"You're right. Finance is indeed a concern. As for a quick way to raise enough funds..." Wen Xian hesitated to mention government bonds. He was aware that Norton had the beginnings of a basic financial system. There were money houses and early banks, with the largest one controlled by the royal family. After years of light taxes, the royal family had built a solid reputation for creditworthiness. However, Wen Xian himself was a complete layman when it came to finance. His knowledge was limited to some significant historical events related to economic reforms from history books.
"Norton has accumulated wealth among its citizens for years. Why not use it now?" Li Xian stood up from the sofa and suggested, "We could issue government bonds for the citizens to invest in. With the royal family's longstanding reputation as a guarantee, it should be possible to raise a considerable sum. We could also form joint ventures with merchants. For instance, we could contract out the mines or staff them with our people while the merchants provide the capital."
Wen Xian looked at Li Xian with amazement, "I didn't expect you to know so much about economics."
"War is logistics, and logistics is all about economics," Li Xian grinned. "You need to know the basics at least."
Wen Xian nodded thoughtfully as he paced before the map, realizing the need for more drastic measures to address the financial shortages. Most of Norton's wealth lay in the hands of the public, and with the kingdom's current fiscal difficulties, it was time to leverage this wealth for national development, particularly the infrastructure at Mangshan and future industrial growth.
"Issuing government bonds is certainly one way to solve the problem," Wen Xian stopped pacing and turned to Li Xian and Ai Wei, "but we will need a more robust financial system to support it. Government bonds alone might not be enough to raise sufficient funds, especially for a project of this magnitude."
Ai Wei nodded in agreement, "Government bonds can provide a stable financing channel, but we need a diversified pool of funds to ensure the project doesn't stall due to a shortfall."
"We also need a proper central banking system," Wen Xian continued, "not just for issuing bonds but also for managing currency supply, controlling interest rates, and ensuring the stability of the financial markets. This institution would manage our future economic operations."
Ai Wei frowned, "Our banking system is still rudimentary. Most of it consists of private money houses. While the royal family's bank is the largest, it only handles national reserves and some financial matters."
"Exactly," Wen Xian pointed to a spot on the map in the center of Norton's capital, "We could elevate the royal bank into a central bank, responsible for bond issuance, financial oversight, and managing interest rate policies to attract sufficient investments."
Li Xian smiled approvingly, "That's right. This would not only regulate the financial system but also increase the royal family's control over the economy. Wealth held by merchants and the public would naturally flow into national projects."
"But even with a central bank and government bonds, we still might not have enough," Ai Wei expressed her concerns. "Our infrastructure projects will require long-term capital, and the funds we raise in the short term may fall short."
"Which is why we'll also need to bring in external funds," Wen Xian paused before continuing, "We can invite foreign merchants, business guilds, and even noble families from other countries to participate in our projects. Their money can be used to buy mining rights, shares in industrial facilities, or even public-private partnerships for large-scale projects."
A spark lit up in Ai Wei's eyes, "That's an excellent idea! External funds would not only ease our financial burden but also bring in additional resources."
Wen Xian nodded, "Yes, and besides that, we could consider issuing 'infrastructure bonds' specifically for the development of Mangshan. These bonds wouldn't be limited to just our citizens but could be sold to investors across the continent, connecting Norton's economy to the broader world and attracting more attention."
Li Xian added, "This way, our project wouldn't just be funded; the bonds would also showcase Norton's economic potential, drawing in even more investors."
"Exactly," Wen Xian said. "We can also set up an 'Infrastructure Development Fund,' a state-controlled fund to manage the flow and allocation of money for these projects. This fund could be opened to all sorts of investors, bringing in more capital."
"A comprehensive financial system," Ai Wei said softly, "covering government bonds, foreign investments, infrastructure bonds, and a development fund. This will be an unprecedented financial reform for Norton."
"However, all of this will take time and the right policies," Wen Xian stressed, "We need to convince both the citizens and the merchants that this is a venture worth investing in. We'll need to hold a grand ceremony for the bond issuance, inviting influential merchants, citizen representatives, and rural leaders to showcase Norton's future."
Ai Wei stood up, confidence shining in her eyes. "I'll take care of organizing the ceremony. We could also release a limited first round of infrastructure bonds to create a buzz in the market."
"Our top priority is to regain control of this nation's steering wheel. It's time to form the State Affairs Bureau." Wen Xian realized that for the bond issuance to move forward smoothly, there would need to be a dedicated task force and a more centralized administrative structure to coordinate everything. Norton's long-standing system of citizen and village self-governance had helped the local economy flourish, but it had also caused inefficiencies in national administration. The bond issuance was not just about raising funds; it was an opportunity to establish Norton's first truly centralized government body, laying the foundation for future national governance.
Wen Xian began selecting capable individuals from Norton's existing public servants. Though Norton didn't have a massive bureaucracy, its self-governance model had nurtured many excellent local officials who were familiar with regional issues and experienced in administration. Wen Xian decided to draw from this pool of talent to form a "Government Bond Issuance Planning Group."
