Chapter 197: The Castilia Settlement
In the office where Lyle-sensei, the regent of the Kingdom of Silesie, oversees state affairs.
She placed a large amber slab against the back shelf.
Inside the amber was a fascinating artifact of an ancient insect with strange wings and legs, offering both scientific value and an intriguing display. It seems the souvenir from the Kingdom of Rastore was well received.
Lyle-sensei listened with great interest to my stories about Twangste Port. She appeared more pleased with the substantial profits it would bring to Silesie than with the amber itself.
「Thank you for the interesting souvenir, Takeru-dono. In return, I have some good news to share with you.」
「Oh, what might that be?」
As I relaxed on the silk-covered sofa, Lyle-sensei placed a hefty stack of documents in front of me.
「The Kingdom of Castilia has paid half of the indemnity, fifty thousand platinum coins. Twenty thousand will go to the United Kingdom of Britannia, another twenty thousand to the Duchy of Transylvania, and the remaining ten thousand will be used for treasures, which we will allocate as needed, including the development of the port of Nant.」
I looked through the documents, finding the details complex and difficult to grasp, but I noted the final numbers for each category.
Leaving most of the specifics to Lyle-sensei and Shelly seemed to be the right decision. 「But how did you get the Kingdom of Castilia to pay?」
「Well, after sending a diplomatic mission to the southern countries, we gathered the Silesien fleet at the port of Baros in Castilia. That convinced them to pay.」
Brutal.
The Castilian navy had been destroyed. With the Silesien fleet blocking their outer port, their trade came to a standstill.
They had no choice but to pay, though they did so reluctantly, managing to gather the fifty thousand coins.
「Can they pay the remaining fifty thousand coins?」
「No, it’s seventy thousand platinum coins.」
「Oh, right.」
Due to the compensation for the damage caused by the Demon Dragon King, there’s an additional twenty thousand coins. Lyle-sensei mentioned it so casually, but it’s a huge amount.
「If they pay up quickly, we can withdraw our fleet. But perhaps we’ll shake them up a bit more.」
One platinum coin can buy a warhorse more valuable than a slave. By simple calculation, seventy thousand coins could fund an army of seventy thousand knights.
Even the elite guard of the former Germania Empire, the strongest land army in the continent of Eura, only had five thousand knights. Collecting cavalry from all over the Kingdom of Silesie wouldn’t reach five thousand.
There aren’t seventy thousand horses on the continent of Eura, and there aren’t seventy thousand platinum coins either. The Kingdom of Castilia’s treasury must be empty after gathering the equivalent of fifty thousand platinum coins in gold and silver treasures.
The treasure vault of the Castilia Royal Palace, once known for its opulence, must now be quite desolate. The king of Castilia might be shivering from the draft in his study.
「By the way, I see our castle’s furnishings have increased.」
「We’ve brought some ashore and transported them here. Since Silesie is to become a world capital, the interior should reflect that status.」
The comfortable silk-covered sofa I’m sitting on is also a spoil from Castilia. As more diplomatic missions are likely to visit, upgrading the interior makes sense.
Sadly, Castilia’s status decreases proportionally.
「It would be great if they just gave up their ships and port facilities.」
「Movable assets aside, it’s hard to part with real estate that generates future profits.」
Even with all the wealth amassed by the Kingdom of Castilia, they don’t possess 170 thousand platinum coins. To pay such a vast sum, they would have to offer goods and sell off their interests.
Without money, Castilia would have to relinquish their many merchant ships, overseas production facilities, and mining rights. What the Kingdom of Silesie truly desires is not the gold itself but the sources that generate wealth. Losing these would ensure Castilia’s permanent downfall, prompting their desperate resistance.
「Surely, the Kingdom of Castilia won’t repeat the mistakes of the Germania Empire?」
I immediately recalled the collapse of the Germania Empire. This once-great empire fell due to a mere fifty thousand platinum coin indemnity, as prolonged wars strained their finances.
The disastrous war with Silesie and the heavy indemnity compounded the empire’s financial collapse, leading to the secession of states like the Duchy of Lanct. In contrast, Castilia had a robust domestic economy and a well-filled treasury, having avoided internal strife.
