Steel, Guns, and the Industrial Party in Another World

Chapter 164: The Taxpayer System

TL: Etude

The minor dispute that had occurred during the meeting had come to an end, and the attendees continued to discuss other matters.

“So, Hansel, does the kingdom’s army have any interest in our canned goods, salt, and such?”

“Uh… my lord, due to limited time, I only had contact with the quartermaster under the Princess’s command. However, from his attitude, it seems that canned goods are very much in line with their needs.”

“How many cans can they buy?”

“We didn’t get into such details at the time, but with around 8,000 people under the Princess’s command, their demand should be quite substantial.”

Paul, a bit puzzled, asked, “What do you mean by saying you only contacted the quartermaster under the Princess?”

Hansel explained, “The troops currently stationed at Crystal Shine Fortress aren’t all directly commanded by the Princess. Each general’s troops solve their logistics independently.”

Understanding dawned on Paul. Although these troops were loyal to the same leader, they didn’t have a unified logistics system, which was also common in the armies of the old era.

“So, we have to talk to those generals one by one.”

“Lord Grayman, I have a suggestion. Please organize a trip for merchants and factory owners to the capital, and let them find their own markets.”

“A trade delegation?”

“A trade delegation? Good name. If it’s organized under the name of the Lord’s House, I believe the merchants and factory owners will be eager to participate. After all, it’s much easier to do business under the banner of nobility.”

Paul was very supportive of the suggestion, nodding continuously.

“That’s a good idea. We should cultivate the ‘wolfishness’ in these merchants, letting them seek opportunities and fight on their own. Otherwise, constantly supporting them from both sides will never lead to anything significant.”

Hansel agreed, “Wise words, my lord.”

Paul slapped the table, “Alright, then I’ll leave this task to you, our ‘Agriculture Director’, haha! Oh, and not just canned goods, but also things like porcelain, paper—merchants manufacturing these should also be included. Once the sea routes are open, we can directly ship them south, no need to let middlemen skim off the top.”

Hansel, placing his right hand over his chest, assured Paul, “I’ll start organizing this immediately.”

“But…” Hansel quickly raised a question, “Can our production keep up?”

“I visited several factory owners in Lakeheart Town after I returned. Not just canned goods, but also paper mills, porcelain factories—these are all popular products. According to them, just to meet the current orders, their capacity is already stretched thin.”

“That is a problem. So, I plan to have the newly arrived refugees work in factories, instead of farming. You need to inform the factory owners in Alda and Baylding to recruit from the refugee population. I don’t want to feed these refugees for nothing; they need to start working and creating value.”

“Yes, my lord.”

An idea suddenly struck Paul, and he addressed the group, “Gentlemen, to address the issue of insufficient production capacity, I have another thought—freeing a batch of serfs from the Grayman family. My thinking is this: with the use of machinery like ‘harvesters’, given the current extent of our family’s farmland, we don’t need so many hands. It’s better to free them from serfdom, letting them choose their own professions to support themselves, and incidentally alleviate the labor shortage in the factories.”

This proposal seemed reasonable, and no one voiced any objections, especially since this involved the lord’s own property.

“Not only that, but I also intend to issue a decree encouraging landlords and gentry to voluntarily release their serfs, letting them become workers, and to invest their own money in various emerging industries.”

For a moment, there was silence in the room, and as the people present seemed about to be rendered speechless, Paul quickly added:

“Of course, it’s just encouragement, just encouragement, just encouragement—important things must be said three times. I’m not planning to set any specific targets or indicators to avoid lower-level officials misusing their power for personal gain or causing local disturbances just to show off their achievements.”

The attendees finally recovered from their surprise. Paul sighed in relief and continued, “For those who voluntarily free their serfs or invest in emerging industries, I will offer certain tax reliefs.”

Ford, the steward, twirling his beard, commented, “The idea of replenishing factory labor through the release of serfs is quite good. However, I fear the effectiveness of promoting this through tax relief might be limited.”

Paul was puzzled, “Why is that?”

Ford explained, “Because those landlords and gentry who own a large number of serfs… often act as the ‘tax farmers’ of their own villages?”

“‘Tax farmers’? What do you mean?”

“Ah… a tax farmer is someone who contracts tax collection. The lord entrusts a local prominent figure to collect various taxes from an area and sets a specific monetary target. The tax farmer must meet this target, and if it falls short, they have to use their own assets to make up the difference. Then, they submit the required amount of tax to the lord. Correspondingly, if the collected tax exceeds the lord’s set amount, the tax farmer can keep the excess as their remuneration.”

Ford pointed out why Paul’s policy might not be very effective. “In reality, how much tax is collected is decided by the tax farmers themselves. The more they collect, the more they keep. Think about it, how tempting would it be for them to collect less tax from their own properties?”

Paul suddenly sprang up from his seat, “Is this how taxes are collected throughout our territory?”

Ford was startled by the count’s reaction, “In places like Lakeheart Town, the lord’s seat, and major towns like Port Fran, the lord’s office directly sends tax officials. But in most rural areas, taxes are farmed out to local gentry.”

He was perplexed. Wasn’t this how things had been done for centuries? Why such an intense reaction from the lord, who seemed quite displeased?

What Ford didn’t know was that Paul was internally raging, not at the steward himself, but at this frustrating tax system.

So, he had been unaware of this practice. Not meeting tax targets meant making up the difference with one’s own money? Nonsense, those wealthy landlords couldn’t possibly be that conscientious. Those who were had long been eliminated by history.

Paul could easily guess that these so-called tax farmers were likely exploiting the peasants under the guise of the lord’s authority, stuffing their pockets with the excess after settling the lord’s dues.

