Santairiku Eiyuuki

Now, while advancing our marriage policies with Shehrazard and Nia in the shadows...

Erkühr was embarking on another, another policy.

"Somehow, you're going to be able to take shape in the course of the year. You've advanced so well, Antonio, Shylock"

Erkühl labored two heavy ministers who were working on the business behind him.

Antonio and Shylock grinned happily.

"A week from now, let's make a declaration. Can it be carried out... in two months? Whatever it is, they're having trouble raising war money."

Erkühr said in a good mood.

The title of the paperwork that Elquille has in her hands like that...

"On the Establishment of Lemuria Bank"

is.

Banks.

It is an institution that can be described as the heart of monetary circulation.

There was originally a plan to set up a bank, which had ordered Antonio and Shylock to carry out various investigations.

And at last the plan took shape.

There are four roles Erkühl is looking for in 'Lemuria Bank'.

One is the stable supply of currency and price adjustment.

Currently, prices continue to rise in the Lemurian Empire… with moderate inflation.

This means that the economy is growing upwards.

But if you make a mistake, it can cause high prices and oppress people's lives.

Banks are essential in order to effectively adjust the quantity of currency.

The other is the redistribution of wealth.

Basically, money tends to gather where there is money.

The rich will be even richer, and the rich regions will be even richer.

Well, people, things, and money are flowing rapidly into Nova Lemuria in the Lemurian Empire right now.

This flow is never a bad thing.

But if you go too far, it can lead to regional poverty.

That is not desirable in terms of security.

That's where the bank's presence comes in handy.

Raise deposits from the wealthy, middle class of Nova Remulia… invest this in the region.

In doing so, they redistribute the money gathered in the center to the region again.

By creating a reflux of the entire Lemurian Empire economy, it is Elquille's aim to sustain the positive economy and stabilize the country.

The other is for the consolidation of debt.

The Lemurian Empire still owes a lot.

The debt that has accumulated since the days of the predecessor, Hadrianus, is enormous, and it is impossible in more than a decade to repay all of it, no matter how much.

By replacing these debts with the banks, Erkühl was looking to sort out his debts and get a single repayment destination.

The last one is to secure the cost of war.

In fact, Erkühl has recently refrained from war...... he was thinking of using a bank to collect that war expense.

The bank's establishment plan was speeded up a little, also in time for it.

Other cooperation with trading companies and for loans to the Holy Seventy Six…

It has a variety of purposes.

"The cost of the war we had prepared for the wedding was a little overwhelming. It gets a lot easier when you can bank."

The finances of the previous modern country really depend on tax revenues.

Tax revenues, that is, cannot be budgeted in excess of income.

You can also owe money, but you can't do it easily.

But if the bank can, the story changes a little.

You're free to borrow money.

In other words, financial freedom increases.

Most… on the contrary, there are endless possibilities for debt to swell.

"But... the question is whether the bank can accept it properly,"

For once, the reserve is properly set aside.

profits derived from currency conversions previously made, and property received from the Royal Palace of the Kingdom of Bulgarons.

But that alone doesn't make the bank work.

If someone doesn't lend me the money to the bank, I mean, they have to deposit it.

"We have already received the cooperation and understanding of many financiers…"

"Many unions (guilds) have also decided to transfer their assets to banks. Aren't you okay?

Already, Shylock and Antonio have given advance explanations to people and organizations that have a lot of money, such as financiers and unions (guilds).

The biggest concern is that financiers who already exist say, "A mighty rival has emerged!" I'm going to mistake it...

It is explained that, limited to 'Lemuria Bank', loans are not granted to individuals.

"What I'm worried about is personal contributions, or 'deposits'"

Deposit the money in the bank.

That said, the bank may feel like a safe.

But the truth is, I'm lending the bank money.

It is subtle how much this sense of understanding and difficulty even among modern Japanese passes on to the subjects of the Lemurian Empire in fulfilment.

In the Lemurian Empire there is something called a safe deposit box, but when using them they are always charged for their use.

It is the common sense of the Lemurian Empire, rather than of this world, that if money is deposited, a certain amount will be taken for it.

However, in the case of 'Lemuria Bank', interest is payable only for deposits made, that is, for loans made.

Instead of getting paid, they get paid the other way around.

The vast majority of subordinates will feel unintelligible.

Plus that 'Lemuria Bank' lends money to the imperial government using the money they deposit.

"That's our money, what are you lending us on your own!" It is possible that the misguided subjects will be angry.

The subjects said, "Isn't this a grand scam of the country guru?" Nothing is strange to suspect.

In fact, the Shylock and Antonio broke quite a few bones to explain the bank's system.

