The First Vampire - Chapter 323 - Chapter 323: 322 Countermeasure_1
Chapter 323: 322 Countermeasure_1
Faced with Colin’s pointed question, Scholar Sunny immediately calmed down from his fervent state.
He realized that although the guardian of the North Territory before him was young, he was not one to be easily duped.
With that, he slowly took a seat across the dining table, solemnly nodded, and said:
“Indeed, the New Agrarian-Pastoral System I held in high hopes does indeed have several fatal flaws.”
Vera was taken aback, immediately setting down her knife and fork, wiping her mouth with a napkin and preparing to listen attentively.
It seemed like Scholar Sunny was worried the two important figures in front of him would lose confidence in his agricultural reform plan, so he quickly reassured them:
“But please rest assured, I have been pondering over these flaws for so long and have already come up with some solutions.”
Without showing agreement or disagreement, Colin nodded and said, “Why don’t you start with the flaws.”
“Alright.” With a clear throat, Scholar Sunny started earnestly, “Firstly, sweet potato, it actually has a fatal flaw – it is difficult to store for the long term.
Barley, wheat, and rice can be stored for three to five years as long as stored properly. However, sweet potato, even when dried, can only be stored for a maximum of six months.”
Vera tilted her head in confusion and said, “That’s not a big problem. After finishing the sweet potato, just eat bread. We are not stopping the cultivation of wheat.”
Scholar Sunny shook his head and said, “Duke, the problem does not lie here, but in taxation!”
“Taxation?” Vera was somewhat confused.
Colin’s eyes narrowed and he quickly understood the issue this would bring about.
The taxation methods of this world are quite backward, generally, payment is made in kind.
For example, if the lord of Springs Town were to enforce the Tithe Tax within his territory, it means that all the output of his subjects must be one-tenth paid to the lord.
The wheat growers would hand over one-tenth of barley, cattle, and sheep farmers would submit one-tenth of cattle and sheep skins, or wool, or any equivalent that would be acceptable. Therefore, if Scholar Sunny’s New Agrarian-Pastoral System were to be implemented, farmers under his system would deliver one-tenth of sweet potato and pork.
However, this leads to a serious issue – sweet potatoes cannot be stored for long.
The lords collect these taxes not for themselves to eat, no matter how many in their clan they could not possibly consume so much.
The collected taxes are used either as strategic reserves, military rations, or put on the market to exchange for goods they desire… in any case, it requires that the collected taxes could be stored for a long time.
Yet sweet potatoes have a major drawback in this aspect.
No wonder Scholar Sunny’s seemingly ideal agricultural reform plan faced such stiff resistance in Dragon City. The nobles would not want to find their collected sweet potatoes spoil in a short duration.
After Scholar Sunny’s explanation, Vera seemed to understand. However, she asked again, “Couldn’t the subjects just exchange the sweet potatoes into copper coins and use them to pay taxes?”
“I’m afraid not.” Scholar Sunny shook his head in denial.
“Why not?”
“Because there are not enough copper coins.”
“Not enough copper coins?” Vera was even more puzzled, she could only look at Colin for help.
Colin nodded solemnly and said, “Indeed, if we ask subjects to pay taxes in copper coins, although it seems more convenient for lords, in reality, it would greatly decrease the circulation of copper coins in the market.
On the other hand, those farmers implementing the New Agrarian-Pastoral system, unable to store sweet potatoes for long, are naturally expected to sell a portion of their surplus sweet potato and purchase easily stored wheat. This, in turn, increases the market demand for copper coins.
With the increase in demand for currency and a decrease in supply, the more successful the New Agrarian-Pastoral System is, the greater the impact on the existing monetary system will be, causing deflation.”
Colin was almost certain that deflation is bound to happen.
Because this world was originally dominated by a natural economy, farmers hardly ever need copper coins since they farm their own land, and what is harvested apart from taxation is consumed by themselves, so there wouldn’t be too many transactions.
But the New Agrarian-Pastoral System is different, farmers must trade; otherwise, the sweet potatoes would go bad. This would greatly stimulate market activity. If currency supply cannot keep up, the consequences would be extremely dire.”
However, Vera did not understand any of this. She blinked her cute, big eyes and appeared even more confused.
Scholar Sunny was also intrigued by Colin’s new term, “Deflation? Viscount, what does this mean?”
Colin coughed lightly and said indifferently, “It means a shortage of circulating currency. Copper coins become scarce, their value increases rapidly, prices drop, those who possess copper coins are unwilling to exchange, ultimately resulting in a disruption in the normal operation of trade markets.”
Scholar Sunny was astounded by Colin. He never realized this young viscount had such a deep understanding of economic operations.
“Can’t we mint more copper coins?” Vera asked again.
Scholar Sunny nodded, saying, “Indeed, this is a solution. However, the right to mint coins in the Radiant Empire lies with the royal family. You must first gain their consent.
Also, I must remind you that the minting of copper coins is a costly and thankless task, because the cost of minting copper coins is actually higher than their value.”
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