Chapter 12: Fiscal Crisis

Why such an urgency over finances? It's because there's an immediate need to establish a permanent military force.

And why this haste in creating an army? It's due to an imminent, significant crisis threatening the domain. Without resources, soldiers, or funds, Gwenis feels insecure and vulnerable.

How did he come to know of this looming danger? The story goes back to a day earlier.

On the day Gwenis resolved the succession issue and took control of the castle, he not only accrued 1000 personal points but also activated a governance system, designed to aid in ruling his domain.

As the newly minted baron of a domain, he was allotted 1000 governance points. However, upon accessing the system's interface, Gwenis was met with an almost empty panel, devoid of selectable options.

In this bare interface, there was only a die to roll. Using it consumed all his 1000 points and set the die in motion, revealing options numbered 1-6 beneath.

Each option seemed to offer conveniences for a ruler to efficiently manage their domain. For example, option 1 might reveal a hidden mine, option 2 could ensure a year of twin births among the women, option 3 promised ideal weather for the year, and so on.

Gwenis's luck landed him on option 6, bestowing him with the single-use skill [Farsight](Level 1), which allowed him to foresee potential crises within the domain for the upcoming year. However, being only level 1, it offered mere warnings without detailed insights into the exact nature of the impending troubles.

This left Gwenis deeply concerned.

He was alerted to a massive, imminent crisis in 181 days but remained clueless about its specifics. Was it a natural disaster or human-induced turmoil? He had no clue.

But Gwenis reasoned that with full granaries, a treasury overflowing with gold, and a castle staffed with elite guards, he could face any challenge. Unfortunately, he found himself in the exact opposite situation – not just resourceless but in debt.

After confining Sophia to the dungeon, Gwenis uncovered the domain's ledger in her study. While the previous baron's tenure showed detailed and balanced financial records, Sophia's two-year financial management left much to be desired. The ledger recorded incomes but was vague on expenditures, with numerous blank spots and signs of tampering.

Upon thorough examination, Gwenis discovered that Sophia hadn't just left him penniless; she had accumulated a substantial debt, owing around 300 gold coins to various entities, precisely 304.8 coins.

It was a dire situation.

Yet, given the circumstances, Gwenis knew these problems had to be addressed one at a time.

He summoned Baldwin for a detailed briefing.

It turned out that the manor housed 400 people (excluding serfs), and the castle – with its guards, maids, smiths, stable hands, cooks, and other workers – harbored an additional 120. In total, Gwenis, as the baron, was responsible for the sustenance of 520 souls.

As their lord, it was imperative for him to ensure their daily nourishment. If they were to go hungry under his watch, it could spell trouble in the long run.

Next on his agenda was income assessment.

Assuming timely tax payments from all subjects, the castle was estimated to receive about 118,700 kg of barley and rye annually. Coupled with the manor's own production from 200 acres of main crops, yielding 54,600 kg (minus seeds, leaving 48,300 kg), the total amounted to 167,000 kg of barley and rye.

Under USDA guidelines, an adult's daily caloric need is between 2400-3200 kcal. Given the era's differences and the inhabitants' smaller stature compared to modern people, a reduction is sensible, but ideally not below 1800 kcal.

Calculating staple food needs, using rye as an example, each adult in the castle and manor requires at least 0.4 kg daily (supplementing missing calories from other sources). Though many are women, elderly, or children, and could consume less, considering inevitable food waste, storage losses, and other factors, a daily per capita consumption of 0.35 kg is a reasonable minimum.

Anything less could spell trouble.

Annually, this results in a consumption of around 66,000 kg of staples.

With an income of 167,000 kg and outgoings of 66,000 kg, there's a surplus of 101,000 kg.

But a portion must be set aside for emergencies, reasonably half, leaving about 50,000 kg for sale.

This surplus converts to 9,616 copper coins, about 40 gold coins.

Yet, these 40 gold coins also need to cover staff wages.

Guards, risking their lives daily, deserve more than just meals; they need monetary compensation. Unpaid and deprived of even a sip of ale, wouldn't they feel resentful? Having disgruntled, armed guards around, could one sleep peacefully?

So, some remuneration is necessary.

Gwenis reviewed past payment records.

Historically, each guard received 2 copper coins monthly, maids and laborers 1, deputy and chef 4, and the highest, the guard captain and blacksmith, 6 coins each.

The steward was paid a silver coin monthly.

The annual wage cost was around 2,800 copper coins, equating to 11.6 gold coins.

This leaves a fiscal residue of 28.4 gold coins.

However, this doesn't signify an annual surplus, as this amount also needs to cover fixed external purchase expenses.

Despite self-sufficiency, the castle and manor can't operate in isolation. Items not produced locally must be imported.

For example, salt is a staple, essential for cooking and livestock health. It's a regular purchase, typically priced at one copper coin per pound for coarse salt, with refined salt costing more.

Aside from salt and iron, other essentials like fabric are significant expenses. Nobles can't be expected to wear the same clothes as commoners, requiring regular wardrobe updates and repairs, not to mention other small essentials like needles and threads.

In essence, anything not produced locally must be purchased externally, including mundane items like candles, lamp oil, paper, ink, and soap. These bulk purchases also contribute to substantial costs.

Gwenis could bear it until he saw wine as a major expense.

Grape wine, indeed.

He internally berated Gideon and his family for their wastefulness, choosing expensive imported wines over local brews.

With a deep sigh, Gwenis faced the reality.

Upon his arrival, he inherited a 300 gold coin debt, while the domain's financial situation was severely strained. Even meticulous management barely yielded any annual surplus, let alone considering some people's reckless spending habits. In just two years, the financial authority had accumulated a debt amounting to seven and a half years of income, interest not included.

The idea of repaying debts as a baron in another world caused Gwenis's lips to twitch in frustration, almost compelling him to vent his anger on Sophia and her kin in the dungeon.