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Establishment of the Currency and Finance Department (3)
At that remark, the startled people began to clamor loudly.
Asking to create Goblin Dollars out of non-existent money.
And to do so legally.
The shocking proposal did not seem to calm the commotion anytime soon.
Amidst the chaos, Rockefeller continued to speak.
"As I have explained to Your Majesty beforehand, if we only rely on gold coins to solve the empire's financial problems, we won't be able to obtain the necessary funds in case of a major crisis."
Someone raised their voice in opposition to Rockefeller's words.
"What do you mean? Isn't it enough to simply print more gold coins?"
"Then where do you plan to get the gold needed to mint those coins?"
"Well..."
Only then did the nobles realize the problem with the currency system based on gold coins.
They began to sympathize with Rockefeller's argument.
"However, Goblin Dollars do not require such gold, so if we issue and circulate them as needed during a crisis, we can immediately obtain the necessary funds. And with that money, we can overcome the crisis."
Rockefeller emphasized and continued.
"But as everyone here knows, this is an illegal act not permitted by the country. In a way, it could be seen as deceiving everyone, just as Duke Austin said. However, there is no better currency system in times of crisis for the empire. We wouldn't need to resort to dirty tactics like mixing copper into gold coins during the Flame War. Isn't that right, Your Majesty?"
Now, everyone's attention was focused on the emperor.
'I don't have much financial leeway due to the Crown War. Tepez and Sinclair are struggling as well. And the royal finances are not as strong as expected due to various domestic and foreign issues. If orcs or other species cause problems, it would be a major crisis for the empire. In that sense, it's crucial to have money prepared for sudden situations.'
So where could that money be made?
From the sky?
From the earth?
'I have no choice but to accept it. I must protect something bigger than guarding against the greed of a single family.'
The emperor had already decided to grant the currency control rights to the Rothsmedici family, but he made the related laws himself. After some contemplation, the emperor spoke.
"If I grant permission for that, are you and your family willing to risk everything and help the empire in times of great crisis?"
Rockefeller replied, hiding his cruel greed behind a smile.
"Of course, Your Majesty. What I am asking for is not for my personal benefit but ultimately for the entire empire. Please consider this carefully."
Before this gathering, Rockefeller had briefly explained the reserve requirement ratio to the emperor in a separate meeting.
The reserve requirement ratio was a regulation that determined how much of the gold coins entrusted to the bank should be legally held.
Originally, banks had to hold 100% of the gold coins entrusted to them.
Only then could people immediately withdraw the gold coins they had deposited.
However, the deposited gold coins didn't have names on them, and most of the coins were left unused inside the bank.
Therefore, the reserve requirement ratio allowed banks to hold only a certain percentage of the deposited gold coins as determined by the country and use the rest of the gold coins.
'I don't know how many times more virtual money I can create with the gold coins I have.'
For example, if the reserve requirement ratio was 10%, a bank owner could legally hold only 10% of the gold coins entrusted by customers. The remaining 90% of the gold coins could be lent out to make profits through interest.
'I probably won't have much influence on this part. At most, it would be two to three times the amount.'
The emperor continued after a moment of contemplation.
"Very well. However, the details should be discussed separately between you and me. Also, this special permission must not be leaked to the outside. It would be best for all of you present here to remain silent about this matter in the future. This is an imperial decree."
At the mention of the imperial decree, all the nobles present were frightened.
They were openly planning to deceive, and they were told to keep it a secret.
Although it was a crazy and desperate situation, they had no choice but to accept it since it was led by the emperor and the most influential family in the empire.
The emperor informed them of the background of his decision to gain their understanding.
"The reason I made this decision is because it is necessary for the security of the empire. If you have any complaints, is there anyone who can provide such money when the empire is in crisis later? If there is such a person, I will also stop deceiving everyone."
In fact, the Lyon Guild was the only place with enough financial resources to save the empire.
Since there was no noble family comparable to the Lyon Guild, all the nobles had no choice but to agree with silence.
Upon confirming this, the emperor spoke again.
"Then I understand that there is no one who opposes this matter. Please pay special attention to ensure that this story does not leak out in the future. If this story spreads among the people of the empire, I will strictly punish the person who spread the story for violating the imperial decree."
At the emperor's stern warning, some nobles swallowed their saliva with their throats dry.
Watching such nobles, the emperor thought.
'This is my best.'
The emperor needed money for the security of the empire, and Rockefeller also wanted to do legitimate business within the framework of the law.
This event could be seen as their interests perfectly aligned.
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