King
Chapter 729 - 729 27 The Clash Between the Old and New Nobility_1

729: Chapter 27, The Clash Between the Old and New Nobility_1 729: Chapter 27, The Clash Between the Old and New Nobility_1 The proposal for the military budget has passed, but it does not mean that today’s meeting is over.

The massive debt is still the most significant issue plaguing the Alpha Kingdom.

According to past precedent, after each invasion has ended, the creditors would routinely announce the partial debt relief of the kingdom.

The remaining money, though still difficult to repay, remained within the kingdom’s financial capacity.

But with the decline of the Orc Empire, this substantial debt relief naturally ended.

Over a year after the war ended, the Department of Foreign Affairs has held multiple negotiations with creditors, all of which have ended fruitlessly.

Let alone reducing the principal debt, even the funds interest couldn’t be lessened by a single penny.

“Last autumn’s taxes were bonds issued by the kingdom.

You all should be aware of the quality of this year’s spring taxes.

There are only two months left till the next interest settlement period for war bonds.

Right now, the national treasury is empty, and the fiscal deficit is alarming.

It’s estimated that the kingdom’s fiscal deficit this year will exceed ten million gold coins.

No matter whether we increase revenue or curb spending, or if we subscribe to the bonds mixed in with tax money, we must resolve the problem today!”

The near-rascally words of Marquis Delgado, the Minister of Finance, left everyone deflated.

The largest issue with the kingdom’s massive fiscal deficit is that everyone has been using war bonds to offset their taxes.

If this issue is resolved, though the deficit would still exist, the number would be manageable.

“Let’s use all these methods at once!

Everyone is clear on the financial situation of the kingdom.

With our current fiscal income, we can barely cover the interest.

If it’s dragged on like this, what can we repay when it’s time for bond redemption?

By the time the cash crunch breaks out, the kingdom’s finances will be crushed by debt, and the consequences will be severe.

Everyone is clear on that.

I think we must develop a reasonable repayment plan, gradually recovering the war bonds issued, reducing the kingdom’s total debt.”

Duke Zuell said angrily.

As the oldest person present, Duke Zuell disdains the irresponsible actions of only considering the present without thinking about the future of the kingdom.

Although the Alram Family had previously used a pile of war bonds to offset taxes, that was merely a tactic to promote their own interests, not an attempt to bankrupt the kingdom.

If the kingdom were to go bankrupt, these current beneficiaries, especially the nobles located in the border province, would most likely pay a severe price.

No matter how strong they are individually, they are ultimately just a major noble family.

Once they lose the protection of the kingdom, they are likely to be unable to maintain their current interests.

“The old Marquis is right, the debt problem must be solved.

I think we should set the repayment goal from now, first repay the principal of six million gold coins this year, and increase it annually from then on.

As for the source of the funds, first curb spending and reduce as many costs as possible.

If we fall short, we can just follow Moxi Duchy’s example and levy a repayment tax.

As for wartime bonds that appear in tax payments, we can distribute them evenly between provinces.

Whoever receives the bonds is responsible for handling them.

The lesser noble families are weak; using war bonds to deduct taxes is their only option; can’t we, the stronger ones, withstand it?

If we host fewer banquets and hold fewer extravagant events, we can save some money.

If you don’t even have this awareness, you can leave now; the kingdom doesn’t need irresponsible nobles!”

Earl Piers’ robust word made Hudson slightly stunned.

These proposals seem to be for the kingdom, but he always felt they were aimed at his family.

In recent times, the Koslow Family has been spending money like water.

There is both the immigration and relocation program and significant construction projects.

From the end of the war till now, the official total deficit for the mountain domain has amounted to two million gold coins.

As the top brass, it’s only natural for the Dalton Family to have planted a few spies in the mountain domain and obtain this almost public information.

Especially after the hatching of the Magical Beast Juvenile, Hudson had gradually handed out over twenty juveniles to offset the compensation for immigrant relocation.

These self-harming actions fell into Earl Piers’ eyes, which seemed like a sign of financial strain but was reasonable.

After all, in the eyes of the old nobles, the strategic resource of the Magical Beast Juvenile, no matter how many different species, was of no harm.

Even if it isn’t suitable to form a Magical Beast Legion, it could be distributed to clan members for individual training to enhance the strength of the family.

There are so many members of the Koslow Family, they alone are not enough to divide the juveniles; if not for tight finances, why would they be sold off?

As competitors, now that the other side needs money, we definitely need to take advantage of the situation and make the other side even more strapped for cash!

Now that there’s an opportunity to consume the financial strength of the Koslow Family under the banner of righteousness, Earl Piers couldn’t find a reason to refuse.

After all, the Dalton Family is a wealthy man.

Not only do they occupy the most affluent land in the Southeastern Province, but they also monopolize the province’s salt trade and maritime commerce.

A slight increase in amortization is a drop in the bucket for them.

Even during the war period, despite being tricked by Hudson, they couldn’t truly hurt this old major noble.

However, with this indiscriminate assault, not only the mountain domain would be impacted.

Those with a deep foundation, the old nobles, can weather it by merely reducing their daily expenses a bit.