When the Saint comes, she does not collect food

#441 - After the meeting, I met with Catherine (Part 2)

"Of course not."

Glowering at Horn, Catherine gritted her teeth and slammed the ledger against his chest: "This 250,000 gold pounds is just on paper; the actual amount is probably much less.

The cash reserves of all the merchant guilds in Rapid Current City are probably only 70,000 gold pounds, and the Megredy Vault probably has only around 30,000 gold pounds."

For some reason, Catherine and Horn had only known each other for ten days or so, but they often bickered like this.

This kind of playful banter was a small tactic for Horn to build rapport and a way for him to let loose.

After all, besides the Holy Virgins, no one dared or could relax and joke around with him like this.

Of course, this application varied from person to person; Horn wouldn't joke like this with serious and earnest people, like Shiloh.

As for Carrie (Moriarty), she could often see through Horn's little jokes and even retort sarcastically.

Only Jeanne and Catherine were always easily teased, the only downside being that Jeanne's counterattacks were often too heavy-handed and painful.

In comparison, Catherine, perhaps because she wasn't familiar enough, hadn't laid a hand on him yet.

"That's still quite a bit of liquid capital," Horn said, leaning back in his chair and rubbing his temples. "The River Valley's annual tax revenue is only 60,000 to 70,000 gold pounds; you have more than enough money."

"Who says?" Catherine rolled her eyes. "According to our estimates, the River Valley's total annual tax revenue is probably close to 700,000 gold pounds, but they only remit 60,000 to the Liah Royal Family.

The rest ends up in the Church's pockets or the local nobles' pockets…

Let's not talk about that. Now that you're the real master of Rapid Current City, what are your thoughts on the bank?"

"Keep the basic framework unchanged. Even if there are changes, they will be planned and implemented on a yearly basis," Horn replied, taking a sip of red tea.

Horn knew that, in the Empire's current environment, Rapid Current City's government was a relatively advanced political system, and reforms that surpassed the level of productivity were unnecessary.

For example, the apprenticeship system in workshops, before the advent of the industrial age, no matter how it was reformed, it would only be a superficial solution or the cost would outweigh the benefits.

The fundamental reason was that the level of productivity was not high enough; forcibly changing the relations of production would be counterproductive.

What is advanced is not necessarily the best; what is suitable is the best.

With the advent of factory production, the apprenticeship system would naturally disintegrate, and reforming it at that time would be like going with the flow and accelerating the process.

All Horn had to do was increase the number of artisans, promote proto-industrialization and large workshops, and accumulate resources for industrialization.

Therefore, his primary goal in coming to Rapid Current City was to establish rule, restore Rapid Current City's economy within a year, and at most, eliminate some of the remnants of the Imperial system.

Horn placed his interlocked fingers on his knees and slowly opened his mouth after thinking for a while:

"First, you must reduce high-interest loan business and ban private high-interest loans, absorbing private lenders' funds into the bank as much as possible, and open deposit and loan services to ordinary people.

We will establish a shelter monastery in Rapid Current City, recruit the original lending agents, introduce insurance, credit rating, and loan review, and reduce your risk premium."

The so-called lending agents were some small landlords, rascals, knights, or even manor stewards who were skilled in lending.

There was even a small group of citizens who specialized in this, raising a bunch of thugs and accountants to help the lords lend money and collect debts.

They had their own set of practical experience in risk assessment, such as who to lend to, how much interest rate to charge, and so on.

After sending them to Horn's arithmetic class to improve their probability knowledge, it was quite feasible to use them as insurance managers and loan reviewers.

"But there's a problem," Catherine frowned. As a top banker, she immediately saw the key point: "If private lenders are prohibited from high-interest loans, they will deposit their money in our bank to earn interest.

The bank will have more money, but you know that agricultural harvests are not stable. Once there is a natural disaster or man-made disaster, without private lenders, where will they go to tide over the difficulties?"

Horn spread his hands: "My suggestion is that the Papal Palace and the Megredy Merchant Guild jointly fund the construction of a inclusive bank with public benefits.

As for how to lend money, how to reduce risks, and how to penetrate into rural areas, that's your problem."

Watching Catherine write a note on her notebook thoughtfully, Horn said lightly: "If you have any ideas, you can discuss them at the Imperial Privy Council meeting, and you can also raise any points that need our cooperation at the Imperial Privy Council meeting."

"Imperial Privy Council meeting?" Catherine raised her head in confusion. "Isn't that your highest decision-making body? Can I also participate?"

