The Lord Of Blood Hill

Chapter 607: Fiscal Deficit

The southern region of Peace Haven is a good example. More than 4,000 administrative personnel have been directly transferred from other regions.In a short time, they have copied all of Peace Haven's policies, and every aspect of the southern region is rapidly aligning with Peace Haven.

However good a policy is, people are still needed to carry it out.

These civil servants are Henwell's confidence in swiftly annexing and absorbing occupied areas.

In addition, take this southward supply run convoy.

There are more than 10,000 wagons. Apart from the army, more than 50,000 people are traveling with it.

Food, drink, sanitation, bridge-building, and road repair along the route are all planned in detail.

However capable Henwell's brain is, he is still only one person.

Many hands make light work. Henwell sets the direction, the Administrative Office handles the major projects, and then the work is divided downward level by level.

In the end, every one of those more than 50,000 people has their own division of labor. At every stage, what each person needs to do is all part of a complete plan.

That is how more than 100,000 people can march south without becoming a chaotic refugee column, always working in good order.

This is also one of the main reasons Ogiro no longer dares attack. They cannot be sure whether these accompanying civilians are actually an army in disguise.

Peace Haven's public financial income is large, but its expenses are also huge.

This war in particular has hollowed out Peace Haven's reserves.

Fighting a war means fighting with money and resources.

The two fierce battles on the eastern and western defense lines caused Peace Haven to lose a large number of elites. Those elites were piled up with money.

People died, yes, but Peace Haven's wealth also evaporated.

The more direct example is the consumption of all kinds of war materials. The Thunderclap Ballista Bolt and Heart-Piercing Lotus expenditures alone exceeded four million gold coins.

Including other military equipment consumption, the total reaches seven million gold coins.

In addition, the newly built fortress cluster in the southern region is another huge expense.

Organizing the massive supply convoy heading south is also something built from money.

In essence, Peace Haven is already bankrupt now. To put it in more polished terms, the fiscal deficit is severe.

What does deficit mean?

It means they have to borrow money to spend.

Who has that much money?

Of course the lord of Blood Hill has money.

Every year, Henwell lends more than five million gold coins to Peace Haven's public finances.

Peace Haven then has to repay this money to Henwell with five percent annual interest. This is already the result of persuasion from all sides in Peace Haven.

Otherwise, Henwell would have lent it out at three percent.

The consumption from this war is simply too great. Henwell's own reserves are about to be emptied as well.

Including the pensions for soldiers after the war, Henwell will have to shamelessly take out Melissa's dowry.

However, Henwell is confident that by the end of next year, Peace Haven's finances will once again show a surplus.

Likewise, his own personal treasury will fill up again.

But for this year, both Henwell personally and Peace Haven as a whole will have to tighten their belts.

Thinking of this year's huge fiscal shortfall, Henwell feels a headache coming on.

After listening to all the reports, Henwell asks where the southbound convoy has reached.

The convoy has now left Ogiro-controlled territory. In another half month, it will be able to reach Saltwater Town.

After that, it will rest there for one month, and some people and wagons will return.

Henwell thinks for a moment. "Notify the Construction Supervision Office and have them prepare personnel. For the next while, we are going to sell our labor."

"Ika Kingdom needs to build a defensive line in its newly occupied area, and it needs us to build a fortress cluster."

"The price has already been negotiated. A medium fortress is 250,000 gold coins. A large fortress is 900,000 gold coins."

"This is an huge project worth twenty million gold coins, with a three-year construction period."

"The funds will be paid to us in four batches. Do not cut corners on quality either. After all, we are earning plenty."

"More importantly, this concerns our reputation. We are still counting on the Construction Supervision Office to make money in the future."

"After Ika Kingdom starts construction, Lumir probably will not be able to sit still either. They will have no choice but to come to us."

"Do not leave any hidden tricks behind either. We need to have confidence."

"If we can build solid fortresses, we can also destroy those fortresses."

"We need to keep improving. If we stop and just defend what we have already gained, they will only catch up to us."

After saying this, Henwell thinks of another matter. "Right. After the reservists are dismissed, refurbish their weapons and equipment, then sort and package everything."

"Next, I want to sell these weapons. I think that whether it is Lumir or Ogiro, both will carry out a round of military expansion soon."

"When the time comes, we will bundle them for sale. Highest bidder wins. In the short term, only we can provide large-scale weapons and equipment. They will have no choice either."

Henwell paces for a while, then turns back to look at everyone. "Do not just stand there. Think of something. See what other channels we have for getting money."

Gevana, commander of the Second Legion, says, "How about we go rob someone?"

"Attack Lumir, seize the wealth of their nobles, and extort a ransom from them afterward."

Henwell glares at him. "Terrible idea. Next, we need to build a good relationship with Lumir. Turning hostile over money is not worth it."

Ayla says, "How about increasing gold mine production?"

Henwell shakes his head. "No. I have said before that gold is only a reflection of labor value."

"If we produce too many gold coins, we will only lower our purchasing power and depreciate Peace Haven's currency."

"For the next period of time, a large amount of gold will start circulating. Trade development is the real important part. At a time like this, we cannot shoot ourselves in the foot."

Moktor, commander of the Second Mixed Legion, says, "How about asking Duke Phoenix, or Military Overseer Fabio, to lend us some?"

Henwell sighs. "My uncle's territory is undergoing major development right now, and he does not have much money either. What he can lend is not enough for our consumption."

"As for that Fabio fellow, he is also burying his head in developing the west. He is dead broke."

"If I were not fighting a war, he would have come to borrow money from me first."

Simon, commander of the cavalry legion, says, "My lord, how about going to borrow some from Billie's Princess of War?"

Henwell glares at him. "Bastard. Are you trying to make me sleep on the floor when I get home?"

Then Henwell sighs. "Ah, you rough men only know how to spend. Have none of you thought about how to make money?"

"Svir, you are the chief administrator of the southern region. Your mind turns quickly. Tell me if there is any good way to make money."

Svir is the southern region administrator appointed by Henwell, and he is also a talent from Victor's Secretariat.

Facing Henwell's question, Svir rubs his forehead. "My lord, even I want to go rob someone now."

"I am good at spending money. For making money, you should ask the Trade Development Department, or ask Lady Wendy."

Henwell collapses into his chair. "Useless things. Can none of you be a little more useful?"

Everyone can only laugh awkwardly.

There is no helping it. To solve a fiscal crisis, there are only two options: increase revenue or cut spending.

In terms of increasing revenue, during the postwar economic recovery, Peace Haven can earn quite a lot from the three countries.

In terms of cutting spending, they can only temporarily slow down the Technical Research Institute's various gold-swallowing projects.

At the same time, Henwell hopes that Peace Haven's housing prices will soar after this war.

As Peace Haven's largest landowner and largest real-estate developer, Henwell hopes to make a profit from this.

Originally, Henwell had wanted to form another standing legion stationed in the southern region, but now that can only wait.