CHAPTER 460: CHAPTER 438 MEETING CATHERINE AFTER THE BRIEF MEETING (PART 2)

"Of course not."

Gritting her teeth and glaring at Horn several times, Catherine slammed the ledger onto his chest, "These 250,000 gold pounds are only on paper; the actual estimate is much lower.

The cash from various commerce associations in Rapids City is estimated to only be 70,000 gold pounds, and just around 30,000 gold pounds in the Meigedi Vault."

For some reason, Catherine and Horn have only known each other for about ten days, yet they often play around like this.

This kind of minor "fuss" is, for Horn, a means of closing the gap in their relationship, and also a way of expressing himself.

After all, aside from the Saintesses, no one dares or can be so relaxed and playful with him.

Of course, this approach is person-specific. For serious and earnest people, Horn wouldn’t joke around like this, for example, Hilov.

As for Jia Li (Moliat), she often sees through Horn’s little jokes immediately and would even retort.

Only Jeanne and Catherine, whenever teased, would always respond, though Jeanne tends to retaliate with too much force, which hurts.

By comparison, perhaps because Catherine is still not too familiar, she hasn’t retaliated so far.

"This liquid capital is already quite substantial." Horn leaned back in his chair, rubbing his temples, "The annual taxes from the Thousand River Valley are only 60,000 to 70,000 gold pounds; you have plenty."

"Who says?" Catherine rolled her eyes, "Based on our estimates, the total annual tax revenue from the Thousand River Valley is nearly 700,000 gold pounds; they’ve only submitted 60,000 to the Leia Royal Family.

The remaining ends up either in the Church’s pockets or the local aristocracy’s...

Enough about that; for now, you’re the true ruler of Rapids City. Any thoughts on the banks?"

"The general framework remains unchanged; even if it changes, it should be planned and implemented on a yearly basis." Horn responded after taking a sip of red tea.

Horn actually knew well that, under the current conditions of the Empire, the Rapids City government has a relatively advanced political system, and overextending beyond productivity with reforms is unnecessary.

For example, the apprenticeship system in workshops is superficial before the advent of the industrial age; no matter how much it is reformed, it’s either treating the symptom or costing more than the benefit.

The fundamental reason rests in the production level not being able to keep up; forcibly changing production relations is counterproductive.

What’s advanced isn’t necessarily the best; what’s suitable is the best.

With the advent of factory production, the apprenticeship system will naturally disintegrate, and reforming it then would just be facilitating the process.

What Horn aims to do is nothing more than expanding the number of artisans, promoting pre-industrialization and large workshops, and gather resources for industrialization.

Thus, his primary goal upon coming to Rapids City is to establish rule, restore the city’s economy within a year, and at most, clear out some of the remnants of the Empire’s system.

Horn intertwined his fingers and placed them on his knee, pondered for a moment before slowly speaking:

"Firstly, you’ll need to cut down on high usury business and ban civilian usury, absorbing private lenders’ funds into the banks, opening deposit and loan services to the public.

We’ll establish a Sanctuary Monastery in Rapids City, recruiting former loan agents, introducing insurance, credit rating, and loan auditing to minimize your risk premium."

The so-called loan agents were landlords skilled in lending, bullies, Knights, or even estate Stewards.

There were even a small batch of citizens specialized in this, maintaining a team of enforcers and accountants to help gentlemen lend money and collect debts.

They have their set of practical experience for assessing risks such as whom to lend money to and at what interest rate.

After sending them to Horn’s arithmetic class to polish up probability studies, employing them as insurance managers and loan auditors is quite feasible.

"But there’s a problem." Catherine frowned, as a top banker, she instantly saw the crux of the matter, "Once private lenders are prohibited from usury, they’ll deposit their money in our bank for interest.

The money in the bank increases, but you know agricultural yields aren’t stable. If any natural or human disasters occur, without private lenders, where would people turn to get through tough times?"

Horn spread his hands: "My suggestion is for the Pope’s Palace and Meigedi Commerce Association to jointly invest in establishing a public-benefit-focused inclusive bank.

As for how to lend, minimize risks, penetrate rural and civilian sectors, that’s your challenge."

Seeing Catherine jotting down ideas thoughtfully, Horn nonchalantly mentioned, "Any ideas can be discussed at the Imperial Cardinal Conference, and any points you require our cooperation with can also be brought up there."

