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Chapter 776 - 776 50 The Continuously Falling Integrity_1

776: Chapter 50, The Continuously Falling Integrity_1 776: Chapter 50, The Continuously Falling Integrity_1 “How could the Moxi Duchy hold out?

How is this possible?”

Caesar IV asked incredulously.

He was initially thinking that someone would be in bad luck with him.

He was ready to go under if the run on the bank happened, directly prepared for the worst.

However, his ally, who was thought to default due to a serious debt crisis, came to tell him that they could weather the crisis.

If the Moxi Duchy could hold up and the Alpha Kingdom defaulted, it would really be unjustifiable.

“Your Majesty, we have confirmed repeatedly.

The Moxi Duchy is mobilizing all the nobles across the country to raise money, they have also sent people to communicate with their creditors and have reportedly achieved good results.

Already several nobles have indicated that they will not demand early bond redemption before the agreed-upon date.

Leading the way was Earl Hudson.

He not only announced that he would not redeem the bonds early, but he also successfully persuaded a group of nobles in the Expeditionary Army to make a commitment together.

These positive news influenced the war bonds, which were initially plummeting, to rebound slightly.

Especially the Moxi Duchy’s bonds, the volume of circulation in the market has drastically reduced.

I guess everyone is watching the situation because selling now would lead to a terrible loss.”

Having listened to Count Francis’s words, Caesar IV didn’t know whether to praise Hudson for his shrewdness or to scold him for fishing for fame, forgetting that the Kingdom itself was in a heavy debt crisis and needed support.

Though he thought about it, Caesar IV didn’t voice out his thoughts.

He was acutely aware that the present Moxi Duchy truly had no means to repay its large debt, even if they demanded premature bond redemption, they wouldn’t get any money.

A bond that can’t be cashed is naturally not considered money.

With the Moxi Duchy’s credit in the eyes of the world, it wouldn’t be feasible to use their issued bonds as money to help the Alpha Kingdom through the difficult times.

Since they can’t immediately cash out, they decided to be generous and help the Moxi Duchy.

On the off-chance they stabilized market confidence and the Moxi Duchy fortunately weathered this storm, then the Alpha Kingdom would also be rescued.

Hudson was right to do so and if other creditors of the Moxi Duchy did the same, it might seem too logical.

But the reality is in front of him, he had no other choice but to believe.

“In that case, let’s hurry up and collect money!

As for the redemption issue, we need to remain in line with the Moxi people.

As long as they can hold up, so can we.

However, the specific redemption date must be pushed as far back as possible, preferably after the Moxi people.

If anyone from the outside makes a fuss, let them know that we are busily collecting money and ask them to wait patiently.”

Clearly, Caesar IV’s concerns had not disappeared.

The Moxi people were making some progress in repaying the money, but their ability to withstand the crisis remained an unknown.

If the restrictions are lifted and redemption is allowed, the Kingdom’s cash flow would quickly be exhausted.

The crisis they’d face then would only be bigger.

“Your Majesty, we can also adopt the measures taken by the Moxi people.

It is not difficult to gain the support of domestic nobles, the problem is they don’t have much money.

The nobles in the northern part of the Kingdom are basically poor and unable to provide money; the southern nobles are wealthier but they are currently busy establishing defences, so they may not be able to provide much support to the Kingdom.

The key next step is to convince the creditors not to make a run on the banks.

Judging from the case of the Moxi Duchy, there is a chance of success.

After all, if we demand repayment now, we will be forced into a debt default and their bonds will turn worthless, they won’t get even a single gold coin.”

Marquis Delgado’s analysis brought peace to Caesar IV.

The logic was now full circle.

Upon analyzing it, it wasn’t that the creditors of the Moxi Duchy agreed to waive the advance redemption because they were reasonable, but because they didn’t want their bonds to turn into trash.

“More lice won’t itch, debts won’t worry less.”

If the Alpha Kingdom followed suit and made the tough situation clear to the creditors, most creditors would probably have to grudgingly accept it.

“Well, let’s give it a try!

If the Moxi people can pull through by doing this, there’s no reason we would fail.

The only trouble is the puppet master behind the scenes.

From the current situation, it’s clear that someone is willing to pay any price to disrupt the bond market in order to force us into a debt default.

The Moxi people suspect that the clergy is behind this.

While there’s no concrete evidence, they indeed have a motive to harm us.

We need to be wary of the clergy, in case they cause us more trouble by disrupting our plans once again.”

Caesar IV said grimly.

Now he finally understood why his own father was so hostile to the clergy, they are good for nothing.

While other countries didn’t want the Alpha Kingdom to grow larger, at least they had their own moral lines.

At most, they pushed from behind, they didn’t directly step in to stab us in the back.

If all countries came together to collect debts, the Alpha Kingdom would go bankrupt even before the run on the banks happened.

…

The crisis still continued to wreak havoc, the number of creditors demanding early redemption due to panic was increasing.

Unsurprisingly, the Alpha Kingdom’s public relations campaign eventually ended in failure.

Domestic nobles expressed their support one after another, but that was only in words.

In actual action, only Hudson actively bought up bonds, the others merely made symbolic gestures.