11- (Goldsmith Song)
Approximately, in one hundred years, the most developed industry would be the Banking Industry. The provision of indirect finance, credit creation, and settlement, should be the three major function of a bank. Though nowadays bank function had become more complicated and mysterious. There was the creation of securities industry, the insurance industry, derivatives transaction, so on and so forth.
Although the influence of a bank was very high toward the public, the bank was still a commercial enterprise; one should never deny them to eat other industry.
“… Please let me introduce myself once again. I’m Kota Matsushiro, the general manager of this project, Search-san.”
“Please do, call me Maria. Please to meet you. So then, for what purpose do you call me? Kota-han…”
While moistening her throat with the tea served to her, Maria graciously crossed her legs while asked Kota a question. Her appearance was dignified a typical figure of a merchant. However…
(W-What should I do?! D-Did I do something rude to him? What did I do?)
Her inner heart was screaming. Still, Maria was the daughter of a merchant. She had seen his brother and father do negotiation in a dignified manner, and sometimes saw their cunning side. Merchant was a creature that won’t go easy against anyone. Since if they showed a little bit of opening, they would lose every negotiation.
Though despite that, her hand trembled slightly due to the situation. –
“I have no particular reason to call you. Though, there is something I would like to ask…”
Kota asked her if it was okay to continue, and Maria nodded in reply.
“It is about splitting the deposit certificate.”
“Ah, is it no good?”
“No, I have no problem with it. Though I have no problem with it, I just want to ask the reason?”
“Well, even if you ask me that…”
In Kota’s world, in just one hundred years, the most developed industry would be the Bank industry. Whether or not that was bad or good, nobody knows.
“… Well, fine then…”
She remained silent for a moment. She contemplating whether telling the truth would be good for her or would it turn ‘loss,’ the moment she thought it would be disadvantages for her, she opened her mouth.
“There are three reasons…”
“… First, imagine, holding a certificate worth of 10,000 white gold coins, it is scary don’t you think? What would you do if the certificate got stolen? That is why I thought it would be better to split them into multiple certificates…”
Risk hedging. Very reasonable indeed.
“Next would be deposit certificate. The way ‘deposit’ means, there was no problem for anyone to exchange it as long the certificate is authentic, yes? That is why I thought of using it for business…”
“Could you, elaborate?”
“If I trade it, they can exchange it into white gold coins in ten years, no? It would be easier than trading using physical white gold coins and gold coins. Think about it, how heavy do you think 10,000 white gold coins are?”
“… That is, indeed… I’m glad I didn’t make it 100,000 pieces…”
“If you asked us 100,000 pieces as a deposit then, nobody would be able to bring them…”
Certificate that could be exchanged into white Gold coins, in other words, Bill Notes. I guess that would be white gold standard. <TLN: Before our current monetary system, we have Gold Standard, this is similar to that…>
“… So? The third reason would be?”
“I have no money left. If you can divide the certificate, I could use it as money, yes?”
“… Is that fine with you? Revealing your hand…”
“I cannot tell a lie here, no? I’m planning on profiting as much as I could…”
“If I’m not wrong, Search Firm was one of the big business at Kato?”
“My store will have nothing to do with the Search Firm main store itself. I want to enlarge the store with my own skills. If it is not like that then I could just say to my father, ‘I will pay the money after you died, please let me borrow some…’ It sounds not right…”
From her words, Kota could feel some competition…
“You’re planning to pay him in his lifetime then? Won’t your father feel disappointed?”
“Opposite, he said ‘I will live for the next 20 years, don’t go around and kill me!’…”
This time around, it was Kota who laughed.
“…Ah, Please excuse me. I see I understand your reason. I will divide the certificate as per your request. However, do you mind if I give some condition to it?”
“… Depending on the conditions…”
Of course, she won’t accept it if he asks for unreasonable things.
“Don’t worry. Even if I said it as conditions, it is something not that big. I would like you to spread the use of certificates to purchase funds…”
“I don’t understand your aim?”
“There will be something that cannot be traded with white gold alone right?”
“Well, of course…”
“The merchant in this Terra, all of them has potential. I want you to persuade them to do the same…”
“… All of them?”
“Well, the number of business in Terra right now are 34. I think I would be satisfied if half of them perform trade with the certificate instead…”
“If half doing it, the other half will follow…”
Hearing Kota’s words, Maria fell into silence. Indeed, one would suspect something if a piece of paper could turn into white gold coins. Even if that was the case, was there even a merit in doing trading using physical white gold coins?
“… Sure. However, I cannot promise the result?”
“I don’t mind. It’s just, I would be grateful if the information even reached your home country…”
In Terra, we perform trade using certificate rather than physical white gold coins, such information.
“… I understand. In exchange?”
“… What do you mean?”
“For me, I will perform trade using the certificate. I will also spread information to even our home country. So, what compensation will I get from this?”
Maria’s eyes shine while saying those words.
