"...The north of Yunshandra Province borders the Lieden Mountains and Yunshig Hills, extending all the way to the coast, with scarce flatland and arable soil. To the south it borders Heron Lake, and the surrounding area is entirely swamp land. Only a narrow corridor-like plain in the center is suitable for cultivation. The population is sparse — a census shows the province's current total population at 580,000, which already includes Grand Duke Forlondo's family armed legion and the 170,000 migrants who relocated with them. Of these, the available able-bodied labor force numbers 147,381..."
"...After more than four months of exploration and surveying, we discovered three iron ore deposits in the Lieden Mountains and Yunshig Hills, two of which qualify as first-grade mines. One gold mine with medium reserves, with an estimated annual extraction value of approximately 500,000 gold Forde. Seven copper mines, all with small deposits. Additionally, there are twenty other viable mineral veins of value. The largest deposit is white kaolin clay, a superior type of clay suitable for producing white ceramics. After research, we believe that a large-scale ceramics industry can be established using white kaolin, making it a signature specialty product of Yunshandra Province..."
"...If a dam were constructed along Heron Lake and the territory boundary, the swamplands of Yunshandra Province could be converted into nearly ten million mu of fertile farmland. This would not only transform the resource-poor Yunshandra Province into a major grain-producing province, but also leverage the proximity to Heron Lake to develop fishing, processing, and aquaculture industries. Additionally, we recommend vigorously planting flax and fine hemp in the farmland near the northwestern mountainous areas to develop a textile industry..."
"...Based on our comprehensive survey and exploration report of Yunshandra Province, we have formulated a five-year development plan requiring 300,000 to 400,000 laborers, with a projected development budget of seven million gold Forde. Over five years, all of Yunshandra Province's infrastructure will undergo comprehensive renovation, with initial completion of all planned arrangements and industrial development layouts..."
On the sixteenth day of December in the year 1785 of the Galentea Continental Calendar, Baron Serdecamp — whom
As Lorist's personal attendant from childhood, Baron Serdecamp was something of a late bloomer. After Lorist returned to the Northland, he had left Lorist's side to manage the practical affairs of developing the family's territories. During last year's New Year celebrations, he was ennobled as an honorary baron by Lorist. For someone of servant origins to rise into the ranks of the nobility was partly due to Lorist's patronage, and partly the result of his own hard work.
After being designated by Lorist as the director responsible for jointly developing Yunshandra Province, he dutifully led nearly a hundred family officials and technical experts in completing the comprehensive survey and exploration of the province over more than four months, with Grand Duke Forlondo's cooperation. He had visibly lost weight from the effort, and his diligence greatly impressed Grand Duke Forlondo, who marveled at how many talented individuals the
However, the enormous development cost of seven million gold Forde was a considerable burden for the Norton Family. Director Spell firmly opposed the Norton Family and the Forlondo Family jointly developing Yunshandra Province. He believed that two to three million gold Forde could be lent to Grand Duke Forlondo — after all, these gold Forde were the family's reserve funds, and sitting in the vault they wouldn't produce little gold coins. Lending them to Grand Duke Forlondo would at least earn interest.
But seven million gold Forde in development capital already exceeded half of the family's reserves. The risk of lending it out for joint development was simply too great. The family currently had only thirteen million gold Forde in reserves. What was more, Lorist was planning to construct a massive palace complex in the southeastern suburbs of Ragebear City to showcase the Norton Family's soaring prestige, and
Director Spell shuddered at the thought of the family being left with only three million in reserves. What if they were struck by a natural disaster or some unforeseen calamity? For other families, three million gold Forde would be enough to live lavishly for a lifetime, but for the Norton Family — a vast household that controlled the entire Northland and governed over two million subjects — three million gold Forde wouldn't even be enough to cover their teeth if disaster truly struck. Director Spell's heart was absolutely worn thin by Lorist's frequent flights of fancy. Couldn't those precious gold Forde simply stay put in the family's vault? That way, Director Spell could at least sleep a little easier...
