When the Saint comes, she does not collect food

Chapter 963: Farmers’ Consumption and the Lightening of the Gold Pound

"What do you understand?"

Duke Laban almost slapped him in the face. He hesitated for a long time without saying anything. What was he trying to keep people on suspense?

Casani smiled slightly and said: "This number is a large number when put into 27000 households, but what if this number becomes 27 households?"

The consumption tax of 1 to 3.2 pounds per household is still very high, but it is not so outrageous anymore.

Seeing that Labang was still confused, Casani continued, "What if the number is 54 households? Your Highness, you forgot about the villagers."

"Farmer, you mean the farmer?" Duke La Bang was suddenly enlightened, but then he was still confused. "Impossible, how much can a farmer spend?"

Cassani just smiled but said nothing. He finally realized what was wrong.

Laban only counted the population of the residents in the priestly town, but did not count the population of the villagers who would also go to the town to consume!
Unlike a simple war of independence, the Thousand Valley War appears to be one war, but in reality it is two wars going on simultaneously.

One was to expel the invaders from abroad, and the other was to eliminate the landlords from within.

The big landowners supported Horn and Meliati in expelling the invaders, thinking they would reap the dividends of independence, but in the end they became the dividends themselves.

Their estates were divided, their forests and hunting grounds were parceled out, and their assets and properties were redistributed on a large scale.

Through two wars, Horn completely broke up and reconstructed land distribution, and even the right of perpetual lease became a thing of the past.

The impact on cities is not yet obvious.

But for the countryside, it was equivalent to the Holy League killing off the wealthiest class in the rural area in one fell swoop.

The most beautiful roses grew on these rich corpses.

In just eight years, most peasant families made a class leap.

Small landlords became farmers, and public farmers became free farmers.

In addition to the income from the fields, the mountains, forests, fish and lakes open to the villagers are a huge treasure.

Fisherman Grosien is a typical example. He relied on his fish pond to become a representative of the people.

Excluding the farmers in the New Five Counties and the Gravel Plain, there were 72 farmers in the Thousand River Valley itself, and the war dividends were incredibly large.

This resulted in the creation of 5% of middle-class villagers and 95% of ordinary villagers in Qianhe Valley in the short term.

If this number is put into a district of 400 households, there are about 7600 middle-class villagers and ordinary villagers.

Those with an annual income of 20 to 100 pounds are called middle class, and those with an annual income below 20 pounds are defined as civilians.

An ordinary farmer's family with 60 acres of land has an income of about 3 gold pounds from grain commercialization.

On top of that, able-bodied laborers could even work in small workshops in priest towns or hundred-household districts to earn money, while women could earn money by spinning at home.

This is not nonsense.

The Holy Alliance report showed an average wheat yield of 100 pounds per mu and an average rice yield of 120 pounds per mu, which means that farmers in the Plain County were being held back by their brothers in the Mountain County.

The average wheat yield per mu in the four plain counties was 120 pounds, and the average rice yield per mu reached 140 to 150 pounds.

The 16128 small-scale water conservancy facilities and 13 canals and small irrigation channels were not built in vain.

Horse-drawn seed drills, hand-cranked threshers and improved varieties were not promoted in vain.

The four-field crop rotation system is not popularized in vain.

Even with the unified grain purchase by the Holy Alliance, during the three years of no grain payment, the farmers had an annual surplus of miraculously around 1 to 2 gold pounds.

It is nearly 10 times the annual surplus of the Horn family.

In the past, the church and grain merchants with Leia backgrounds all used barter, relying on the opacity of prices to drive down prices wildly.

Although it is now a unified purchase, the grain output has increased, and the price is transparent, and the currency paid is still real dinar!

The public treasury of the Hundred Households District, farmers' mutual aid organizations, extra income from working, rising prices and sufficient savings finally gave farmers the desire to consume.

Freed from the heavy burden of taxes, farmers finally had their chance.

They had to buy cloth, furniture, build new houses, as well as non-staple food and even meat and sugar.

In addition, they also have to use this extra income to improve the land and optimize the production methods. The middle-class villagers have to spend 5 to 10 pounds a year, and the ordinary villagers can spend to dinars a year.

The villagers spend less, but there are more of them.

By accumulating small amounts over time, the city’s consumption has actually reached the same level as that of 21 county cities.

Casani let out a long sigh and put down the quill in his hand.

Looking at Labang's complicated expression, although he was not a member of the Holy League, Kasani felt an inexplicable sense of pride in his heart.

But after the pride, there was an inexplicable melancholy.

Duke Laban held the verification paper in his hand and remained silent for five minutes.

He slowly sat back in his chair: "Okay, I admit that I underestimated them... But I still have a question, who will supply the goods?"

Among the many questions about the Holy Union, this one is indeed a very critical one.

As it happens, that's all Cassani knew.

"You may not know this, but Shenglian provides subsidies and interest-free loans to new factories..."

The key to Duke Laban's problem lies in the fact that establishing a factory is actually a very difficult process.

Although it cannot compare to the factory establishment in later generations, raising start-up capital and persisting in operations until the first profit and return on investment, each stage is a major test.

The slightest carelessness will lead to the breaking of capital chain.

In this era, building a factory is definitely an asset-intensive business venture with weak risk resistance.

It was difficult to recruit workers in the early stages and there was insufficient production experience. If a mistake happened in other places in the empire, the country would have gone bankrupt and run away.

But Shenglian is different. Not being able to recruit enough workers, lack of experience, inability to produce good products, and no market for products...are not problems.

Because at this time, Shenglian will extend its tangible big hand, provide subsidies and interest-free loans to the factory, and help it find the market through the grace market.

This forces it to be maintained until it becomes profitable.

Otherwise, why are the workshop owners and farmers so enthusiastic? His Majesty the Holy Grandson really gives out money and land.

Of course, the money and land that Horn gave were not his own.

King Gigi on the other side and Pope Priano in the distance felt an inexplicable pain in their hearts.

"You mean to say that Horn is giving money to farmers to spend, giving money to workshops to produce, and giving money to bureaucrats to collect taxes?"

Cassani blinked and suddenly laughed, "It's true. He really succeeded."

It is equivalent to Horn sending out money and then collecting it back in a messy way, but what is the use of this?
Duke Laban had a vague feeling about something, but he couldn't grasp it.

This seemingly absurd scene, but he could keenly feel that there seemed to be some truth in it.

If a college student who has studied economics in the Holy See can clearly tell Duke Laban the difference.

The essence of gold coins is circulation, and the essence of trade is barter.

Using gold coins to measure goods is actually putting the cart before the horse.

The gold coin circulated in society and returned to Horn's hands, as if nothing had changed.

But the farmers got new farm tools and new clothes, and the workshop owners got new workers and new houses.

One of the main reasons why Horn's economy has achieved such tremendous growth in the past four years is something that neither of them has yet realized.

Horn successfully exchanged nearly one million gold pounds for ransom, the Pope's treasury, and grain speculation.

More than 20 gold coins and tens of millions of silver coins!

1000 carts can’t even hold it!

Only with these light and convenient general equivalents of circulation can the magic of money be effective.

However, this touches upon a problem that is currently widely debated among the advisory scholars of the Holy League.

Gold coins are still too heavy, too inconvenient, and too few in number. Can they be lighter or have more?
(End of this chapter)