well recently.

A lot of state affairs were transferred to his son.

He didn’t pay much attention to the underhand maneuvers of the major nobles.

He had barely dozed off when his subordinates presented him with a big problem.

Using the kingdom-issued war bonds to offset their taxes, theoretically, is entirely feasible.

Anyway, for this kind of early payment, the Kingdom only pays the principal, and the interest on the face of the bond is lost.

Generally, only minor nobles in financial straits would do this.

As long as it’s not all at once, the early payment of some war bonds is a relief for the kingdom.

For the orderly operation of the Kingdom’s finances and to earn interest on government bonds, major nobles who held a large number of these bonds had reached a tacit agreement to hold on to their war bonds in the long term.

According to normal circumstances, as long as the kingdom’s credibility doesn’t collapse, the nobles who opt to offset their taxes with bonds will be in the minority.

At most, it will just amount to hundreds of thousands of gold coins, not exceeding 10% of the total tax revenue.

The Ministry of Finance would bite the bullet and bear this early redemption of some debt.

But the current situation is clearly different.

Due to the war, the Alpha Kingdom’s fall tax revenue this year amounted to a total of 7 million gold coins, of which more than 4.5 million were war bonds.

Clearly, several major nobles broke their tacit agreement, heavily selling their war bonds, otherwise, the total amount of tax contributed by minor nobles couldn’t possibly be this high.

“Your Majesty, this could be related to the economic turmoil in our country.

In the second half of the year, problems emerged in the iron product market, and by November, prices had collapsed.

Due to the domino effect, by December, the crisis had spread to upstream and downstream industries, affecting multiple sectors.

Many nobles suffered heavy losses in this crisis.

Driven by fear, everyone wanted to keep more cash on hand, which resulted in this scene.”

Marquis Delgado explained with a bitter expression.

As Minister of Finance, he was a tragic figure.

He had just taken office when the orc invasion occurred.

Although he held a high position, the daily concerns about money were exhausting; to have a sound sleep was a luxury.

“Why wasn’t I informed in advance?”

Caesar III asked.

Such important information should have been reported to him earlier so that countermeasures could have been taken.

He would never have allowed the situation to develop to this point unhindered.

There was room for change before the tax was collected.

Now looking at the pile of bonds in the national treasury, he was extremely concerned.

Interest on loans was to be paid after the New Year.

The creditors only recognized gold coins, they would not accept a pile of bonds as interest.

If the interest cannot be paid in time and the Alpha Kingdom’s credit is damaged, the situation will be truly troublesome.

No one answered, but from the looks everyone kept glancing at Crown Prince Caesar, it could be inferred that this disaster was likely related to his darling son.

“Little Caesar, as the Prince Regent, shouldn’t you give me an explanation?”

Said Caesar III, somewhat disappointed.