"Your Highness, why did you suddenly decide to build such a massive palace complex in the southeastern suburbs? Though the situation may seem calm now, that doesn't mean we can just indulge ourselves in the good life..." Unable to contain his confusion,
Lorist smiled ruefully. This was the limitation of the era. Fatty Shi was considered a brilliantly talented figure among the noble circles of the Andinak Kingdom — so renowned that even the
Over the past few years, although Lorist had led the family's armed forces to wage war in the four central duchies for two years, the development of the family's territories had not stopped. Ever since the Northland's population reached over two million and eased the labor shortage, the family's territories had been a picture of thriving prosperity, with rapid economic growth. But the prerequisite was that the large-scale development of the Northland had driven demand. Now that the overall development of the Northland was either completed or nearing its final stages, once these large-scale territorial development projects came to an end, the once-booming production scene in the family's factories, mines, and workshops would face a devastating winter.
"Have you read Baron Barek's report on the development of factories, mines, and workshops within the family's territories?" Lorist asked.
With the departure of the poorly-relationship Director Hansk, whose opposition and obstruction were no longer a factor, Barek — the old hand responsible for the development of the family's factories, mines, and workshops — had finally, after more than a decade of meticulous service to the family, been elevated by Lorist from an honorary baron to a territorial baron. He had gone from a foreman overseeing a small family copper mine to a landed noble — truly an inspirational story.
"I have. This year, the family's fiscal revenue has been excellent, adding two million gold Forde to the surplus reserves — the first time our family has achieved such high net profit income. I've also read Baron Barek's report. Over the past two years, more than thirteen hundred new factories, mines, and workshops have been established across the Northland, the majority invested in and opened by those honorary nobles and merchants who had transferred to our family. These investments have roughly doubled our family's revenue from industrial and commercial taxes last year. Currently, the momentum of industrial and commercial development in the family's territories is very strong, and this year we're expected to set new highs in revenue..." Fatty Shi had an excellent memory and was crystal clear on all the key figures.
Lorist shook his head and picked up another document from his desk, handing it to Fatty Shi. "Take a look at this. I specifically had Schweid send people down to investigate."
Fatty Shi took it and looked — it was a ground-level survey conducted by the Voliber Intelligence Bureau on all the factories, mines, and workshops within the family's territories. The survey focused on one simple aspect: the inventory status of products manufactured by these establishments.
Opening the document, Fatty Shi read aloud: "Forty percent, thirty-eight percent, thirty-two percent, forty-one percent..."
"Your Highness, this is..." Fatty Shi seemed to realize something and looked up at Lorist.
Lorist picked up the fruit wine from the desk, poured himself a glass, and gestured for Fatty Shi to help himself. "The reason our family's territories have seen such explosive economic growth over the past two years comes down to a few factors. First, Grand Duke Fisablen placed orders totaling two million gold Forde with the Snow Salt Trading Company for two consecutive years, and all of these goods are produced by our family's factories, mines, and workshops. The second factor is that the Snow Salt Trading Company obtained permission from Grand Duke Fisablen to conduct trade deep into the northeastern grasslands with the Grass Barbarian tribes. The year before last, the trade volume was worth one million in goods; this year it's two million — nearly double.
The third factor is our family's internal demand. The four hundred thousand displaced persons who migrated from the central region have settled down and accumulated some savings. They need to purchase essential daily necessities and consumables for their families and relatives. Then there's Director Kodan's renovation and construction of the Northland's transportation infrastructure — those nearly seventy thousand mountain barbarian laborers also consume vast quantities of meat, wheat beer, and various daily necessities.
These three sources of demand have driven every factory, mine, and workshop in our family's territories into a frenzy of non-stop production and expansion. At the same time, more and more people, seeing the potential in this growth, have invested in establishing factories and processing plants for these daily necessities and consumer goods. This is the real reason why the family's territories appear to be thriving and flourishing this year."
Lorist drained the fruit wine from his golden cup in one gulp. "Do you remember what I once told you? Most merchants are profit-chasers who lack foresight. These people who are nominally honorary nobles but are really merchants — they've been attracted by the peace and stability of our Northland and the profits brought by large-volume production orders, and they've been rushing to invest in building all sorts of factories, mines, and workshops in our territories.
