Chereads / The Witch-businessman / Chapter 15 - Analysis

Chapter 15 - Analysis

"If there are silver coins in which the silver content will increase and then rise in price, and this thing refers to Trini silver coins, then what Gerian said may not be true."

"Why?"

"Because Trini silver coins have a reason to increase the silver content. Let 's take a look ... This, this silver coin is called the Hutt silver coin. This is a silver coin issued by the port city, which you can see on the coast when you move south."

Gloria took the Hutt's silver coin and examined it: "Both have the same design printed on the back."

On the reverse side of the silver coin was depicted the coat of arms of wheat, intertwined with a sacred sword.

"Yes, because they both report to Duchess Floria, so naturally they should be printed with the Duchess's family coat of arms."

"So that's how it happens...".

"In any case, the silver content of Hutt silver coins is also quite high, and they are very popular in the market. A kind of rival to the Trini silver coin."

"Currency wars..."

"Exactly! A war between states is not just sending soldiers to war. When a foreign currency overwhelms its own market, this country is fighting a losing battle. As soon as the king of a foreign state announces a reduction in the amount of currency in circulation, the market of his country will be immobilized as a result. Without this currency, no goods are bought or sold, which means that the economic activity of the entire country is controlled by the issuing state."

"In other words, the reason for the increase in silver content is to defeat the Hutts' silver coins? But aren't they all under the rule of the House of Floria? The Duchess shouldn't let her people fight in the nest, should she?"

"Because of dissatisfaction with the transaction tax, or because of fears that they have enough power in the area of the port of foreign trade, for various reasons."

Fente thought to himself that if he said that, then Gloria would naturally understand what he wanted to say.

"So that's how it is, so that the port area, which has contact with the outside world and has a large amount of income from foreign trade, could not disobey the administration due to its economic development?".

Gloria really felt it.

"So, if Gerian is a merchant who was bribed by a female duke to work for the Floria family, then it makes sense for him."

"It's true. So, where are we going now? Is it to go to the purchase of catalytic silver coins?".

"Now that we know what the silver coin is, we have to investigate."

"To the mint?"

Seeing Gloria asking with a serious face, Fente couldn't help but laugh out loud.

"A merchant like me would be shot by soldiers with guns, if we went to the mint at random, we would have to go to a coin changer, or to a bank vault, or something like that."

"The purpose of visiting the coin exchange point is to find out what condition the silver coins have been in lately."

"To find out the status, what exactly should I do?".

"There should be signs when the currency fluctuates significantly."

"But aren't the changes in the value of the currency updated according to the rules issued by the Coin Assembly?".

"Yes, but not exclusively. Various institutions that can issue currency will start discussing countermeasures even before the start of the coiners' congress, and since distant countries will be two or three months away from the venue of the coiners' congress, should we wait two or three months to leave, then two or three months to return, and so go there- here for six months before we start adjusting the silver content in the new currency? Of course, this is impossible. When the silver content needs to be significantly reduced, it is reduced slowly, and when it needs to be significantly increased, it is increased slowly. The work will be carried out gradually, approximately six months before the start of minting."

"So......"

Seeing that Gloria didn't seem to understand, Fante cleared his throat, extracted the knowledge stored in his mind that his cheap old mother had taught him, and began to explain.

"Money, so to speak, is based on trust in the issuer. The gold and silver contained in the currency itself is obviously worth more when minted compared to the equivalent weight of pure gold and silver. Of course, the value of money is set very rigidly, but it is the installation of what is not so valuable, into what is.

It's all about trust in the issuer. Moreover, unless the purity of the currency has changed dramatically, it is difficult to correctly determine the actual change in purity, and even money changers do not know exactly what is happening. The purity of the currency could be found out only after its melting. However, since money is an object of trust, whenever an old coin becomes popular, its value often exceeds its face value, and vice versa. The Kabul gold coin, for example, has a 10% higher gold content than other standard gold coins, but in this case it costs a maximum of 450 copper coins, however, it is the most popular coin in the gold trade, and 30% of the gold coins in circulation are Kabul gold coins, so its value remains stable at the level of 600 copper coins. There are many reasons for the ups and downs of currency popularity, the most common of which is the change in the amount of gold and silver contained in it, so people can be extremely sensitive to changes in currency. Even subtle changes that could be detected with the help of scales or glasses will be perceived as huge changes."

After listening to Fente's explanation, Gloria looked into the distance and fell into deep thought.

Fente thought to himself that even Gloria wouldn't be able to understand after hearing it once, so he waited for Gloria to ask a question and was ready to answer it at any moment.

Gloria, however, was in no hurry to ask.

If you look closely at Gloria's face, her expression looked not so much like uncertainty, but as confirmation of something.

"This means that when a person who ... issues currency intends to significantly change the content of gold and silver, he will first make a small change to observe the reaction of the people, and then assess the time of increasing or decreasing the content depending on the reaction, and if the reaction is not very good, then it will refuse the opportunity to award a higher amount at the congress of coiners, whether it is so." Is that so?"

If some traveling merchant had a student like Gloria, I'm sure he would have mixed feelings.

Although the student's excellent academic performance was a cause for pride, in the future he will inevitably become a strong enemy in business.

"That's pretty much it."

"The outside world is very complicated, it's easier to trash bombs in prison."

Although Gloria said this while smiling bitterly, the high level of her understanding really shocked Fente.

Just between such a conversation, they came to a small river. This stream was not a natural river, but a channel that was dug by hand and then carried out of the Uno River. This is not a natural river, but a canal that was dug by hand and carried out from the Uno River so that people could deliver a large number of goods that come to Tauzant via the Uno River to the market, without making efforts to unload them at the mouth of the river.

Small boats loaded with goods were busily cruising along the canal, and the voices of the boatmen driving the boats occasionally shouted over each other.

Fente is preparing to head to the bridge that will be erected over this canal. Since ancient times, coin dealers and metalworkers have been spreading straw mats on the pavement, setting up their workbenches and scales and immediately getting down to business.

Of course, when it rained, they had to rest.

"There are a lot of people on the bridge."

Gloria couldn't help but grumble as she approached the largest bridge in Towzant.

As long as the water gates were closed, the canal was never flooded, so the size of the bridge over the canal in no way corresponded to the size of an ordinary river.

On both sides of the bridge there were shops of money changers and metalworkers, each of which was crowded with people, especially at the shop of money changers who exchanged currencies brought from different countries one by one so that they could get to the market.

Metalworkers worked alongside money changers, performing expensive engraving or alchemical work.

Although artisans could not install furnaces for melting ingots on the bridge, some fine work and negotiations on orders were carried out here.

It is quite logical that the rich people who occupy the top positions in the city's tax rating will appear here, and then the whole bridge will smell of money.

"When there are so many of them, it's hard to know which one to go to. And there are too many people."

"Are you afraid of separation?"

"Not particularly afraid...wait, what are you doing."

Fante suddenly took Gloria's hand, and they almost locked fingers.

"Instead of looking for a reliable coin dealer in these parts, why don't we go there."

Looking in the direction Fente was pointing, at the end of the stream of people, Van Millio Valt stood silently.