170 Episode 11 Those Who Believe Are Saved (1/2)

Now, while working behind the scenes on his marriage policy with Scheherazade and Nia, ......

Hercule had another policy in the works.

”Somehow, it looks like it will be ready by the end of the year. You've done a great job so far, Antonio, Shylock.

Hercule thanked his two advisors for working behind the scenes on the project.

Antonio and Shylock smiled happily.

In a week, we will issue a proclamation. We'll be able to implement it in ...... two months?　At any rate, it looks like we won't have any trouble raising money for the war effort.

said Hercule in a good mood.

The document that Hercule is holding in his hand is titled ......

”Establishment of the Bank of Lemuria”.

Bank.

Bank.

It is the heart of money circulation.

Originally, there were plans to establish a bank, and Antonio and Shylock had been ordered to conduct various surveys.

Finally, the plan took shape.

There are four roles that Hercule is seeking for the Bank of Lemuria.

One is the stable supply of money and price adjustment.

Currently, the Lemurian Empire is experiencing a continuous rise in prices ...... and moderate inflation.

This means that the economy is growing in an upward direction.

However, one wrong move could cause prices to soar, putting pressure on the people's livelihood.

Banks are essential to effectively regulate the quantity of money.

The other is the redistribution of wealth.

Basically, money tends to gather where there is money.

The rich get richer, and the richer areas get richer.

Well, in other words, people, goods, and money are currently flowing rapidly into Nova Lemuria in the Lemurian Empire.

This flow is not a bad thing.

But if it goes too far, it could lead to the impoverishment of the provinces.

That's not a good thing for security.

That's where the banks come in.

We can collect deposits from the wealthy and middle class of Nova Lemuria and invest them in the regions. ......

In this way, the money gathered in the center will be redistributed to the regions again.

Hercule's goal was to stabilize the country by maintaining a sustained economic boom by creating a reflux throughout the Lemurian economy.

The other purpose is to clear debts.

The Lemurian Empire still had a lot of debts.

The debts accumulated since the time of the previous emperor Hadrian are enormous, and it is impossible to repay them all in a decade or so.

By asking the banks to shoulder these debts, Hercule hoped to consolidate the debts and consolidate the sources of repayment.

The last one was to secure war funds.

In fact, Hercule had a war coming up ...... and was planning to use the bank to raise money for the war.

The reason why he accelerated his plan to establish the bank was to be able to do so in time.

There are also other purposes, such as working with trading companies and providing loans to the Seventy-six Holy Families. ......

There are various purposes.

The wedding has put a bit of a squeeze on the war funds we had set aside for it. A bank would make it much easier.

In the pre-modern era, a country's finances were inevitably dependent on tax revenue.

You can't budget more than your tax revenue, or income.

It is possible to borrow money, but it is not easy to do so.

However, if a bank is established, the story will be a little different.

We can borrow and lend money freely.

In other words, financial freedom is increased.

However, ...... there is still the possibility that the debt will grow without limit.

But ...... the question is whether the banks will accept it.

The problem is whether the banks can accept it.

This is because of the profits from the previous coinage reform and the goods confiscated from the royal palace of the Kingdom of Bulgalon.

But that is not enough for the bank to function.

Someone has to lend money to the bank, or deposit it.

We have already received the cooperation and understanding of many lenders. ......

”Many of the guilds have already decided to transfer their assets to the bank. I'm sure they'll be fine.

Shylock and Antonio have already briefed the financiers and guilds, the people and organizations that have the most money, in advance.

The biggest concern is that the financiers who already exist will think that a powerful rival has appeared. ......

The Bank of Lemuria has explained that it will not provide loans to individuals.

”What I'm worried about is private investment, or 'deposits'.

You deposit money in a bank.

This may make you feel as if the bank is a vault.

But the reality is that you are lending money to the bank.

It is difficult to say how many of the subjects of the Lemurian Empire will understand this feeling, which is difficult even for modern Japanese to understand.

In the Lemurian Empire, there are safe-deposit boxes, but there is always a fee to use them.

It is common knowledge in the Lemurian Empire, or rather in this world, that if you deposit money in a safe deposit box, you will be charged a certain amount of money.

However, in the case of the Bank of Lemuria, interest is paid on the amount of money deposited, or in other words, the amount of money lent.