Chapter 485 The Structure of the Andean Family
Andes thought it was a brilliant idea, though he didn't know why a prince of an empire would tell him such "evil" knowledge.
But after thinking about it, he wasn't so confused anymore.
If a small duchy can be divided into two factions, the northern vassals and Archduke Edward, how much more so an empire whose territory spans a vast ocean?
Not all nobles of the empire could stand at Saint Sith's height and overlook the whole situation.
Perhaps in His Highness Colin's view, the Principality of Campbell holds the promise of a future that the New World has never seen.
Perhaps the people there also yearn to break free from the control of the holy city and take control of their own destiny.
But being weak, they were unwilling to fire the first shot themselves, so they chose to let the gun drift across the ocean to the Principality of Campbell, which was separated from the Principality of Colin by two oceans.
Of course, he might just be overthinking it.
Perhaps things aren't so complicated. Prince Colin is simply deeply in love with Princess Eileen, and thus extends his affection to them as well.
This speculation is also reasonable.
After all, what kind of trouble can a small duchy cause, even if it finds a way to break out of the imperial framework?
This is ultimately a world for the extraordinary, and the extraordinary are destined to be born only into noble families that are highly regarded by all.
Even the Andean family, which possessed enormous wealth, only longed for a share of the spoils from the old aristocracy; they never actually wanted to sit at the table.
Having gathered all his thoughts, Andes was left with only one core question.
"Why silver pounds and not gold pounds?"
What they clearly lack is gold coins.
"Because it can only be silver pounds."
Seeing Andes' confusion, Luo Yan patiently explained.
“The Duchy of Campbell does not have the right to mint gold coins; that is the privilege of the Empire. Everyone knows that you don’t have that many gold coins or that much gold.”
"On the contrary, Archduke Edward had the right to mint silver coins, which could openly undermine this decision."
"Your way out is to establish a 'silver standard' monetary system, which, after the painful period of asset repricing, will form a check on the empire's gold standard."
To forcefully promote "gold vouchers" to maintain the gold standard during a gold shortage is tantamount to suicide.
Moreover, the Campbells' ultimate goal was not to maintain the gold-silver exchange rate for the empire, but to decouple from the empire's monetary system and form their own sovereign currency.
The future silver pound will not be exchanged at a 1:1 ratio with the imperial silver coins, but only at a 1:1 ratio with the silver coins minted by the Campbell royal family.
After all, the purity of silver coins minted by various kingdoms is inherently more unpredictable than that of gold coins.
To ask Campbell to exchange his pure silver coins for the Kingdom of Ryan's "iron sheets" is tantamount to blatant thuggery.
Those silver coins "printed with all sorts of royal coats of arms" were destined to disappear from the stage of history, and the Campbellians were just seeing this day ahead of time.
As for the devaluation of silver and copper coins, the problem was not the devaluation itself, but rather that the copper coins, which were linked to people's livelihoods, devalued too quickly.
By releasing more liquidity into the "silver pound" and truly making it the mainstream currency used in daily transactions by the citizens of Thunder City, the ongoing devaluation of copper coins can be curbed, and a real exchange rate of 100:1 can be restored between the silver pound and the copper pound, making it a subsidiary currency of the latter.
As for gold coins, let them rise as they please.
Just like the Colin Group's stock, ordinary people don't need that stuff.
When liquidity contracts, it simply withdraws from circulation and becomes a tool for "store of value," and Thunder City, with its rapidly developing productivity, certainly needs such a thing.
In addition, the right to mint copper coins held by the various vassals must be taken back; it is a bad habit of feudal times to distribute everything to the lower levels.
However, it would be useless to talk to him about this matter, given the Andes' influence; only Archduke Edward had the ability to handle it.
Andes fell into thought.
With the success of stocks and bonds as a foundation, even if he was not yet aware that he was challenging the sovereignty of the empire, he was aware of the enormous benefits of the "silver pound".
Now only some details remain to be addressed.
He needs the experience of those who have been there before!
Prince Colin, from the rich and prosperous continent of Gana, had clearly seen such a thing before!
“But who would recognize it? And how can it be counterfeited?” Andes asked with a piercing gaze.