Throwing Kota into confusion…
“… Excuse me but, I do accept your request to divide the certificate yes?”
“That’s right. With that, I will perform trade using the certificate as the condition…”
“Sending the information to my home country is another story. Or else, our exchange would be unfair…”
“… Hee, you are a greedy one aren’t you?”
“Thank you for the compliment.”
“For us, it cost more to divide the certificate you know? Can I refuse?”
“I don’t think it was that simple?”
While drinking her black tea, Maria leaked a smile. Inside her heart, she was giggling in excitement.
(Oooh, calm down me! Don’t get too excited…)
“… You take time to call me for meeting and asked me to perform trade using the certificate. I don’t know what purpose you do this, but at least I know you want to promote this trading using certificate thing, yes? Extra cost? Expense? Do you think I’m stupid?”
“Fine, I admit it. Indeed I have some aim for this trading with the paper thing. But, I can ask other merchants you know? No need to be you specifically? I have no problem asking others to do this?”
“It won’t be that easy yes? All the merchants who came here were big merchants inside the Ortkena continent. I don’t think they would give you condition as cheap as I do?”
She continues with a smile on her face…
“… For Kota, won’t it be more pleasant to trade with beautiful Onee-chan than stinky old man?”
After saying that, she winked. Though her charm as a woman was lacking, indeed she was a beautiful woman.
“You said that to yourself?”
“… You don’t agree? Fine with me though…”
While Kota smiled bitterly, Maria diverted her eyes shyly…
“… Fine then… In respect to your courage and thick skins…”
“The thick skin part is unnecessary…”
“I will give you 200 white gold coins for the 10,000 deposit. How is it?”
“… How about 1,000.”
“… As expected, that would be too much don’t you think? 300?”
“900… I need to prove that I could get a lot of money to my father you know?” –
“That is your problem no? Not mine… 400.”
“Oh, you realize eh? Come to think of it, do you know how much it cost to go to my home to spread the information? 800…”
Kota sighed. We got nowhere he thought…
“… Honestly, you don’t hold back, aren’t you? 500 White gold coins. I cannot agree more than this. In exchange, I will provide you with one of the best places in the commercial area.”
“… Aren’t you going to do a lottery for that?”
“I will do something about it.”
“… Oh, how nasty you’re…”
“… Not as nasty as you… Anyway, Maria-san. In exchange I want you to follow one more condition…”
“… There’s more?”
Saying that Kota drinks some tea to warm his body, then continue.
“… Please borrow some money from us.”
– – –
No matter what, Kota was a Banker. From brokering stocks, to buy and selling bonds.
“Please borrow money, from us.”
The way a Bank obtained money to maintain itself was mainly via “Credit Business.”
“… Is that fine?”
“If you ask her to borrow money from you, it would be obvious that she would borrow without hesitation, is that okay?”, she asked while tilting her head.
After Maria left the room, Erika began asking a question to Kota.
“I’m fine with you increasing the interest of that 10,000 white gold coins. The land allocation also fine. And lending money also fine with me…”
“So? What’s the problem?”
“Why did you choose her?”
With Erika gazing at him, Kota shrugs his shoulders.
“She noticed that it was a deposit certificate, not under custody certificate. That alone was a bit different…”
“Is that so?”
“She also realizes the value of the certificate as trading items. To be honest, I underestimate her. Rather than smart… Her head works pretty fast… As a merchant, that is a good ability…”
“…Her hand is trembling though?”
It seems Erika also realize it.
“Experience comes later. Her negotiation was not good but not bad either. Besides, she said honestly that she didn’t have money. Honestly, she would borrow money even with 2% interest a year…”
“Is that fine? As a merchant to be like that…”
“I don’t know if it is as a merchant, but as a business partner, you want someone like that…”
“… Well, I guess so.”
“Her parent house also has a big business. If her home parent spread the deposit certificate, the news would spread far more quickly…”
“… You mean?”
“In other words, I want that Terra deposit certificate would also spread in Orkina faster. With that being the case, Terra would be the center of economy of the continent, that possibility is high…”
Having major currency spread all over the globe would make an immeasurable advantage for the economy. In Kota’s world, the Dollar would be the one, anyone could see how that supports the hegemony of the united states of America economy.
“Thinking that It is inevitable I choose her no? Besides, it is far more faster for the merchants to spread the news rather than us doing it…”
“Is that so?”
“Rumors coming from them have more penetrating powers than even senior public authority. Not to mention, reputation cannot be bought with money see…”
Kota drinks his tea and stands up as soon as he finished talking. While looking at his back, Erika asked a question.
“… The way you choose her, there’s actually something to do with her being a pretty girl, no?”
“… In the end, I’m a man after all.”
… That beautiful wink of her deserves a thousand dollars.
Economic Knowledge 6.
One of the theories of the beginning of a bank started from gold storage created by one of Goldsmith department. For details, please do search “Goldsmith bank.” There was also another various theory concerning how the bank industry being created. –