"The Imperial Cardinal Conference?" Catherine looked up in confusion, "Isn’t that your highest decision-making body? Can I participate too?"

"Not only can you participate, but you can also be a permanent member." Horn explained, "Since you’re a Saintess, you automatically possess a Cardinal status, which makes you part of the highest decision-making core at the Pope’s Palace."

The highest decision-making core of the Pope’s Palace... Catherine’s feather pen gradually paused in her hand.

In that moment, she finally felt the real weight of the Saintess identity; this was not just a title handed out indiscriminately but a quite significant holy office.

"Well, that’s the end of this section; let’s move on to the next topic." Putting down his crossed leg, Horn smoothed out the creases on his pants, "It’s about the division of your Meigedi Bank."

Having just been happy about entering the core decision-making body of the Salvation Army, upon hearing this, Catherine’s scroll noticeably acquired a few additional creases: "Speak."

"Don’t be nervous; Meigedi Commerce Association Bank is the holding bank for 11 other banks, correct? Let’s split it into two parts, the Imperial Saintess Bank and Holy Treasury Believers’ Bank."

Horn picked up a delicate blue feather pen from the ground and started writing and drawing on a sheet of rough paper.

"Both need to undergo palace-based reform policies, with the Imperial Saintess Bank belonging to the Imperial Cardinal Conference, aimed at profit, and the Holy Treasury Believers’ Bank belonging to the Pope’s Palace, mainly responsible for maintaining economic stability and regulating the market."

"What is palace-based policy?" Catherine looked up and asked.

"It means this bank is owned by the Holy Father but managed by the Pope’s Palace. Individuals can’t own it, and private shares are converted to Holy War Bonds or five-year fixed deposits."

"Well, this is akin to dissolving all banks." Catherine eyed the text under the feather pen, "Those senior partners would surely be dissatisfied."

"No, no, no, those smaller banks can become subsidiaries held by palace-based banks, continuing to operate privately.

I can even grant Rapids City private banks operating privileges, but they’ll need to undergo qualification review and approval by you, Catherine.

It’s just the small banks you used to hold shares in—the shareholder will shift from you, Catherine, to the Pope’s Palace."

Horn produced his small notebook and began explaining: "I don’t mind giving those senior partners a seat in the Saint Monastery or the Senate."

Another reason for this move is that the Meigedi Commerce Association controls a vast number of workshops, shops, and trading ports through bank holdings.

This recent military disaster hit the Meigedi Commerce Association hard, yet Catherine’s act of raising a long wall with vines preserved a large portion of vital labor force—various artisans.

Although they’ve lost the workshops they relied on for survival, most of the skills and tools remain intact, and the dependency on the original workshops has been dismantled, making it an opportune time for integration.

Horn intently gazed at Catherine: "Your another major task is to integrate and reorganize the various workshops, preferably concentrating closely related industries into large workshops.

Do you understand what I mean?

For instance, instead of sending combed wool from the south of town to the north, send it to the spinning room within the same workshop. Once spun, don’t transport it from the north back to the south but send it along the production line to the weaving room.

Once the fabric is woven, conduct quality inspection, then immediately send it to the dyeing workshop next door, achieving high efficiency with low loss."

"Integrated weaving and dyeing..." Catherine recalled her earlier wool plan, "No, no, that’s more like a transmission-style integrated weaving and dyeing?"

"That’s called assembly line style. We also have the standardization principle; the Holy Father gave me a booklet on Paradise Mountain called ’The Method of Rational Management.’" Horn contemplated a bit before speaking, "In addition to that, we still need to plant some more monks from the Saint Father’s Association within the Meigedi Commerce Association."

After jointly reviewing the notes, Horn added, "In addition, within the Meigedi Commerce Association, we need to insert some more monks from the Saint Father’s Association.

On one hand, this will help the Saint Father’s Association develop new members, while on the other, it will bestow them with suitable banking skills.

Then you’ll also need to trim the City Council’s powers a bit, limiting them to supervision, consultation, and suggestion."

"A year’s time, not easy at all." Despite previously celebrating her entry into the upper decision-making body of the Salvation Army, hearing this, several obvious creases appeared on Catherine’s scroll: "You’re saying."

"Don’t worry. The Pope’s Palace will be your strongest backing, and I’ll also assist you." Horn waved his leather-bound notebook around, "If you get too tired, just read some romance novels to relax..."

"Say that again."