Even financiers and merchants, economic experts, needed time to convince themselves.

It is doubtful how comprehensible the uncultivated subjects can be.

However, deposits from the majority of subjects will be absolutely essential in order to make the most of the advantages of the bank.

In the first place... borrowing money from financiers and unions (guilds) is not necessary to broker banks separately.

Because they alone have enough capital.

On its own, it owns enough currency to affect national finances.

The important thing is to scratch the little capital of your people, the dust of the day, to create a mighty capital.

If you can't do that, it's not worth having a bank set up.

"... isn't that all you have to do, little by little, to understand?

"Well, yeah..."

Erkühl nodded vaguely at Shylock's words.

"... I mean, to that bank, does Master Erkühr tell you to keep the Church's assets?

"That's Cecilia, she's quick and helpful."

With a light understanding of the banking system that even the financiers had difficulty understanding, Cecilia said this again lightly what Elquille was trying to say.

"Hmm."

"You can't? I'll keep the money, just lend it to you, okay?

Cecilia exhaled as Erkühl asked.

"It depends on how independent that organisation called 'Bank of Lemuria' is from the imperial government, that is, from the Emperor of Lemuria, Lady Erkühl. Exactly. You can't run a church without money. Depositing that important fund with the Bank of Lemuria is a matter of autonomy for the Church."

In other words, Cecilia says it would be difficult for Erkür to wield power and seize the Church's assets.

Elquille pounds her tongue inside.

... and when I had to, I was thinking about threatening him.

"Right...... well, it's all impossible, but it's possible with some amount of forehead. And... in return, what can you tell me if your know-how accumulates? Apart from the Mesian Church, I'd like to create a bank called it."

"What? Is the Mesian Church finally going into the financial industry too?

Elquille frowns.

For once, the Mesian Church has taken a negative position in lending money.

"You can't take 'high interest', but the current interpretation is that you have no problem taking 'interest'. Besides, I'm not thinking about doing finance for profit. It's the same as Master Erkühr. I want to be free to work on my budget."

"I see. Well, I don't mind. I'll loan it from our bank when I can. I want to create credit."

"... I knew Master Erkühr was going to be your own bank."

Seen with Zito's eyes by Cecilia, Erkür flaunted his shoulders.

Nevertheless, it is desirable that the number of banks be increased.

Although it is only assumed that "Lemuria Bank" will maximize and become central.

"By the way, what is credit creation?

"I deposit a thousand gold coins with Lemuria Bank. Then Lemuria Bank lends 900 copies to Cecilia, who deposits 900 copies with Cecilia Bank. Now Cecilia Bank lends 800 copies to Nia and Nia deposits 800 copies with Nia Bank. Wonder, the number of documents that hold currency increases to 1,000 Lemurian banks, 900 Cecilian banks, 800 Nia banks, a total of 2,700..."

"What is it, a trick like that?"

"The believer will be saved."

"Do not desecrate the Lord"

Cecilia dived her brow uncomfortably.

"And... anxiety that the people will deposit it properly. Was it?

"Yeah, well... they might think it's a scam, don't they?

"Right. Well, it's certainly seemingly puzzling. Depositing money increases the amount deposited."

Even those who have become familiar with it are a slightly more understanding and painful system.

It would break my bones to make my subjects understand this that I have never thought about in my life, such as economics and finance.

"... why don't you just stop making me understand?

"What do you mean?

"I mean, you can tell by depositing it anyway, persuade him. No matter how many words you exhaust on those you doubt, it only adds to your suspicions. Rather a detailed explanation might reinforce the suspicion"

Cecilia still goes down to the city well on a regular basis to do her theories.

Because I feel that kind of grassroots activity is important.

Through that kind of activity Cecilia felt...

The more words you exhaust, the harder it is to gain understanding on the contrary.

"Ladies and gentlemen, we stop thinking that we are going to be given a long explanation or that we are going to be able to arrange jargon. So rather than politely explain the system of the bank...... 'If you will keep the money, I will help myself. I'll pay for that payback if you keep it. If you save up, you'll be two birds a stone away from wasting that much!' You might want to ask sincerely. Master Erkühl is trusted by all the subjects of the Lemurian Empire."

"I see..."

Erkühl has strong support from his subjects.

Erkühl, who is already credited by his subjects, does not need to be accompanied by words to give explanations.

Believe me, there are those who will trust just one word of that.

"You're certainly right. By the way... naturally, you'll cooperate, won't you?

"Well, I added the doctrine that saving is a shortcut to heaven. It also fits our policies and philosophies. But... what should we do?

Cecilia said deliberately at the top.

Erkühl stands up perceiving what Cecilia wants...

I pushed Cecilia down hard.