"Not only can you participate, but you can also be a permanent member," Horn explained. "You are a Holy Virgin, so you automatically have the status of a cardinal. You are already in the Papal Palace's highest decision-making level."

The Papal Palace's highest decision-making level… Catherine's quill gradually stopped.

At this moment, she finally had a real sense of the Holy Virgin status. This was not a wholesale identity, but a very important holy office.

"Okay, this part is over. Let's talk about the next topic," Horn said, putting down his legs and smoothing the wrinkles on his pants, "which is the issue of splitting up your Megredy Bank."

Just now, she was happy to enter the core decision-making body of the Salvation Army. Hearing this, there were still obvious wrinkles on the book in Catherine's hand: "Tell me."

"Don't be nervous. Megredy Merchant Guild Bank is the holding bank of the other 11 banks, right? Then split it into two parts: the Imperial Holy Virgin Bank and the Holy Vault Believer Bank."

Horn picked up a delicate blue feather pen from the ground and pulled over a piece of scratch paper to write and draw.

"Both must undergo palace-owned system reform. The Imperial Holy Virgin Bank belongs to the Imperial Privy Council and its main purpose is to make profits. The Holy Vault Believer Bank belongs to the Papal Palace and is mainly responsible for maintaining economic stability and regulating the market."

"What is a palace-owned system?" Catherine raised her head and asked.

"It means that the holder of this bank is the Holy Father, but it is managed by the Papal Palace on his behalf. Individuals cannot hold it, and private shares are converted into Holy War bonds or five-year fixed deposits."

"Then you are tantamount to abolishing all banks," Catherine said, looking at the words under the feather pen. "Those senior partners will definitely be dissatisfied."

"No, no, no, those small banks can become banks controlled by palace-owned banks and still operate in a private manner.

I can even give Rapid Current City the franchise to operate private banks, but it must be subject to your Catherine's qualification review and approval.

It's just that the small bank you previously held shares in, the shareholder will change from you Catherine to the Papal Palace."

Horn took out his small notebook and explained: "Those senior partners, I don't mind leaving them a position in the Holy Monastery or the Senate."

Another reason for doing this is that the Megredy Merchant Guild controls a large number of workshops, shops, and trading ports through bank holdings.

This time, the Megredy Merchant Guild also suffered heavy losses in the war, but Catherine's act of erecting long walls with vines preserved a large number of elite labor forces - various artisans.

Although they have lost the workshops they depend on for survival, most of the technology and tools are still there, and the dependence on the original workshops has been broken, so it is a good opportunity to integrate them.

Horn stared at Catherine with burning eyes: "Your other major task is to unify and reorganize the various workshops, and concentrate the main related industries together as much as possible in the form of large workshops.

Do you understand what I mean?

For example, after the wool is combed, don't send it from the south of the city to the north of the city, send it to the spinning workshop in the same workshop. After the spinning machine is finished, don't send it from the north of the city to the south of the city, but send it to the weaving workshop on the assembly line.

After the cloth is woven, perform quality inspection, and immediately send it to the dyeing workshop next door, with high efficiency and low loss."

"Integrated weaving and dyeing…" Catherine thought of her previous wool plan, "No, no, shouldn't this be called transmission-style integrated weaving and dyeing?"

"That's called assembly line style. We also have standardization principles. The Holy Father gave me a booklet in Elysium Mountain called 'Rational Management Methods,'" Horn thought for a while and said, "You will learn it in the training class on Autumn Twilight Island."

After confirming the memorandum with Catherine, Horn added: "In addition, we must also place some monks from the Church of the Holy Father within the Megredy Merchant Guild.

On the one hand, the Church of the Holy Father needs to develop new members, and on the other hand, it needs to train the monks of the Church of the Holy Father into suitable banking skills.

Then you'd better also reduce the authority of the City Council, giving them only the functions of supervision, consultation, and suggestion."

Picking up the memorandum written by the two, Horn cleared his throat:

"Let's re-examine it. Your next task is to complete the following tasks from October to October next year:

Prohibit private high-interest loans, split and reorganize the Megredy Bank, centralize production of artisans, rebuild Rapid Current City's infrastructure, cooperate in transforming the city hall and court, and finally reduce the functions of the City Council."

"A year's time, it's not easy," Catherine smiled wryly, taking the memorandum from Horn's hand.

"Don't worry, the Papal Palace will be your strongest backing, and I will help you too," Horn said, fanning himself with the lacquer-covered notebook. "If you are too tired, read a teenage romance novel to relax…"

"Say that again!"