Luo Yan smiled slightly, as if he had already expected him to ask this question.
"Credit is your best guarantee."
"As for anti-counterfeiting..."
He extended his index finger and casually drew a complex rune on the mahogany table in front of him. The rune vanished in a flash, leaving behind a barely perceptible burn mark.
"We only need to use alchemy to concoct an anti-counterfeiting ink that mortals cannot replicate, which will solve at least forty percent of the problem."
“Then… what about the remaining sixty percent?” Jan Andes pressed.
"Of course, it should be resolved during the transaction process."
Luo Yan spoke in a relaxed tone, as if he were discussing the weather, and continued with a smile.
“Just like the stocks we issued before, all transactions are recorded in our ledgers, and the same goes for fund transfers between accounts. We can roughly figure out who the money belongs to and how it came about... This work can be separated from the bank and a dedicated banking supervision department can be established.”
Andes held his breath, involuntarily clenching his fists, his gleaming eyes looking as if he had seen a gold mine.
Luo Yan remembered the last time he showed such an excited expression was after he saw the diamonds in his hand and realized that he still had a lot.
Clearly, this Mr. Andes is a discerning person.
Luo Yan was also generous in sharing his knowledge, and he eloquently taught him the second half of the manual.
“With a regulatory body, we can integrate resources between banks. Once the barriers between banks are broken down, we can allow our customers to make ‘card’ transactions while recording them.”
This part wasn't entirely based on experience he copied from Earth, but rather on things that were already present in the hellish city of Shanghai.
However, Shanghai is different. The banks in Shanghai are assets of the temple, so there are no issues with anti-counterfeiting or supervision.
Hell has its own problems.
"Once you have accumulated enough experience, you can use your banks to bring this system to the various city-states on the northeast coast of the Whirlpool Sea. If your Grand Duke is ambitious enough, it is not impossible for him to take over the Twilight Province from the Kingdom of Ryan and extend it to the kingdoms on land."
"Of course, this is just my personal opinion, and I hope that my humble opinion can inspire you to solve the problem."
Luo Yan suddenly realized that he had said a bit too much.
He remembered that Mr. Colin's character was supposed to be a kind and generous, and somewhat love-struck imperial prince.
In this way, whenever he was in a dilemma, he could simply stand behind Eileen and say, "If it weren't for this woman, I wouldn't care about you."
However, Mr. Andes, who was in the middle of a great time, hadn't thought of this at all, or perhaps he didn't think of himself as "naive" as he did.
He stood up excitedly, eager to grasp Prince Colin's hand, but ultimately refrained from doing so due to his status, and instead bowed deeply.
"Your Highness, you are simply a genius! It is an honor for every one of us in the Duchy of Campbell to have a friend like you!"
Luo Yan coughed lightly, modified the words he had once given to Ilana, and passed them on to this Mr. Andes.
"I am merely standing on the shoulders of a dragon."
...
Almost at the same time that his meeting with Prince Colin ended, Andes went to Edward with the plan he had learned "overseas".
The diligent Grand Duke studied the "paper money" proposal offered by the Andes all night long and saw the "essence" that the Andes had not seen in an instant.
Solving the liquidity crisis was just a side effect!
This is how, under the strict monetary system of the empire, "monetary sovereignty" was quietly taken back into its own hands!
This idea is absolutely brilliant!
Although he couldn't explain the mystery with academic theories, just like when he saw the New Testament, he immediately saw that it was what he needed!
The Principality of Campbell will establish its own monetary system!
They will be the first to achieve economic independence, and from then on, the value of Campbell's products will be determined by the Campbells themselves!
"Go do it, Andes!"
With dark circles under his eyes from not sleeping all night, Edward summoned Andes and, in a serious voice, granted the latter the authority to execute the order.
"The Campbell Royal Family will provide you with all the support you need."
Besides personally taking charge of this matter.
After all, he couldn't openly oppose the empire's monetary hegemony, as that might attract enemies even more terrifying than the court of judges.
But if it's all just a business transaction, they have room to maneuver!
The Andes, having received authorization, did not rest for a moment.
