Chapter 478: Chapter 346: Papermaking and Printing
Pigeris pondered carefully and humbly asked for advice, "Leader, if we really want to issue this paper currency, how can we ensure that it holds its value when buying things?"
Maximus, while deliberating, said, "To make paper money valuable, firstly, the tribe cannot carelessly issue paper currency... We must first know how much grain and goods the entire tribe has harvested and produced in a year. These grains and goods are to be sold in the market, and we need to know the total amount of money required...
Uh, I think this data should be relatively easy to calculate. As for grain, the Finance Department already has records when it collects land taxes from the tribesmen every year. For goods, the Commerce Department manages the various markets, so they can conveniently compile statistics. Adding these two parts gives us the total wealth created by the Nix Tribe through hard work in a year—"
Pigeris suddenly realized and interrupted, "Then when we issue the paper currency, we should make sure the total value of these currencies matches the total wealth created by our tribe. This way, the paper currency will hold its value, right, leader?!"
"You got part of it right, but not completely." Maximus continued to explain, "We also need to look at the circulation frequency of the paper currency in trade. How should I put it?... Suppose you have a lot of chickens at home and produce quite a few eggs. You go to the market to sell the eggs, earn some money, and use that money to buy wheat to feed the chickens. In other words, you participated in two transactions using the same amount of money. If all the tribesmen in the market participated in two transactions, what does that indicate?"
"It means we only need to issue paper currency equivalent to half of the total wealth created by the tribe in a year to satisfy the entire tribe’s trade activities, because as the leader said earlier, currency is merely a medium for exchange in trade." Pigeris blurted out.
"Exactly!" Maximus nodded approvingly, "As expected from someone engaged in trade, your reaction is quick in this area."
"But, leader... calculating the circulation frequency of currency isn’t easy..." Pigeris complained.
Maximus smiled slightly, "It’s not very difficult. There is a relatively simple calculation method: the total amount of money from the market’s goods transactions in a year divided by the circulation volume of currency in a year is roughly the circulation frequency—"
"Leader, please wait a moment before you continue!" Pigeris quickly got up, ran in small steps to the secretary next to Maximus, borrowed paper and pen, returned to his seat, and requested, "Leader, could you repeat that, please?"
Maximus reiterated it once more. Seeing Pigeris jot it down, he reminded, "This is just a rough method. To obtain more accurate data, your Commerce Department will need to discuss thoroughly, and through continuous practice and recording, figure out better recording methods.
However, for now, our tribe’s trade has just begun, and the majority of the stalls in the market sell goods manufactured by various workshops of the tribe. Tribesmen buy them for their use at home, and there is rarely a second transaction. Therefore, the total amount of paper currency we issue for the first time just needs to equal the total wealth manufactured by the tribe in a year.
In reality, even doing this results in a larger total amount of paper currency, because most of the grain harvested by the tribesmen, except for taxes, is still used by themselves and not brought to the market to sell. Of course, we won’t distribute all the manufactured paper currency at once, so the value of the paper currency should not be greatly affected—"
Maximus swallowed to moisten his somewhat dry throat and continued, "Once we know the total value of the paper currency to be issued in a year, we need to carefully consider what denomination each piece of paper currency should have. If it’s like what Pigeris just said, putting a thousand gold coins on one piece of paper currency obviously won’t work, as it’s neither convenient for trading nor does it prevent the paper currency from becoming worthless.
In this regard, we can entirely learn from the gold and silver coins. We can have paper currencies with denominations of one Du Pengdi, one Seth, one Dinar, one Ore... their total amount combined equals the total wealth created by the tribe in a year. This way, tribesmen can conveniently use paper currencies of different denominations in the market to trade."
"Leader, replacing gold and silver coins with paper currency is an excellent proposal that, once implemented, will undoubtedly greatly promote the prosperity of the tribe’s trade!" Quintus sincerely praised, then switched the topic: "However... I still have a few questions."
"What questions?"
Quintus cautiously and softly asked, "The paper we are using now is relatively easy to damage. If it’s made into paper currency, tribesmen might only be able to use it a few times before it becomes unusable... And unlike gold, silver, or copper, each sheet of paper is exactly the same. Even if we write different denominations on them, when buying and selling things, especially when it comes to purchasing large quantities of goods, it’s easy to mix them up and make mistakes..."
"This is indeed a flaw of paper currency, but it’s also solvable."
