Chapter 58 Banking
Of course, no one cares about the feelings of a little kid like Louis XIV. Even the Dukedom of Aquitaine, the local nobles, did not regard their titular monarch as the same thing. The nobles who participated in the banquet were either talking in groups or making friends with other nobles of the Norman Empire. More often than not, they gathered around Egil, wanting to be the world's number one emperor. Not even a single person looked at Louis XIV squarely.
And Egil, as the Norman emperor, didn't pay much attention to this little shrimp. He was thinking about something else now. Concerning the dispute between Switzerland and Burgundy. King Charles had already written to tell Egil. As he had expected, the Swiss had no intention of retreating after taking Lyon.
Although it was only a nascent principality. But Switzerland's martial spirit, as well as its lack of resources, make the country not lacking in its enterprising spirit. And William Diehl. This man also has some talent. It does not seem unthinkable to go to war abroad.
"Really, troublesome fellow. Egil had this to say. Although, the independence of Switzerland weakened the power of Burgundy, a large European power. But if this creates a regional country with aggressive ambitions, it is not good news for the Norman Empire.
"Fortunately, Switzerland itself is located in a region where the land is barren and there is nothing special to produce. Therefore, the family background is very thin. Otherwise, there are strong soldiers like the Swiss. Domination of Western Europe is not a difficult task. Egil thought about it and decided that it was better to pull King Charles. So he wrote letters to Charlie and William respectively. Something like this was agreed:
The Swiss withdrew from the French territories they occupied. Give the territory to Burgundy. Burgundy, on the other hand, paid 50,000 florins as a commission for the Swiss to "help" them to fight their troops, as well as the cost of occupation. After writing the letter, the army stayed for a time in south-west France, in what is now the Duchy of Aquitaine, in order to show off its strength and calm the people. After this. The Norman army marched north, and in Orleans, Paris was now pacified. Newly dispatched officers are already in place. The reorganized Flemish garrison was also stationed in Paris. Now order is almost restored. Looks like there's nothing to worry about.
And it was at this time that the Swiss sent a reply back. Although reluctant to give up the territory of Lyon. But the Norman army of 100,000 was wandering right next to his house. William, Duke of Switzerland, was also reluctant to disobey Egil's will. So, he wrote a letter saying that he hoped to increase the cost of compensation to 150,000 florins. In this way, he also has an explanation for the country.
Egil thought for a moment. He did not reply to him for the time being, but wrote to him and asked Charles of Burgundy what he meant.
And Charlie has to train a new army in the near future to stabilize people's hearts. Pacify some in the country can't wait. A rebellion of the nobility that broke out. Money is needed everywhere. Where else can you pull out the money.
As a result, Charles wrote back that it was already very difficult to transfer 50,000 florins. Triple the price of the price, which Burgundy simply cannot afford. He would rather not have the land of Lyon. Nor did they want to be blackmailed by Swiss bandits.
When Egil received the letter, he found it a little difficult to do. Switzerland and Burgundy are the first new and the old. All of them are allies of the Normans. He was also a prince of the Holy Roman Empire and a vassal of Egil. If the matter between them is not handled well, it will definitely deal a blow to Egil's prestige. One would think: although the Norman emperor fought very well. But it's really not good to deal with this kind of thing. Hit the country, but can't hold it. It's just a second-rate person......
"Damn it, I would have rejected the Swiss as a state and destroyed them directly. "In Paris. September is the time when autumn is crisp and lukewarm. Egil, however, was depressed by the conflict between Burgundy and Switzerland. Of course, that's what I say. Switzerland is full of valleys and rugged roads. The people are fierce, but it doesn't mean that you can fight it. And Egil had just promised Swiss independence on the front foot and accepted William as a vassal. It's not good to go back on your word for a while. ...,
So Egil gritted his teeth and decided to pit Burgundy again. He wrote again about Burgundy's difficulties and showed them to the Swiss. The two sides had to discuss and reduce the amount to 100,000 florins. And given Burgundy's financial situation, it may not be possible to come up with so much money in a short period of time. So Egil was willing to lend Burgundy a hundred thousand florins, with Lyon as collateral. The repayment period is five years. Five thousand florins are paid annually as interest. It is paid off in one lump sum after five years. If there were any more changes at that time, then the Normans would receive Lyon as compensation.