That noon, at Andes's urging, more than a dozen of the most powerful bankers and gold shop owners on Queen Street in Lemma de la Rémy-de-Lyme gathered in the conference room of the Sunrise Hotel.
The fireplace in the conference room was burning brightly, yet the atmosphere was cold and oppressive.
These wealthy merchants who controlled the economic lifeline of Thunder City were whispering among themselves, wondering why the Duke's "money bag" had suddenly summoned them at this time.
Is it going to be another bond issuance?
No way...
Even if it's just for show, they should discuss this kind of thing in parliament, not set up a makeshift stage in a hotel like this.
If that's the case, what's the difference between that and outright robbery?
Most of them still had a good impression of Edward, but now they were a little undecided.
Standing at the end of the long table, Andes looked around at the expressions on everyone's faces, taking in their guesses and doubts.
He knew perfectly well what they were thinking, and that was to be expected.
Not everyone is willing to be the first to try something new.
Even in the not-too-distant tomorrow, all those sitting here today will greatly benefit from His Majesty the Grand Duke's wisdom.
"Gentlemen, thank you for taking time out of your busy schedules to come here."
Andes cleared his throat and got straight to the point.
"I'm sure you've all noticed a problem lately: although our bank's vaults are overflowing with gold coins, there aren't enough gold coins circulating in the market, which has led to an ever-increasing exchange rate between gold and silver coins... Of course, I know this is a good thing for us who have a lot of gold coins, but our principality wasn't bought with gold coins, and gold coins can't buy titles either."
This statement silenced everyone's discussion, and they all turned their attention to the Andes, some even showing expressions of keen interest.
Although the Grand Duke summoned them for money, it seems he didn't actually want to take money from them, but rather wanted them to do something.
That's still worth listening to.
"...Both silver and copper coins are depreciating, and the copper coins are depreciating much faster than we expected. The starving and freezing poor citizens can't even buy a full bag of salt with copper coins, simply because our shopkeepers now only accept silver coins and give discounts to gold coins."
"Although this means we can buy more salt with our money, you and I both know that we don't need a whole ship full of salt. What we need is to make our products affordable for all the citizens of Thunder City so that we can become richer."
"If we cannot meet the basic needs of our citizens, our wealth will be like a rootless plant. After all, I have never heard of a ragged beggar willing to give his life to defend the rich man's treasury!"
"Therefore, I have gathered you all here to work together to find solutions to this problem—"
"In fact, I already have a preliminary plan, and I would like to present it to you as a starting point for this meeting."
Andes gestured to his servants to turn off all the lights in the room.
In the instant the room plunged into darkness, he turned on a small magic crystal lamp.
Because surface magic crystals are relatively rare, these poorly lit and expensive magic crystal lamps are not as common as in the underground world, but they are still something that can be bought with money.
Looking at the faint purple light, he then took out a palm-sized piece of paper and placed it under the magic crystal lamp.
"This is……"
The wealthy merchants and businessmen present all let out suppressed gasps of surprise, whether they were bankers or gold shop owners.
On that piece of paper, the originally unremarkable ink-printed pattern now shone with a colorful luster!
It's like magic!
Countless tiny alchemical runes flowed across the paper, as thin as a cicada's wing, like a vibrant galaxy.
That's practically a work of art!
"As you can see, a type of paper that cannot be copied..."
Everyone instinctively held their breath until Mr. Andes' next words rang in everyone's ears.
“I believe it has the potential to replace silver coins.”
Before anyone could react, he turned the lights back on and ordered the servants to distribute the sample, which was named "Silver Pounds."
Also distributed were magic lamps for checking the authenticity of banknotes. The small lamps were only the size of a thumb, with brass casings, and could light up with a gentle twist.
Upon seeing the so-called "silver pounds" handed out, the meeting room immediately erupted in uproar, with waves of opposition crashing towards the end of the long table.
"Paper?"
"Mr. Andes, are you joking?"
"Using paper instead of silver coins?! I think you're insane!"
The noise was so loud it almost turned the entire conference room upside down.
Everyone here is a shrewd person, and they can naturally guess that Archduke Edward must be behind Andes' move.