Maximus, well-versed in paper currency, responded calmly, "The paper used for making paper currency will definitely differ greatly from the paper we usually use. It must be thicker and more durable, with a smooth surface and far superior quality than ordinary paper; this necessitates that the artisans in the Paper Making Workshop choose better paper-making materials and go through repeated experiments to possibly produce it...
Capito, you need to discuss with the artisans in the Paper Making Workshop and establish a team dedicated to manufacturing paper for currency. Aim to have this paper produced by the end of the year, and if successful, the tribe will reward them."
"Leader, I’ll go to the Paper Making Workshop to talk to Torimias about this matter after the meeting," Capito responded with slight excitement.
Maximus nodded and continued, "As for concerns about the paper currency being easily confused, this problem is even easier to address. We can create a large enough piece of paper currency for a denomination of approximately one Du Pengdi—"
Maximus gestured continuously with his hands, "A paper currency for a denomination of approximately one Seth made this size... a paper currency for a denomination of approximately one Dinar... The paper currency’s size can reflect the difference in denominations, and the larger the denomination, the larger the paper.
Additionally, we not only need to mark the denomination numbers on the paper currency but also need to draw different exquisite patterns on the paper currency of different denominations. This way, it makes it easier for the tribesmen using the paper currency to distinguish them and encourages them to value the paper currency and prevent its damage."
"Leader, after hearing your explanation, I can’t help but want to immediately obtain such paper currency to buy things." Gaius enthusiastically flattered.
Quintus, however, still frowned and asked, "Leader, what you mentioned are indeed good solutions. But if we want to produce small-denomination paper currency comparable to gold and silver coins, the combined total value must equal the total wealth the tribe creates in a year, which will inevitably lead to the production of a large number of paper currencies. To mark numbers and draw exquisite patterns on each sheet of paper, how many people would it require, and how much time would it take?"
"This issue is also easily resolved," Maximus exclaimed, looking at everyone and loudly declared, "We need to apply a new technology, which is Printing Technology!
Earlier, the school textbooks compiled by Kefisofon needed to be copied incessantly by a dozen or twenty people, taking time to distribute the textbooks to each teacher for teaching students... Every time our Political Affairs Hall issued decrees, the Secretariat also needed to copy dozens or hundreds of copies, then distribute them to various towns and villages...
But with Printing Technology, we wouldn’t need to expend excessive manpower and time. We only need to engrave the templates, prepare paper and ink, and in very little time, we can reproduce hundreds or thousands of copies of textbooks and decrees, all with completely identical content and handwriting, as they use the same template.
The same applies to paper currency: by utilizing Printing Technology, we can effortlessly produce hundreds of thousands, even millions of sheets of paper marked with values and adorned with patterns.
Of course, to successfully employ Printing Technology, the artisans of the Public Works Department will need to spend time and effort researching the techniques and processes of Printing Technology, just as the Paper Making Workshop should create suitable paper for the paper currency. I’m confident that success will be achieved eventually, and by then, I will personally design the patterns and values for the paper currency!"
"Leader, if Printing Technology, as you say, can easily replicate tens of thousands of identical books, that would indeed be wonderful!"
As a scholar, Kefisofon realized the significant impact this technology’s application would have on the dissemination of knowledge. He was quite thrilled and couldn’t resist asking curiously, "Leader, where did you learn about this Printing Technology? I have never heard of it before!"
"Whether it’s Printing Technology, Paper-making, or the application of paper currency to promote the tribe’s trade, all of these are—" Maximus swept his gaze across everyone and, with a very solemn expression, said, "Inspired by the Goddess Danu in my dreams!"
Not only Kefisofon but everyone present was stunned.
"Maximus is the scion of the Danu Goddess" has already become a consensus among the Nix Tribe, but most of the chiefs were skeptical. After all, they are either Romans, Latins, or Greeks, steeped in high civilization and having their own faiths; however, the beliefs they had clung to have become fragile and untenable in the face of Maximus repeatedly showcasing wisdom and knowledge far surpassing that of ordinary people and even the entire Mediterranean World.
"Thank the Danu Goddess for her protection!" With Karina’s pious chant, everyone involuntarily raised their hands, palms facing the sky, and respectfully bowed to Maximus while uttering the same words: "Thank the Danu Goddess for her protection!"
"The Danu Goddess will always guide the tribe, but it also requires our concerted efforts to overcome difficulties!" Maximus’s voice was clear and powerful, echoing in everyone’s ears.