Investment is a good thing, but when they chase nothing but those two enormous purchase orders, good becomes bad. Look at this survey report and you'll see that most of the factories, mines, and workshops these merchants have built in our Northland are in industries our family's territories already have. If these production units in the same industries don't have a market with guaranteed sufficient demand for their goods, the only result will be vicious competition and price cuts. When they've produced so much that they can't sell it all, the consequences will be bankruptcy and collapse — and then we'll be the ones cleaning up the mess."
Fatty Shi had already grasped what Lorist was implying. "Your Highness, has something gone wrong with the Fisablen Family and the Snow Salt Trading Company's purchase orders?"
Lorist nodded. "Grand Duke Fisablen's annual orders of nearly two million gold Forde over the past two years were actually a gesture of goodwill toward our family. I've told you before that they don't actually need that many daily supplies and goods — most of it is simply resold to the Grass Barbarian tribes. And the Snow Salt Trading Company, after two years of trading with the Grass Barbarian tribes, has now determined the total volume they need to purchase from our family's production units.
Everything has its limits. Just like the Fisablen Family and the Snow Salt Trading Company, their trade volume with the Grass Barbarian tribes also has a ceiling. The Grass Barbarian tribes may be numerous, but most of them are extremely impoverished. Whether they're buying the daily supplies and goods resold by the Fisablen Family or the merchandise brought by the Snow Salt Trading Company, there's a spending threshold and boundary. Beyond that threshold, they simply cannot consume any more.
A few days ago, Grand Duke Fisablen gave me a definitive answer: this year, the goods they plan to purchase from our family won't amount to even one million. And Duke Kamais has also confirmed next year's order for trade goods to be taken to the northeastern grasslands for the Grass Barbarian tribes — only 1.2 million gold Forde.
That's why I had Schweid investigate those factories, mines, and workshops that have been desperately producing and borrowing money to expand. When they discover that the goods they've produced can't be sold, they'll be finished. And that will have a very negative impact on our Northland. If we look at the map, we'll see that the markets where we can actually sell our goods are really just the few provinces surrounding the Northland. Everywhere else, either we can't break into the market, or they can't afford our goods."
"I understand what Your Highness means. Building that palace complex in the southeastern suburbs of Ragebear City is meant to stimulate internal demand within the family's territories..." Fatty Shi said thoughtfully.
"No, that's only a very small part of it." Lorist laughed. "Next January, I'll announce the Fisablen Family and the Snow Salt Trading Company's reduced purchase orders. I believe that news will throw the family's factories, mines, and workshops into chaos — goods they can't sell will lead to bankruptcy and closure. So next year, your task will be to oversee the consolidation and support of these factories, mines, and workshops in the family's territories.
Consolidation means that in each industry, only two to three production units need to be retained. Allocate the purchase orders among them to let them compete with each other, ensuring quality and product improvement.
Support means providing financial backing for new and emerging industries in the family's territories, encouraging them to grow and thrive. The family currently faces no pressing threats, and there are no enemies on our borders. This is a rare period of peaceful development. So within the family's territories, we need to phase out outdated production units and encourage the establishment of new ones.
For example, the palace complex I'm planning will use higher-grade materials. This is no longer the war-torn Northland of old. A peaceful and stable life will gradually lead people to seek higher standards of living. So by establishing production units for premium daily goods and consumables now, we'll maintain our market advantage and reap substantial profits.
Also, my decision to invest in Grand Duke Forlondo's territories and jointly develop Yunshandra Province is to cultivate markets. Think about it — five years from now, when Yunshandra Province's development is complete, it will give our family's goods an additional market. Money must circulate through the market to serve its purpose — it can't just sit in the family's vaults like Director Spell suggests, as if that were the safe option..."
On the fourth day of February in the year 1786 of the Galentea Continental Calendar, the Norton Family and the Forlondo Family signed an agreement for the joint development of Yunshandra Province. The Norton Family would provide seven million gold Forde in development funding to the Forlondo Family over a period of five years, and dispatch an advisory team led by Baron Serdecamp to assist the Forlondo Family in implementing the territorial development plan. After five years, the Forlondo Family would repay the Norton Family for the development investment — two million per year over five years, for a total repayment of ten million gold Forde.
...