However, this idea was so bizarre that it was almost absurd, that even a grand duke could not act so recklessly!
Bonds, after all, have to be repaid!
They're not even going to act anymore!
“This kind of magic ink… must be incredibly expensive,” a gold shop owner said, picking up a banknote, bringing it close to his eyes, sniffing it hard, and frowning. “Besides, all magic can be broken, so what about its secrecy?”
This is the first point of contention.
This is also a rather technical question.
Andes answered calmly.
"The cost of this ink lies in research and development, not production. As for confidentiality, you don't need to worry. We will regularly upgrade the encryption technology. As long as we develop faster, counterfeiters will have no profit to make."
In addition, he also explained the bookkeeping transaction method that Mr. Colin had told him about. As long as large sums of money are transferred between banks, and with the cooperation of law enforcement agencies, they can minimize the possibility of fraud.
Completely eliminating it is unrealistic, but like bad debts in loans, it is perfectly acceptable as long as the ratio is kept low enough.
This answer barely suppressed some of the doubts.
However, soon, a more fundamental question was raised, one that the Andes themselves had also had concerns about.
One of the most senior bankers banged on the table and shouted.
"Why should our market accept this piece of paper? Do you think our citizens can exchange it for salt that they can't afford anyway? Mr. Andes, the credibility of gold has been built up over thousands of years. What makes you think this piece of paper can replace it?"
These words resonated with countless people, and the wave of opposition reached its peak at that moment. Looking around the entire table, there was hardly a single person who supported them.
Edward can talk about patriotism, after all, the duchy is his.
The Andes are also open to discussion, since they are already tied to the Campbell family, or rather, to Edward himself.
If it were Irene, they could catch their breath, but if it were Jerok, they would be the first batch of spoils to be slaughtered!
However, the others present were different.
As long as they load the empire's gold coins onto the ship, they can go anywhere and start over; it's just a bit of a pity.
Andes surveyed the entire arena.
He knew that success or failure hinged on this moment.
"Based on my own merits."
He spoke slowly and deliberately, his voice not loud, but it instantly drowned out all the noise.
“I hereby declare that my Andean Bank will set an example for the issuance of the ‘silver pound’.”
“Starting tomorrow, anyone, at any time, can take this ‘silver pound’ and withdraw the full amount of silver coins minted by the Campbell family from any branch of the Andean Bank… The exchange rate is 1:1, with no upper limit!”
The meeting room fell into dead silence.
Everyone was stunned by Andes's high-stakes gamble. He was using his family's centuries-old wealth to guarantee this "piece of paper."
Even with Edward's support, the risks are too great.
If a bank run occurs, even the Andean family could go bankrupt instantly!
The whispering continued for a long time. Some people shook their heads, got up, and left the venue, but the guards at the door did not stop them.
Seeing that no one was stopping them, even more people got up and left. Soon, only a few people remained at the long table, and everyone sighed, lamenting that they had come for nothing.
An old friend from the Andes stood up and stopped in front of him. The old man stared at him for a long time, and finally sighed.
“Mr. Andes, your courage is admirable, and I know you have no other choice. But forgive me, my family cannot participate in this high-stakes gamble.”
"This plan... perhaps we can discuss it again in a few years when the time is right."
He didn't make his statement definitively, but his refusal was anything but tactful.
Soon, the place was deserted.
This secret meeting, which will determine the economic lifeline and future fate of the Principality of Campbell, seems destined to fail because no one is following suit.
Andes remained alone in the empty conference room, looking at the unclaimed "silver pounds" on the table, but his face showed no sign of discouragement.
He picked up the long-cold black tea, took a sip, then picked up a quill pen and elegantly signed his name in the blank space of the distribution agreement.
There is only his name there.
In fact, Andes had anticipated that the meeting would end badly.
Just as Prince Colin reminded him—
“Credit alone is not enough, and the sake of everyone’s tomorrow is not enough to make them endure the pain of the present. You need to give them a more irresistible reason.”
This was the prince's first sentence.
His confidence mainly stemmed from the second sentence that immediately followed that one—
"...For Eileen's sake, I can help you think of an idea."
