Steel, Guns, and the Industrial Party in Another World-Chapter 583: Commercial Insurance
Chapter 583: Commercial Insurance
TL: Rui88
“Oh, you have no idea. How difficult it used to be for those who opened factories to recruit workers. Generally speaking, factory owners were city people, and their factories would be near towns. But the people who lived in the city before had their own livelihoods to support their families and were not very willing to work in factories. And when they went to the countryside to recruit, they couldn’t hire many people because of all sorts of obstructions from the local tyrants. Now it’s much better, hehe.”
As he said this, Gellit had a smug look on his face. “I recently hired a few young lads from the countryside to help out, and it feels really good. Country folk are great. They’re obedient and hardworking. They do whatever you ask them to do and don’t haggle. They take half the wages and do the work of two people, unlike the crafty city dwellers.”
Although Stanford did not entirely agree with his friend’s last words, he did not intend to argue with him. From the information in this conversation, it seemed that in the future, the political status of the landlords in the countryside would be no different from that of ordinary peasants.
But was Count Grayman really not worried that his radical measures would lead to some serious consequences? One had to know that his army was full of young officers from landlord families. Thinking of this, Stanford inexplicably remembered a young man on his ship, a weapons administrator assigned to the exploration team by the navy. During the long sea voyage, he had chatted with the young man several times and heard him complain about something…that promotions in the army in recent years had been somewhat biased towards those from ordinary families. And this young man came from a gentry family that was quite prestigious in his hometown. Feeling that there was no hope for promotion by seniority, he decisively signed up for the overseas exploration team in the hope of earning some merit, which was how he was assigned to Stanford’s side.
Perhaps Count Grayman had long been prepared? Stanford was also a little unsure.
Just like that, Stanford and his friend Gellit chatted all the way, entered Lakeheart Town together, and then parted ways in the city center. At this time, the center of Lakeheart Town had already moved to the heart of the new district on the south bank of Lake Weiss. Gellit went to attend to his business, while Stanford continued to the lord’s residence for an audience with Count Grayman.
……
“Our new policies in the countryside have not met with any active resistance.”
In Paul’s office, several key members of the Administration Council were present. A small meeting was underway. Hansel, the head of the Department of Agriculture, was ing the latest situation to Paul.
“However, those whose interests have been affected by the new policies…those country squires and landlords…are certainly resentful. I have communicated with some of them.”
Hansel said with some concern, “Many of them say they will faithfully obey the orders from Lakeheart Town, but the grievance, even indignation, revealed in their words and tone… cannot be concealed.”
“Grievance?” Hearing Hansel say this, Paul raised his eyelids. “Alright, it’s reasonable to think that way. If the king were to kill Jars now and then strip me of my title, I would feel aggrieved too.”
“But!” he said firmly, “I have no intention of retracting my order.”
Paul stood up from his chair and came to the middle of the room. He paced slowly for a while, as if thinking.
“I will compensate them in other ways, as long as they are willing to invest their wealth in new industries…opening factories, engaging in commerce. I will grant them tax reductions, and even provide subsidies.”
“Oh, I think that is just wishful thinking on your part.” Hansel shook his head, expressing pessimism about Paul’s words. “Before, all they had to do was lie at home, and silver coins would automatically flow into their moneybags. Land was a wealth-producing machine that never stopped. No matter what, it was a sure profit, a guaranteed income…anyway, the tenant farmers bore the losses. In a good year, they collected a little more rent; in a disastrous year, they collected a little less. It was just a matter of more or less.”
“But what if they go into business? Doing business requires capital, especially for those landlords who are used to a comfortable life in the countryside. Production sites, experienced workers, supply and distribution channels…they have to figure all of that out from scratch. In this situation, who can guarantee that they will make a steady profit? Not to mention, the market situation changes too quickly. Even experienced people who have been immersed in it for many years can lose everything if they are not careful. To make a fortune, one needs to put in a great deal of effort to summarize and study the laws of the market, and the summarized laws may not even work in certain special situations. Therefore, compared to the new industries that require painstaking effort and bear huge risks, I think those squires still prefer the pastoral life of the past.”
“Sigh!” After hearing Hansel’s analysis, Paul let out a helpless sigh. The inertia of tradition was too great, and most people were also accustomed to choosing things they could foresee.
“Ah!” He suddenly stamped his foot forcefully, and his previously furrowed brow relaxed. “I’ve suddenly thought of a good idea.”
Without waiting for others to ask, Paul eagerly introduced his new idea.
“I plan to have the bank launch a new type of business…commercial insurance.”
Commercial insurance? Hearing this term for the first time, everyone looked at Paul in confusion.
“Yes, commercial insurance.” Paul explained, “To summarize, it’s about paying a small sum of money to the bank for… insurance before doing business. If your business doesn’t lose money, then that small sum is earned by the bank. But if your business loses money, then the bank gives you a sum of money as compensation for your business losses.”
Paul did not know much about insurance before he transmigrated. He was just explaining this new concept according to his own understanding.
“This is a novel idea,” said Old Ford, the head of the Administration Council. “It can reduce the fear of losing money among business people. But… won’t the bank lose money this way? Where would we get so much money?”
“Oh, my dear director.” Paul explained to Old Ford and the others, “Let me give you an example. Suppose I offer an insurance policy for a price of 10 silver shields. The person who buys my policy can receive 20 silver shields in compensation in case of an accident. Now, 10 people have bought my policy. I have received 100 silver shields. Two of the 10 insured people lost money in their business, while the other 8 did not. So, I only need to pay 40 silver shields to those two people, and I still have 60 in my hands. Isn’t that a profit? And a portion of these 60 silver shields can be invested elsewhere to earn more money. If nothing happens, just letting them sit in the treasury will only cause them to rust.” R̃αꞐổʙΕ𝐬
Old Ford asked, “But what if all 10 people lose money?”
Paul exclaimed dramatically, “Heavens! Surely we won’t encounter such an extreme situation, right? Besides, we can, through careful design, make it so that…” Then he suddenly waved his hand. “Forget it, forget it, that would go against my original intention.”
Everyone discussed Paul’s idea of launching an insurance business, and in the end, they all felt it could greatly encourage people to invest in new industries. And so, it was decided.
Chapter 583: Commercial Insurance
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