Egil's method of repaying the loan and taking the land as collateral. It was used when he signed a treaty with Edward, Duke of Aquitaine. This time, it was unexpectedly endorsed by both Burgundy and Switzerland. This came as a slight surprise to Egil. The Swiss have nothing to say about making money. And what's wrong with Burgundy? No matter how you look at it, this treaty is not good for them......
Soon, however, Charles of Burgundy wrote again, answering Egil's question - Charles wanted to pledge Lyon and the surrounding territories of Lyon with 300,000 florins. The repayment period remains the same. The interest is 7,500 florins per annum. The repayment period will be deferred for a further five years. Change to 10 years. If you can't come up with the money at that time, let the Norman Empire take Lyon and the surrounding lands.
"That's the idea of the other party...... Loans. The empire has been running out of money lately. But one Lyon is really not worth 300,000 florins. Egil then wrote again to King Charles, all other things being equal, and increased the interest to twelve thousand five hundred florins per annum. Charlie counter-offered another 10,000, and Egil agreed. So the big deal was settled. The three countries, Switzerland received money and Burgundy received loans, which allowed them to stabilize the domestic situation. Norman sat on interest and was expected to gain a new territory.
Such an ending surprised Egil. It turns out that there is such a way in the world, not by robbery and force, but by money and contracts to obtain benefits. Is. Why couldn't I have thought of it earlier?
So soon, Egil took advantage of this period of enthusiasm to recall some knowledge related to banking and finance in his previous life, and made a little list. Immediately after that, he got in touch with Aurora. As soon as he came up, Egil shouted, "I want to build a national bank." Lend money to all Europeans. That's the case. Aurora, on the other hand, said, "Are you an idiot?" and listened quietly to Egil. By the time Egil had finished speaking, Aurora gave it a moment's thought.
"Speaking of which, the current bank lending business is not without it in Europe. Most of them are still primitive, though. Basically, it was a goldsmith's bank developed by Jewish merchants who were engaged in goldsmithing. Not only is there no interest on depositing money, but there are also fees to be paid, and the loans are also usurious. If you're going to grab the cake from the Norman Empire, the well-established government bureaucracy, it's basically fine. But to do this kind of thing, the reputation is not too good. ”
"If you have money, what do I want to be famous?!" replied Egil. So Aurora said, "You wait. After more than half an hour, he asked Egil to open the system interface. to the menu of the execution decision. Egil opened it, and there was a new resolution written on it, opening up modern banking.
"A modern bank that focuses on deposits and loans. It will have a great impact on the country's economy. At the same time, it curbed the exploitation of usury by the people -- of course, the people who could borrow money in those years were basically the aristocracy, or merchants and landlords. No matter how bad it is, it's a free people. After all, today's economic model is still in the transition from serfdom to agricultural workers. It's very difficult to get results out of it very quickly. Moreover, the interests of the big businessmen, the big usurers, were hurt by this. They can also cause some harm to your empire. ...,
Invest one million Normans as funds to build the banking system, and another million Normans as the principal of the Central Bank. At the same time, branches have been established in various provinces and regional capitals in China. To recruit professional banking talents, employees, it takes 300,000 Norman gold.
In total, it took 2.3 million Norman gold to open a banking business. The money required to maintain this system is 100,000 Norman gold per year. After the establishment of the central bank system, it can play a certain role in curbing inflation. A 5% bonus to industrial and commercial development and a 5% decrease in popular support may lead to assassinations, riots, etc. ”
"Two million three thousand...... So much money...... "Egil hesitated a little after reading it. Some time ago, all the gold obtained from the Aztecs in Central America was spent on military reform. And the taxes during this period of time are also quite a lot. But there are also many places to spend money. Dig canals and consolidate Moscow's defenses. Nation-building, scientific and technological development, and agrarian reform, as well as the war with the Southern Europa Union, continued. These are all places where money is spent. There is not much spare money in the treasury. Considering that next, it is likely that there will be a bloody battle with the Mongols. It's like a bottomless pit......
"It's good with bonds. Egil thought for a moment. In this big war, countless people were killed, there was no money, but more than two million coupons were accumulated. It's a bit of a waste to exchange bonds for gold or something. But I can't care about it for a while.
"The treasury paid one million Norman gold, and then deducted 1.3 million bonds. That's enough, right?"