Even so, another seventy thousand platinum coins is impossible. With an empty treasury and unwillingness for further payments in goods, they can only squeeze their populace.
However, Castilia, having lost the great war, must have already pushed their citizens to the limit for war expenses. Further extortion would risk a popular uprising.
「Hahaha, indeed. His Majesty, the ‘Study King’, isn’t foolish. Yet, whether they sell their ships and port facilities or extract more from their people, the nation will falter, and we can’t help but sympathize with their suffering.」
「What about issuing convertible banknotes?」
「The likelihood is low. Castilia might consider it as an alternative to the currency shortage caused by tax collection. However, they won’t likely take that step, fearing they might repeat the Germania Empire’s mistakes.」
「Because it might incite a rebellion?」
In the case of the former Germania Empire, they forced convertible banknotes onto their vassal states to combat deflation, which ultimately triggered rebellion. The banknotes had no trust behind them in Germania.
Though the strategy failed, the underlying idea wasn’t entirely flawed. Eura has always had a tendency towards a shortage of settlement currency.
Each nation on the continent issues coins in four types: platinum, gold, silver, and copper, maintaining a standard of four grams per coin with a 98% purity. When national finances worsen, rulers typically consider debasing the currency to lower purity in a pinch. However, this isn’t possible in Eura.
The Asama Church, the world’s sole authoritative religion, sets the value of coins and mandates, ‘Each coin must weigh four grams with no reduction in purity’. Any covert attempt to debase coins would destroy currency credibility and turn the global church and its followers against the culprit.
This form of fixed currency led by the Asama Church effectively prevents malignant inflation but hampers economic stimulation. Despite banning coin debasement, the Church surprisingly hasn’t prohibited the issuance of banknotes.
This indirectly suggests the need to print convertible banknotes. Though it seems a roundabout method, the Asama Church appears to aim for societal progress.
The Silesien government is also researching and testing convertible banknotes for future use. Building trust and preventing counterfeit currency, which comes with banknotes, is essential.
To address the immediate currency shortage, we’re vigorously developing mines. Even if we secure enough currency, coins are heavy, which can hinder trade. Thus, as an alternative, we’ve begun banking operations through the Sawatari Company, now a global enterprise, allowing for gold deposits and withdrawals at various ports.
We also lend to promising trading companies with the funds we collect and have established a joint-stock company to raise private capital for the development of the port of Nant. This is less about raising funds and more about creating a financial market.
Establishing a stock market and banking operations at international ports might be more advanced than introducing convertible banknotes. At any port with a branch of the Sawatari Company, transactions can be settled with deposit certificates.
As a naval power, the Kingdom of Silesie is gaining trust, making the introduction of convertible banknotes a matter of time. With strong credit, the ability to generate wealth will increase.
The outdated Kingdom of Castilia can’t keep up with Silesie’s new business methods. Even without the indemnity, Castilia will eventually lose the economic war.
「The Kingdom of Castilia will have to sell their valuable profitable sectors to pay off their debts. It must feel like cutting off a limb. I’m glad I’m not a minister in Castilia.」
「But we won’t wait for their payment, right?」
Lyle-sensei nodded quietly at my question. As usual, we might even use the Demon Dragon King as a bargaining chip to expedite payment. Sensei shows no mercy to enemies.
※※※
If I leave childcare to Ria and the others too much, my children might forget me. So, I find some free time to visit the nursery in the inner palace and play with Orakeru, the child of Oracle and me.
「Peek-a-boo!」
「Giggle giggle」
Seeing my adorable son’s laughter, I think he might be destined for greatness. Despite being an infant, he grips my finger tightly, showing impressive vitality.
Even though I haven’t visited in a while, he plays with me without fuss. He smiles at anyone who holds him, a sign of a remarkable character.
Rather, it’s as if my son Orakeru is the one taking care of me. As a father, I still feel inexperienced, but Orakeru seems destined for greatness. Maybe we’ll manage just fine.
「With Oracle’s intelligence and looks, he’ll grow up to be quite handsome.」
「Takeru, he’s still a baby; it’s too early to tell.」
Ria teased me with a laugh. She claimed I was being a biased parent, though I felt I was being objective.
