T/n: My apologies if there are any mistakes, because I don’t really have a good understanding of business transactions like this either.
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TL: ALT
Chapter 16 – Long-Term Sugar Contract Part 1
William explains the details of the deal to the local governor.
He will demonstrate at a party in the capital and, depending on the response, he hopes to increase the volume of the deal quickly.
Sugar has many uses.
It is used in tea, of course, but it is also used in large quantities in sweets.
“The nobles are often very impatient, and if I’m slow to respond, my head could be on the line.”
“Wow, your life’s on the line? If it’s something you don’t have, you can’t make it appear just by waving your sleeve.”
“That’s right. Some of them are brilliant, but many of them are unforgiving towards the common people.”
William makes a gesture of cutting off his own head with his hand.
He tries to speak cheerfully with a smile, but the reality is probably quite harsh.
Wataru listened to the story with a gasp and thought it was a terrible situation.
“So you’re saying that there’s a possibility that a large amount of sugar will be needed?”
“Yes. The next time a large amount of sugar is needed, how much will you be able to prepare?”
“It depends on the number, but… about 100 bags, I think.”
“100 bags? Not 10?”
“Y-yes. It might take a little time to transport, though.”
With the amount of Japanese yen he had in his possession looking like it was going to be tight, he would have to make some money somehow if he was going to be able to prepare a substantial amount of sugar.
In this sense, Wataru had expressed his opinion in a reserved manner, but William, who had maintained a smile on his face until then, had his eyes widened in surprise on this day.
This was the reaction he had when he heard an answer he had not expected at all.
“(Oh no, I think I might have messed up…)”
From Wataru’s point of view, he had given a modest amount, but in terms of value here, it would be the equivalent of a huge pile of gold coins, not a small pile.
“I don’t want to doubt you, but is this definitely an amount you can prepare?”
“I think it will be fine. However, I can’t guarantee that there won’t be any unforeseen accidents.”
“Well, even if you try to avoid attacks from monsters and bandits, you’re bound to run into them at some point. You can’t help but accept that.”
“(There is no guarantee when the gate to the Jizo statue and shrine will close. It was difficult to make a definite promise, but now that we’ve reached a certain level of agreement, I think that’s good enough.)”
There was a slight discrepancy between the problem that Wataru imagined and the problem that William imagined.
However, the result was the same, so there was no need to correct it.
More importantly, he was able to hear information about the possibility of being attacked by monsters and bandits.
“(The importance of Aire’s weapons has increased even more… I want to get something now, even if it’s just a stick.)”
“Hmm, hmm. With this, we will definitely be able to fully satisfy their demands. It is also a great opportunity for me to expand my sales channels.”
“Will it sell that well?”
“Yes. The nobles are very proud. Of course, this is also an important political force. Therefore, they will not spare any expense. However, as I said before, it is very difficult to pay in gold coins all at once as compensation.”
Of course, as long as gold is used to mint gold coins, there will be a limit to the amount of money that can be produced.
Even with paper money, 100 million yen would be about 10 kg, wouldn’t it?
Even if he were given several hundred gold coins at once, he would probably have trouble carrying and storing them because they would be too heavy and bulky.
“It looks like there’s nothing to worry about in terms of procurement. If that’s the case, there is one problem.”
“Is it the thing you talked about yesterday about securing cash from procurement to sale?”
“Yes. Ten gold coins for one bag of sugar. This time, the negotiations will go far beyond that.”
If the last time, the deal was worth 10 million yen, this time, it will be worth 100 million or even 1 billion yen.
He has no real sense of the large sums of money he has never dealt with before.
Until a few days ago, he was struggling to pay tens of thousands of yen in municipal taxes.
“Normally, when dealing with such large sums of money, it’s limited to merchants and nobles. In such cases, it’s common to use bills issued by guilds or the government, but you, Wataru-sama, work as an individual, don’t you?”
“That is correct. I’m not a member of any guild in this country. And I’ve never done any exchange business.”
Although he hadn’t told William anything concrete, he knew some of the circumstances.
Wataru decided that it would be better to avoid misunderstandings by hiding things.
A bill of exchange is like an IOU that says when payment will be made.
However, loans are not made between individuals but by organizations such as banks and commercial guilds.
When it is between merchants, there is a huge advantage to being able to do large-scale business without having to carry cash around by exchanging notes with each other.
Note transactions are not something anyone can do.
In modern Japan, if a bank decides that it is safe to handle the transaction, taking into account things like the financial situation, then the transaction can be done.
In a sense, it is proof that a third party has given its trust.
“If that’s the case, it will take some time for you to wait from when I receive the goods to when I can cash them.”
“Is it difficult for individuals to pay by bill?”
“No, it is not difficult for us to give you the bill. The problem is that it takes time and effort for you to convert the bill into cash.”
“Well, is there anything we can do about that?”
If it’s a bill, the general method of cashing it is to take it to the commercial guild of which Welcome Trading Company is a member.
However, this will only be done after the date written on the bill, and basically, no advance payment will be made.
So, from Welcome Trading Company’s point of view, it’s as if they’re saying that they’ll definitely have the money ready by a certain date, so please wait a little longer.
If Wataru wants to get the money before the due date, he will have to use ‘bill discounting.’
This is a method where he asks the guild to collect the money because he wants it before the due date.
The guild or exchange company will take the risk of collecting the money, so the payment will be deducted.
Unless Wataru suddenly needs a large sum of money for some reason, or he hears that Welcome Trading Company is suddenly in financial trouble, there is no point in going to the trouble of cashing the bill before it is due.
If Welcome Trading Company is unable to provide the promised money by the due date, it will be what is commonly referred to as a ‘bounced bill.’
The guild’s confidence in the merchant will be greatly diminished, and they will be denied credit or have their credit recalled, which will have a major negative impact on future transactions.
Therefore, in this case, the bill can basically be cashed without a problem.
“Are you planning to join the guild? If you need it, I can make a recommendation to the guild on your behalf.”
“I’m not thinking about it right now. There seem to be a lot of advantages, such as trust, but I want to enjoy my free position for a while longer.”
“I see. Then can we only pay what we can for the first transaction, and for the next and further transactions, can we pay as much as possible in cash and ask you to wait for the rest?”
William said with a determined expression as if he was asking Wataru for his decision.
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Thanks for the treat.👍
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If there is problem with available coins, they might try bartering with some non-perishable goods to make up the difference. And if plain sugar is that much good business, I dread to think what would happen if he tried to sell some jewelry with synthetic gemstones.
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