Chapter 10: The Chamber of Commerce and the Fleet

Early the next morning, Isaac stepped out of his room.

After breakfast, he went to the reception room.

John was sitting in the main seat, handling business, while William sat idly by, listening.

Isaac sat down and waited quietly.

Since Marquis Gian fell seriously ill, John had been handling all of Montferrato's affairs.

While he could not be said to be adept at handling government affairs, he was at least experienced.

After a while, John dismissed the last visitor, signed the final decree and stood up to rub his sore eyes.

'My dear brother, I apologise for not having time to accompany you. This afternoon, I will let William show you around Montferrat."

'It's fine, my dear cousin. I have come here to ask for your help with something.'

"Oh? What is it? We'll do whatever we can to help.'

John straightened up.

"It's like this: I plan to set up a chamber of commerce in Genoa, and I would like to ask you to use your influence in northern Italy to help me make connections.'

'A chamber of commerce? Why not establish it in Constantinople?"

John was a little puzzled.

Isaac had no choice but to explain the reason to him in detail.

'Currently, Genoa and Venice are the two most influential commercial republics, controlling more than half of Mediterranean trade.'

At that time, trade routes brought more than just money.

Slaves, people, talent, culture and technology were all exchanged along the trade routes.

All these things were exchanged along the trade routes.

It was just like the financial centres of later generations.

Constantinople was no longer as glorious as it once was, however, and trade was completely monopolised.

Registering a chamber of commerce in a commercial city-state would offer many advantages.

These included advanced ships, qualified sailors, stable currency, abundant commodities, colonial ports throughout the Mediterranean and powerful naval protection.

This attracted nobles from various kingdoms to register their businesses in northern Italy.

The commercial city-states would, of course, not refuse this. Ships had to be purchased from them, people had to be recruited from them and taxes had to be paid.

Furthermore, the commercial city-states would take this opportunity to infiltrate other countries with their currency system.

For every ducat spent, stamp duty had to be paid to Venice.

This ensured that wealth and talent would flow to the commercial city-states.

Countless trade and financial powers in later generations played the same game.

The main difficulty arose from within the commercial city-states themselves.

They were very xenophobic. You either joined them or waited to be plundered by pirates.

This is also why Isaac wants to cooperate with Montferrat.

This is his second plan and crucial to the success of the final one.

'Here's what I have in mind,' he said. 'We will focus on three main businesses: grain, books, and slaves. I can produce the books myself, while the Black Sea coast is known for its grain and slave trade. We can leverage Constantinople's connection to the Black Sea to secure good profits.'

Isaac paused and looked at his two brothers.

William didn't seem to care, but John fell into deep thought.

Setting grain and slaves aside, books were definitely a surefire business.

Moreover, Montferrat could also receive a share of the profits.

In any case, let's give it a try.

'Isaac, I don't think we need to transport grain from the Black Sea. We can supply it ourselves in Montferrat. Since you have a naval fleet, we could try transporting cheap grain from northern Italy to North Africa and selling it at high prices to the infidels there."

'In addition, I can help you invite a few more noblemen I know. Your book business has low overheads and high profit margins, so someone is bound to be interested.'

'With the Pope backing you, you won't encounter any overt difficulties.'

'As for the slave trade in the Black Sea, don't get involved. It's taboo for the Genoese.'

'Instead of letting those booksellers make money, let's do it ourselves.'

John spoke at length, opening Isaac's mind.

He spread out a map and marked four points on it.

Rome, Genoa, Tunis, Athens.

The fleet would depart from Rome, transport the books to northern Italy for sale — this would be the first step.

The abundant grain from northern Italy would then be loaded onto ships in Genoa and shipped to Tunis in North Africa for sale at a discount. This would be the second step.

The profits would then be sent to Athens to purchase slaves; the slave trade in the Black Sea would be handled by slave traders.

The fleet would then sail along the Adriatic Sea, selling slaves en route, which would be the third step.

Finally, they would return to Rome with a large sum of money.

In a few words, he outlined a well-established trade route.

Of course, specific situations must be dealt with individually.

For instance, if war subsided on the Black Sea coast and slave prices rose, they would return directly from North Africa and abandon this sector.

If this trade route could be realised, it would certainly be highly profitable.

Over the next few days, John hurried around, introducing Isaac and his ideas to people all over the Piedmont region.

Many nobles showed interest.

Ultimately, those willing to invest gathered at Barriolo Castle in Monferrato.

Isaac introduced them to the main business of his merchant guild.

Then he produced several exquisite printed books and the Pope's edict.

The nobles, who had been sceptical, were immediately convinced.

They asked specific questions, which Isaac answered one by one.

John recommended it to him strongly.

"Henry, as the second son, you will not inherit the land. While your parents are still alive, you should prepare for the future. Otherwise, what will you do then?'

'Karl, your family produces a lot of grain, but do you know how much the Savoy and Milan merchants have suppressed the prices?'

'Lyon, you often complain that we don't have a navy, meaning we have to hire a fleet every time you want to do business. How can you pass up this opportunity?"

The nobles mentioned exchanged glances.

The oldest of them, Count Karl, stood up.

'John, we all trust your character, but…'

He turned his gaze to Isaac.

'Will this Byzantine prince squander our investment on a war with the Ottomans?'

Isaac also stood up slowly.

'I can guarantee that I will not drag the entire chamber of commerce into war. You will receive your share in full. We can set up a headquarters in Montferrat to oversee the flow of funds.'

Isaac sneered.

'As for my share of the profits, that's none of your business. Even if I spend it all in Constantinople, that's my own business!"

Everyone stared at Isaac.

Karl spoke slowly.

'Then let's sign the agreement.'