The count was deeply distressed, partly for the peasants who were overtaxed and unaware, but even more so because this extra money hadn’t reached his own pocket.

Paul declared, “I will immediately issue a decree abolishing the tax farmer system. From now on, the Administration Council will directly send officials to collect taxes in rural areas!”

Old Ford stood up hastily, waving his hands in alarm, “Please reconsider, Count!”

“Huh? Why? Isn’t the power to collect taxes mine to revoke?”

“Well… theoretically, yes, but…”

Ford pondered how to phrase his advice, slowly saying, “Many tax farmers have been doing this for generations, holding this power in their villages even before the Grayman family was ennobled here. If you act rashly, it could lead to… unrest in the countryside. One or two wouldn’t be a concern, but if they band together, it could cause trouble.”

Hearing this, Paul was frustrated. Were these just local bullies, and he, the ‘mighty dragon’, couldn’t suppress them?

Bryce, the army camp commander, slammed the table and stood up, “Count, the First Battalion of the Army is at your command. Go ahead and reclaim the power from those tax farmers. If anyone dares to disobey, the army will pull them out and execute them by cannon.”

Recently, the navy had gained much acclaim by eliminating various pirates, which had irked Bryce, the army chief. He immediately seized the opportunity to offer his service.

Paul nodded in appreciation to Bryce, glad that the military was on his side.

However, he still gestured for Bryce to sit down and asked Ford, “Is this tax collection method widespread?”

“Yes, it’s an unwritten system that has existed since the Gubera Empire era and is still used by most lords in various countries, oh… except maybe for the city-states around Horn Bay.”

“I really don’t understand, which noble came up with such a bizarre tax collection method.”

The steward, in fact, did not understand why the lord found the tax farming system so bizarre, as it seemed quite normal to him. However, he answered:

“The tax farming system arose for various reasons. Some new lords, upon their arrival, had to rely on local prominent figures to support their rule, making tax farming a form of cooperation. Others were lords who had squandered their wealth, accruing significant debts or in urgent need of borrowing money, and thus had to use tax collection rights as a means of repayment or collateral.”

Paul thought to himself, feeling a bit disheartened, “It seems that strengthening centralized power is the real solution. Hmm! Between serfdom and tax farming, there are two huge burdens on my head. Well, I’ll endure it for now. As my power grows stronger, I’ll gradually deal with them.”

He waved his hand in resignation, “Alright, then let’s not stir things up for now. But the decree to encourage the release of serfs must still be issued. Better to have it than not. Ford, since Miss Ladi isn’t here, please draft it for me.”

“Yes, my lord,” Ford replied, inwardly relieved that the lord had decided not to act rashly.

In fact, as the chief administrator, he too was in favor of abolishing the tax farming system and having the Administration Council take direct responsibility for tax collection within the territory. But such changes had to be implemented gradually and cautiously.

“By the way, everyone!”

Paul suddenly had an idea and asked those present, “Many of you own a lot of land and serfs in your families, right?”

The attendees exchanged glances, admitting, “Uh… yes, my lord.”

People like Steward Ford, Bryce, Cecil, and many heads of the Administration Council belonged to the ‘landowner class’ and naturally owned many serfs.

A wave of tension ran through the room, fearing that the lord might expect them to set an example.

Paul laughed and waved his hand, “Don’t worry, I won’t force you to free your serfs.”

Everyone relaxed a bit.

“However, if you decide to voluntarily release your serfs, it won’t just be a tax relief. After all, having served the Grayman family for so many years, you’ll receive much more in return.”

Their eyes lit up at the prospect of benefits.

Paul raised his voice, “I declare! Anyone serving me who voluntarily frees their family’s serfs can receive a corresponding share of the Grayman family’s enterprises.”

Excitement filled the room.

The high profits of the factories established by the Count were well known, and his current financial strength, including tax revenues, was enough to sustain an army of over two thousand regular troops, something unimaginable in the past. The ancestors of the Grayman family would have been astounded.

Now, the Count was offering them a share in these enterprises? It was like a pie falling from the sky.

Although it required the release of serfs, they had heard Paul talk about his promoted model of farming—employing “agricultural workers.”

This meant that after releasing their serfs, they could hire some people for a small amount and continue farming their land while earning substantial profits from the Count’s factories.

They were just unsure how much of a “corresponding share” the Count meant.

Seeing their eager eyes, Paul smiled satisfactorily.

“Everyone, go back and think about it, and come to me if you’re interested.”

Indeed, it needed some consideration, including for himself. He needed to find some time to ponder how much of a share to offer for how many serfs. After all, too high a price could also be painful for him.

In any case, the meeting continued in an enthusiastic atmosphere.

Hansel stood up and said, “Count, I have a proposal. According to the information I gathered in the capital, the kingdom’s main army is planning to head south to suppress a rebellion next spring.”

“Hmm, and your proposal?”

“Once the war starts, their demand for iron—more specifically, weapons—will surely skyrocket. Shouldn’t we seize this opportunity?”josei

Paul had previously mentioned increasing steel output, but there seemed to be no recent plans in that regard. However, Hansel had been keeping this in mind, as it related to his future prospects.

“You’re right,” Paul agreed. “With the iron mine in Baylding, we can indeed start increasing our steel production. But manpower is also an issue.”

Hansel suggested, “Then I’ll write to our office in the capital to specifically recruit blacksmiths and miners, how does that sound?”

“Good idea,” Paul approved. “And we should use new smelting technologies.”

New smelting technologies—suddenly, he had quite a few ideas in mind.

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