While choosing the members, Wen Xian not only focused on their skills and experience but also on their vision for Norton's future. The group wouldn't just design the bond issuance plan; they would also help shape Norton's future economic policies and administrative reforms. Therefore, Wen Xian required all selected members to have both strong convictions and outstanding execution abilities.
After a thorough selection process, the planning group was finally established, with members hailing from various regions of Norton and specializing in fields like finance, law, trade, and agriculture. Wen Xian gathered them in the capital for their first meeting in a spacious conference room.
"Everyone," Wen Xian stood at the front of the room, looking around the table, "today we're not just discussing the issuance of government bonds. We're laying the foundation for Norton's future economic structure and governance model. Norton's self-governance has brought prosperity, but now, in the face of Mangshan's development and the nation's growth, we need a more efficient administrative system."
He spread out a blueprint on the table, showing the Mangshan development plan he and Ai Wei had worked on for weeks. "We need funds, and we need a centralized State Affairs Bureau to ensure that these funds are used wisely and transparently. Your task is to design a government bond issuance plan that will instill confidence in every citizen, and at the same time, create the framework for a centralized administration."
The group members listened attentively and then engaged in heated discussions. They realized this was more than just an economic move; it was a pivotal step in Norton's transition from a decentralized system to centralized governance.
Meanwhile, Wen Xian began organizing Norton's first centralized State Affairs Bureau. The bureau was created to coordinate national administrative matters, particularly overseeing the use of funds and supervising projects after the bonds were issued. Norton's fragmented local governance had been flexible, but when it came to large-scale national projects, inefficiencies became apparent. Only a centralized body could ensure the smooth implementation of the nation's economic reforms.
The vision for the State Affairs Bureau quickly took shape. Wen Xian established key departments: the Ministry of Finance to manage the bonds and distribute funds, the Ministry of Construction to oversee the development of Mangshan and other infrastructure, and the Ministry of Welfare to handle the settlement of immigrants and social welfare programs.
Wen Xian recruited experienced officials to these departments, giving them ample authority and responsibility. At the same time, he made it clear that the operations of all departments must be transparent, with citizen and village representatives providing oversight.
After five days of intense discussions, the planning group had a preliminary bond issuance plan. They had examined the structure of the bonds, interest rates, repayment terms, and legal aspects from multiple angles. Ultimately, they settled on a relatively conservative yet safe model: Norton would issue staggered bonds, offering three-year, five-year, and ten-year terms with moderate interest rates to encourage broad participation from the general public. Additionally, a partial tax exemption policy would be introduced to incentivize investments from local merchants and wealthy citizens.
Once the bond issuance plan was finalized, Wen Xian realized that relying solely on government credit might not be enough to convince potential investors. Although Norton had no nobility, the influence of local merchants was still significant. Wen Xian decided to invite citizen representatives, rural leaders, and merchant elites to the capital for a public hearing to explain the necessity of issuing government bonds and to garner widespread support.
When the invitations were sent across Norton, there was widespread discussion. For most people, the concept of government bonds was unfamiliar, but their anticipation for Norton's future development fueled their enthusiasm. The development of Mangshan, the resettlement of dwarven immigrants, and the construction of public infrastructure were all matters that would impact everyone's lives. Citizen representatives and merchants alike understood that this was an opportunity for their fates to become deeply intertwined with the nation's growth.
Five days later, in the capital city, the hearing venue was fully prepared. Citizen representatives, merchant leaders, and opinion leaders from various sectors arrived one after another, filling the hall with bustling activity. Wen Xian and Ai Wei stood on the high platform, looking down at the scene below, their hearts filled with complex emotions—both nervousness and anticipation.
As the hearing began, Wen Xian stepped forward and addressed the crowd directly: "Citizen representatives, rural leaders, merchant friends, today we gather not only to discuss Norton's current economic challenges but also to jointly plan the future of our country." He briefly introduced the purpose and significance of issuing government bonds and gave a detailed explanation of the Mangshan project's development plan and the specific use of funds.
Wen Xian also emphasized, "Every step of Norton's future development depends on your support. This government bond issuance is not only the government borrowing money from you, but also your opportunity to participate in the construction of our nation. We promise that all funds raised will be handled with full transparency, and every citizen will have the right to supervise how the money is used."
The atmosphere at the hearing gradually became more enthusiastic. Citizen representatives raised many questions, expressing concerns about how the bonds would be safeguarded and how to ensure the funds would not be misused. Wen Xian responded to each question, emphasizing Norton's fiscal transparency system and the government's strict control over the project.
Finally, Ai Wei took over the discussion, adding, "We will also invite local representatives to form an independent oversight committee to monitor the flow of funds in real time, ensuring that every penny is spent where it is most needed. This is not only our promise but also our responsibility for the future."
As the discussion deepened, more and more citizen representatives and merchant leaders began to approve of the bond issuance plan. Some merchants even declared on the spot their willingness to invest in the Mangshan project. With growing support, Norton's government bond issuance plan was gradually turning from a blueprint on paper into a reality about to be set in motion.