...
The following day, the front page of the Thunder City Daily was dominated by a major announcement from the Andes Bank.
Backed by the family's reputation, the Andean Bank officially announced the launch of the "silver pound" and reiterated its incredible promise to the entire city in the most prominent font.
"Anyone, at any time, can exchange silver pounds for full-value silver coins at a fixed ratio of 1:1 at any bank under the Andes Group, and vice versa."
As expected.
This headline became the talk of the town in Thunder City that day; almost everyone in the taverns of the new industrial district was discussing it.
"Exchange paper for silver? Has Mr. Andes gone mad?"
"Hahaha! If I cut out this picture from the newspaper, could I exchange it for real silver coins from him?"
"Forget about it, they have some kind of anti-counterfeiting label."
"I think he's just being delusional! Nobody needs this thing!"
"No, you're being narrow-minded. I think this is a chance to make a fortune."
The drunkard sitting at the bar smirked, pulled out a 1-yuan banknote from his pocket, held it between his fingers, and waved it proudly in front of everyone. "I got one early this morning. In case Andes Bank goes bankrupt, this will be a rare collectible!"
The patrons sitting around exclaimed in surprise, "This guy is really rich, he's actually wasting real money!"
The bartender, wiping the glasses, shook his head, offering a reminder to the dreamer.
"It's your prerogative to keep it as a collectible, but don't even think about trading this piece of paper for a single beer from me!"
"Hahaha!"
The tavern was filled with a cheerful atmosphere.
Everyone thought that Jan Andes was obsessed with money, that he thought he was a king, and that people would listen to him.
The major shops in Thunder City openly refused to accept the so-called "silver pounds" unilaterally issued by the Andean Bank.
The entrance to a leather goods store.
The bespectacled shop owner preferred to painstakingly examine a "Ryan silver coin" of such poor quality that it was almost rusty, rather than touch the exquisitely crafted piece of paper.
After all, whether or not there was silver wasn't that important; what mattered was whether the empire recognized that "piece of iron" as a silver coin.
“I’m sorry, sir.” Facing the shopkeeper who came to select goods, the shopkeeper shook his head and pushed the silver pound back. “You should go to the bank next door and exchange it for ‘real’ silver coins before you come back.”
The citizens left grumbling, but they could only swallow their anger.
This is what makes sovereign currencies "unreasonable".
Even if the imperial emblem were printed on a piece of marble, merchants would have to grit their teeth and admit that it was a gold coin, just with a slightly lower gold content.
Of course, the empire has not done so far. After all, His Majesty the Emperor has a sense of honor and would not stoop to such an ugly level.
Everyone was waiting to see the Andean family make a fool of themselves.
Especially the banker who sat at the conference table that day.
However, to everyone's surprise, just three days after the "silver pound" was about to become the laughing stock of the whole city, things suddenly took a turn for the better.
The port of Thunder City was bustling with activity.
Mr. Sack Gale, the envoy of the "United Kingdom of Gutaf," was standing in front of a pile of freshly unloaded goods, lashing out at Campbell's officials.
"You've gone too far! I don't mind you mixing iron into the silver coins, but how did they get so rusted up like this?!"
Sack's lizard-like face was full of anger, and his tail pounded the floor repeatedly, scaring the port official so much that he dared not breathe.
He grabbed a handful of inferior coins from the Kingdom of Ryan and slammed them to the ground, making a dull "thud" sound instead of a crisp metallic clang.
"You're telling me this is silver?? This is an insult to the Dragon God's intelligence!"
Unfortunately, Taff isn't here.
Otherwise she would definitely be angry.
The merchants who had come upon hearing the news were all terrified and fell silent, fearing that this god of wealth might cancel all trade orders with the Duchy of Campbell in a fit of anger.
Actually, everyone wanted to go up and persuade him that there was no need to do this, because those silver coins could be used to buy things at any port in the empire.
Unless they plan to return to the continent of Gana empty-handed, but that would be too much of a loss!
The trade official, wiping away cold sweat, was about to explain the empire's monetary system and its long history, but Sak gave him no chance at all.
The lizardman messenger raised his voice and announced loudly.