According to the agreement, the Montferrat Trading Company would be registered in Genoa, pay taxes, and enjoy Genoa's trade protection. The noblemen of northern Italy would use their influence to ensure the company's successful registration. Isaac pulled out all the gold coins he had on him — two thousand three hundred ducats in total — and promised to increase his investment to fifteen thousand within the next year.

John invested 5,000 ducats.

The remaining thirty or so nobles of various ranks subscribed for a total of 20,000 ducats.

Isaac's fleet was included in the Chamber of Commerce's share.

There were also some miscellaneous investments, such as warehouses, sites and transportation.

Ultimately, Isaac held a 51% stake and John held 15%.

The Palaiologos family held a total of 66% of the shares.

The meeting decided to establish a council in Monferrato. Isaac sent an urgent letter to the chief administrator, André, asking him to preside over the council once he had finished the printing work in Rome.

He left the affairs in Rome to his assistants.

Isaac and John were busy with work throughout February.

On the last day of February, the general manager finally arrived, bringing with him the month's income from printing indulgences, amounting to 6,000 ducats.

He also brought news from Byzantium.

The situation in Junburg remained dire, with constant infighting.

Meanwhile, in Athens, the Grand Duke of Florence had reached an agreement with Constantine: he would pay 20,000 ducats in tribute and allow a garrison to be stationed there in exchange for retaining his title.

The Great Wall of Corinth was reinforced once more. Following the advice of the Italian firearms engineer Martinez, Thomas incorporated numerous small designs to counter cannon fire.

The first group of refugees from the north had been settled and were preparing for the first round of spring planting.

Ibrahim's arrogant plundering aroused the anger of Epirus, who gathered a large army to surround and attack him.

However, it was impossible to hide the gathering of a large army in the Middle Ages.

Captain Kerman learned of Epirus's plans in advance and informed Ibrahim.

Hundreds of mounted archers fled in disarray, leaving Epirus's army helpless.

"Well done."

Isaac listened to Lothair's report with satisfaction.

This was André's youngest son, who was learning management from his father.

The 14-year-old was enthusiastic, diligent and loyal to Isaac.

Andrew was going to represent him in managing the Montferrat Trading Company for the foreseeable future, and Isaac instructed Little Lothar to shadow him closely.

Using the initial funds provided by the nobles and the money brought by André, Isaac planned to expand his fleet.

This time, he planned to purchase ships in the company's name.

With the help of northern Italian nobles, Isaac brought William to Ajaccio, Corsica, one of Genoa's colonies at the time.

Ajaccio was the largest port city in Corsica. The people here lived primitive lives, and the Genoese did not seem willing to bring prosperity to the colonists.

The island had limited arable land and most people lived by fishing and hunting, developing a fierce and rugged character.

There were many private shipyards on the island, built by Genoese and Pisan nobles who exploited the cheap labour and abundant timber resources of the island to enrich themselves.

It turned out that the oar-powered warships that Isaac had purchased earlier had cost him dearly.

Here, a medium-sized paddle-sail warship cost less than 1,000 ducats. With cannons and sailors, the total cost was only 2,500 ducats.

Commercial transport ships and small corvettes were even cheaper.

After discussing the matter with William, Isaac decided to purchase four medium-sized paddle-sail warships in the first batch, each equipped with 80 sailors and 10 cannons.

They also decided to purchase 15 commercial transport ships without cannons, each of which would be equipped with a small crossbow at the bow and stern.

After some haggling, they agreed on a price of 15,000 ducats, with delivery expected the following month.

The Roland knight was delighted to have secured such a significant contract and invited Isaac and his companions to visit the shipyard.

"Knight Roland, does your master's shipyard only build small ships?" "

As they walked along, Isaac noticed that there were hardly any large warships in the shipyard, just warships and transport ships.

'Prince Isaac, it's not that we don't want to build them, but large warships are considered strategic weapons everywhere.'

'The governor turns a blind eye to these small ships, but strictly forbids us from privately building large ones.'

Roland looked troubled.

'You're lying! Last year, Count Anjou bought a carrack from you!'

William loudly exposed Roland's lie.

Roland refused to admit it.

'If you want to buy one, go to the government.'

Of course, if we could afford a proper ship, we wouldn't come to you.

'Speaking of which, aren't you involved in Mediterranean trade? You don't seem to need large ships for ocean voyages, do you?'

Roland was a little confused.

Isaac smiled and didn't ask any more questions.

In the evening, the shipyard owner invited Isaac and William to dinner.

"Hello, dear friends!"

'My name is Niccolo Snopia. Welcome!"

Isaac's expression changed.

The Snopia family was one of the most important families in Genoa.

The fat merchant pretended to be enthusiastic, narrowing his eyes so that his true emotions were unreadable.

'Your shipyard has impressed me, dear sir. I hope we will have the opportunity to work together in the future!"

Isaac also walked forward enthusiastically.

Although the two had never met before, they seemed like old friends.

They took their seats and the banquet began.

Everyone drank a lot, and when it was time to return to their rooms, Isaac helped the drunk Niccolò.

He seemed very drunk and was boasting.

"Our family is powerful and influential! We even have people in the navy..."

'We can even have some ships retired early...'

Isaac smiled and whispered in his ear.

'Dear Mr Niccolò, what do you plan to do with those old ships?'

'We will decide ourselves.'

The governor has no say in the matter.'

After a while, Niccolo suddenly sobered up.

He regretted revealing information to Isaac while drunk and asked him to forget about it.

'Sir, since the ships are being retired, why not sell them to me? I plan to use them to attack the heretics' fleet and spread God's gospel!"

'For God? But..."

'Sir, even the Pope would praise this!'

'This is probably against the rules...'

'Eight thousand ducats.'

"Deal!"