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I hear you've started a moneylending business.
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"...... is that a no-no, Mr. Carlos?"
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"Well, a knight's domain is to rule the land. Not to lend money and line his pockets. It's not a good deed in that respect.
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"But the loans have already started. ......"
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Yes, that's what I heard. Well, that's all right. The main thing is to develop agricultural land, isn't it?"
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Yes, that is correct, Mr. Carlos. For now, we are asking the lender to use the money to develop the farmland and repay the loan over a period of several years.
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"Okay. But if too many knights are unable to repay their debts, I, as the lord of Fontana, will be forced to take action to solve the problem. At the very least, be careful not to misjudge the situation, Ars.
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"Yes, sir. Thank you for your advice, Carlos.
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Oh, I thought there might be some opposition, but it seems that Carlos has given his permission for Barca to start a financial business.
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However, it still does not seem to be a very knightly act.
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It is not forbidden, but it is not desirable.
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But even so, there is no choice but not to do it because it is surely profitable.
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This is because the development of farmland is only a starting point.
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If the knight of Barca performs [land preparation] and [soil improvement] in the territory of the knight who lent him money, the harvest of the following year will surely increase.
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But that is the end of the story.
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In the following year, the increased yield will decrease again.
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Of course, the [cleared] fields are much easier to farm than before.
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And it would be possible to expand the area of the field itself.
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But the benefits of [soil improvement] will not be carried over to the next year.
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The yield of crops in the lands that have been ordered to Barka will increase dramatically, but in order for this to continue, the farmers must continue to order Barka to do the work for a long time after that.
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The option of not asking for work is probably not an option that can be taken.
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In this area, the territory is the most important thing for a knight, and the territory is the place where wheat can be harvested, i.e., the amount of harvest is important for a knight.
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Once a knight has a good harvest, he will not give it up voluntarily.
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Incidentally, this is also the reason why the repayment period of the loan was set for several years instead of the following year.
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If the amount to be repaid in one year is small, it is as if the money one borrowed was small.
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However, there will surely be money to be repaid in the next year, and the year after that.
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And in order to pay back the money, you have to keep on making wheat.
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And you need me to do the work.
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But there is a fatal flaw in this plan.
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All this might lead you to believe that Barka will be able to make money forever.
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But in reality, that will not be the case.
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It will probably fail in the not too distant future.
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That is because the market price of wheat will fall.
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If we can harvest much more wheat than we have so far, we can sell the surplus for cash.
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There is no doubt about it, but if many of the other knights follow suit and increase their harvests, the price per unit of wheat sold will drop.
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Perhaps for a few years.
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But after that, the same weight of wheat will surely be sold at a lower price.
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Then, even if you harvest more wheat, the selling price will be low and you will not be able to get more money.
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Therefore, it was necessary to prepare a way to solve this problem in advance.
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The solution is alcohol.
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Distilled liquor, something that had never been done before.
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Distilled liquor is made from harvested wheat and concentrated in a distiller.
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Making a drop of alcohol from a large amount of wheat should help to reduce the amount of wheat that is overharvested.
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In other words, the harvested wheat will be traded in large quantities and the unit price will fall, which is prevented by turning the wheat into alcohol.
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If you want, in the beginning, Barca can buy the wheat and make liquor from it.
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He would monitor the barley market to make sure that the price does not fall, and he would convert the necessary amount of barley into alcohol and sell it.
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Maybe he will not fail.
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By this time, many knights in Fontana will probably be in a position to borrow money from Barca.
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Then, it will be better if he teaches the knights how to make wine and Barca takes care of the soil improvement every year.
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"Hey, are you listening to me?"
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"Yes, what is it, Mr. Carlos?"
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"What the hell, were you thinking of doing something bad? Once again, I don't care if you lend money to other knights. But don't forget to spend it.
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"Spend money? I'm thinking that Barka is pretty rough with his money, isn't he?"
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"No, most of the money you're spending is on the eggs of beasts of burden. They are not made in the knightly domain of Fontana. Instead, you should buy what other knights make in their lands. Otherwise, there will be no gold in Fontana.
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"Oh, I see. Most of the money I earn goes to pay the messenger eggs or the church. But is there any place that makes goods that Barca would buy?
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"You'll have to find that out for yourself. Talk more with the other knights. Even if it is only for business, you will be more willing to talk with other knights when you have a problem with them if you have a regular relationship with them.
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"No, Master Carlos. I always prefer to solve problems through discussion."
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"If you say so, then actually do it. Okay?"
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Carlos gave me a good argument.
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Well, it is true that there may be a problem between knights if they only lend and borrow money.
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But I wonder if there are any goods that Barca would be interested in buying.
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I had to do my homework from Carlos.
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