"The United Kingdom of Gutaf cannot accept these counterfeit goods with inconsistent silver content! The silver coins that Grand Duke Campbell gave me clearly didn't look like this! I've had enough of you cunning and deceitful humans! If you can't produce the full amount of gold, the Dragon God would rather have 'silver pounds'! At least that thing can be exchanged for real goods!"
Silver...silver pounds?
The entire port was deathly silent.
From the port officials to the surrounding merchants, everyone stared wide-eyed at the lizardman envoy.
Is this guy... insane?
They didn't know why the stupid lizard wanted that piece of paper, but if they could trade it for corn and iron ore from the United Kingdom of Gutaf, it wouldn't be a bad deal.
After a brief silence, the entire port of Thunder City was in an uproar.
"Silver pounds! That lizardman wants silver pounds!"
"Damn it! I suspect they're in cahoots!"
"Never mind whether they're in cahoots or not, hurry to the Andean Bank! Exchange all my silver for silver pounds! No—wait, let me think, exchange as much as I need!"
All the businessmen who coveted that seven million square kilometer market went mad.
They rushed towards the Andean Bank like refugees, their wagons scrambling to take the silver coins that Mr. Sack had refused to accept.
Although I don't know the difference between "silver pounds", as long as I replace it with that piece of paper, I can clean the rusty silver coins.
However, they are still too "young".
Although the Duchy of Campbell abides by the laws of the Empire and recognizes the circulation of "junk" issued by other kingdoms within its territory, would the Andean Bank allow the King of the Kingdom of Lane to buy "silver pounds" backed by the Grand Duke from its hands using junk?
This is a type of credit currency that is nominally anchored to imperial silver coins, but in reality backed by the sovereignty of the principality.
In his office on the top floor of the Andes Bank, Jan Andes smiled as he looked down at the streets that were completely blocked.
He knew that the initiative had completely returned to his hands.
"Praise be to His Highness Colin...Praise be to Princess Irene."
He silently made the sign of the cross on his chest, then summoned his assistant and gave him a few instructions.
Soon, notices were hung in front of major banks in the Andes, each bearing a clipped newspaper article that highlighted one line of information:
Only Campbell's Silver Coins can be exchanged for Silver Pounds.
The moment the announcement was seen, the line outside the bank erupted in chaos. Shop owners watched the spectacle, while importers and exporters groaned in despair.
"Campbell silver coins? Where am I supposed to find so many coins with the Campbell family crest on them? How about I give you the money and you find them?"
"Damn it! Do I have to count them one by one?!"
"It's over... the Gutaf Kingdom's order is going to fall through!"
There are simply not enough "Campbell silver coins" on the market.
This is not because the silver content of Campbell's silver coins was actually as high as Sak Gale described, but simply because the duchy was relatively small and the number of coins minted was relatively small.
Although theoretically, the more coins minted, the more one benefits "everyone," one is ultimately the one who suffers the consequences first. Therefore, minting coins should be done within one's means.
Newly minted silver coins couldn't all be packaged up and distributed to neighboring countries for circulation. Most of them circulated within their own territory for a period of time before being gradually exported to neighboring countries via trade routes.
All crows are black, and since the Duchy of Campbell has no silver mines, it's natural that they have to mix all sorts of random things into their silver coins.
However, the Kingdom of Gutaf did not uphold martial ethics—
At least Mr. Sack Gale only recognizes the silver coin bearing the Campbell family crest.
Facing the anxious, distorted faces of the businessmen, Jan Andes smiled and walked out of the bank, followed by his managers.
"Ladies and gentlemen, please be quiet... I understand your predicament. Our benevolent Grand Duke did not mint that many Campbell silver coins, and I also understand that counting all those miscellaneous silver coins is by no means an easy task!"
He calmed everyone down with a gentle voice, then offered a proposal that no one could refuse.
"But it's alright! Don't forget we're a bank, and the most powerful bank in Thunder City!"
“We not only offer savings services, but also loan services for ‘silver pounds’!”
"As long as your use and destination of funds are reasonable and compliant, I am happy to help you solve your urgent problems."
(End of this chapter)
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