Crisis Of Surplus

Edward accompanied the Swedish merchant to the Lübeck Stock Exchange. The Swedish merchant gazed curiously at the trading hall. A few speculators sat in their chairs, staring at the blackboards. One board displayed beer futures, while the other listed artillery futures (with physical commodities).

The Swedish merchant seated himself before the board showing beer, asking Edward, "So, if I buy paper contracts at the real-time prices on this board, I'll be able to exchange them for beer once the contract matures?"

Edward nodded, "Yes, what do you think of this trading method?"

The Swedish merchant, excited, replied, "This is fantastic. I'll start with 100 barrels of beer. How do I proceed?"

Edward pointed to a nearby attendant in a red vest. "You can speak with him, and he'll bring the contract to you. Then, just fill in the quantity, sign, and place your handprint. Once the payment is made, you're good to go."

The Swedish merchant called over the red-vested attendant, and with Edward's guidance, signed the contract and stamped his handprint. He even took the time to carefully read the clauses, thoroughly satisfied with the agreement.

An attendant from the Jewish goldsmiths, stationed at the exchange, came over to assist with the transaction, and soon, the deal was completed.

"This is so convenient; I'm very satisfied. Thank you, my friend," the Swedish merchant exclaimed.

Edward smiled, "Would you like to buy some artillery? The price is currently low, very affordable."

The Swedish merchant shook his head, "I'll pass on the artillery. It's not something ordinary people need. It's a specialized commodity, and I have no interest."

Edward's smile faltered slightly, but he quickly regained his composure. He shifted the topic, chatting about women, poetry, and romance. After a pleasant exchange, he saw the Swedish merchant off at the exchange.

Meanwhile, in the Lübeck City Hall, Mayor Heinrich von Rad was reading a report. It was about Edward, who had been rising swiftly, catching the attention of many, including the mayor.

Heinrich von Rad, also a Hansa merchant, specialized in iron products—turning raw iron into various tools. His family ran several craft workshops and owned their own trade fleet, as well as an armed fleet.

His family had been established in Lübeck for over a century. The rapid rise of the young Edward, a newcomer to Lübeck, had caught the attention of the old families, including Heinrich's.

Heinrich closed the report and burst into laughter. "Ha! This young man, Edward, is quite something. Bold as a bull, fearless of tigers. He's interesting indeed."

"Military industry, now that's the oddball of all industries—the one that drains resources. Normally, the military industry is barely alive, reliant on municipal orders and subsidies, surviving on the hope of war. Without war, the industry's just dead weight. But when war erupts, it becomes a golden machine—cannonfire, and gold flows in."

"Military industry is crucial for any power, but when there's no war, it's a burden. The Lübeck military industry has already ceased subsidies since the war ended, and it's supposed to resume now, but then Edward pops up, taking over the artillery business. He's essentially replacing the municipal orders."

"He's making a fortune from war-related supplies, but once he's out of business, the subsidies won't return. So, Edward will have to give back those profits before his business goes under."

"Making money from war is that easy, huh?" Heinrich chuckled to himself, deciding not to concern himself further with the young man. Edward's foray into the military industry was destined to fail.

"A military industry only flourishes in times of war. For us, peace is our business."

Heinrich's goal was to lead the Hansa League to international prominence, expanding beyond Germany to include British and Swedish merchants, creating a worldwide trading alliance based on peaceful commerce. The military industry, he thought, had no place in such a world.

"Without enemies, who needs an army?" Heinrich mused, convinced that Lübeck had no enemies to contend with. His true adversary, Denmark, had already been subdued. In the world of the Hansa League, everyone was a friend.

"Who needs a military when there's no enemy? Everything we do is driven by peace," he reflected, brushing off the young Edward's ambitions.

Back at the Lübeck Stock Exchange, Edward's mood darkened. To maintain prices, Fat Baron had been absorbing the surplus artillery, but there was almost no demand for it. While there was some demand among Hansa merchants, the Hansa League had existed for many years, successfully curbing piracy and rendering artillery a redundant commodity.

Edward realized that he had confused the image of Germany he had in his mind. Growing up, he had been impressed by the disciplined German football team, associating Germany with ambition and strength. But Lübeck in 1370 was focused on peace, not war.

In his memories, Germany had been full of conflict, reminiscent of the Spring and Autumn period in China, with smaller states fighting each other. Edward had hoped to follow the path of Prussia, with ambitions of rising from a baron to potentially becoming a king or even an emperor.

However, Lübeck's focus on peace was a stark contrast to his vision of conquering industries, including the military sector. It was a sector that, in Edward's eyes, needed to be controlled, but now he was faced with a surplus and no buyers.

The issue was dire. If left unresolved, both Edward and Fat Baron's funds would be drained. Edward needed to act swiftly, so he turned to Fat Baron.

"Fat Baron, issue the orders. Half of the workforce at the six factories in the Lübeck Arms League should be fired. Cut production by two-thirds."

Baron hesitated, "Boss, should we just abandon the military industry? It's such a trap. Or perhaps we could lower prices, buy artillery at a ridiculously low cost to reduce pressure?"

"We can't abandon the arms industry, and we can't lower prices. We'll maintain the current prices. This will serve as a strong incentive for the artillery factories to obey our commands."

"What if they refuse to cooperate?" Fat Baron asked.

"Then we'll expel them from the Arms League and stop all transactions with them at the exchange."

"But even then, there's still no market for it," Baron protested.

"I'll create the demand," Edward declared, already formulating a plan. "My brother, Baron von Stein, will help absorb the surplus."

Edward had already determined his next move: if there was no war, he would create one.