Arcane Lord

"Then has President Jenna ever thought that one day the gold coin exchange certificate of the Bright Water Chamber of Commerce could become the common currency of Netheril?" Sha Duo asked tentatively.

If the Mingshui Chamber of Commerce also has the idea of ​​​​issuing credit currency, then it will have to be extra careful next. If not, then the switch to new currency in Daxia may not be a big deal.

To this, Jenna’s answer was of course yes, but at the same time she also regretfully said, “Even the gold coin exchange certificate found by the Severton Council may not be unanimously recognized by the lords everywhere, let alone the Mingshui Chamber of Commerce. Where is the private chamber of commerce! This situation is almost impossible to happen!"

"In that case, I have to tell you, madam, it may be difficult for an order based on a certain physical currency to spread across the country. The most important thing is that even if it does spread across the country, it can easily be replaced by another currency."

As long as it is not a credit currency but is anchored by the value of the currency itself, then it is inevitable that there cannot be a specific universal currency, but a wide range of currencies based on certain materials.

Just like the gold coins currently circulating in Netheril, although the gold coins of the Clearwater Merchant Guild are of high quality, they do not account for the majority. They are more popular in the areas where the Clearwater Merchant Guild is involved. In other places, they are generally cast by local lords themselves. of gold coins.

Considering the circulation with the outside world, the specifications of gold coins in various places are generally consistent, about 5 grams, and the gold content must be at least 90%.

If it is lower than this specification, the payee can refuse it.

Of course, gold coins are a physical substance after all, with different degrees of wear and tear. It is almost impossible to have two identical gold coins.

Therefore, there are also some chambers of commerce in Netheril that specialize in the identification, recycling, and recasting of gold coins, which can add a little bit of leverage to the entire monetary system.

In fact, in classical precious metal currencies, no party can make big money stably for a long time. After all, the price of the precious metal itself is there, and even if there is some arbitrage space, it will quickly balance out.

Only with credit currency, the issuer can consciously adjust the total amount of money in the market to achieve stable harvest in batches.

No chamber of commerce does not want the gold coin exchange vouchers issued by it to be able to travel across the country and be stably exchanged for gold coins of the same denomination, but at the same time, no chamber of commerce does not want to use other people's gold coin exchange vouchers.

…

Until now, Jenna finally reacted, and her eyes became sharp. She looked directly at Xia Duo and asked: "Do you want to persuade me to give up Mingshui New Coin? Or do you also want to get involved in this field? ?”

It is impossible to give up Mingshui New Coin. Not to mention that I have already invested in it before. I would not be willing to give up suddenly and exchange for it. What’s more important is—

Once she gives up the new Mingshui coins, Jenna may be considered a decision-making mistake within the Mingshui Chamber of Commerce, and she will inevitably be held accountable by the elders and directors.

Even if she comes up with the excuse of becoming a god, it may not help, or even worse, it may even shake her current authority.

Therefore, even if she really did something wrong in this matter, she would not be able to admit it until she completely takes control of the Chamber of Commerce and completes the reform.

Sha Duo noticed Jenna's sensitive attitude and couldn't help but sigh in his heart. As soon as his mind changed, he immediately explained:

"I haven't considered ascending to the gods yet. In fact, what I want to say is that an order based on a certain non-special thing is unstable. The new Mingshui coins are essentially no different from the currencies minted in other territories.

"I don't want to advise you to give up Mingshui New Coin, but you can consider establishing a more stable order, with a long-term and reliable business model as the cornerstone of the order, rather than gold coins that can be exchanged at any time."

“A long-lasting and reliable business model?”

When Jenna heard this, she instinctively felt that the following conversation might change many of her thoughts, but she still pretended not to care and said: "Business itself is risky. How can there be any long-term and reliable business model?"

"Long-term reliability does not mean no risk. These are two completely different concepts." Seeing Jenna's interest, Xia Duo promoted the new business model he was involved in for her, "I don't know, Jenna, have you heard of the boatman's annuity?" ?”

"Shipworkers' annuity? I seem to have heard of it somewhere. Let me think about it!"

Jenna needs to remember, and Sha Duo doesn't push her. If Jenna can remember it by herself, that would be better. On the contrary, introducing a concept from scratch and convincing people with this concept is the most difficult thing.

"Ah! I remembered it!" Jenna's memory suddenly came alive. "Are you talking about the living allowance that the Shipwrights' Guild in Severton regularly distributes to the families of the shipwrecked sailors?"

"Yes, that's it!"

Xia Duo saw that Jenna knew something about shipwrights' annuities, so he introduced further: "But do you think that the shipwrights' guild might pay out of its own pocket to pay the families of the shipwrecked crew members?

"Of course it's impossible! In fact, the money distributed by the shipbuilders' guild to the families of the deceased crew members comes from the fees paid by the crew in advance. According to my understanding, the money distributed by the UU Kanshu www.uukanshu.net guild to the families of the deceased crew members It’s probably 2 to 3 times what the crew turned in in advance.”

"Wouldn't there be some crew members who deliberately cause accidents and give their families more money?" Jenna saw the loopholes in this model at a glance. In an era when human life can be measured in gold coins, it is easy to have such an idea.

Regarding this possibility, Chateau did not deny, “Usually some old or disabled crew members do this, and before doing so, they often have to give the captain some money first, so that the captain will allow them to board. Boat.

"But a normal and healthy seafarer would not make such a choice anyway. On the one hand, they pay less monthly insurance premiums, and the guild will give less even if they die. On the other hand, the seafarers, especially seafarers, pay less. The income is actually pretty good.”

"So this is the long-term and reliable business model you want to talk about?" Jenna couldn't help but feel a little disappointed.

The Boatmen's Guild was originally a place where crew members gathered together to keep warm. If the Mingshui Chamber of Commerce forced its way into it, it would probably be considered ugly.

Xia Duo also explained this, “Of course it’s not just this. I call this business model [insurance]. The object is not limited to the shipwreck group, but can be insured for anyone and any situation where there is risk.

“Insurers provide such insurance services, and policyholders spend money to buy peace of mind or stop losses. As long as the premium and compensation ratio are set appropriately, and there are enough customers, this is a long-term and reliable business model.

"Enough customers and the insurance service itself are mutually beneficial. As long as the service is in place and don't be too greedy, there is almost no need to worry about being unsustainable."

After Sha Duo finished speaking, he picked up the tea cup and took a sip. He looked at Jenna who was still deep in thought, wondering what the other party would choose.