Looking at Ria’s growing belly, I pondered what kind of father I should be with more children on the way. We’re already expanding the nursery in the inner palace for the upcoming baby boom.
Maybe I shouldn’t be going on adventures right now. I need to be present for the births. As these thoughts crossed my mind, Lyle-sensei arrived.
「Takeru-dono, there you are. We have an urgent matter.」
「What is it?」
「A rebellion has broken out in the northern region of the Kingdom of Castilia.」
「Well, it was bound to happen…」
Sensei unfolded a map of Castilia, showing the uprising in Pamplona, northeast of the capital.
The rebellion was triggered by repeated tax hikes to pay the indemnity. The oppressed Dandorian, Visconian, and Cantabrian peoples of the north rose up simultaneously.
Centered around Pamplona at the base of the Andorra Mountains, they formed a tripartite kingdom and revolted against Castilia.
「They plan to name their new kingdom Aragon, after the country Castilia once destroyed. A Dandorian descent named Ramiro, bastard son of King Sancho III of Aragon, is said to be leading the independence war.」
「I’ve heard of the Dandorians.」
Indeed, the Dandorians living in the Andorra Mountains are a small ethnic group with black hair, black eyes, and pale orange skin, resembling East Asians. I’ve heard they look quite similar to me, though I can’t recall where I heard it.
「Interesting. The Dandorians are a minority in the Andorra Mountains, and the Kingdom of Castilia’s advance mage, ‘Fascination’ Celestina Siren, is from there.」
「So having an advance mage on their side gives the rebellion a real chance.」
An advance mage can be a devastating force, capable of achieving tactical victories alone. If such a mage joins the rebels, it’s reasonable to think they could succeed.
「And then there’s the silent support from the Kingdom of Silesie.」
「Sensei… you’ve been busy.」
Sensei smirked wickedly.
Castilia, trying to catch up to Silesie, had even started developing cannons.
Despite losing their naval prowess, they probably thought they could easily crush a northern minority rebellion. Ironically, the northern region of Castilia borders Silesie.
If Silesie supplies the northern rebels with weapons, the outcome of the war becomes uncertain. The rebels will fight desperately, and if they get Silesien cannons and muskets, Castilia, already weakened, might be at a disadvantage.
「Study King seems to have skillfully squeezed taxes from the provinces to the brink, trying to pay the indemnity without selling off assets… but he crossed a dangerous bridge and slipped. They should have expected our interference.」
「I suspected as much. King Ferdinand wouldn’t repeat the same mistakes as the old Germania Empire. So you stirred up the rebellion.」
「Be sure to commend Neneka and the others later.」
Come to think of it, I had entrusted Sensei with a scout team of spies to investigate Castilia. So that’s how Neneka and the others, whom I had infiltrated, were used to incite the northern tribes’ rebellion. As always, Sensei’s methods are ruthless.
「I’ll commend Neneka and the others. It’s inevitable, I suppose.」
「I know inciting a rebellion in an enemy country isn’t your style, Takeru-dono, but please forgive me. This will split the Kingdom of Castilia, rendering them no longer a threat.」
The fire had been lit under their feet.
The Kingdom of Castilia would no longer have the capacity to challenge the Kingdom of Silesie.
「But Sensei, let’s try to keep the casualties to a minimum.」
While eliminating Castilia’s threat is beneficial, it is a burden on the people caught in the conflict. It’s hard enough for them to be squeezed for reparations, but a civil war could cost them their lives.
「To end the civil war quickly, we must make the Kingdom of Castilia believe they cannot win. For that, I need you to meet the new Queen of the Kingdom of Aragon.」
As Sensei said this, there was a noise at the children’s room door. The half-open door swung fully open, and a seductive woman entered.
「You are… Celestina?」
「Long time no see, Silesie’s Hero-sama. I’ve come to repay my debt…」
Her long purple hair, beautifully sculpted features, and wet, black eyes were strikingly familiar. Her voice, rich with an alluring tone, was one I recognized.
She wore a dress with a plunging neckline and a skirt with a high slit, revealing her radiant thighs. There stood ‘Fascination’ Celestina Siren, the former advance mage of the Kingdom of Castilia.